Mushroom Cultivation & Processing

Product and Applications

Mushroom is a nutritious vegetarian delicacy and has many varieties. It contains many vitamins and minerals but is low in sugar and fat. It can be grown in an artificially created and controlled environment. It needs a temperature between 20 and 30 C and relative humidity of 55 to 75%. It can be ideally grown in hilly areas or in artificially controlled sheds in plains. Fresh mushrooms can be readily sold in the market or processed and dried. There are two main varieties of mushroom Button type or the oysters' variety. Oyster mushrooms are easy to cultivate and process and do not require huge investment.

Mushroom is an exotic and nutritious source of the vegetarian diet. It is a major horticulture product all over the world. It is also becoming popular in our country. Fresh mushrooms have a very limited shelf life, but processed and dried mushrooms properly packed can be stored over a long period. Under the present conditions and with know-how developed by CFTRI it is possible to cultivate in any part of the country. The technology is available with CFTRI. Compliance with PFA Act for such a unit is essential.

Industry Profile and Market Assessment

Mushroom is a vegetarian delicacy and a suitable substitute for meat and eggs. It is easily digestible. It is very popular in most developed countries and is being accepted in many developing countries. The market for mushrooms is growing rapidly because of their rich nutritional value and special taste aroma, flavour etc. Many exotic preparations are made from them like soup, pickles, they can be cooked traditionally as a standard vegetable. It is also used as stuffing for various food preparations and for garnishing. Its consumption is basically confined to the urban region. It has a very short life after being harvested and is sold in fresh form. Their shelf life is enhanced by processing and properly packed in good quality polythene or proper canning. This can then be stored and transported for selling in far of markets. It is mainly consumed in hilly areas but as the nutritional awareness is increasing people from other regions are also taking it up. It is a very popular item in most star hotels and in urban households. Thus there is a good market for the product in metropolitan cities and centres for tourists. The rural rich with changing lifestyle is also catching up with the urban tastes and eating habits. Processed and preserved mushrooms will ensure availability throughout the year. It is a good substitute for standard vegetables and a good replacement for meat or eggs. The major limitation with the bulk of Green vegetables is that they are grown in a limited period only lasting for 3-4 months and thus their availability is restricted to this period. Properly preserved packed and canned mushrooms results in it being easier to handle. This also helps in exporting the product to other countries where ever Indian cuisine is popular. It has a good demand in urban areas and metropolitan cities. Once the product establishes its Brand, export opportunities can also be explored. Middle East countries and other western countries with Indian populations are places where it has demand.

Manufacturing Process & Know-How

Process of Cultivation

Three aspects are to be taken care of for the successful cultivation of mushrooms. These are good compost, reliable spawn and the right temperature during the growing period. Natural compost is prepared from horse dung and wheat or barley straw. Some quantity of chicken manure may be added. Compost preparation is very crucial. Mushrooms are grown in wooden trays or boxes. They are filled with compost and pressed firmly leaving a small space on top of the tray. The spawn is scattered on the surface which is covered with a thin layer of compost. The trays are then covered with old newspaper and water is sprayed to provide humidity. The trays are then stacked vertically. At a temperature of 24-25 C white cottony mycelium spreads and permeate through the compost. It takes around 12 to 15 days for the complete spawn to run. Ultimately the surface of the compost is covered with half to one inch level of casing soil. It is sterilized to kill insects. The casing soil is spread over the plastic sheets and treated with formalin and stirred frequently for a week to remove the formation of fumes. After casing the temperature has to be maintained at 24-25 C for three days after which it must be lowered to 18 C. Thus, batches of trays must be arranged in such a way that there is a regular daily production. The process chart is as follows:

Process of Cultivation

Mushroom Processing

Fresh mushrooms have very limited life hence processing is recommended to enhance the shelf life. Initially, mushrooms are washed in cold water then blanched in boiling water for 3-4 minutes. They are then dehydrated in a drier and packed. It is advisable to pre-treat mushrooms in a brine solution to prevent discolouration. Packing is very crucial as the formation of moisture contaminates mushrooms very quickly. The yield depends on many factors like moisture content in fresh mushroom, type of drier, the process employed, moisture content required in the finished product etc. The average yield is 25%. Plain cans and brine of 2% salt and 0.2% citric acid are used for packing. The cans are vacuumed before sealing at 19 C for 7-8 minutes, sealed and processed under pressure for 20-25 minutes. The process flow chart is as under :

                                    

 

Know-how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 90 tonnes per year. It is assumed that the proportion of fresh mushrooms will be twice that of canned mushrooms.

