EXECUTIVE SUMMARY

Filipinos have always been knotted to their rich food heritage. Such affinity for the
culinary arts has paved the way for its evolution through the introduction of new
ingredients. One of these innovations is the mushroom. The demand of such
component among Filipinos have been increasing as evidenced by its spreading usage
among restaurants, fast food chains, and hotels. Aside from it being a luxury food, the
health benefits that it provides plays a key role in its rising popularity. Unfortunately,
local supplies could barely suffice to such demands, leading to large importations of
mushroom produce and loss of potential income for local farmers. In order to address
the problems on hand, the study on Mushroom Cultivation and its Distribution was
conducted. The target market of the mushroom produce are Japanese, Chinese and
Korean restaurants in Cebu City.

The mushroom produce will be sold at a reasonably competitive price through

deliveries to restaurants, at its best state possible. Production will be in a cool and
shaded environment specifically in a farm house located in Busay, Cebu City.

With a starting capital of 275,876 which shall be financed through loan and
personal investment, the business will run in the form of a Sole Proprietorship. Return of
capital is expected to be generated after 4.36 years.

In order to legally operate as a business entity, the implementer shall have to

comply with various requirements and permits as mandated by the government and
other regulatory agencies such as BIR, DTI, LGUs, SSS, Pag-IBIG, and PhilHealth,
among others. The business income shall form part of the owners earnings and shall
be subjected to the regular income tax rates. Other pertinent taxes shall also be applied,
for instance, Documentary Stamp Tax, and Final & Expanded Withholding Taxes.

The pre-operating period shall take three months utmost and the normal
operations is planned to initiate by the start of 2018.

The project, once implemented, is expected to provide a source of affordable yet

quality mushroom produce, as well as other business and social opportunities. Various
sectors will be benefitted by the project which shall not be limited to the target market,
consumers, community, government and other related industries.

With the facts gathered, the proponents discerned that the project is feasible and
profitable. Therefore, its implementation is recommended.