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Table of Contents
Executive Summary...................................................................................3
Business Idea.............................................................................................6
Market opportunity...................................................................................8
My Team....................................................................................................9
SWOT Analysis.............................................................................................................10
Financial Plan...........................................................................................11
Economics of Phase-I...................................................................................................12
Economics of Phase-II..................................................................................................14
Environment Assessment.........................................................................17
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Micro Level Mushroom Farming
Mushroom Farming in Pakistan: A Business Venture to Alleviate Poverty and Revive
the Cottage Industry
Executive Summary
With the rising costs of basic foods required for survival, malnutrition among the masses is a pressing
issue. One estimate puts malnutrition in Pakistan at 30%. The long-term effects of this situation are
ruinous, including the incidence of various diseases and medical conditions such as poor development of
brain cells leading to reduced IQ levels. This situation, though alarming, can be readily remedied at a very
reasonable cost. In fact a profitable venture, with potential for foreign exchange earnings, can be
established at very little cost on a community-based business model. This venture is the growth;
consumption, and potential export of mushrooms.
Mushrooms are a rich source of proteins; carbohydrates; valuable salts and vitamins. Their nutritional
value lies between meat and vegetables. They have been equated with muscle proteins and are called
vegetable meat. Thus mushrooms provide a high protein, low caloric diet and are very valuable as a
nutritional supplement. They are highly recommended for heart patients. All essential amino acids
required by an adult are present in mushrooms. Not only appetizing, mushrooms have the ability of
converting nutritionally valueless substances into high protein food.
In Pakistan, we plan to farm mushrooms in the Punjab provinces by providing service to the local
individual cottage farmers through a highly sophisticated process.
Not only does our business plan address the issue of food shortage, it will also provide profitable business
for the local farmer. The unique advantage of our plan is that since we will not have to buy or build a farm
to implement the process; there will be zero infrastructure cost as far as mushroom production is
concerned. Additionally, by adopting our method of dividing the production unit into smaller cottage
units, the probability of being affected on a large scale by a bad crop is less likely.
High prices coupled with low quality food are the key factors responsible for the prevalence of
malnutrition in our part of the world. Our business plan will attract a variety of consumers and investors
as it provides a high quality food product at an affordable price, specifically, a very low price for farmers.
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The key benefits of our business plan are as follows:
4. By using organic waste, propel Pakistan forward in the global trend towards protecting the
environment by eliminating possible environmental hazards.
Rather than benefiting a single entity, which only triggers wealth accumulation, our plan will boost the
local economy by ensuring money circulation among the masses. Overall, our plan would positively affect
the masses.
Being the only one of its kind, our venture will enjoy monopoly in the market, and this point alone will be
a major attraction for investors.
The actual market for mushrooms has dramatically expanded over the past few years, and many factors
have fueled this rapid growth: globally, the demand for mushrooms has increased significantly, and there
is a huge disparity between the demand and supply, where demand outnumbers the supply by leaps and
bounds. In addition to this, the local restaurant industry has grown exponentially thanks to the
emergence of new Western and Chinese restaurants which extensively use this brilliant vegetable. With
this trend, in the next 5 years the market for mushrooms will spread out further, and more production
units will be required to fulfill the resulting enormous demand.
The market for mushrooms in Pakistan is significantly widespread, and there is not a single producer
present locally to cater specifically to this demand. As a direct result of this deficiency, mushrooms are
imported carrying high costs. Since we plan to produce quality mushrooms on a large scale locally, we
will be able to provide mushrooms at a cost half that of those which are imported. Therefore, initially, we
expect to earn at least 70% of the market, given the scale and resource available to us.
Initially, we plan to target restaurants and general supermarkets for our customer base, and as our
business develops, we eventually aim to expand our customer base outside of Pakistan. Our marketing
strategy will focus mainly on introducing and presenting mushrooms as a vegetable that could be used to
make delicious dishes at a very affordable prices.
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Below is a brief outline of our Operational Process:-
2. Production by farmers.
We plan to build a direct relationship with our customers and market and sell our product using a team
comprised of highly enthusiastic volunteers and paid workers. Additionally, we plan to organize different
events which will promote the use of mushrooms as a common Pakistani household vegetable. In an
effort to achieve this, one specific marketing strategy is to run a weekly mobile restaurant which will
feature dishes with mushrooms.
As discussed earlier, being the only one of its kind in the market, we will have little to no competition for
revenue.
By directly providing profitable business to local farmers, our business will not only improve the financial
condition of the local population in which the business is located, but the project has many far-reaching
consequences: for example, the project will work as a catalyst in spreading awareness regarding the
withering cottage industry in Pakistan. A booming cottage industry will not just bring wealth to the local
farmers and craftsmen but it will also generate good revenue in terms of exports for Pakistan.
From the foregoing account it will be abundantly clear that at very little fixed and recurring cost, a poor
householder can make a reasonable profit. Furthermore, a good source of nutrition is available at his
door step. Additionally, marketing at an economically feasible scale can fetch good returns. This is all the
more true in case of exports, which will earn valuable foreign exchange. It is urged that consideration be
provided to this and other such micro scale, intensive enterprises.
