Free Essay

Volvariella Volvacea Production

In: Business and Management

Submitted By milce
Words 2226
Pages 9
EXECUTIVE SUMMARY
The growing awareness of the nutritive value of mushroom as well as the adoption of more mushroom dishes in restaurant menus has greatly increased the demand of fresh mushrooms. However, some places within the city lack access to this nutrition. In lieu to this, this business proposal has been made. Moreover the proposal aims to supply fresh, nutritious mushrooms to an area which was underprivileged from convenience. Specifically, Mintal, Davao City.
This proposal is a family venture. Thus, a capital of 25 000 pesos will be borrowed from relatives. Located at an area beside Elenita Heights Subdivision, Catalunan Grande, this project is expected to provide convenience in access to mushroom in the Mintal area. Most inputs are available around the corner; nonetheless some inputs will be purchased from reliable sources.
The project will be managed by the owner with the help of a trusted expert in mushroom culture and of course, with the active involvement of the family members. Additional laborers will be hired to help in the overall production.
1. Size of Production 300 square meters
2. Marketing Size 2-3 inches
3. Raising Period 5 months
4. Projected Selling Price 60.00php per kilogram
5. Projected Gross Revenue 54 000.00 php
6. Estimated Cost of Production 19 865.00 php
7. Projected Net Income 34 135.00 php
8. Projected Return of Investment 172%
9. Projected Benefit Cost Ratio 37%

JUSTIFICATION

Mushroom has started to gain popularity these past few years. Often grouped with vegetables, mushrooms provide many of the nutritional attributes more commonly found in meat, beans or grains. Mushrooms are low in calories, fat-free, cholesterol-free and very low in sodium, yet they provide several nutrients, including riboflavin, niacin and selenium, which are typically found in animal foods or grains.
Unfortunately, mushroom is not quite available to most places. An example of this is Mintal area, where consumers would have to go to Bankerohan in order to buy fresh mushroom. Thus, the need of supply has grown over the years. Especially when people has started to learn just how nutritious mushroom could get.
It would be highly beneficial to consumers that they have access to fresh mushroom. Mushrooms provide our bodies with the nutrients, proteins, minerals, and vitamins it needs to generate energy and repair cells. They are one of the most remarkable elements for a healthy immune system. They have been used to cure or improve eyesight, hearing, circulation, impotency, stop migraine headaches, tumors, influenza, and even cancer. Thus, this project would not only give convenience to consumers but also health benefits.

OBJECTIVES
GENERAL
To culture Straw Mushroom (Volvariella volvacea) for generating income.
SPECIFIC
* To promote health benefits in eating mushrooms ( Volvariella Volvacea). * To gain profit. * To provide convenience to consumers especially those within the area of production. * To provide jobs and possibly, financial assistance to people.

PROCEDURE
1. Select the site where Volvariella volvacea will be cultured.
2. Raise capital.
3. Select the place where the harvested mushroom will be supplied.
4. Employ employees.
5. Orient employees on the routine that will be done on the business.
6. Give each employee a task to work on.
7. Buy or collect all the raw materials.
8. Start the production.
9. During the production, follow the generally accepted rules and procedures in culturing Volvariella volvacea.
10. Send and sell the harvested Volvariella volvacea to the market immediately to provide consumers quality.
11. Keep accurate records.

PROJECT ORGANIZATION AND MANAGEMENT

PROJECTED ORGANIZATIONAL CHART

DUTIES AND RESPONSIBILITIES * Owner
Checks the update and initiates improvements on the business.
Approves necessary decisions. * Manager
Supervises and helps on the overall production.
Ensure that appropriate financial systems and controls are in place.
Oversee and present budgets. * Secretary
Records all the data and business transactions
Gathers and checks accurate records of the production. * Laborers (production and maintenance)
Culture and harvest Volvariella volvacea.
Keep the area of production clean and free from contaminants. * Laborers (deliverers)
Deliver the mushrooms to the market.
BUDGETS
A. Inputs

* Fertilizers (urea, ammonium sulfate) * Spawns * School supplies (newspapers, plastic cellophane) * Condiments (sugar) * Employees * Tools (winnowers) * Water supply

Assumption and Possibilities * The estimated cost of fertilizers was 1 875.00 php. * The cost of the spawns was estimated to be 540.00 php. * The requirement for the business permit is estimated to be 1% of the initial capital. * Water consumption is estimated to be 200 php per month. * The estimated selling price of fresh, average size mushroom is 100php for 1 kilo.

