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Mushroom Production as a Source of Livelihood for the Depressed Barangay in

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 International Journal of Disaster Recovery and Business Continuity
Vol. 11, No. 3, (2020), pp. 3113-3121

Mushroom Production as a Source of Livelihood for the Depressed Barangay in

Nueva Ecija, Philippines: A Strategic Plan Using Tows Matrix
Jennilyn C. Mina , Romeo B. Campos , Jr., Jomell M. Santiago , Emmanuel C. Navarro
Nueva Ecija University of Science and Technology–San Isidro Campus
Gener S. Subia
Wesleyan University Philippines

Abstract
The market potential of edible mushroom in the province of Nueva Ecija, Philippines is high, there is a
potential gap in the market for the agribusiness that can penetrate with, due to favorable market and suitable
environmental humidity and temperature. The objective of this study is to create a strategic plan for an
existing concept of the mushroom industry and to determine the capacity of the Nueva Ecija University of
Science and Technology to immerse in this kind of endeavor to provide efficient (Shirinbab, Lundberg,
Casalicchio, 2020) and effective source of livelihood to their adapted barangay. The researchers used
SWOT–TOWS methodology to examine the controllable and uncontrollable factors affecting the industry and
the operation of mushroom growing. Also, proponents of the study used this methodology to maximize the
internal strengths against external opportunities and threats and to minimize the impact of internal
weaknesses against external opportunities and threats. The result of this study can be used as a baseline
(Subia, 2020) to portray the application of SWOT–TOWS analysis for strategic decision–making because it
can provide considerations in all areas of the project to be implemented in the barangay. Hence, the
researchers suggest that the Training and Extension Services Department of the university must focus on the
establishment of the strategic plan laid down especially in the early portion of the project execution.
Keywords: Depressed area, Mushroom production, Source of livelihood, Strategic plan, SWOT analysis

