business plan on production & distribution of mushrum

Scope and objective

Some basic objective has encourages us to study to the topics & to prepare the report. They are

as follows:

To full fill the course requirement of Project Management.

To know the role of Mushroom in economy of Bangladesh.

To know the present status of Mushroom.

To be informed about various Mushroom product.

To know the usefulness of Mushroom.

To be inform about the price of Mushroom product.

To be informed about the lacking of Mushroom product.

Informed the amount of demand of Mushroom.

To know how to conduct feasibility study.

To know how a business project can be establish

Methodology

Our course instructor Ms. Jafrin Sultana has assigned us to do a feasibility study on Mushroom Project. All the definitions and concepts are to be taken by consulting with Ms. Jafrin Sultana and from different books, articles and internet. The preparation of report of feasibility study of Mushroom based firm involves the following steps:

Firstly, we have tried to identify the required data and data sources of the study. For selecting the relevant data we followed_

Our course instructor’s advice, “Projects-Planning, Analysis, Implementation, and Review” by Prasanna Chandra,

5thEdition.

Data collection:

We use both Primary and Secondary data from-

Market survey

Other official reports

Data & process collected from Competitors web sites

Internet

Visiting competitors firm

To prepare this project we also use M/S Word-2007, M/S Excel-2007

Next, we started our work of collecting data regarding the price of machineries, raw material etc.

After that, for collecting information about the production process and technology we have

visited BADC

Then we visit some other agro based projects for practical field experience for preparing

financial calculations we used-

Working Capital requirements

Expected cash generation

Projected cash flow estimation

Ratio analysis

Payback period, NPV, IRR analysis

Scenario analysis

Sensitivity analysis and

Risk analysis

Finally we prepare the feasibility study report by analyzing all information in some

specific areas like – management, technical, marketing and financial.

Limitation

Preparation of feasibility study of Mushroom based farm involves a number of limitations in its

various stages. While preparing the report we face the following problems which we tried best to

avoid:

Collection of data is a hard job in this stage of project, because many prevailing farms

are not interested to share their confidential information.

Price of raw material is not accurately known every time.

It is difficult to estimate and do all the financial projections accurately according to the

current market.

Industry Background

The volume of Mushroom production is not large in Bangladesh .Only a few organizations are

related with producing Mushroom. They are –

1. BADC, Shavar, Dhaka.

2. Panbo Bangla Mushroom Limited, Dhaka .

3. Wonder Harbs, Noya pur,sonargon, Dhaka.

4. BRAC (N.G.O)

At present only one company is related with marketing of Mushroom in Bangladesh and that is

Bangladesh Mushroom company ltd. Another one company is involved with its marketing.

Vision

To become the leader in producing & exporting Mushroom

in the market at a lower cost and introduce our nation as a

strongest and healthiest nation in the world.

Mission

Fulfill the total demand of nutrition of each an every

family of our country at a minimum cost by providing

Mushroom

Goals

Introduce Mushroom to the mass people with its advantage through seminars.

Use inputs of common agricultural ingredients.

Let them know the essentiality of it.

Identify the demand and set up the plans to support

the demand.

Develop a low cost solution to fight malnutrition.

Ensure economic self-sufficiency and sustainability.

Uniqueness

Generally Mushroom has both qualities of nutrients characteristics of green and yellow

vegetables. So our main uniqueness of the product is highly nutritious. Our main motto is to

promote Mushroom of the local people to meet up their nutritional demand. It has unique

medicinal characteristics which help to protect our body. So are we are very much

uncompromised and unconditional. We also require with

a very lower and unique price for our products. So our

main motto is to make familiar to everyone and make

easy access to everybody.

Legal form of Business

Mushroom is owned and managed by the partners of the firm. General & Limited partnership

policy is followed that is, all the partners of the firm has got limited liability that is, who are liable

for loss only up to the amount of their investment and the general manager (partner) Md.

Manjur Morshed who has ultimate liability but he has authority to act and make binding decision

as a owner. The partnership of the firm is based on a written contract and which is duly signed

by all partners of the firm. So by law the firm is operated and managed by Articles of

Partnership.

