Oyster Mushroom Farming Table Of ContentsEXECUTIVE SUMMERY3WHAT IS MUSHROOM5OYSTER MUSHROOM7BOTONICAL DESCRIPTION8INTRODUCTION9ORIGIN11MUSHROOM CUTIVATION REVIEW11VISION STATEMENT12MISSION STATEMENT12SLOGAN13OBJECTIVES14MUSHROOM MARKET15OVERALL MUSHROOM MARKET16OVERALL OYSTER MUSHROOM MARKET17PAKISTAN MUSHROOM MARKET17DEMAND AND SUPPLY18NUTRITIONAL INFORMATION19SWOT ANALYSIS22STRENGTH23WEAKNESS23OPPORTUNITIES23THREATS23OPERATIONAL FLOW24CHART24ORGANIZATIONAL STRUCTURE35TARGET MARKET37MARKETING MIX38PRODUCT38PRICE39

PLACE40PROMOTION40GAP ANALYSIS41COMPETITORS ANALYSIS42Direct Competitors43Indirect Competitors44FINANCIALS45INITIAL CAPITAL INVESTMEMT46PROJECTED INCOME STATEMENT47BALANcE SHEET48BREAK EVEN POINT49PAY BACK PERIOD49MINUTES OF MEETINGS50BUSINESS CARDS57PICTURES58REFERENCES60

EXECUTIVE SUMMERY

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.

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.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.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.

Oyster Mushrooms Farming

WHAT IS MUSHROOM?

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.

Mushrooms are type of fleshy plants that belong to the fungi group. They grow from decaying materials and just like fungi, they dont 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.

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. 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.

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.

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.

OYSTER MUSHROOMOyster 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.

BOTONICAL DESCRIPTION

The oyster mushrooms have three parts.1. A shell shaped cap.2. A short or long central stalk.3. Long ridges and furrows.

INTRODUCTION

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. 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. 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.

ORIGINCultivation 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.

MUSHROOM CUTIVATION REVIEWIn 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. Thats why in world market, mushrooms are found in canned form.

VISION STATEMENT

To be market leader of fresh oyster mushrooms with low price and best quality.

MISSION STATEMENT

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.

SLOGAN

Delicious And Healthy Are Only Mushrooms.

OBJECTIVES

To provide fresh mushrooms in the market with least price. Introducing fresh mushrooms as an alternative of canned mushrooms. Pioneer in fresh production market. Aware about nutritional benefits of mushrooms. Create new employment opportunities.

MUSHROOM MARKET

OVERALL MUSHROOM MARKET

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 categories1. Edible mushrooms.2. Medicinal mushroom products.3. Wild mushrooms.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.

OVERALL OYSTER MUSHROOM MARKET

PAKISTAN MUSHROOM MARKETMushrooms 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.

DEMAND AND SUPPLY

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. 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.

NUTRITIONAL INFORMATION

Calorie InformationCalories22.0(92.1 kJ)

From Carbohydrate 11.1(46.5 kJ)

From Fat2.8(11.7 kJ)

From Protein8.1(33.9 kJ)

CarbohydratesTotal Carbohydrate3.3 g

Dietary Fiber1.0 g

Sugars1.7g

Fats & Fatty AcidsTotal Fat0.3g

Saturated Fat0.0g

Monounsaturated Fat0.0g

Polyunsaturated Fat0.1g16:2 undifferentiated

Total Omega-6 fatty acids14:010.0mg15:010.0mg16:1 undifferentiated0.0mg16:1 c0.0mg16:1 t0.0mg17:010.0mg18:1 undifferentiated0.0mg18:1 c0.0mg18:1 t0.0mg20:010.0mg22:1 undifferentiated0.0mg22:1 c0.0mg22:1 t0.0mg24:1 c0.0mg~18:2 undifferentiated139mg18:2 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~18:030.0mg18:3 n-3, c,c,c~18:3 n-6, c,c,c~18:4 undifferentiated0.0mg20:2 n-6 c,c0.0mg20:3 undifferentiated0.0mg20:3 n-3~20:3 n-6~20:4 undifferentiated0.0mg20:4 n-3~20:4 n-6~20:5 n-30.0mg22:02~22:5 n-30.0mg22:6 n-30.0mg139mg

4:000.0mg6:000.0mg8:000.0mg10:000.0mg12:000.0mg13:00~14:000.0mg15:000.0mg16:0035.0mg17:000.0mg18:009.0mg19:00~20:000.0mg22:000.0mg24:00:000.0mgProtein & Amino AcidsProtein 3.1 g