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Section 3.0
What?
Phase I:
Providing training and service to the local farmers for the proper
farming and cultivation of mushroom and post harvest technique to get best
quality yield.
Phase II:
Intallaling a post mushroom production unit to process the locally
produced mushroom for foreign and nation wide export.
o Our product satisfies the need for food shortage and as well as will provide profitable
business to the local farmer.
How?
o As we are not going to have our own farm , so theoretically speaking will have zero
infrastructure cost as far as mushroom production is concerned (except for the canning
unit , that we may have , but still the bigger portion would be covered) secondly by
adopting our method that is to divide the production unit into smaller cottage units , the
probability of our getting affected by a bad crop on large scale becomes less significant.
o High price coupled with bad quality food is solely responsible for the phenomenon of Mal
nutrition in the our part of the world . Our product will attract the customers as it will
provide high quality food in affordable price. (REALLY CHEAP FOR LOCAL PEOPLE).
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The key benefits of our product are as follow
Rather than benefiting a single entity that triggers wealth accumulation this plan would help
improve the locals economics by ensuring the money circulation among the masses . Our plan
would positively affect the masses.
Being the sole of its kind the company will enjoy monopoly in the market. (This point is an EYE
CATCHER for investors).
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Section 4.0
Market Opportunity
The actual market size for mushroom has dramatically expanded over the recent years. The demand for
mushrooms has become more significant and grave. there is a wide gap between the demand and supply,
demand outnumbering the supply by miles, other than that, local restaurants industry has progressed
and, new western and Chinese restaurants have pop up , that extensively use this wonderful vegetable .so
in the next 5 years the market will further expand and more production unit would be required to full fill
that enormous demand.
The market for mushroom in Pakistan is significantly large and there isn't a single producer present
locally to cater for this demand, as a direct result mushroom are imported, as we plan to produce quality
mushroom on a large scale locally, providing mushroom at a cost half that of imported, so we expect to get
at-least 70% of the market initially given the scale and resource available to us.
Specifically our customers are restaurants and big general store, but with our excellent marketing we
expect to expand this range. We aim at introducing mushroom as a vegetable that could be used to make
tasteful dishes at a very affordable price.
OPERATIONAL PROCESS
We plan to adopt direct relation with customer or PR approach to market and sell our product though a
team of highly enthusiastic volunteer and paid workers. Other than that's under our plan we would be
organizing different events that would promote the use of mushroom as a useable vegetable. For this
reason a weekly mobile restaurant is also among the strategy.
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My team and support
Team member
Supporters:
Dr. Muhammad Asif Ali, Associate Professor and Research Scientist Mushrooms,
Mushroom Lab, Institute of Horticultural Sciences, University of Agriculture,
Faisalabad sees this highly feasible and profiting yielding business plan Dr. Asif
extended his full support in form of technical training and guidance throughout
the different phases of this project.
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SWOT Analysis
Strengths
• Easy implementation
Weaknesses
Opportunity
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Threat
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Section 5.0
Financial plan
Once we start getting production from small production units, the product will be
processed and treated on a small scale and will be prepared for the local market. After
the success in the local market and enough training, the production will be increased
and the processing will be enhanced for the inter district export, and later on inter
provincial and overseas export.
We would be installing the canning plant two years after the start of the project.
Financial Sustainability
This unique business plan is definitely financially sustainable. All kind of risk factor
have been taken into account. If the plan goes as planned the company would generate
enough money in shot span to sustain itself in critical conditions
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Economics of Phase-I
The economics for Phase-I of mushroom farming are as follows:
• FIXED COST:
• Kulla 5 ft x 5 ft x 7 ft high
• RECURRING EXPENDITURE:
• RETURNS:
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Conclusion Phase One :
From the foregoing account it will be abundantly clear that at very little fixed
and recurring cost a poor house holder can make a reasonable profit. Most
importantly a good source of nutrition is available at his door step. Apart
from this, if the activity is carried out on a community basis, credit can be
provided for inputs and even fixed cost. Secondly, marketing at an
economically feasible scale can fetch good returns. This is all the more true
in case of exports, earning valuable foreign exchange. The technology is
easily transferred and local training can be carried out through
demonstration. It is urged that consideration be provided to this and other
such small scale or rather micro scale, intensive enterprises.
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Economics of Phase - II
Supervisor 15,000
Manager 25,000
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Section 6.0
• Profitable business
• Job creation
• By reviving cottage industry that would create employment for the youth , rural to urban
migration could be stopped which inevitably results in poor quality of urban life.
This business plan by directly providing profitable business to local farmer would not only better the
financial condition of the locality in which the business is located but the project has further out reaching
consequence , the project will work as a catalyst in spreading awareness regarding withering cottage
industry in Pakistan .
A blooming cottage industry will not just bring wealth to the local farmer and craft men but also will fetch
considerable revenue in terms of exports for the country.
Environment assessment
Farming Mushroom is one natural way of converting hazardous organic waste into useful edible protein.
All kind of organic waste is suitable for growing mushroom, and depends upon the locality where farming
is done.
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