Organizational Structure

Mushroom has got a very sound list of qualified and skilled workforce having wide range of

experience in the related position. Under the head of organization structure firm’s organ gram is

demonstrate and brief explanation is also given for better understanding of the authority and

responsibility.

Accounts Manager

Marketing Manager

ConsultantFinancial Manager

Technical Manager

Sales Representatives

Assistant

Laboratory Specialist

Supervisor Technician

Labor

General Manager

HR Management

Staffing Plan:

Laboratory Specialist:

Laboratory specialist will make research and development plan. He will examine our final product and will find out the nutrition element in Mushroom. He will look after about the quality improvement of our Mushroom by adding or deducting minerals into our Mushroom.

Assistant Laboratory Specialist;

His main work would be support the laboratory specialist in his research.

Technician:

He will look after the P.H content into the water. He will also look after the feeding of Mushroom. He will make the chemical composition that is needed to produce the Mushroom.

Supervisor:

We have two supervisors. They will look after the regular work of the labor, and the packaging labor.

Labor:

Labor will mainly operate the production system. They will operate on production, harvesting, drying, grinding function.

Staffing Requirement & Budgeting

DesignationNumber

Salary Total

G.M 1 20000 240000

Marketing Manager 1 12000 140000

Lab Specialist 1 10000 120000

Technician 1 3000 36000

Labor5 2000 120000

Packaging labor 3 2000 72000

Supervisor 2 3000 72000

Security Guard 2 2500 60000

Sales Representatives

2 4000 96000

Accountant 1 6000 72000

Total 19 1028000

Current Scenario in Bangladesh

The cultivation of Mushroom was introduced by BADC, the research organization of

Bangladesh. The researcher of our country made some flexibility for cultivation of Mushroom

based on the weather and economic condition of our country. Then Mushroom producing fram

was first introduced in Bangladesh commercially by taking help from BADC. Right now, the

scientist of Biological Research Divisions is running various researches on mass positive effects

of Mushroom under the laboratory of BADC.

Mushroom is now considered both socially and commercially significant plant ever have

discovered and is widely distributed in the Indo-Pacific region including Bangladesh.

In Bangladesh BADC and some other farmers of Mymonsing and Sharajgung are producing

mushroom.

In Bangladesh we are facing some problems in producing Mushroom, such as,

Lack of efficient HR

Scarcity of raw materials and space

Awareness of people.

Above all, by overcoming all these problems and proper investment, Mushroom production

may have a brighter prospect in Bangladesh.

Situational Analysis

Current Market Situation:

Current market situation represents relevant back ground data on sales, cost, profit, market,

competitors, distributors and the total micro and macro environment. The marketing plan is

constructed on the basis of competitors as well as our new strategies.

At present, the demand of Mushroom is very high. So we need to meet our local demand first.

Normally, Mushroom powder can be stored for many days. So, we can easily preserve them. It

is very cost effective.

SWOT Analysis:

SWOT analysis focuses on Strength, weakness, opportunities and Threats of a project.

Strengths:

The main strengths are:

1. Nutritious product with lower price

2. Used in different forms

3. Type of medicine for curing different diseases

4. No side effect

5. Affordable product

Weakness:

The main weaknesses are:

1. Lack of availability in the local market

2. lack of efficient HR

3. Scarcity of raw materials & space

4. Technological problem

5. We may not accepted by the local people

Opportunities:

The opportunities are:

1. Demand will increase day by day

2. Easy entrance in the industry

3. Available customer

4. To create strong market position

5. Available employment opportunities

Threat:

The Threats are:

1. skilled labor problem

2. political unrest

3. environmental threats

Competitor Analysis:

The major competitor of Mushroom is BADC, though some other group of farmers are also

producing mushroom but they have not significant impact in market.

Distribution Analysis:

Here we will present the size and importance of each of the distribution channel. We will first

produce mushroom from our own plant. Then we will make it a final product and make final

packaging for Sale. The producers and final customers are part of every channel and the

number of intermediate designated to the length of human resource management. Here, we will

use “zero level” marketing channel that means, we directly send product to the customer

without a help of other intermediaries.

Macro Environment Situation:

Here, the section describes, the board of macro environment trends- demographic, economic,

technological, political and socio-cultural, that affect significantly the production of mushroom.