Land and Building

The main plant and machinery required for a capacity of 300 kgs per day for 300 days per year shall comprise

• Tray type dehydrator - 1 no.

• Blancher - 1nos.

• SS steam jacketed kettle. - 1nos

• Straight-line exhaust box with electricals - 1 no

• Canning retort with attachment - 1 no

• Can Seamer - 1 no.

• Mini Boiler - 1 no.

• SS tanks, trays, crates, weighing scales.

• Laboratory Equipment

The total cost of machinery is estimated to be Rs.4.35 lakhs.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 0.60 lakhs.

The total requirement of power shall be 30 HP, the unit will need 1000 lbs. of water daily.

Raw material and Packing Material

The basic raw material for the unit is spawn, wheat and barley straw, formalin, insecticides etc. for cultivation whereas salt and citric acid will be required for processing. Packing items like cans and plastic bags and corrugated boxes, labels, strapping etc will be required.

The total cost of raw material and packing material at full capacity is estimated to be Rs. 14.17 lakhs. The total requirement for the spawn is estimated to be 10,500 kgs. at 100% capacity. At 60% capacity in 1st year, the cost works out to Rs 8.50 lakhs.

The annual salary bill is estimated to be around Rs.5.58 lakhs.

Land and Building

For smooth operation of the unit, it will require 200 sq. mts of open land and a built-up area of 100 sq. mts. The total cost of land and building is estimated at Rs. 3.10 lakhs.

Manpower

For smooth functioning of the unit, the requirement of man power is expected to be around 8 persons.

Sales person	self
Skilled Workers	2
Semi skilled workers	2
Helpers	2

The annual salary bill is estimated to be around Rs.1.84 lakhs.:

Sales Revenue: (100% capacity)

The selling price varies depending on the product quality and demand. An average price of Rs 50,000/- per tonne has been taken for the canned mushroom and Rs 22,000/- for fresh mushrooms the annual income at installed capacity of 90 tonnes is Rs 28.20 lakhs.

Product	Qty(Tons)	Price/Ton(Rs.)	Sales value(Rs. Lakhs)
Fresh Mushrooms	60	22,000	13.20
Canned Mushrooms	30	50,000	15.00
Total			28.20

Means of Finance

Promoters Contribution	10.10
Term Loan	24.00
Total	34.10

Cost of Project

Sales	Rs. lakhs
Land & Building	3.10
Plant & Machinery	4.35
Other assets	0.60
Contingencies	0.75
P & P expenses	0.75
Margin money	1.15
Total	10.70

Means of Finance

Promoters Contribution	3.20
Term Loan	7.50
Total	10.70

Profitability: (60%capacity)

	Rs. lakhs
Sales	16.92
Raw material	8.50
Salary	1.84
Utilities	0.60
Stores & Spares	0.18
Repairs & Maintenance	0.30
Selling expenses	0.58
Administrative expenses	0.36
Depreciation	1.25
Interest on T.L	0.84
Interest on W.C	0.30
Cost of production	14.75
Profit	2.17

Requirement of Working Capital

		Margin	W.C	Margin Money
Packing material	1 month	30%	0.50	0.15
Stock of finished goods	1 month	25%	1.00	0.25
Working expenses	1 month	100%	0.40	0.40
Sale on credit	1 month	25%	1.40	0.35
Margin money for W.C				1.15

Break-Even point

40%

Machinery Suppliers

M/S Gardener Corporation, Golf Links New Delhi 110003.

M/s Raylon Metal Works J.B.Nagar, Andheri(E) Mumbai.

M/S B Sen & Barry Co., Rohtak road, New Delhi.

M/S Cowel Can Ltd. Barotiwala, Dist Solan,

M/S Laxicon Engg. Sita Bardi, Nagpur

FMC Technologies Hong Kong Ltd. Bhubaneshwar Housing Society Pashan Road Pune.