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Table Of Contents TOC o "1-3" h z u EXECUTIVE SUMMERY PAGEREF _Toc289252690 h 3WHAT IS MUSHROOM PAGEREF _Toc289252691 h 5OYSTER MUSHROOM PAGEREF _Toc289252692 h 7BOTONICAL DESCRIPTION PAGEREF _Toc289252693 h 8INTRODUCTION PAGEREF _Toc289252694 h 9ORIGIN PAGEREF _Toc289252695 h 11MUSHROOM CUTIVATION REVIEW PAGEREF _Toc289252696 h 11VISION STATEMENT PAGEREF _Toc289252697 h 12MISSION STATEMENT PAGEREF _Toc289252698 h 12SLOGAN PAGEREF _Toc289252699 h 13OBJECTIVES PAGEREF _Toc289252700 h 14MUSHROOM MARKET PAGEREF _Toc289252701 h 15OVERALL MUSHROOM MARKET PAGEREF _Toc289252702 h 16OVERALL OYSTER MUSHROOM MARKET PAGEREF _Toc289252703 h 17PAKISTAN MUSHROOM MARKET PAGEREF _Toc289252704 h 17DEMAND AND SUPPLY PAGEREF _Toc289252705 h 18NUTRITIONAL INFORMATION PAGEREF _Toc289252706 h 19SWOT ANALYSIS PAGEREF _Toc289252707 h 22STRENGTH PAGEREF _Toc289252708 h 23WEAKNESS PAGEREF _Toc289252709 h 23OPPORTUNITIES PAGEREF _Toc289252710 h 23THREATS PAGEREF _Toc289252711 h 23OPERATIONAL FLOW PAGEREF _Toc289252712 h 24CHART PAGEREF _Toc289252713 h 24ORGANIZATIONAL STRUCTURE PAGEREF _Toc289252714 h 35TARGET MARKET PAGEREF _Toc289252715 h 37MARKETING MIX PAGEREF _Toc289252716 h 38PRODUCT PAGEREF _Toc289252717 h 38PRICE PAGEREF _Toc289252718 h 39PLACE PAGEREF _Toc289252719 h 40PROMOTION PAGEREF _Toc289252720 h 40GAP ANALYSIS PAGEREF _Toc289252721 h 41COMPETITORS ANALYSIS PAGEREF _Toc289252722 h 42Direct Competitors PAGEREF _Toc289252723 h 43Indirect Competitors PAGEREF _Toc289252724 h 44FINANCIALS PAGEREF _Toc289252725 h 45INITIAL CAPITAL INVESTMEMT PAGEREF _Toc289252726 h 46PROJECTED INCOME STATEMENT PAGEREF _Toc289252727 h 47BALANcE SHEET PAGEREF _Toc289252728 h 48BREAK EVEN POINT PAGEREF _Toc289252729 h 49PAY BACK PERIOD PAGEREF _Toc289252730 h 49MINUTES OF MEETINGS PAGEREF _Toc289252731 h 50BUSINESS CARDS PAGEREF _Toc289252732 h 57PICTURES PAGEREF _Toc289252733 h 58REFERENCES PAGEREF _Toc289252734 h 60<br />EXECUTIVE SUMMERY<br />The project of Oyster mushroom farming is done by Mr. Sulman, Miss. Sana and Mr. Umair and Mr. Jawad who are doing MBA from University of Central Punjab.During our research on oyster mushroom farming in Pakistan we met and interviewed different people and after thorough analysis of the market, business components and with our joint efforts and courage we have devised a business plan under supervision of Professor Farooq Hussain.<br />The market research we conducted concludes that the people are still not much familiar about fresh mushroom industry of Pakistan and there is a clear gap in demand and supply, this makes the industry a very good opportunity for investment.<br />We will grow fresh mushrooms at our farm and supply it to pizza parlors of Lahore. We have planned the business operations in terms of its components; operational flow chart with detail, swot matrix, marketing mix and organizational plan. Our targeted customer belongs to pizza makers and fast food industry.<br />For this, we visit Agriculture University and also visited some pizza parlors in Lahore. We tried to understand their needs and also we note some other aspects like taste and nutritional values. After overall analysis including the financials, we came to know that this business is very successful as there is a huge profit margin instead of any other business. But the major side is that there should be demand of mushrooms in the market. If it is not, then our production is like wastage. So we should produce mushrooms according to demand in the market.<br />Oyster Mushrooms Farming<br />WHAT IS MUSHROOM<br />?<br />Mushrooms are considered as the fifth largest vegetable. A mushroom is a type of fruiting body of a fungus. Fungi are organisms that are free of chlorophyll and therefore cannot do process of Photosynthesis. Some fungi produce mushrooms for the purpose of reproduction, releasing spores into the atmosphere. Fungi got their energy through biochemical decomposition processes.<br />Mushrooms are type of fleshy plants that belong to the fungi group. They grow from decaying materials and just like fungi, they don’t have chlorophyll. They usually grow in cool and moist places. In pastures, meadows, and woodlands they are mostly found. At commercial level they are cultivated in caves, indoors on shelves filled plant materials, and in greenhouses where the average temperature is cool.