MineralsCalcium3.0 mg

Iron0.5 mg

Phosphorus86 mg

Sodium5.0 mg

Zinc0.5 mg

Copper0.3 mg

Manganese0.0 mg

Selenium9.3 mg

Potassium318 mg

Magnesium9.0 mg

VitaminsVitamin A0.0 IU

Vitamin C2.1mg

Vitamin D18 IU

Vitamin E (Alpha Tocopherol)0.0 mg

Vitamin K0.0 mcg

Thiamin0.1 mg

Riboflavin0.4 mg

Niacin3.6 mg

Vitamin B60.1 mg

Folate16.0mcg

Vitamin B120.0mcg

Retinol0.0mcgRetinol Activity Equivalent0.0mcgAlpha Carotene0.0mcgBeta Carotene0.0mcgBeta Cryptoxanthin0.0mcgLycopene0.0mcgLutein+Zeaxanthin0.0mcgBeta Tocopherol0.0mgGamma Tocopherol0.0mgDelta Tocopherol0.0mgFood Folate16.0mcgFolic Acid0.0mcgDietary Folate Equivalents16.0mcgNutritional COMPARISON OF DIFFERENT MUSHROOMSPreparationServing SizeCarbohydratesFiber (g)Fat (g)Energy (kj)

Oyster Mushrooms 100g62.50.5155

Button Mushrooms - raw100g1.52.50.5100

Mushrooms - canned100g1.530.565

Chinese Mushrooms - dried & rehydrated25g40060

Enoki Mushrooms - raw100g72.50.5145

Shitake Mushrooms - dried4 (15g)111.50185

SWOT ANALYSIS

STRENGTH1. New idea in market.2. People already have taste of mushroom.3. A huge profit margin.4. Raw material with lower cost.5. Lesser initial investment.6. Rising trend for fast food items.7. Climatic conditions fit for mushroom production.WEAKNESS1. No specialist for mushroom farming.2. Mushrooms are spoiled in 3 to 4 days.OPPORTUNITIES1. Decline in canned production in world market.2. Adopt latest technology.3. Raise the production to meet international market.4. Hire a mushroom specialist to identify problems and resolve them.5. Made delivery as early to avoid loss due to spoilage of product.THREATS1. Existing canned mushrooms market.2. Risk of increasing demand being satisfied from competitors.3. Government policies.4. Risk of supply exceeding demand if markets not developed.

OPERATIONAL FLOW CHART

1. Building AcquisitionThe 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 dont need temperature regulator or humidity controller.

2. 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.

3. Spawn Order: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.

4. 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.

5. Care TakersThese 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.

6. Raw material ArrivalAfter 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.

7. Wetting and Moisture LevelThis 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. 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.

8. PrecautionsIn 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.9. Filling Of BagsThe 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.10. Spawn SprayThe 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. 11. Cover The BagsThe 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.

12. Temperature RegulationThe 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.

13. Un Cover BagsAfter 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.

14. GrowthThen 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.

15. CuttingThe 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.

16. Wait 5 daysBut 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.

17. Maturity levelBut 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.

18. Mushrooms CategoryAfter cutting the mushroom, they were further segregated into 3 categories which are (i) A Category. (ii) B Category. (iii) C Category.

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.

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 didnt match the A category requirement and thus they are included in this category.

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.

19. PackingThen 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.

20. Dispatch 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.

ORGANIZATIONAL STRUCTURE

Training managerFinance managerHR managerGeneral ManagerMarketing managerCare takers

Finance managerMr.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.Hr managerMiss Sana is our HR manager and she is responsible for recruitment, selection and other human resource activities.Marketing managerMr. 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. Training ManagerMr. 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.CaretakersThey are responsible for Take care of raw material Look after the growth Help in cutting

TARGET MARKET

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.

MARKETING MIX

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 are1. Product.2. Price.3. Place.4. Promotion. PRODUCTWe are going to sell our product which is mushrooms. After cutting, the mushrooms are ready for before delivery, we segregate them into three categories.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.

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 didnt match the A category requirement and thus they are included in this category.

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.

PRICEAs 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.

CATEGORYPRICE PER KILOGRAM

A Category500

B Category350

C Category250

PLACEMushroom 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. PROMOTIONAs 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. 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.

GAP ANALYSIS

Products

2005 (000 kg)

2010 (000 kg)

Supply

Demand

Gap

Supply

Demand

Gap

Fresh300121091055018751325

Canned 1200130010017501900150

AnalysisIn 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. 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.

COMPETITORS ANALYSIS

Direct Competitors

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

1. Kakar Trading Company.2. Falcon Exports (pvt) Ltd.3. Business Concepts (Pvt) Ltd.4. PAK International Enterprises 5. A.T.M Industries Pvt Ltd.

Indirect CompetitorsAs 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.

FINANCIALS

INITIAL CAPITAL INVESTMEMT

ProductsCost

Purchase of raw material 300000

Building rent25000

Iron Shelves30000

Supplies (office and operation)10000

Cutting equipment5000

Utilities30000

Generator120000

Humidity controller 10000

TOTAL530000

PROJECTED INCOME STATEMENTsParticulars201120122013

Sales144000018000002400000

less: Cost of goods sold

Cotton Waste448006160080500

Spawn240003000037500

Plastic Bags96001200017500

Labor224000300000375000

Total CGS302400 403600 510500

Gross profit1137600 1396400 1889500

Less: Operating expenses:

Administrative exp Salaries Electricity Traveling240000 120000 480002640001320005000029040014400052000

Marketing exp Advertisement Telephone 12000024000 100000 2500010000027000

Total Operating Expenses 552000571000613400

Earnings before income tax585600 825400 1276100

Tax deduction: (5% on sales)7200090000120000

Net income513600 735400 1156100

BALANcE SHEET FOR THE YEAR 2011ParticularsDebit (Rs.)Credit (Rs.)