1. INTRODUCTION
Under the surface of the planet, where the concentration of high humidity and darkness is predetermined,
earthly precious gems and minerals are generally contained. Tantamount to say that there is a possibility of
opportunity amidst warm and damp places. Mushroom is one of the possibilities that could flourish in such
areas. Mushrooms are the macrofungi fruiting bodies that have been placed in a different kingdom called the
Mycenaean kingdom (Masarirambi, Mamba, and Earnshaw 2011). Most of these fungi are found on waste,
such as sawdust, waste, and composting materials (Gbolagade, 2006) and most of them prefer moist and dark
locations (Farson, 2017). In addition, some can grow on trees, decomposing leaves, dung, mulch, soil, or
compost, feed the dead or rotting matter in those substances (Allman, 2018).
One of the greatest blessings mushrooms has brought to human life is; it is edible. Edible mushrooms are
known as the meat of the vegetable world (Haas and James, 2009) which can be prepared into a variety of
delicious dishes and as flavors for other dishes. As a matter of fact, some people use mushrooms as a
substitute for meat in their stews (Abulude, 2005). According to Aremu, Basu, Gyar, Goyal, Bhowmik, and
Banik (2009), mushrooms are superior to all vegetables and fruits in terms of protein content but are inferior
to meat and dairy products that are traditional sources of protein. A high protein and low-calorie diet is
provided by mushrooms and can therefore be prescribed to heart patients. Aside from these, they also contain
all the essential amino–acid required by an adult (Koyyalamudi, Jeong, Song, Cho, and Pang, 2009). Besides,
edible mushrooms provide a nutritionally significant content of vitamins B1, B2, B12, C, D, and E (Heleno,
Barros, Sousa, Martins, and Ferreira, 2010 and Mattila, Könkö, Eurola, Pihlava, Astola, Vahteristo,
Hietaniemi, Kumpulainen, Valtonen, and Piironen, 2001). Thus, they could be an excellent source of many
different nutraceuticals and might be used directly in the human diet and to promote health for the synergistic
effects of all the bioactive compounds present (Barros et al., 2007, Barros et al., 2008, Ferreira, 2009, Pereira
et al., 2012 and Vaz et al., 2010).
Mushrooms are also considered as a delicacy with high nutritional and functional value, and they are also
accepted as nutraceutical foods; they are of considerable interest because of their organoleptic merit,
medicinal properties, and economic significance (Chang and Miles, 2008 and Ergonul et al., 2013). It is
estimated that more than 10 million metric tons of edible and medicinal mushrooms were produced in 2004
in various countries (Royse 2005), following strain and technological advances, coupled with increased
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acceptance of mushrooms and derivative products, the industry has expanded by magnitudes over the past
decade, (Chang 1999 and Chang, 2005). However, mushroom science is a relatively new applied science and
the mushroom industry is still small compared to many plant crops, with limited investment in mushroom
researches. As a consequence, scientific research on mushrooms generally lags behind that of plants and
animals (Sonnenberg et al., 2005).
The Philippines, an archipelago consisting of thousands of islands surrounded by seas and vast oceans,
situated near the Earth's equator, where the nation was classified as tropical because of the persistent
moisture concentrated atmospheric humidity that is very suitable for tropical fruit-bearing trees, plants, and
even fungi. As a result, a large percentage of its Gross Domestic Product was from the agricultural-related
products and businesses—gems and minerals in the form of seeds and plants.
Therefore, the Nueva Ecija University of Science and Technology, an academic institution located in the
center of Luzon that maintains excellence in the field of science and technology, also perseveres to expand
services with vivid extension programs to train stakeholders with the use of available resources through
livelihood extension programs. This will support the everyday needs and standards of the adapted barangay
with the help of this academic institution which will later empower the beneficiaries to allow them to meet
the productivity of life by transmitting local knowledge and ideas, such as agriculture and horticulture.
In hot and humid areas, mushrooms are like precious stones; however, the production of these commodities
is not large enough to fill the market's need gap. Whereas, as a leading academic institution, NEUST may
intervene through its extension programs by providing a strategic plan and other alternative courses of action
to increase the production and marginal benefit of the Nueva Ecija province's agriculture and horticulture
sector.
For the Extension Services Department of Nueva Ecija University of Science and Technology to serve its
ultimate purpose of high ethical standards in the delivery of extension services to its partner institutions,
communities, and the general public and ensure the attainment of the goals and objectives of the university
flagship extension program known as the Comprehensive Program for Empowerment and Development, this
research aims to propose a strategic plan using TOWS Matrix Analysis on how the mushroom production can
be utilized as a source of livelihood by the adapted barangay of the university.
2. METHODOLOGY
To evaluate the capability of the Nueva Ecija University of Science and Technology Extension Services
Department to extend mushroom production as means of livelihood of the adapted barangay which is
currently being served by the university through its community services, the researchers employed the
SWOT–TOWS Methodology. According to Ravanavar and Charantimath (2012), the idea of using SWOT
analysis is to systematically evaluate SWOT's criteria or factors and proportionate their strength. This
method scans both demand (external) and supply (internal) sides. Regardless of these advantages of SWOT,
the use of traditional SWOT analysis has no means of forming the significance of each SWOT factor
(Shinno, et. al. 2006).
In this study, the researchers were able to determine the strengths, weaknesses, opportunities, and threats of
the mushroom production as a source of livelihood of the Extension Services Department by interviewing the
different stakeholders that have a direct and indirect impact on the project including those who are industry
experts and renowned in the field of Science and Technology.
For the researchers to propose a strategic plan, this study developed alternative strategies based on those
factors in the form of the TOWS matrix which was developed by Weihrich (1982).
In this case study, the TOWS matrix is the main completion method since it improves positioning strategies
considering the relationships between strengths, weaknesses, opportunities, and threats as in SWOT analysis
(Aslan, Çınar, and Kumpikaitė, 2012). TOWS Analysis is an effective way of combining internal strengths
with external opportunities and threats, and internal weaknesses with external opportunities and threats to
develop a strategy (Ravanavar and Charantimath, 2012) as it helps the institution to think about how they can
strategize and better the organization, how they can defend against risks and become more aware of their
skills and possible vulnerabilities (Mulder, 2017).

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3. RESULTS AND DISCUSSION

STRENGTHS/OPPORTUNITIES–SO STRATEGIES
1. The university can utilize the human resources of the institution (S1, O4)
The specialization of the College of Management and Business Technology is more on the business side for
proper marketing and auditing, whereas, it is advisable to have a campus-wide collaboration of different
departments such as College of Education major in General Science and Biology Professors who are more
knowledgeable for proper tissue culturing. Also, the NEUST San Isidro Campus can tap the College of
Information Technology for more effective packaging design and label because an eye-catching label or a
useful and clever case can help you create an impression that customers are unlikely to forget (Keller, 2020)
Nowadays, more than 90% of research studies and publications related to science and technology are
collaborative (Bozeman and Corley, 2004). The human resource needed in this activity must come from
various fields which include those from business, education, and information technology. According to
Sprunger (2017), science-related projects like mushroom cultivation is most effective when researchers with
expert knowledge in different areas collaborate.

