A PROJECT PROPOSEL IN MUSHROOM CULTIVATION

Oyster Mushroom (Pleurotus ostreatus)

I. Proponent: Fr. Nilo C. Laput, TOR et al, Purok Sto. Niño, Sta. Filomena, Iligan City

II. Project Site: Franciscan TOR, Ascension Hill, Sto. Niño, Sta. Filomena, Iligan City

III. Rationale

The mushroom industry in the Philippines, based on the study conducted by Chang, et. Al.
(2013) is dominated by many small-scale producers. However, there are also several large-scale
producers, of which are located around the areas of Tagaytay, Batangas and Baguio City, and in
Visayas-Mindanao areas.

In Northern Mindanao, Lanao del Norte has the highest production volume for the past five
years with a decreasing trend from 27 metric tons in 2008 to 10 metric tons in 2012. This was
followed by Misamis Oriental as the second producer of mushroom in the province with a
fluctuating volume of 3-6 metric tons. Camiguin province produces annually a minimal volume of
around 200-300 kilograms from 2009-2012.

Due to a limited local production but with increasing demand for fresh and processed
mushroom, it was estimated that the country imports around 150 metric tons (MT) of button
mushrooms in 2012, mostly from Tawian, China, Thailand, and Japan.

With this inversely proportional of decreasing trend in production with ever increasing
demand for fresh mushroom in the country and to take advantage of the identified agri-based
opportunity, thus, this mushroom project is proposed.
IV. General Assumptions

1. One thousand (1000) fruiting bags will be produced per month 800 grams media (6x12”
PP plastic) each with 5% contamination rate.
2. Thirty-three bottles of grain spawn sorgum are needed to inoculate 1000 fruiting bags at
Php75.00 each.
3. Inoculated fruiting bags will be allowed to be colonized in the average of thirty days.
4. Fifty percent of the net quantity of colonized fruiting bags will be sold at Php25.00 each
and the remaining number will be used for the production of mushroom fruits.
5. Average production is about 400 grams per fruiting bags to be sold at 180.00 per kilograms
with harvesting run for more or less 3 months.
6. Every 1000 fruiting bags will need 20 bags of quality sawdust with a landed cost of
Php20.00/bag.
7. Three bags fine rice brand at Php800.00/bag.
8. Eight kilograms of fine agricultural lime at Php25.00/kilogram.
9. Two kilograms of compete fertilizer at Php25.00/kilogram.
10. Four kilograms of molasses at Php30.00/kilogram.
11. Polypropylene (PP) plastic will cost Php0.50 each.
12. Three thousand six hundred pieces of plastic pakcing materials are needed at
Php0.50/piece.
13. One unit mushroom house will cost Php50,000.00.
14. One knapsack sprayer will cost Php3,000.00.
15. Fruiting bag bagging fee at Php2.00 each times 1000 costs Php2,000.00.
16. Five plastic crates are needed at a cost of Php500.00 each.
17. One electronic and digital weighing scale is to be acquired at a cost of Php4,500.00.
18. Plastic sealer, 1 unit at Php1,000.00.
19. Two scissors are needed at Php100.00 each.
20. Selling price of products and prices of supplies and materials will increase by 7% per
annum.
 V. Projected Income and Expenses (five years)

YEARS
PARTICULARS
1 2 3 4 5
1. Revenue*
a. Mushroom fruiting bags
450bags x 400g/1000 x 180.00/kg 4 cycles 129,600.00 138,672.00 148,379.04 158,765.57 169,879.16

b. Colonized fruiting bags

135,000.00 144,450.00 154,561.50 165,380.81 176,957.46
450 bags x 25.00/bag
TOTAL 264,600.00 283,122.00 302,940.54 324,146.38 346,836.62

2. Expenses
2.1. Supplies and Materials
a. Mushroom house 5mx7m (local materials) 25,000.00 26,750.00 28,622.50 30,626.08 32,769.90
b. Sawdust, 240 bags x 20 4,800.00 5,136.00 5,495.52 5,880.21 6,291.82
c. Fine rice brand, 36 bags x 800.00 28,800.00 30,816.00 32,973.12 35,281.24 37,750.93
d. Fine lime, 2.4 (40 kgs/bg) at 200.00/bg 480.00 513.60 549.55 588.02 629.18
e. Molasses, 48 kgs x 30/kg 1,440.00 1,540.80 1,648.66 1,764.06 1,887.55
f. Complete fertilizer (14-14-14), 24 kgs x 25 600.00 642.00 686.94 735.03 786.48
g. Polypropylene plastic 6”x12” x .002; 12,000 x.05 6,000.00 6,420.00 6,869.40 7,350.26 7,864.78
h. Platic packaging bag 6”x10” x .002; 10,800 x 0.5 5,400.00 5,778.00 6,182.46 6,615.23 7,078.30
i. Knapsack sprayer (16 lit. cap.) 2,500.00
j. Digital weighing scale 4,500.00
k. Plastic crates 2,500.00
l. Plastic sealer 1,000.00
m. Scissors 200.00
n. Miscellaneous 7,812.00 7,759.64 8,302.81 8,884.01 9,505.89
SUBTOTAL 91,432.00 85,356.04 91,330.96 97,724.13 104,564.82
2.2. Labor, 1 person at 300 x 26 days /month 93,600.00 100,152.00 107.162.64 114,664.02 122,690.51
TOTAL EXPENSES 185,032.00 197,984.24 211,843.14 226,672.16 242,539.21

3. Net Income 79,568.00 85,137.76 91,097.40 97,474.22 104,297.42

4. Return On Investment 0.43 0.43 0.43 0.43 0.43

* Revenue will start as early 50-60 days from the start of operation

VI. Conclusion

Generally, mushroom cultivation is seen as a good source of income by agripreneur’s

provide as an effective means for poverty alleviation due to its possibility of low production cost
and very high profit. Finally, it provides a very quick return.