project for a composting and mushroom production … · indoor mushroom - cultivation enterprise o...

International Moshroom Group

PROJECT FOR A COMPOSTING AND MUSHROOM

PRODUCTION PLANT

7 Positano Str. | office 5-6 | Sofia | Bulgaria | tel. +359 899 919750

Indoor mushroom - cultivation enterprise

o Consumption of button mushrooms in Bulgariao Bulgarian productiono Importationo Market outlooko Projecto Project parameterso Locationo PROJECT STAGEo Implementation periodo Payback timeo Total cost price: EUR 0.75 per kg


consumptionin BULGARIA - 1year.

13 500 – 15 000t

CULTIVATEDIN BULGARIA7500 – 8000t

IMPORT6000 – 7500t

90%POLAND

10%OTHER COUNTRIES

Consumption of button mushrooms in Bulgaria

o Total consumption of cultivated button mushrooms in the Bulgarianmarket: between 13500-15000 tonnes a year

o Out of which 7500-8000 tonnes a year are produced in Bulgariao Imported (mostly from Poland): 6000-7500 tonnes a yearo Consumption of white button mushrooms: 85%o Consumption of brown button mushrooms: 15%


Bulgarian productiono Cultivation in caves and makeshift structures in mountainso Yield in 7-8 months of the yearo Yield rate per 1 kg of compost: 15-20%o Compost used: stage 2o Mushroom quality:60-70% second grade, 30-40% first grade

Importationo Main importer: Polando Supplies:12 months per yearo Compost used: stage 3o Yield rate per 1 kg of compost: 35-40%o Compost used: stage 3o Mushroom quality: 5% second grade, 95% first grade


Market outlooko In the current conditions of aggressive imports of quality mushrooms from Poland,

Bulgarian production is annually falling by 5-10%o The producers’ inability to provide high-quality products, year-round supplies and

sufficiently large volumes is forcing the main consumers (supermarket chains and wholesalers) to switch to the purchase of imported mushrooms

o Within 5 years, Bulgarian mushroom production will have fully disappeared

Projecto Construction of a state-of-the-art composting, mushroom production and logistics

facility with an industrial-scale output, where the three full stages of mushroom production will be performed:- Production of substrate (compost) for the cultivation of button mushrooms;- Cultivation of button mushrooms;- Wholesale trade in button mushrooms;


Project parameters:

Composting planto Total built-up area of the production facility: 8000 sq mo Output:- Weekly: 400 tonnes of compost; - Annual: 20 800 tonnes of compost;

Mushroom production planto 48 mushroom production halls, supplied with 50 tonnes of compost;o 1 mushroom production hall produces 15 tonnes of mushrooms in 9 harvests per

year, total annual yield: 135 tonneso Total annual yield from 48 halls: 6500 tonnes (48 halls x 135tonnes)


Project parameters:

Total built-up area22 000М2

Mushroom production plant

14 000М2

Annual production

6500t

OWN MARKET3500t

POTENTIAL MARKET

3000t

Composting plant8000М2

Annual production

20 800t


Conditions for the project’s viabilityo The main raw materials used in mushroom production are wheat straw and poultry

manure.o Thanks to Bulgaria’s well-developed grain industry, there are large quantities of waste

straw at the low price of around BGN 50 per tonne.o Poultry manure is also a waste product and the main producers can provide the plant

with sufficient amounts.

Market outlook of the projecto Our company currently has a developed market (for mushrooms imported from Poland)

for 3500 tonnes a year, which constitutes 45% of the total annual yield of the planned plant.

o One of the project’s aims is to occupy the market niche for mushrooms imported from Poland (5300-5500 tonnes) and be responsible for 10-15.% of Bulgarian production.

o Export to Greece and Romania (Mushrooms are not produced in Greece due to a lack of straw, which is the main production component. For this reason, Greece imports mushrooms, which are transported over a distance of more than 2500 km. Romania does not have an industrial-scale mushroom production plant either. The nearest one is in Hungary.)

o Doubling of the plant’s output within 5 years – the favourable conditions for exports and the established Bulgarian market provide an opportunity to double the plant’s output to 15000. tonnes of mushrooms a year.

Total value of the project for 6500 tonnes of mushrooms a yearo Estimated value: EUR 15.000.000-15.500.000


Locationo The entire production facility extends over land with an area of 55

decares, whose designated use has already been changed and which falls within the territory of the town of Ihtiman

o The plot is situated by an asphalt-paved road, has access to electricity and is near the cloverleaf interchange of the Trakia motorway.

o Close to the logistics centres of the main supermarket chains.o Close to the biggest consumers: Sofia, Plovdiv.o Close to a train station (for supplies of raw materials)o In an area with a sufficiently large qualified workforce.


PROJECT STAGE – we have:

o Our own land with an area of 55 decares, whose designated use has been changed, and a perfect location in terms of production capabilities and logistics.

o The plant has been designed and its technology has been developed by one of the most prestigious and leading companies in the world.

o Approved construction documents and a building permit.o A qualified management team with experience in this area.o Our own developed market for 6500 tonnes a year in the biggest chain

stores and the HORECA sector (hotels, restaurants and cafes), which constitutes 50% of the total annual yield of the planned plant.


PROJECT STAGE


Implementation periodo Design: 4-5 monthso Construction and equipment installation: 10-12 monthso Testing and commissioning: 2 months

Payback timeo Cost price of 1 kg of cultivated button mushrooms in a fully closed cycle

- Compost production stage;- Mushroom production stage;- Finished product marketing stage;

Total cost price: EUR 0.75 per kgo Estimated year-round selling price: EUR 1,25 - 1,40 per kgo Average market price: EUR 1,5 per kgo Estimated profit prior to the investment: EUR 0,5 -0,6 per kgo Estimated average annual profit:o 6.500.000 kg х EUR 0,50 = EUR 3.250.000o Estimated profit for a 5 year period: EUR 16.250.000

project for a composting and mushroom production … · indoor mushroom - cultivation enterprise o...

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