2. The outreach program for mushroom production must create a good relationship with the
suppliers of raw materials (S2, O1)
Supplies are abundant but suppliers are rare, this is the fundamental justification for the institution to
maintain a good relationship with the suppliers of raw materials. The NEUST San Isidro Extension Services
Department must create a Memorandum of Agreement (MOA) with nearby suppliers of raw materials to
smoothly operate the program.
On this subject, an article with the title "The Promising Business of Growing Mushrooms" claims that the
present cultivation of mushrooms in the Philippines is limited, perhaps due to the limited local knowledge
about its culture. In addition, Singh and Singh (2014) also reported the problems of non–availability or poor
quality of spawn is one of the major problems in mushroom cultivation.
3. Use a certain amount of fund for giving seminars with knowledgeable and experienced resource
speakers (S1, O4)
The skill of the direct stakeholders and/or the employees who will handle the entire farm operation is one of
the key issues of this initiative, so it is right to have seminars, training and workshops for deeper

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understanding and in-depth knowledge of the individuals involved in the project. As a matter of fact,
informative seminars are not enough because culturing of tissue is difficult and very sensitive, therefore, it is
advisable that the seminar must be a combination of application and training.
In the study of Ranjitha et al., (2018) where vocational training programs for mushroom cultivation were
conducted for interested farmers, women, and rural youth, results showed that the majority of the trainees
were satisfied with the training provided and has resulted in significant knowledge gain of the trainees. In
addition, Kaur (2016) stated that the good conduct of training provides trainees with needed information and
guidance to start and flourish any enterprise like the mushroom industry.
WEAKNESSES/OPPORTUNITIES–WO STRATEGIES
4. Educate the industry to give a low rate or wage (W2, O3)
The ultimate impact of one institution on society is its commitment to sustaining human livelihoods through
proper education and training; hence the objective of the NEUST San Isidro Campus is to utilize its
Extension Services Department to capacitate the human resources by upbringing the culture of gaining profit
out of agribusiness and horticulture.
Seminars and training related to mushroom cultivation can be considered to provide security to rural poor by
transferring knowledge which can result in gaining additional income (Ranjitha et al., 2018).
5. Create an agreement between private and public firms who are more knowledgeable and
experienced in the industry (W3, O4)
One of ten principles of economics according to Gregory Markiw is, the "Human Face trade-off". Facing a
trade-off to increase the efficiency level is a good strategy to exact new blood of knowledge especially the
modern way of mushroom culturing (New World Economics, 2017).
An example of this is the efforts made by the scientists at the Krishi Vigyan Kendra, Utukur in the
development of technologies for mushroom farming. Their training programs resulted in making Kadapa, a
place in India which is not even known for mushroom farming; renowned for the production of mushrooms
in Andhra Pradesh State, which resulted in a 60–80 percent increase in family income. (Ranjitha et al., 2018).
6. Benchmark the technology of other firms and other private institutions such as mushroom farm of
successful mushroom producers or growers (W5, O4)
According to Paliulis and Labanauskis (2015), benchmarking is a cohesive tool in improving the Total
Quality Management of a certain institution, thus moreover, this is also applicable in this program to enhance
the efficiency and to maximize the margin of profit. Beyond doubt, this method gained recognition and was
positioned among such instruments for improvement of organizational performance along with Total Quality
Management, Continuous Quality Improvement, and Business Process Reengineering (Alstete 1995).
STRENGTHS/THREATS–ST STRATEGIES
7. If the mushroom is unable to grow because of the environment or weather, then the beneficiaries
must diversify the crop to other agricultural products to reduce losses and to maximize the use of
available resources (S4, T1)
The university as an institution dedicated to Science and Technology must create a mushroom center for
culturing tissues and a mushroom house with standard ventilation to produce a good quality of mushroom.
Due to the fact that the major ecological factors that affect stalk height, stalk diameter, and capsize in the
mushroom are air temperature, humidity, fresh air, and compact material (AMGA, 2004). For instance, the
oyster mushroom can grow at moderate temperatures, ranging from 18 to 30 °C (Mejía and Albertó, 2013)
while the temperature of culture house for the cultivation of P. high–king, P. ostreatus and P. geesteranus,
was maintained at between 22 and 25 °C (Ahmed et al. 2013). Neelam et al. (2013) indicated that the optimal
temperature for mycelium growth in oyster mushroom P. Florida was 25–30 °C. This optimal temperature
result indicated that Pleurotus species were able to grow better during the summer and autumn in subtropical
and tropical regions as a potential opportunity to develop oyster mushroom production in poor and
developing countries (Oei, 1991, Kashangura, 2008).