<br />Mushrooms are in different colors such as white, orange, red, and brown. They also differentiate in sizes and shapes. The most common mushrooms have short, thick stems and umbrella like fleshy caps. Some mushrooms are poisonous. Mushrooms are cultivated as it is used by humans mainly as a source of food. Aside from food aspect, these mushrooms also have medicinal properties, because they contain lovastatin which is a substance used in medicines for heart patients; Lovastatin lowers the cholesterol in the blood. Mushrooms are richer in proteins than other green plants. <br />It contains minerals like iron, phosphorus, potassium, and calcium and is rich with vitamins. It is also filled with fibers that help in digestion in humans. Thus, mushrooms are considered as perfect food, and are also very popular around the world.<br />Mushroom industry is boosting in world as its consumers are increasing day by day. According to the China Edible Fungus Association, their National Mushroom production in 2006 is about 1 4.37 million tons, that is more than 70% of world output. The demand for mushrooms is relatively increasing strongly.<br />The future of many of the mushroom species is bright. Production of mushrooms overall in the world has been increasing due to contributions from countries such as China, India, and Vietnam. There is also much experimentally based evidence regarding the nutritional and medicinal benefits related to mushrooms. In Africa, medicinal mushrooms trials conducted for AIDS patients are also promoting the benefits of mushrooms.<br />OYSTER MUSHROOM<br />Oyster mushroom (Pleurotus sp.) is belonging to class Basidiomycetes and botany family Agaricaceae. It is locally known as ‘Khumbi’ in Pakistan. It grows naturally on dead and decaying wooden logs. It also grows on decaying organic matter. The fruiting body of this mushroom is distinctly shell shaped. They appear with shades of white, cream, grey, yellow, pink or light brown depending upon the type of species. It is one of the most suitable fungal for producing protein rich food without the process of composting.<br />BOTONICAL DESCRIPTION<br />The oyster mushrooms have three parts.<br />
INTRODUCTION<br />Our project is basically the cultivation of the oyster mushrooms. Mushrooms are now-a-days included in the fast food items such as pizza. Mushrooms are of various kinds like buttons mushroom, oyster mushrooms and so on. But here our focus is basically on cultivation of Oyster mushrooms. The reason behind choosing oyster mushroom cultivation is its sensitivity level. Oyster mushrooms are less sensitive according to other kinds. If we want to cultivate Button mushroom, then it should also be noticed that these are very sensitive to temperature and other factors like humidity, light, moisture and so on. <br />Our major reason for choosing this project is the rising needs of fast food items in the market. If we take an example of Lahore market, we came to know that now-a-days, there were many pizza parlors and they are working across every market. And Mushrooms are the needs of pizza. Mushrooms can add a taste to pizza and also they are enriched with many vitamins and carbohydrates. The trend of people is changing day by day and in food market, trend is highly shifted towards pizza. <br />In our topic, we are just cultivating the mushrooms and deliver them to the market. So we are not going to use other methods like drying, packing and so on. We are just cultivating the oyster mushrooms and sale them directly to the customers. So there are no intermediaries involved and the channel of distribution is direct distribution. <br />ORIGIN<br />Cultivation of oyster mushroom was firstly initiated in 1917 in Germany by Flack on experimental basis on tree stumps and wood logs. Cultivation of different varieties of oyster mushroom was initiated in Pakistan in 1975 by Dr Muhammad Asif Ali. Commercial cultivation began in mid nineties.<br />MUSHROOM CUTIVATION REVIEW<br />In the fresh form, about 45 percent of mushrooms produced are consumed only. The other 55 percent is processed in the canned form. This percentage is because their fresh form shelf life is very short. That’s why in world market, mushrooms are found in canned form.<br />VISION STATEMENT<br />To be market leader of fresh oyster mushrooms with low price and best quality.<br />MISSION STATEMENT<br />Our mission is to provide best quality of fresh oyster mushrooms to fast food chain to achieve greater stakeholder value through satisfaction of customers demands. <br />SLOGAN<br />Delicious And Healthy Are Only Mushrooms.<br />OBJECTIVES<br />
To provide fresh mushrooms in the market with least price.