As we have to deal with local buyers, so we need to maintain the related rules and regulations

of timing and ensure the quality. One thing we have to ensure that, we are very much strict and

uncompromised about this.

Marketing Objectives:

By implementing marketing objectives can be facilitated. The business wants to earn taka 5

million profit and its target profit margin is 32.48%. if it wants to achieve 5 million sales revenue

then it must capture 15% of market share. The marketing objectives may be

Increase consumer awareness through creating link and establishing banner in different

popular web pages, posters, magazines, newspapers etc.

Increasing advertising and promotional expense up to 5% more than predetermined rate.

Achieve total sales revenue taka 5 million which represent 15% of total market share.

Marketing strategy:

1. Target market: Five Star Hotel, Chinese Restaurants, Fist Food Shops and Various Supper Shops.

2. Positioning: The fastest delivery of quality of product anywhere of the country within 24 hours.

3. Product line: Customers have the option of ordering through online or directly. Price will be same and so do quality.

4. Price: More or less than any other competitive manufacturer and supplier in Bangladesh.

5. Distribution channel: Internal market distribution channel.

6. Service: Quick and widely available services.

7. Sales promotion: Develop a new advertising campaign that support to the positioning strategy.

Marketing Mix Analysis

Product:

A product is anything that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy a want or need. … Products include more than just tangible

goods" says the ' guru ' of marketing, Philip Kotler. In this sense, Mushroom should not just be

marketed as a fresh product: if it is to be accepted as a public health solution, it must be a

tangible product plus a service in the form of information about its use and usefulness.

Positioning the product

A product which addresses a need or a want should take the specific needs of malnourished

people into consideration: most vulnerable people do not purchase industrially processed food,

and thus industrially fortified food will not reach them automatically. It is proposed, therefore, to

position Mushroom products as cheap complementary food rations

Pricing:

Making a product affordable to the target population does not necessarily mean that all the food

is given free of charge. Clearly the poorest and most vulnerable groups cannot pay the full cost

of feeding supplementation. Yet whatever pricing mechanisms can enable the target population

to participate and contribute will almost certainly have two positive effects: it will increase

people’s dignity and ensure they do not just depend on external assistance; and it will actively

involve them and increase their mental and physical participation.

This section seeks, therefore, to discuss and develop such new financing mechanisms. They

will need to be very efficient, and they should have a great impact and achieve an excellent

cost-benefit ratio.

Place:

Place is related to ' supply chain ' and the means for delivering the products ; it is the place

where people can find what they need. It has already been mentioned that there is a paradigm

shift from stationary therapeutic feeding centers (TFCs ) towards more community involvement

and community therapeutic care .

Promotion:

So far, promotion of Mushroom products has been very limited. By bringing them into

mainstream micro nutrition initiatives and linking them to other social programmers such as

microfinance and self-help groups, promotion will be considerably enhanced. This generic

promotion should not only be the task of the producer groups but also be clearly made a public

health task Funded with public resources. Promotion is very much linked to the ' place ' and a

good Promotion would aim at enhancing the credibility; this would, from the outset, position the

products at a very high level and increase the trust in which the people are held.

Action program:

The action program helps the firm to reach its marketing objectives, efficiently and effectively.

The action program may be

“Mushroom will advertise their name through creating banner in various popular websites. Its

planning have its own websites. It will also advertise in local news papers, magazines, posters,

banners, leaflets, booklets. The advertisement will be given in a periodic contract of six month.

STP Analysis

Market Segmentation:

Mushroom finds many difficulties to segment its market in the sense of mass marketing in the

point of view of Bangladesh. As Mushroom is not a common food item that everyone take in our

country. So we set our marketing channel through different segments. We segment our

customer market by looking at several descriptive characteristics –geographical, sequential

segmentation on which we are working.

1. Geographical segment:

We divide the market in to different geographical units as east &west side, north & south side in

BD. We took target to expand business here. Among different side of country, the demand of

Mushroom is different because of their: a) amount of need b) expected quantity of product c)

expected price of product.

2. Sequential segmentation:

Mushroom generally identify segment through a sequential process. We distinguish among

customers buying on price, service, and quantity & value orientation.

