OJECTIVES

 To maximize profit while utilizing resources

 To produce an environmental friendly product
 To promote healthy living
 To offer a quality product at a low price

PRE-SELECTION STAGE
Philippines is an agricultural country. But unlike other crops, mushroom farming is not popular.
According to some article, because of low supply for mushroom, Philippines imports from South East Asia
like China, Taiwan, Thailand, Malaysia, Korea, and Japan just to fulfill the demand. Growing mushrooms
in the Philippines is economically feasible due to low-production cost, low supply, and high demand, which
will be an advantage of mushroom growers.

The target market of this business is Metro Manila. Though few mushroom suppliers are already
present in the said area, because of increasing demand, having this kind of business would probably a
profitable one. It can be distributed to restaurants, food caterers and grocery stores. The price of
mushroom products ranges Php300 – Php800 per pack, depending on the kind of product.

In making this mushroom happen, the materials needed are available at hardware stores. The
workers, to have enough knowledge about mushroom farming will attend seminars. The production is
compose of three stages; Mixing; Incubation; and Harvesting. Then it will be move in the production
department to process into end products such as dried mushroom, chicharon mushroom and fresh
mushroom.

The estimated investment required is Php 1,200,000 to cover some expenses costing Php 173,610.
With this, an estimated return on investment is 22.75%.

ANALYSIS STAGE
Market Analysis

Manila is the capital and the chief city of the Philippines. It is the center of the country’s economic,
political, social, and cultural activity. It is located on the island of Luzon and spreads along the eastern
shore of Manila Bay at the mouth of the Pasig River. It is situated on one of the finest sheltered harbors
of the Pacific region and a center of the international port of entry. The city has undergone rapid economic
development and industrial development in the past years.

The City of Manila is the third biggest metropolitan area in the world and also the economic leader
of the Philippines. It is surrounded by different business establishments such as malls, supermarkets,
hotels and restaurants which are the target market of this proposal.

Within the area of Manila, public transportation is provided principally by buses, jeepneys (small
buses built on the chassis of jeeps), and taxis. Bus services operate routes to northern and southern Luzon
as well as railroad services operated by Philippine National Railways.
 Few mushroom suppliers are already present in the area but despite the competition, it is still
profitable to compete in this kind of business in view of the fact that there are only limited supplier in the
market and the demand is increasing since many food businesses are needing this product as a substitute
for meat and to produce healthy dishes.

The business’ primary target customers are restaurants, food caterers, and supermarkets. It aims
to be a supplier of fresh oyster mushrooms to different restaurants and food caterers and a distributor of
fresh oyster mushroom and oyster mushrooms products such as mushroom burger patty and mushroom
chicharon to supermarkets around Manila.

The source of the product’s main ingredient, which is the oyster mushroom, will be harvested on
the business’ own mushroom farm in Antipolo City. Other secondary ingredients will be locally outsourced
to have a lower production cost compared to importing ingredients from other countries. Thus, low
production cost will make the product more affordable to consumers.

For the business to be known to the public, social media will be used to promote and advertise
the products. The business will also have a website wherein potential customers can know more about
the product and the contact information for more inquiries regarding delivery transactions.

TECHNICAL ANALYSIS

The main material needed for the production of mushroom is Rice Straw, Sawdust, Dried leaves
of banana, Darak and Apog. Its cost would total P173160 for the first month. The availability of these
materials would not be a big problem for the location of the business is very accessible to different
markets.

The different equipment and materials needed for the business would include Straw Cutter,
Ultrasonic Humidifier Control Machine, Mixing bowl, Shovel, Drum, Rope, wire, shelves and table.

The production process is composed of three stages. First is the mixing where raw materials
sawdust, rice straw, dried leaves of banana, darak and apog. Second is putting of substrate inside the
fruiting bags. And Third, Harvesting of mushroom where mushroom can be readily sold to local market or
transferred to another division for further processing to make the other products.

The most ideal production site for the proposed business would be in Antipolo, Rizal which would
be accessible to the target market of the business such as different food establishment, malls and wet
market. It is also near the business establishment which would require the use of product.

The proposed product, Oyster Mushroom production must strictly undergo in accordance with
the procedure. It is very important to keep the place clean, well-ventilated and far from flood prone
areas. In addition with fresh and dried mushrooms products the owners can make Patty, chi Charon out
of mushroom. It will come with good packaging that can be offered to the market at a very reasonable
price.

The business waste will be segregated properly. The substrate which can no longer be used can
be can be sold to the farmers as fertilizers. While the fruiting bag can be used again in the cultivation of
mushroom.
FINANCIAL ANALYSIS

The proponents decided to contribute Php 200,000 each in order to arrive at initial capital of Php
1,200,000 that is needed for establishing of the proposed business. The total project cost of business
amounted Php 173,160. The projected income that will be generated within a year is Php 273,000 for the
first year and Php 1,729,000; Php 3,115,000; 4,502,000 and Php 6,580,000 for the next four years. After a
year of business operation, it is expected to yield 22.75% of return of investment as a result of Php 273,000
income and Php 1,200,000 equity. This implies that the business will perform well for the said year. The
total project cost will approximately be recovered within 8 months.