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WEAKNESSES/THREATS–WT STRATEGIES
8. Exit temporarily if the production cost is higher than the total revenue (W1, T1)
The mushroom product can be categorized as a homogeneous product fall under the category of pure market
competition in which the price is not dictated by sellers nor consumers but by the market as a whole.
According to Schofield (n.d.), pure competition describes a market that has a broad range of competitors who
are selling the same products. Hence, if the dictated price of the market is not favorable to the business, it is
righteous to temporarily stop production to avoid losses brought by the unfavorable market situation. On the
other hand, the institution can still use the loss leader strategy which involves selling the product at a price
that is not profitable just to attract new customers or to sell additional products and services to those
customers (Banton, 2020). When an enterprise first enters a market, this is the common practice, and the
university can adopt this with the hopes of creating a customer base and ensure a potential recurring revenue.
9. Create a good facility with proper insulation to neutralize the temperature of the cage (W5, T1)
Edible mushrooms are species that are very sensitive to temperature and humidity. Rapid changes in the
environmental situation make the mushroom susceptible to diseases and pests, thus installing good insulation
can really help the production of mushrooms into a more efficient with a high grade of product quality due to
proper climate control and humidity control system. Particular attention should be given to the construction
of new mushroom growing houses to the insulation of the floors, to facilitate achieving higher floor
temperatures during a cookout and ensuring that microbial inactivation is achievable (Pennone, Dygico,
Coffey, et al., 2020). In practice, according to Kertesz and Thai (2018), by modifying the temperature,
humidity, and CO2 content of the growing room, the fruiting body of the mushroom is stimulated and
formed.
10. Evaluate the productivity of the entire farm before giving additional fund (W5, T3)
A thorough Project Feasibility and Market Forecast Study must be done religiously. It is also advisable for
the university to conduct different financial ratio analyses before investing in the said program. Feasibility
studies are critical because they first compel the project owner to understand the larger picture and then think
in a top-down manner. (Thinkpositive Dubai, n.d.). Furthermore, measuring the productivity level of each
resource be it manpower or facility must be thoroughly done to determine the efficiency and the margin of all
direct inputs before allocating additional funds. Favorable margins must be properly equated into favorable
fund allocation to minimize the risk of losses due to uncontrollable variables and unforeseen business
circumstances.
11. Development of mushroom by-products
The risk of losing the production is still present, thus it is right to consider developing by-products for the
futile mushroom bag. For instance, converting the futile mushroom bag for something beneficial/useful
product that can create demand in the market e.g. through converting futile mushroom bag to organic
fertilizer. Zheng and co-worker stated that it contains a higher percentage of three primary nutrients e.g.
nitrogen, phosphorus, and potassium as a fertilizer (Rinker et al., 2004) while Zadrazil (1976) suggested that
during growth on straw, Pleurotus releases humic acids like fractions when added to soil which increases its
fertility.
4. CONCLUSION AND RECOMMENDATION
The opportunities brought by mushroom production in livelihood are indeed great and promising. Aside from
the benefits in terms of health it could bring to the community since mushroom is very nutritious and
delicious, it can be a potential source of income which can help the economy by generating jobs and through
inclusive growth within the community. However, fulfilling the main goal, which is the establishment of a
mushroom production center entails different challenges and obstacles. Maximizing the strength of the
program for the opportunities and limiting its weaknesses as much as possible can ensure the success of the
program. Also, various interventions especially in dealing with financial matters and educating the targeted
clientele for the program can be utilized in making the program successful and productive in reality.
The researchers suggest that the Training and Extension Services Department of the university must focus on
the establishment of the abovementioned plan especially in the early portion of the project execution. In this
period, all the challenges, as well as the possible intervention, could arise. With the use of the strategic plan
laid down above, the threats and the weaknesses of the program can be solved or masked by the opportunities
available in the concerned departments will deal with this matter more seriously. Since the program requires
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a multidisciplinary approach, the different workforce personnel is highly needed. There must be a separate
group that will deal in the dissemination of the information and it should be that personnel affiliated in
natural science so they can handle the portion which requires the knowledge in mushroom production and
that includes the culturing, isolating, and propagating the tissue. Also, another group shall be created in
dealing with the business side of the approach which requires experts in the field of business. Last, a separate
group, most probably from the Information Technology department, which will be of great help in
advertising the potential products online. To sum it up, it is highly suggested that this strategic plan be used
to execute the adaptation of mushroom production to have a strong impact on the livelihoods of people living
(Qunyh & Ngoc, 2020 )in the adapted barangay of NEUST.
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