Introducing fresh mushrooms as an alternative of canned mushrooms.
MUSHROOM MARKET<br />OVERALL MUSHROOM MARKET<br />There are 14,000 described species to be considered as mushrooms. The valuation of overall world market for the mushroom industry in 2005 was over $45 billion. The mushroom industry can be divided into three main categories<br />
Holland and China are the world largest exporter of canned mushrooms with a market share of about 68.5 percent. Moreover, France is another important exporter with contribution of about 13.5 percent of the world exports.<br />OVERALL OYSTER MUSHROOM MARKET<br />PAKISTAN MUSHROOM MARKET<br />Mushrooms have earned 6.9 million dollars for exports by Pakistan in 2008 and they are exported to France, Switzerland, Germany, UK and New Zealand. Mushrooms of Pakistan earned good market price in international markets ($71 per kg) as it shows only 97,000 kg earned about 6.9 million dollars. Pakistani exports decreases due to only one reason. The reason is that our market is not fulfilling the demands of international markets so the consistency in production is not maintained. <br />DEMAND AND SUPPLY<br />Oyster mushroom is not as popular as white button mushroom in the domestic market. For export market, some companies are cultivating it. Cultivation of oyster mushroom is more profitable as compared to white button mushroom. The reason for this is the low capital costs. The cultivation of oyster mushroom is very simple and economical where raw materials and facilities required are easily available.<br /> <br />At present, Marketing of fresh oyster mushroom does not have any problem due to its very low production on commercial basis. Generally, the international market for oyster mushroom is very high as it is not meat by some producers. It should be more successful in local market as demand is not so much and our production is also to that extent that it meets up with the demand. So the demand and supply meet up in local market, not in international markets.<br />NUTRITIONAL INFORMATION<br />Calorie Information<br />Calories22.0(92.1 kJ)From Carbohydrate 11.1(46.5 kJ)From Fat2.8(11.7 kJ)From Protein8.1(33.9 kJ)<br />Carbohydrates<br />Total Carbohydrate3.3 gDietary Fiber1.0 gSugars1.7g<br />Fats & Fatty Acids<br />Total Fat0.3gSaturated Fat0.0gMonounsaturated Fat0.0gPolyunsaturated Fat0.1g 16:2 undifferentiatedTotal Omega-6 fatty acids14:010.0mg 15:010.0mg 16:1 undifferentiated0.0mg 16:1 