B. Operating Expenses Estimated Cost of Production | Genre | particulars | Quantity | Price per Unit | Total cost | Fertilizer | urea | 75 g | 25.00php/g | 1875.00php | Ingredient | spawn | 18 packs | 30.00php/pack | 540.00php | School supply | newspaper | 90pcs | 20.00php/pc. | 1 800.00php | | plastic cellophane | 180m | 5.00php/m | 900.00php | Condiments | sugar | 112.5 kg | 60.00php/kg | 6 750.00php | Laborers | persons | 5 persons | 1000.00php/person | 5 000.00php | Legalization | business permit | 1% of initial capital | n/a | 200.00php | Tools | winnower | 18pcs | 100php/pc | 1 800php | Water Consumption | watersupply | 5 months | 200php/month | 1 000php | TOTAL COST OF PRODUCTION: 19 865.00 php |

Note: The remaining 4 635.00 php out from 25 000.00php will be spent for contingency allowance.

C. Revenues
Projected Income Statement (Exhibit 2)
Assumption #1
If price per kilogram of Volvariella volvacea is 60.00 php
30 days x 30kgday x 60.00php 54 000.00 php
GROSS SALES………………………………………………...………54 000.00 php
Less
COST OF PRODUCTION 19 865.00 php
NET INCOME………………………………………………………......34 135.00 php

Assumption #2

If price per kilogram of Volvariella volvacea is 70.00 php
30 days x 30kgday x 70.00php 63 000.00 php
GROSS SALES…………………………………………………..….…63 000.00 php
Less
COST OF PRODUCTION 19 865.00 php
NET INCOME…………………………………………………………...43 135.00 php

Assumption #3
If price per kilogram of Volvariella volvacea is 80.00 php
30 days x 30kgday x 80.00php 72 000.00 php
GROSS SALES……………………………………………………...…72 000.00 php
Less
COST OF PRODUCTION 19 865.00 php
NET INCOME…………………………………………………………...52 135.00 php

D. Projected Financial Statement
Projected Return of Investment (Exhibit #3)
ROI=Net IncomeEstimated Cost of Production x 100
ROI=34 135.00 php19 865.00 phpx 100
ROI=172%
This simply means that the proponent earns 172 centavos for every one peso (1.00php) investment. It is strongly evident that this one peso project is SATISFACTORILY FEASIBLE AND PROFITABLE for the reason that the Return Of Investment (ROI) is greater than 10%.

Projected Benefit Cost Ratio (Exhibit #4)
BCR=Estimated Cost of ProductionEstimated Gross Sales x 100
BCR=19 865.00 php54 000.00 php x 100
BCR=37%
This means that for every one peso (1.00 php) income by the proponent it will profit on the proposal of 35 centavos.

CONCLUSION

Total mushroom production world-wide has increased more than 10-fold in the last 25 years from about 350,000 t in 1965 to about 4,300,000 t in 1991. This only signifies how mushroom has gained importance over the years. Thus, constant research has brought way to discover more about mushrooms.
Should the proposal be granted, and the project be successful, the owner will widen the business by looking for another place that needs access and convenience in buying mushroom. Moreover, marketing schemes will be improved. Delivery services and advertisements are only few of the ways for improvements. Doing this will not only bring better profit to the owner but also awareness to consumers.
Hence, there is more to the project than just gaining profit. Providing consumers’ convenience is one of the objectives that will be achieved inevitably. This is important because, due to lack of access, people within the area has somehow been deprived of the goodness mushroom can give. As a result, many suffers from diseases that eating mushroom could have prevented from getting worse, if not totally preventing it.

RECOMMENDATION For successful mushroom production, it is necessary for each grower to produce as economically and efficiently as possible the highest quality of mushrooms. This can be accomplished among other requirements, by selecting the best strains which should be high yielding, visually attractive, having desirable flavour, and resistance to adverse climate and pests and diseases.
Aside from these factors, management plays a vital role in the success of the business. It would be best if the owner gives time in supervising and checking on the production herself. That is of course with the help of the whole production team-the laborers, the manager and the secretary. Mushroom easily rot and may affect the freshness and quality of other nearby mushrooms. Hence, the overall production requires continued and careful attendance.
Moreover, success lies on effort and willingness. