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  1. 1. RESEARCH PROJECT PROPOSAL<br />Oyster Mushroom Farming<br />Submitted By:<br /> Muhammad Sulman AshrafL1S10MBAM0147<br />Jawad BajwaL1S08MBAM0148<br />Umair ShakeelL1S08MBAM2147<br />Sana KhalidL1F09MBAM0035<br />Supervisor: <br />Prof Mansoor Nisar<br />Department Of Management Sciences<br />University Of Central Punjab Lahore<br />1. INTRODUCTION:<br />What is Mushroom?<br />Any of various fleshy fungi of the class Basidiomycota, characteristically having an umbrella-shaped cap borne on a stalk, especially any of the edible kinds, as those of the genus Agaricus.<br /> Oyster mushroom, or Pleurotus ostreatus, is a common edible mushroom. It was first cultivated in Germany as a subsistence measure during World War and is now grown commercially around the world for food. However, the first documented cultivation was by Kaufert.<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 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 day, 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 />The basic concept behind mushrooms cultivation is that in market, the available mushrooms are in dried and packed form. But we are giving concept of cultivating mushrooms and produce them in fresh form. The dried mushrooms are not enriched with vitamins and they are also not so much tasteful. But fresh mushrooms are enriched with vitamins and also they increase the taste of pizza. <br />2. OBJECTIVES:<br />As we know that our project is on the cultivation of oyster mushrooms. So our major objective is to provide fresh mushrooms in the market with least price also. We should provide mushrooms in the market in form of fresh but one thing is also important that fresh mushrooms were spoiled after one day or one and half day. So our major task is to firstly explore the market and we already have orders from the market so that after cutting of mushrooms, we should deliver them into the market. So our major objective includes providing fresh mushrooms and the market of fresh mushrooms also exist. <br />Moreover, in Pakistan, only few companies are cultivating fresh mushrooms and they are not able to fulfill the market demands. Moreover, another objective is to reduce the cost of pizza as dried mushrooms are costly as compared to fresh ones and they are also less tasteful. So providing mushrooms with fewer rates and with good quality is also one of our major objective. <br />3. REVIEW:<br />In Pakistan, following company is cultivating oyster mushrooms<br />Company Profile<br />Basic Information<br />Company Name:A.T.M Industries Pvt Ltd Business Type:Manufacturer, Trading Company  Product/Service(We Sell):Plastic Disposable Products,PP Woven Sacks,Cup & Mug,Spoons,Fork,PLastic Containers,Plastic Trays,EPS Cups,Thermocol Glasses,Fishboxes,PP Mesh Bags for Vegetables,PP Leno Bags,Mushrooms  Product/Service(We Buy):PP Virgin,Eps Raw Materia,HDPE  Address:Plot # 40/1, Sector 28. Korangi Industrial Area  Brands:A-PAK  Number of Employees:5 - 10 People  Company Website URL:http://atmpk.com<br />And if we take the example of AMERICA, this company is cultivating oyster mushrooms<br />Wild Branch Mushrooms<br />Call at             (802) 586-8022      ,<br />or write to:<br />Glenn Coville<br />1748 Wild Branch Road<br />Craftsbury, Alaska. VT 05826<br />They cultivate with the same method as adopted by our company. <br />4. HOW WILL WE DO IT?<br />As we came to know that other companies firstly require a building which is completely covered as shadow is also important part of cultivation. Some companies outside the Pakistan use a special grass method for its cultivation. Another method for its cultivation is through seed spray. Moreover, other equipments for temperature regulation is also required for cultivation. <br />But in our project, we already have a poultry control shed with proper width and length. Another major reason for selecting this control shed is that it already has all the temperature controlling equipments. For this reason, we are choosing this site. Control shed is properly covered and also it has humidity. By choosing this control shed, our major cost is minimized as we don’t require capital for our building and equipments. The poultry control shed is chosen because the available shed is now in city premises. So the Environmental Safety department is not issuing it license for poultry farming. So as an alternative, this site is used. <br />Moreover, the method of cultivation used by us is the seed spray method. The reason for choosing this method is that the seed spray is easily available to us and it is easy to handle also. Our major requirements are the shelf’s where they are placed and the seed spray and raw material.<br />5. HOW MUCH IT COST TO DO?<br />The major cost in our projects is the cost of shelf’s where mushrooms are placed. Another cost factor is the compost on which mushrooms are cultivated. Single compost cast around 150 Rs. This includes wheat wastes and a plastic bag also. Moreover, seed spray is also included in our cost. 1 KG of seed spray cost 600. As we already have building and equipments, so these costs are eliminated. So the capital requirement for our project is very low.<br />6. TIME LINE OF PROJECT?<br />As we already discussed that the major equipments are already available. So now, the major time required for our project is the adjustment of shelves and also the availability of compost and seed spray. <br />After the completion of all requirements, the time required for mushrooms to grow is 40 days. This means that, after they seed spray process, mushrooms grows in about 40 days. They are fully ready for cutting in 40 days. After their first cutting, they are again ready in about 2 weeks. But one thing is important that if we cut mushrooms in evening, they should be delivered to market in next morning so that they were not spoiled.<br />7. EXPECTED OUTCOME:<br />The cost required for cultivation of 1 kilogram of fresh mushrooms is 300. It is considered as the overall cost of per kg. But if we came towards our profit our outcome of project, the selling price of fresh mushrooms is about 800 per kg in market. But to compete in market, we reduce our price to capture large market segment. So the expected profit ratio is about 100 % but we should reduce down price to beet our competitors. On the other hand, the price of dry mushrooms is high than 1000 per kg. So this aspect is very helpful for us.<br />8. CRITERION OF SUCCESS OF OUR PROJECT:<br />The success rate of our project is very high because or major focus is Lahore Fast Food market. In Lahore market, there is not a single fresh mushroom provider in market. All the pizza parlors are using dried mushrooms in the market. If, we are providing them the fresh pizza with least price, then it is hoped that the success factor for our project were also rise. <br />And the criterion that leads our project to success is providing fresh and quality mushrooms to all the pizza parlors in Lahore with low price. Moreover, the freshness factor is also a criterion for the success of our project. Another major criterion is the less capital requirement for our project as we already have building and major equipments. <br />