c0.0mg 16:1 t0.0mg 17:010.0mg 18:1 undifferentiated0.0mg 18:1 c0.0mg 18:1 t0.0mg 20:010.0mg 22:1 undifferentiated0.0mg 22:1 c0.0mg 22:1 t0.0mg 24:1 c0.0mg ~ 18:2 undifferentiated139mg 18:2 n-6 c,c~ 18:2 c,t~ 18:2 t,c~ 18:2 t,t~ 18:2 i~ 18:2 t not further defined~ 18:030.0mg 18:3 n-3, c,c,c~ 18:3 n-6, c,c,c~ 18:4 undifferentiated0.0mg 20:2 n-6 c,c0.0mg 20:3 undifferentiated0.0mg 20:3 n-3~ 20:3 n-6~ 20:4 undifferentiated0.0mg 20:4 n-3~ 20:4 n-6~ 20:5 n-30.0mg 22:02~ 22:5 n-30.0mg 22:6 n-30.0mg 139mg<br />4:00<br />0.0<br />mg<br /> <br />6:00<br />0.0<br />mg<br /> <br />8:00<br />0.0<br />mg<br /> <br />10:00<br />0.0<br />mg<br /> <br />12:00<br />0.0<br />mg<br /> <br />13:00<br />~<br /> <br /> <br />14:00<br />0.0<br />mg<br /> <br />15:00<br />0.0<br />mg<br /> <br />16:00<br />35.0<br />mg<br /> <br />17:00<br />0.0<br />mg<br /> <br />18:00<br />9.0<br />mg<br /> <br />19:00<br />~<br /> <br /> <br />20:00<br />0.0<br />mg<br /> <br />22:00<br />0.0<br />mg<br /> <br />24:00:00<br />0.0<br />mg<br /> <br />Protein & Amino Acids<br />Protein 3.1 g<br />Minerals<br />Calcium3.0 mgIron0.5 mgPhosphorus86 mg Sodium5.0 mgZinc0.5 mgCopper0.3 mgManganese0.0 mgSelenium9.3 mgPotassium318 mgMagnesium9.0 mg<br />Vitamins<br />Vitamin A0.0 IUVitamin C2.1mgVitamin D18 IUVitamin E (Alpha Tocopherol)0.0 mgVitamin K0.0 mcgThiamin0.1 mgRiboflavin0.4 mgNiacin3.6 mgVitamin B60.1 mgFolate16.0mcgVitamin B120.0mcg <br />Retinol<br />0.0<br />mcg<br /> <br />Retinol Activity Equivalent<br />0.0<br />mcg<br /> <br />Alpha Carotene<br />0.0<br />mcg<br /> <br />Beta Carotene<br />0.0<br />mcg<br /> <br />Beta Cryptoxanthin<br />0.0<br />mcg<br /> <br />Lycopene<br />0.0<br />mcg<br /> <br />Lutein+Zeaxanthin<br />0.0<br />mcg<br /> <br />Beta Tocopherol<br />0.0<br />mg<br /> <br />Gamma Tocopherol<br />0.0<br />mg<br /> <br />Delta Tocopherol<br />0.0<br />mg<br /> <br />Food Folate<br />16.0<br />mcg<br /> <br />Folic Acid<br />0.0<br />mcg<br /> <br />Dietary Folate Equivalents<br />16.0<br />mcg<br /> <br />Nutritional COMPARISON OF DIFFERENT MUSHROOMS<br />PreparationServing SizeCarbohydratesFiber (g)Fat (g)Energy (kj)Oyster Mushrooms 100g62.50.5155Button Mushrooms - raw100g18.104.22.16800Mushrooms - canned100g1.530.565Chinese Mushrooms - dried & rehydrated25g40060Enoki Mushrooms - raw100g72.50.5145Shitake Mushrooms - dried4 (15g)111.50185<br />SWOT ANALYSIS<br />STRENGTH<br />
Risk of supply exceeding demand if markets not developed.
OPERATIONAL FLOW <br />CHART<br />
The building that is used for our project is the poultry control shed that is already established in okara. The reason for choosing this building is that this control shed is now in the premises of the city and the Environmental department is not issuing the license for that building. So this control shed is vacant and we are using it as an alternative for mushroom cultivation. The size of the control shed is appropriate for our project. Moreover, all the equipments required are already available here. So we don’t need temperature regulator or humidity controller.<br />
Cotton Waste Arrangement:
The next step is to arrange the cotton waste which is our basic raw material. Cotton waste is the medium on which the mushrooms are cultivated. Cotton waste is the most suitable material because they provide better medium for mushroom growth and also they are more economical than wheat straws. So we order in satluj cotton mill in okara for cotton wastes. It is more economical to us because this cotton mill is close to our building so, transportation cost is less.<br />
Spawn are the seeds that are used for growing the mushrooms on the medium. Spawn are sprayed on the surface of the cotton waste that further converts into mushrooms. We should made order of spawn to University Of Agriculture Faisalabad where it is easily available all the time. The cost for spawn is 500 per kg. So we should order spawn according to our production requirements.<br />
Polythene Bags Order:
Another major raw material for our mushroom farming is the polythene bags. These are the bags in which cotton waste is covered and in which the medium for mushroom growth is provided. These bags are easily available in the market and we should order these bags in near market. These bags cost 100 per kg and there are about 250 bags in one kilogram. The size of these bags should be 8 x 12. <br />
These are the persons that are hired for the purpose of caring the mushrooms. They are trained for the mushroom farming and they have complete know how about mushroom cultivation and its cutting. So for our production, we should hire 2 persons for our farm that continuously look after the farm and the mushrooms.<br />
Raw material Arrival
After the ordering, all the raw materials including cotton waste, polythene bags and spawn should reach the farm within two days. All these things were collected by the care takers and it is their responsibility to look after all these materials. All these things were initially placed in our building at one place. <br />
Wetting and Moisture Level
This is the initial procedure in which the cotton waste is watered and leave for some time. The basic purpose for this process is to create moisture in the cotton waste or our medium which is an initial factor for mushroom growth. We should place cotton on floor and leave for certain time. When adequate level of moisture is attained, we start filling this cotton waste into polythene bags. The level for moisture is that you should fill it into bags when you grip cotton into your hands and your hands feel slightly wet. <br />If the moisture level is adequate and suitable for the mushroom growth, then we should packed these into the polythene bags. But in some cases, the moisture level is not suitable and the cotton waste dry. In such situation, we should repeat all the procedure again and then again try to attain the required moisture level. <br />
In this section, we should follow some precautionary measures for our farming. This is done to kill some pests that affect growth and are present in the media. To avoid these pests, we provide water steam to our media or maintain temperature of 58 to 60 degree centigrade. On such temperature, we placed our media for 4 to 6 hours. During this time, all the pests were killed.<br />
Filling Of Bags
The bags are to be filled with the wet cotton waste. 8 x 12 bag should contain 1000 grams of wet cotton waste. The weight of wet cotton varies from size of the bag. If the size of the bag is larger, then more cotton waste in wet form is filled into it. So we should fill wet cotton according to our desired bag size.<br />
The next step is to spray spawn on the medium. As we know that our medium is wet and contains moisture. So we mix up the spawn into the bags with a certain quantity. The suitable quantity for spawn is 1 to 1.5 percent of the weight of wet media. For example if the weight of our wet polythene bag is 1000 grams, then we should mix 10 to 15 grams of spawn into the bag. <br />
Cover The Bags
The next step after the spawn spray is to cover the bags. The bags are covered in such a way that their front opening is closed but there should be a passage for air. It is because the growth phase of mushroom requires air along with moisture. If the bags are air tight, then the spawn is unable to spread. <br />
The next step in our cultivation process is to maintain or regulate accurate temperature for the mushroom growth. For the first three weeks, the temperature should maintain at 16-25 degree centigrade. This is because the initial weeks of mushroom growth are sensitive and requires adequate temperature level. After 4 weeks, the temperature should be raised to 28-30 degree centigrade and this temperature helps in mushroom flower growth.<br />
Un Cover Bags
After 2 weeks, the front of the bags was opened. This is done because the flower should grow in the direction of open end. So it is necessary to open the bags after two weeks. If the bags were not opened, then the mushrooms start spoiling inside the bag and such mushrooms are unable to grow. <br />
Then we left these bags for entire 40 days. The whole process of mushroom growth takes 40 days. During these days, we should check regularly the temperature, humidity and moisture level. <br />
The next step is the cutting process. After 40 days time period, the mushrooms are able to cut. So the care taker cut these grown mushrooms with the help of a simple knife. Be careful while cutting because these mushrooms have to grow again. So cut the mushrooms from appropriate position.<br />
Wait 5 days
But in some cases, the mushroom flower is not grown properly in 40 days. In such cases, we should not cut these flowers and wait for maximum 5 more days to grow. During these days, the mushroom grows its entire flower and attains a certain level to cut it off. <br />
But mushroom flower also has a maturity level. This maturity means that the flower of the mushroom should reach a certain level after which it starts crushing. Another thing that includes in maturity is the color of the mushroom flower. When any mushroom flower reaches at maturity stage, then the color changes to white or some time fade color also represents the maturity level. So to avoid this, it is necessary to cut these flowers at proper time. <br />
After cutting the mushroom, they were further segregated into 3 categories which are (i) “A” Category. (ii) “B” Category. (iii) “C” Category.<br />“A” Category: The mushrooms included in this category are properly weighed and their color is also good. Mostly the oyster mushrooms with light brown colour are included in this category and the size of the flower is 5-7 inches.<br /> <br />“B” Category: The mushrooms included in this category are smaller in size than the A category mushrooms. But some full size mushrooms were also included in this category due to their color. The color of such mushrooms didn’t match the A category requirement and thus they are included in this category.<br />“C” Category: The mushrooms included in this category are spoiled or these include the mushrooms that attain their maturity level. These mushrooms are broken sometimes from centre and hence are included in this category. <br />
Then these mushrooms were packed in the polythene bags. But separate these mushrooms according to their categories and also packed them according to that. Fill the plastic bags according to size of the mushrooms. <br />
Finally, the packed mushrooms were dispatched to our customers. We should use a pickup van for our transportation method. All the orders were delivered to our customers according to their needs. <br />ORGANIZATIONAL STRUCTURE<br />Training managerFinance managerHR managerGeneral ManagerMarketing managerCare takers<br />Finance manager<br />Mr.Jawad is our finance manager and he is responsible for maintaining all the finances of our business like balance sheet and income statement, cash inflow, cash outflow etc.<br />Hr manager<br />Miss Sana is our HR manager and she is responsible for recruitment, selection and other human resource activities.<br />Marketing manager<br />Mr. Sulman is our Marketing manager and he is responsible for taking orders and search out the market for fresh mushrooms. Moreover, all the marketing activities for our promotion is handled by him. <br />Training Manager<br />Mr. umair is our technical manager. He got all the knowledge relating to production and growth methods and he should also train care takers in work.<br />Caretakers<br />They are responsible for<br />
TARGET MARKET<br />Basically we are focusing on the pizza parlors. So our major target market is the pizza market or fast food market. In this regard, initially we are capturing only the Lahore market. In Lahore city, we target all the fast food chain restaurants and pizza parlors. All these pizza parlors are currently using the mushrooms in packed form. So we try to capture their attention and force them to buy mushrooms from our company that is in fresh form. We focus them because they are paying high cost for packed mushrooms and on the other hand we are providing them mushrooms in fresh form which are very economical. So Lahore pizza and fast food market is our basic target. After some time, we expand our operation to other larger cities of Pakistan. <br />MARKETING MIX<br />In this phase, we have developed marketing mix in which all the 4 Ps were consistent. These 4 Ps easily adopt any market changes. These Ps are<br />
PRODUCT<br />We are going to sell our product which is mushrooms. After cutting, the mushrooms are ready for before delivery, we segregate them into three categories.<br />“A” Category: The mushrooms included in this category are properly weighted and their color is also good. Mostly the oyster mushrooms with light brown colour are included in this category and the size of the flower is 5-7 inches. <br />“B” Category: The mushrooms included in this category are smaller in size than the A category mushrooms. But some full size mushrooms were also included in this category due to their color. The color of such mushrooms didn’t match the A category requirement and thus they are included in this category.<br />“C” Category: The mushrooms included in this category are spoiled or these include the mushrooms that attain their maturity level. These mushrooms are broken sometimes from centre and hence are included in this category.