Current Assets:

Cash1000000

Inventory (F/G, Material)56800

Total Current Assets1056800

Fixed Assets:

Land & Building (25000/month rent)300,000

Machinery (30,000)27000

Less: accumulated depreciation (30,000 @ 10%=3000)

Total Fixed Assets327000

TOTAL ASSETS1383800

Current Liabilities:

Estimated income tax72000

Total current Liabilities72000

Stockholders Equity:

Common stock776600

Retained earnings535200

Total stockholders equity1311800

TOTAL LIABILITIES & STOCKHOLDERS EQUITY1383800

BREAK EVEN POINT=Total Fixed Cost/ (selling price per unit-variable cost per unit)= 832800/ (500-5)= 832800/495= 1682 unitsPAY BACK PERIOD=Investment/Retained earnings=1000000/535200=1.87 years=1 year, 10 months and 13 days

MINUTES OF MEETINGS

MINUTES OF MEETINGA 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. PARTICIPENTS:Interviewers-Mr. Sulman ashraf-Miss Sana Khalid-Mr. Umair shakeel-Mr. Jawad bajwaInterviewee- Dr. Muhammad asif We have discussed following issues regarding oyster mushroom farming. His career in the oyster mushroom farming. Brief introduction of the mushroom. Discuss history and mushroom related Pakistani peoples perception. Current practices about its oyster farming; demand and supply gap globally. Physical feasibility of the mushroom in Pakistani environment.

MINUTES OF MEETINGA 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.PARTICIPENTS:Interviewers-Mr. Sulman Ashraf-Miss Sana Khalid-Mr. Umair Shakeel-Mr. Jawad bajwaInterviewee- Mr. AsimWe have discussed following issues regarding oyster mushroom farming. Mushroom demand. Mushrooms impact on taste. Supply chain regarding mushroom.

MINUTES OF MEETINGA 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. PARTICIPENTS:Interviewers-Mr. Sulman Ashraf-Miss Sana Khalid-Mr. Umair shakeel-Mr. Jawad bajwaInterviewee- Mr.Shehzad AzizWe have discussed following issues regarding oyster mushroom farming. Growth mechanism of oyster mushroom. Temperature requirement. Atmosphere regulation regarding mushroom.

MINUTES OF MEETINGA 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. PARTICIPENTS:Interviewers-Mr. Sulman Ashraf-Miss Sana Khalid-Mr. Umair shakeel-Mr. Jawad bajwaInterviewee- Mr. Faisal Iqbal We have discussed following issues regarding oyster mushroom farming. Mushroom demand. Mushrooms impact on taste. Supply chain regarding mushroom.

MINUTES OF MEETINGA 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.PARTICIPENTS:Interviewers-Mr. Sulman Ashraf-Miss Sana Khalid-Mr. Umair shakeel-Mr. Jawad bajwaInterviewee- Mr Raja Taimoor We have discussed following issues regarding oyster mushroom farming. Marketing opportunities of oyster mushroom. Identify the gap between demand and supply of the mushroom. Difference between fresh and canned mushroom market.

MINUTES OF MEETINGA 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.PARTICIPENTS:Interviewers-Mr. Sulman Ashraf-Miss Sana Khalid-Mr. Umair Shakeel-Mr. Jawad bajwaInterviewee- Mr. Ali ZulfiqarWe have discussed following issues regarding oyster mushroom farming. Mushroom demand. Mushrooms impact on taste. Supply chain regarding mushroom.

BUSINESS CARDS

PICTURES

REFERENCES

1. http://www.mushroombusiness.com/content/articles/detail/232/mushroom-economics-in-china2. http://findarticles.com/p/articles/mi_m0WDP/is_2001_April_23/ai_73597656/3. http://www.iptu.co.uk/content/pakistan_clusters_food.asp4. http://eng.hi138.com/?i273845_Mushroom_industrys_sustainable_development_approach5. http://www.pakissan.com/english/advisory/export.fruits.economy.shtml6. http://www.begellhouse.com/journals/708ae68d64b17c52,7c3e0ba845ba8869,077af3c034cb7b70.html

University Of Central PunjabFaculty Of Management Studies PCBA-PICSPage 60

Building acquisitionPrecautionCover the BagsSpawn SprayFilling of BagsInaccurateAccurateDISPATCHPACKINGA CategoryB CategoryC CategoryCut Before MaturityWait 5 days moreCut if flower is completedGrowth Of 40 DaysWettingUn cover bags after 2 weeksTemperature RegulationMoisture LevelRaw Material ArrivalPolythene Bags OrderSpawn OrderCare TakersCotton Waste arrangement