Price oriented customer: They want value through lowest price.

Solution based orientation: They want value through more benefits & advice

this way; we segment our customers in market.

Target Market:

We just store our business as a new organization. So we first target to stay in a market & create a strong position in the market to achieve our target market:

We make the price reasonable Delivery system is easy and very prompt. We analyzed our competitors & take necessary steps for survival as strongly.

Market Positioning:

So far the govt. of BD comes ahead in technical use & positioning. Mushroom already seminars

& exhibitions are organized in 64 districts to increase awareness of people. Not only the govt.

but also NGOs come ahead to increase the awareness of people.

Market positioning of Mushroom can be increase by liftlet, booklet, prospectus along with the

communication of health workers, doctors, & other related authority. As we just start our

business as new organization so first we have to concentrate on to stay in a market & create

strong position. To these we will follow the following:

Set the price in reasonable scale

Our delivery should be very prompt

We will focus on our target customer

We will analyze our competitors

Our future plan should be such as that can cop with different challenges

Demand Analysis

Time Series Projection Method:

Exponential Smoothing Method

t Data ( )Forecast(

)

Error

( )Forecast for t+1

2011 102000 104000 -2000 =104000 +0.2(-2000) =103600

2012 103000 103600 -600 =103600 + 0.2(-600) = 103480

2013 104000 103480 540 = 103480 + 0.2(540) = 103588

2014 105000 103588 1412 = 103588 + 0.2(1412) = 103870

2015 105600 103870 1730 = 103870 + 0.2(1730) = 104216

2016 10600 104216 1784 = 104216 + 0.2(1784) = 104573

Casual Method

Consumption Level Method

Price Elasticity of demand

=

=

= -0.789

Here, = Quality demanded 2010, 104000kg.

= Quality demanded 2009, 93600kg.

= Price per kg in 2009, 400tk.

= Price per kg in 2010, 350tk.

Financial Analysis

Organizational Cost

Particulars Amount (tk)

Land (20 Achor) 250000

Buildings 225000

Warehouse 20000

Vehicle 10000

Cement Floor 10000

Total 515000

Raw Material Cost


Spawan Bags (18000kg@6/kg) 108000

Polypthene Bangs 20000

Rice Straw(18000kg@2/kg) 36000

Total 164000

Cost of Equipment & Accessories


Chalf Cutton(Manual) 1 10000

Pasteurisation Drum 3 9000

Sprayer 2 8000

Plastic Buckets 1000

Weighing Scale (Table model of 5kg capacity)

10000

Hand Pump 1 16000

Drums for soaking straws 2 4000

Total 58000

Management Cost

Designation Number Salary Total

G.M 1 20000 240000

Marketing Manager 1 12000 140000

Lab Specialist 1 10000 120000

Technician 1 3000 36000

Labor5 2000 120000

Packaging labor 3 2000 72000

Supervisor 2 3000 72000

Sequrity Guard 2 2500 60000

Sales Representatives 2 4000 96000

Accountant 1 6000 72000

Total 1028000

Total Cost of Project


Land & Building 515000

Raw Material 164000

Equipment & Accessories 58000

Management cost 1028000

Utility Cost 24000

Advertisement 100000

Total 1889000

Means of Finance

Particulars Proportion (%) Amount (tk)

Equity 75% 1500000

Loan 25% 500000

Total Investment 100% 2000000

Contribution Ratio – 3:3:3

Working Capital Requirement

Particulars Amount(tk)

Raw Materials 164000

Selling & Administrative Cost 380000

Labor 6480000

Utilities 240000

Total 1204000

Cost of Production

Particulars Amount (Tk)

Working Capital 1204000

Interest on Loan @ 8% (500000 X 8%) 40000

Dep. on Machinery & Equipment @ 10% (58000 X 10%) 5800

Dep. on Building @ 10% (515000 X 10%) 53500

Total Cost 1310300

Income Statement

Income StatementFor the year end

Particulars 2011 2012 2013 2014 2015Sales 5200000 5360000 5600000 5840000 6000000

Cost of Goods Sold 3900000 4020000 4200000 4380000 4500000Depreciation 57300 57300 57300 57300 57300