<br />PRICE<br />As we are the pioneer of fresh oyster so we are basically price setter in the market. But to compete in market and to capture higher market share, we set our prices at a level that are affordable by our customers. As the price of canned mushroom is very high, so to capture market, we reduce our price. Canned mushrooms are available in market at price of 800-1200 per kilogram depending upon the quality. So we set our prices according to our product categories.<br />CATEGORYPRICE PER KILOGRAM“A” Category500“B” Category350“C” Category250<br /> <br />PLACE<br />Mushroom will be marketed locally through a free market system. As we know that the main market of mushroom is pizza parlors, restaurants and shopping malls. But initially we are targeting just the pizza parlors in our target market and the restaurant. This is because the trend of fresh pan pizza is raising a lot. And customers we are targeting are used of dining outside a lot. And in the next six months, we should also provide fresh mushrooms in big shopping malls like Metro, Hyper Star. <br />PROMOTION<br />As we know that our customer is well aware of the taste of the mushrooms. To introduce the nutritional aspect of mushroom, we use brochures for our promotion. Moreover, we should also take part in food festivals to promote our product. As our target market is Lahore pizza parlors, so we should also advertise locally using cable operators as our media for advertisement. <br />But in future, we decide to launch cooking shows on MASALA TV to promote mushrooms and our product at region or national level as we expand our business. The cooking expert should cook dishes related to mushrooms and different pizza varieties. <br />GAP ANALYSIS<br />Products2005 (000 kg)2010 (000 kg)SupplyDemandGapSupplyDemandGapFresh300121091055018751325Canned 1200130010017501900150<br />Analysis<br />In 2005 fresh oyster mushroom supply was 300 and demand was 1210 and in 2010 supply of fresh oyster mushroom is 550 and demand is 1875, the demand for fresh oyster mushroom is increasing and it is producing only in the region of Karachi and Faisalabad but its demand is increasing day by day. <br />In 2005 canned oyster mushroom supply was 1200 and demand was 1300 and in 2010 supply of canned oyster mushroom is 1750 and demand is 1900, the demand for canned oyster mushroom is decreasing and it is producing in almost all big cities of Pakistan.<br />COMPETITORS ANALYSIS<br />Direct Competitors<br />In Pakistani market, there is a big market of fast food items and it is growing day by day. As the industry is growing, meanwhile its demand is also rising. So to fulfill this demand, there are many companies in the market. So these are our direct competitors. But our target market is Lahore and in Lahore there is no company that is providing fresh oyster mushrooms. So we are pioneers in our market. Some companies are operating in Pakistan but in other regions. Some of them are as follow<br />
Indirect Competitors<br />As our target market is Lahore market, there is no producer of fresh oyster mushroom. All the pizza parlors are using dry or canned mushrooms for their pizza. As we are pioneer in our field, but canned mushroom producer companies already have a brand name and brand image. So they are also our competitors but indirectly. <br /> <br />FINANCIALS<br />INITIAL CAPITAL INVESTMEMT<br />ProductsCostPurchase of raw material 300000Building rent25000Iron Shelves30000Supplies (office and operation)10000Cutting equipment5000Utilities30000Generator120000Humidity controller 10000TOTAL530000<br />PROJECTED INCOME STATEMENTs<br />Particulars201120122013Sales144000018000002400000less: Cost of goods soldCotton Waste448006160080500Spawn240003000037500Plastic Bags96001200017500Labor224000300000375000Total CGS302400 403600 510500 Gross profit1137600 1396400 1889500 Less: Operating expenses: Administrative exp Salaries Electricity Traveling240000 120000 480002640001320005000029040014400052000 Marketing exp Advertisement Telephone 12000024000 100000 2500010000027000Total Operating Expenses 552000571000613400Earnings before income tax585600 825400 1276100 Tax deduction: (5% on sales)7200090000120000Net income513600 735400 1156100 <br />BALANcE SHEET FOR THE YEAR 2011<br />ParticularsDebit (Rs.)Credit (Rs.)Current Assets:Cash1000000Inventory (F/G, Material)56800Total Current Assets1056800Fixed Assets:Land & Building (25000/month rent)300,000Machinery (30,000)27000Less: accumulated depreciation (30,000 @ 10%=3000)Total Fixed Assets327000TOTAL ASSETS1383800Current Liabilities:Estimated income tax72000Total current Liabilities72000Stockholders’ Equity:Common stock776600Retained earnings535200Total stockholders’ equity1311800TOTAL LIABILITIES & STOCKHOLDERS EQUITY1383800<br />BREAK EVEN POINT<br />=Total Fixed Cost/ (selling price per unit-variable cost per unit)<br />= 832800/ (500-5)<br />= 832800/495= 1682 units<br />PAY BACK PERIOD<br />=Investment/Retained earnings<br />=1000000/535200<br />=1.87 years<br />=1 year, 10 months and 13 days<br />MINUTES OF MEETINGS<br />MINUTES OF MEETING<br />A Meeting was held with Dr. Muhammad Asif at his office dated on 10-03-2011, 13:00 Pm regarding general know how about oyster and its feasibility in Pakistan. He is serving Agriculture university faisalabad as professor for many years. He was the first person; who start mushroom farming in Pakistan. <br />PARTICIPENTS:<br />Interviewers<br />-Mr. Sulman ashraf<br />-Miss Sana Khalid<br />-Mr. Umair shakeel<br />-Mr. Jawad bajwa<br />Interviewee<br />- Dr. Muhammad asif <br />We have discussed following issues regarding oyster mushroom farming.<br />
Discuss history and mushroom related Pakistani people’s perception.