SOCIAL DESIRABILITY ANALYSIS

The following statements summarize the significance of mushrooms in our drive towards
alleviating poverty, enhancing human health, and arresting environmental degradation: (a.)Mushrooms
can be used as food, tonics, medicines, cosmeceuticals, and as natural biocontrol agents in plant
protection with insecticidal, fungicidal, bactericidal, herbicidal, nematocidal, and antiphytoviral activities.
The multidimensional nature of the global mushroom cultivation industry, its role in addressing critical
issues faced by humankind, and its positive contributions are presented. Furthermore, mushrooms can
serve as agents for promoting equitable economic growth in society growth by generating more income
through doing mushroom business. It also helps the government to raise revenue from the taxes that will
be paid by business. Since the lignocellulose wastes are available in every corner of the world, they can
be properly used in the cultivation of mushrooms, and therefore could pilot a so-called white agricultural
revolution in less developed countries and in the world at large. Mushrooms demonstrate a great impact
on agriculture and the environment, and they have great potential for generating a great socio-economic
impact in human welfare on local, national, and global levels. (b) Mushrooms are relatively fast-growing
organisms. Some tropical mushrooms can be harvested and consumed within 10 days after spawning. By
the use of appropriate strains, mushrooms can be cultivated all year round. They can be cultivated using
traditional farming techniques in rural areas, or by using highly industrialized technologies in urban
communities. (c) Mushroom cultivation can be labor intensive. Thus, the activity can generate new jobs,
especially in tropical, less-developed countries. It gives opportunities to people to have a job for a living.
(d) While land availability is usually a limiting factor for many types of primary production, mushroom
cultivation requires relatively little land space. Actually, they can be stacked using shelf-like culture
systems. (e) Mushrooms have been accepted as human food from time immemorial and can immediately
supply additional protein to human food. Other sophisticated and unconventional sources of food protein,
such as yeast, uni-algal cultures, and single-cell proteins, have relatively more complicated requirements
and need to be processed before they can be consumed. (f) Edible mushrooms should be treated as
healthy vegetables. After improving the cultivation techniques, they should be cultivated as widely and as
cheaply as other common vegetables, which will thus be beneficial to the general public. (g) In view of the
pleasing flavor, high protein level, and tonic and medicinal values, mushrooms clearly represent one of
the world’s greatest untapped resources of nutritious and palatable food for our current generation and
for future generations to come.
 The proposed business shall ensure measures to be an eco-friendly business and will expose its
waste in proper management of any trashes, residues from production and other used material on regular
basis. The farm will follow guidelines, rules and regulations set by the Local Government Unit in proper
way of disposing wastes. They will abide any environmental acts and regulations to protect the nature. It
will employ specific measures for each type of waste.

The management will implement paper less in handling the business transaction and operations.
Thus, the helps of Electronic device / computer ton hold the records will be used. Since it is inevitable to
use papers, the management will provide trash bins for segregation of any wastes into biodegradable,
non-biodegradable and for hazardous waste in the farm. Furthermore, the management will also
implement different waste disposal methods namely:

Composting – waste will be classified as biodegradable specifically the used oyster mushroom
substrates after the harvest will be stored in a compost pit to make suitable, nutrient rich compost that
can be used as plant manure and fertilizer for vegetable propagation, this can be done through vermin
compost for fast decaying of organic matter. This biological reprocessing tremendously improves the
fertility of the soil.

3R’s (Reduce, Reuse, Recycle) – waste will be classified as non-biodegradable, specifically the use
of PP bags will be used as vessels for vegetable propagation. The management will set a place within the
project for site for a small vegetables plantation. Those used PVC and rubber bands will be reused if these
usable and if not will be dispose in proper way.

It will be the responsibility of the utility men and farm workers to see if the farm’s environment
is clean and there is and observance in the proper disposal.

Our role in waste disposal and recycling should be reexamined. The mushroom farm's image as
one of waste recycling must be maintained or enhanced. It is important that mushroom researchers
understand the problems of urban waste composting. A future possibility is to build a mushroom farm to
use previously composted urban waste.

MANAGEMENT ANALYSIS

After an extensive study, the proponents decided to adopt the partnership as the form of business
operation to have an efficient and successful business operation.

There would be a need for 18 workers in the business including a general manager, two
cashier/secretary, one operator/repair and maintenance employee, 2 employees at the farm, six
production men (3 employees for chicharon and the other 3 for burger patty), two security guards, two
sales personnel and two delivery men. These workers should be at least high school graduates and are
willing to train and learn the ins and out of the business. They should be hardworking, trustworthy and
with good moral character. It would also require for some of these workers to have an experience before
being accepted as workers of the company.

The duties and responsibilities of each personnel are to maintain the orderliness and smooth flow
of the business organization. The manager would be responsible for the effective planning and controlling
of the company/farm, the cashier/secretary on the other hand oversees the incoming and outgoing cash
records or cash flows or other financial activities, production men’s responsibility on the other hand is the
production of chicharon and burger patty, the two employees at the farm deals with the planting,
harvesting and packaging of fresh mushrooms, and the repair and maintenance worker and security
guards for the maintenance and safety of all the company’s/farm’s equipment or machineries and the
properties of the business respectively.

The compensation package would consist of the basic salary of the employees that they would
receive every 15th and 30th day of the month, which would increase depending on large sales volume.
They would also receive benefits such as SSS and Phil Health and the 13th month pay.

Pre-operating activities include the following: Organization, Determination of Sources of financing

and gathering of financial requirements, Registration, Acquisition of farm/plant sites, Construction of farm
and office, Selection and Acquisition of equipment and tools, Recruitment, Hiring, Selection and
acquisition of raw materials, Training, Promotion, Start of normal Operation.