Profit Before Interest 1242700 1282700 1342700 1402700 1442700Interest @ 8% 40000 40000 40000 40000 40000

Net Profit 1202700 1242700 1302700 1362700 1402700

Project Cash Flow Statement

Particulars 2011 2012 2013 2014 2015

Sources of Fund

Profit Before Interest 1242700 1282700 1342700 1402700 1442700

Depreciation 57300 57300 57300 57300 57300

Total (A) 1300000 1340000 1400000 1460000 1500000

Disposition of Fund

Capital Expenditure 573000 573000 573000 573000 573000

Interest 40000 40000 40000 40000 40000

Total (B) 613000 613000 613000 613000 613000

Net Surplus/Cash Inflow (A – B) 687000 727000 787000 847000 887000

Balance Sheet (Amount in Tk)

Particulars 2011 2012 2013

LiabilityEquity 1500000 1500000 1500000Loan 500000 500000 500000Reserves 65700 165700 115700

Total 20654700 2165700 2115700AssetFixed AssetLand & Buildings 515000 515000 515000Equipment 58000 58000 58000

573000 573000 573000Less: Depreciation 57300 57300 57300

515700 515700 515700Current AssetCash In Hand 500000 550000 525000Account Receivable 800000 850000 820000Preliminary Exp 250000 250000 250000

1550000 1650000 1600000

Total 20654700 2165700 2115700

Ratio Analysis

Current Ratio =Current AssetsCurrent Liability

Year 2011 2012 2013Current Asset 1300000 1400000 1345000

Current Liability 65700 165700 115700Current Ratio 0.1978 0.0845 0.1162

Total Asset Turnover =Sales

Total Asse t

Year 2011 2012 2013Sales 5200000 5360000 5600000

Total Asset 2065700 2165700 2115700Ratio 0.0252 0.0247 0.0265

Debt Ratio =Total LiavilityTotal Asset

Year 2011 2012 2013Total Liability 565700 665700 615700

Total Asset 2065700 2165700 2115700Ratio 0.27 0.31 0.29

Investment Criteria

Cost of Capital

Specific cost:

Kd=8% ,Ke=10%

WACC = (.10 X .75) + (.08 X .25) = 0.095 or 9.5%

NPV of Project

Year 2011 2012 2013 2014 2015

Cash Inflow687000 727000 787000 847000 887000

IRR of the Project We Know

IRR = A + CD

(B –A)

Here, A = Lower Interest RateB = Higher Interest RateC = PV at Lower Interest RateD = Difference between PV at LIR & PV at HIR

NPV of the project

Year Cash-flowsDiscounting

factors @9.5%PV of cash flows NPV

Initial Investment -2000000 1 -2000000

985576

2011 687000 0.9132 627368

2012 727000 0.8340 606318

2013 787000 0.7616 599379

2014 847000 0.6955 589089

2015 887000 0.6352 563422

NPV of the project

Year Cash-flowsDiscounting

factors @25%PV of cash flows NPV

Initial Investment -2000000 1 -2000000

(206175)

2011 687000 0.80 549600

2012 727000 0.64 469600

2013 787000 0.512 402944

2014 847000 0.4096 346931

2015 887000 0.3277 290670

IRR= 0.095 + 985576

985576−(−206175) X (0.25 – 0.095)

= 21%

Pay Back Period

We Know

PBP = A + NCO−CD

Year Cash In Flow Cumulative Cash Flow2011 687000 687000

2012 727000 1414000

2013 787000 2201000

2014 847000 3048000

2015 887000 393500

PBP = 2years + 2000000−1414000

787000

= 2.74 Years

Scenario Analysis (Amount in tk)

Particulars Best Case Average Case Worst CaseInitial Investment 2000000 2000000 2000000Unit Selling Price 90 80 70Demand 80000 70000 60000Revenues 7200000 5600000 4200000

Variable Cost 4400000 4200000 3900000Fixed Cost 573000 573000 573000Depreciation 57300 57300 57300Profit 2169700 769700 (330300)

Sensibility Analysis

Particulars 2011 2012 2013If 20% increase in sales

Sales 5200000 6240000 7488000 Cost of Goods Sold 3900000 4680000 5616000Selling & Admin Exp. 1028000 1028000 1028000Profit 272000 532000 844000

If 20% decrease in salesSales 5200000 4160000 3328000Cost of Goods Sold 3900000 3120000 2496000Selling & Admin Exp. 1028000 1028000 1028000Profit 272000 12000 (19600)

Risk Analysis

Our project is an agro based firm. We have some risk associated with the project. They are

given below:

1. We are mainly targeting the local customer, so we will have small market coverage.

2. Price of our product is too high. So promotion of our product to the poor people will not

be easy.