Current practices about its oyster farming; demand and supply gap globally.
Physical feasibility of the mushroom in Pakistani environment.
MINUTES OF MEETING<br />A Meeting was held with Mr. Asim at his office dated on 19-03-2011, 21:00 pm regarding general know how about oyster and its feasibility in Pakistan. He is serving pizza hut Lahore as manager.<br />PARTICIPENTS:<br />Interviewers<br />-Mr. Sulman Ashraf<br />-Miss Sana Khalid<br />-Mr. Umair Shakeel<br />-Mr. Jawad bajwa<br />Interviewee<br />- Mr. Asim<br />We have discussed following issues regarding oyster mushroom farming.<br />
MINUTES OF MEETING<br />A Meeting was held with Mr.Shehzad Aziz at his office dated on 20-03-2011, 11:00 Am regarding general know how about oyster and its feasibility in Pakistan. <br />PARTICIPENTS:<br />Interviewers<br />-Mr. Sulman Ashraf<br />-Miss Sana Khalid<br />-Mr. Umair shakeel<br />-Mr. Jawad bajwa<br />Interviewee<br />- Mr.Shehzad Aziz<br />We have discussed following issues regarding oyster mushroom farming.<br />
MINUTES OF MEETING<br />A Meeting was held with Mr. Faisal Iqbal at his office dated on 22-03-2011, 16:00 Pm regarding general know how about oyster and its feasibility in Pakistan. He is serving al-minaal as general manager for many years. <br />PARTICIPENTS:<br />Interviewers<br />-Mr. Sulman Ashraf<br />-Miss Sana Khalid<br />-Mr. Umair shakeel<br />-Mr. Jawad bajwa<br />Interviewee<br />- Mr. Faisal Iqbal <br />We have discussed following issues regarding oyster mushroom farming.<br />
MINUTES OF MEETING<br />A Meeting was held with Mr.Ali Aslam on call dated on 22-03-2011; 10:00 Am regarding general know how about oyster and its feasibility in Pakistan. He is the owner of ATM Company in Karachi.<br />PARTICIPENTS:<br />Interviewers<br />-Mr. Sulman Ashraf<br />-Miss Sana Khalid<br />-Mr. Umair shakeel<br />-Mr. Jawad bajwa<br />Interviewee<br />- Mr Raja Taimoor <br />
We have discussed following issues regarding oyster mushroom farming.
Identify the gap between demand and supply of the mushroom.
Difference between fresh and canned mushroom market.
MINUTES OF MEETING<br />A Meeting was held with Mr. Ali Zulfiqar at his office dated on 19-03-2011, 21:00 pm regarding general know how about oyster and its feasibility in Pakistan. He is serving Ringo pizza Lahore as manager.<br />PARTICIPENTS:<br />Interviewers<br />-Mr. Sulman Ashraf<br />-Miss Sana Khalid<br />-Mr. Umair Shakeel<br />-Mr. Jawad bajwa<br />Interviewee<br />- Mr. Ali Zulfiqar<br />We have discussed following issues regarding oyster mushroom farming.<br />