3. People of Bangladesh are ignorant about taking new product.

4. Mushroom is sometime treated as medicine to the customer; they do not treat it as a

food.

5. People of Bangladesh do not know about the various use of mushroom, so the demand

of mushroom is low.

6. Local people are not aware of that product because it is a new product.

7. Rainfall hampers the production of mushroom. So in rainy season the production of our

mushroom may be in danger if we can not maintain it.

Technical Analysis

PRODUCTION DETAILS AND PROCESS OF MANUFACTURE

Rice straws first cut into 4-5” pieces, is then soaked in water for 12 hr. After soaking the straw is boiled. Treated straw is spread on a cement floor for 15 min to drain excess water. Now these straws are put in polythene bags of 40x60 cm size. This can hold 3 kg of wet straw. There should be holes in the bags. Now put 10-cm layer of the straw in the bags and press it. From the spawn bottle sprinkle spawn in the layer. Fill the bags to 3/4th capacity with alternate layers of staw and spawn. Tie the bag and place in spawn running room. These bags are kept in a dark

room at 20 to 30° c for 12-15 days. A cottony growth proliferates through straw. The bed is taken out by inverting the bag. The open bed is transferred to cropping room. Direct sunlight should not fall on cropping room. Small pinheads surfacecome out from beds after 3-6 days of opening. Three flushes of mushroom can be harvested at weekly intervals. Water should be sprayed three times a day.

QUALITY CONTROL & STANDARDS

There is no specification for mushroom cultivation.

STORAGE

1) Short term storage2) Long term storage

SHORT TERM STORAGE

The shelf life of mushrooms may vary from 1 day to 2 weeks at 1-40C. Low temperature is effective in short-term preservation because it retards the growth of microorganisms, reduce the rate of post harvest metabolic activities of the mushroom tissues and minimizes moisture loss. Straw mushrooms may be picked in wooden cases and transported by road, rail or sea. The case is divided into three compartments; ice is placed in the central compartment and the mushrooms are packed in the two other sections. Mushrooms may also be packed in bamboo baskets and transported by airfreight. An aeration channel is formed at the center of the basket and dry ice, wrapped in paper, is placed above the mushrooms.Storage of straw mushrooms in a closed plastic box with 95 per cent co2 accelerates deterioration even at 15-200C, the temperature range most suitable for their storage under normal circumstances. On the other hand, mushrooms stored in a perforated plastic box at 10-150C have excellent keeping quality for up to 4 days and the loss of moisture is less than 5 per cent. When straw mushrooms are stored at 300C, under similar conditions, the veils are fully open and vegetative mycelia develop after only 2 days. In closed bags, liquefaction and microbial spoilage may occur rapidly.Straw mushroom can be stored more effectively at button stage than at any other stage. At temperatures below 100C, however, the mushrooms liquefy rapidly, irrespective of type of packaging and stage of development (button or umbrella stage) due to chilling injury.

LONG TERM STORAGE

Canning, pickling, and drying processes are employed for long term storage. These processes are not always suitable for all types of mushrooms. The quality of the finished product is rarely comparable with that of fresh mushrooms.

Canning

Canning is the most common process for preserving mushrooms, particularly Agaricus mushrooms. Canning is divided into six basic operations: cleaning, blanching, canning,

sterilization, cooling, labeling and packing. Trimming the steps immediately after harvest can reduce Browning and blemishing of Agaricus. If the mushrooms are not canned immediately before processing then, refrigeration at 150C along with high RH will help in retaining color and texture. Soaking for 30 minutes prior to canning may increase canning yield. At this stage, an appropriate level of sodium metabisulphite or acerbate is incorporated for color retention. The mushrooms are then rinsed and blanched for 2 minutes. Blanching is used to reduce the activity of enzymes. After blanching, the mushrooms are placed in cans containing 2.5 per cent sodium chloride and 0.25–0.5 per cent citric acid. The cans are then sealed and sterilized. Sterilization methods vary according to the type of equipment used. The most commonly used method is the batch process in which the cans are placed in an autoclave and sterilized for on hour at120-100C.

Drying

Mushrooms are dehydrated in India as such in the sun. The products available in the market are of sub-standard quality. Not only there is contamination with sand, but also the products are highly discolored. But on the other hand dried mushrooms are convenient for long term storage and transportation. Mushrooms preserved by drying have a good flavor and the drying prevents deterioration. The moisture content of fresh mushrooms varies in the range of 70-90 per cent depending upon the harvest time and environmental conditions while thatof dried mushrooms is about 10-13 per cent. Mushrooms can be dried by sun drying and thermal power drying. For general drying, the picked mushrooms are cut off at the basal part of the stalk and arranged in single layers on shelves and exposed to the sun or placed within a drying oven. Usually about 2-4 daysunder continuous daily sunshine is adequate for sun drying. This process of thermal power drying begins at a relatively low temperature. Mushrooms grown during sunny days are driedat an initial temperature of 350C while mushrooms grown during damp days are dried at an initial temperature of 300C. In addition to preserving the product, drying enhances the flavor and appearance of the mushrooms.Dried mushrooms are highly hygroscopic and are apt to absorb moisture from the air, they should be properly stored. If moisture content of the mushrooms reaches about 20 per cent, insects and molds will infest the mushrooms. The gloss of the cap surface may also fade. In addition, mushrooms may develop a white powdery surface and the gills may turn brownish from their original yellowish white. The dried mushrooms should therefore, be put into polyethylene bags, sealed, and kept in a dry, cool, and dark place. For prolonged storage, mushrooms should be packed in cartons or wooden boxes and kept at 2-50C in a low temperature store.

Use of chemicals

Some work has been done at the Central Food Technological Research Institute (CFTRI),Mysore, on this aspect of the preservation of mushrooms. It is reported that mushrooms in the fresh condition may be possible to preserve for about10 days at room temperature by steeping in a solution containing 2.5 per cent common salt, 0.2 per cent citric acid, 0.1 per cent ascorbic acid, 0.1 per cent sodium bicarbonate and 0.1 percent potassium metabisulphite. The blanched mushrooms and steeped solution of (1:2) are put into clean glass containers, which are covered with lids and sealed with paraffin wax and stored at

room temperature (21-280C). This method of preservation can be used at places where facilities for canning, freezing and dehydration do not exist.

Different forms for drying

Freeze Drying: In this technology, the most superior method is Vacuum freeze drying system, in which water is evaporated by sublimation from ice phase to vapour at low temperature resulting in dried product close to fresh product and quick in rehydration. The main limitation of this system is its high energy cost. Therefore it can be used for high value products like mushrooms only.

Vacuum Drying: In this, heat sensitive products are dried under vacuum at low temperature. The product is superior to air-drying and sun drying. This method is widely practiced due to its fair product quality and economics.

Microwave drying: This is the latest system emerging in dehydration as the product quality is superior quite similar to freeze drying. The cost of microwave drying is lower than that of freeze drying.

Hot air drying: This system is simple hot air circulation over the product. Evaporation is by controlled temperature heating so that water is gently evaporated as it reaches the surface by osmosis.

Sun drying: This is an age-old traditional drying system and solar energy is utilized at low Cost. This takes the longest time and the risk of product deterioration during drying is high. Sanitary methods have been developed and in some cases solar heat are utilized by using solar cells/MS plates and air is circulated in closed chambers by fan. Improvements in this system will further reduce energy cost.

The Latest trends in drying technology are combination treatments of high temperature flash drying of product having high moisture, followed by closed hot air cross flow drying or vacuum drying /Microwave drying/freeze drying. The technology selected for premier Mushrooms is extractions of soluble solids vacuum concentration (5 fold foaming of concentrate) and Vacuum drying (Powder concentrate with 5 per cent moisture).

Plant Capacity

Capacity of our plant is 50 thousand kg per year.

Raw Material

Spawn Bags Polythene Bags Rice Straw

EQUIPMENT AND ACCESSORIES

Calf cutter (Manual) Pasteurization Drum Sprayer Plastic Buckets Weighing Scale Drums for soaking straws

Socio Economic Aspect

Social responsibility:

The project of Mushroom is performing social responsibility with business:

1. We want to make our city green & for this after expending our business we will take a plantation project to plant tree on road side.

2. Since this a new project so it will create employment opportunities.3. Mushroom removes malnutrition, prevent Arsenic.4. We will help the poor student in their education.

We will definitely concern about our social responsibility.

Environment impact of the project:

1. There is no negative side effect that may impact on environment. We make product Mushroom which we collect from nature.

2. It is a natural food & it can remove the malnutrition, prevent the Arsenic disease.3. We do not use any kind of technology that may make environmental pollution.

Business ethics:

Ethics are the principles of behavior that distinguish between right or wrong. Ethical conduct conforms to what a group or society as a whole considers right behavior

Business ethics is the evolution of business activities and behavior as right and wrong. Ethical standards in business are based on commonly accepted principles of behavior established by expectation of society, the firm, and the industry and individuals personal values.

Most business leaders realize their firms cannot Mushroom succeed without the trust of customers and goodwill of society. A violation of ethics makes trust and goodwill difficult to maintain. In thousands of company’s executives and employees act accordingly to the highest ethical standards.

Ethical standards of our company:

Maintain good relationship with supplier by clearing payment timely and providing them other facilities.

Maintain good relationship with customers by satisfying and providing them timely, a quality product at a lower cost.

No compromise with product quality. Maintain a friendly environment in the organization to work smoothly. Always follow chain of command in decision making and other activity. Always give priority to the customer as our main concern is to serve our customers

though we are a manufacturing company. Not earn much profit as a part of doing social responsibility. Ensure freedom of work to achieve our goal and new innovation.

Contribution towards economy:

The project is not only a profitable project; it has gone some socio-economical views also

1. It is employing such number of people that can make an effective contribution towards the action of removing unemployment.

2. The people concerned with project will be more benefited economically & at large it is contributing to the livestock portion of the total GDP of the country.

References

Primary Sources

Bangladesh Agriculture Development Corporation (BADC), Saver, Dhaka.

Secondary Sources

Website of Agricultural Ministry, Bangladesh. Bangladesh Agricultural Development Corporation. Developing small production and marketing enterprises: mushroom contract farming

in Bangladesh by Md. Farhad ZamilUrban ,Agriculture Expert, Urban Partnerships for Poverty Reduction Project (UPPR) of UNDP.

The Financial Express, India (March, 2010).

Author Name Book Name Edition

1. Chandra Prasanna Projects: Planning, Analysis, 5th

Implementation and Review

2. I M Pandey Financial Management 9 th

2. Philip Kotler & Kevin Lane Keller Marketing Management 13th

Bibliography

Survey questionnaire on

“The acceptance of mushroom as a food among the people’

1. Name of the respondent:

2. Gender: Male Female

3. Age:

4. Location:

5. Name of the occupation:

6. Do you know about mushroom? Yes No

7. If yes, in which way you know about it?

Television

Newspaper

Radio

Others

8. Do you know about food value of mushroom?

Yes

No

A little

9. Do you ever take mushroom as a food?

10. Does any doctor suggest you to take mushroom?

Yes No

11. Do you think cultivation of mushroom is profitable in our country?

Yes

No

No Idea

12. Are you satisfied about the quality of mushroom?

Yes No

13. Is the current price of mushroom is affordable for you?

Yes No

14. How we can able to concern people about food value of mushroom?

Advertisement

Direct communication Different program

15. Is the product available for you when required?

Yes No

Thank you for your co-operation

business plan on production & distribution of mushrum

Documents

y y y y y y y y y y

mushroom goals y y

mushroom project

demand of mushroom

marketing of mushroom

producing mushroom

exporting mushroom

role of mushroom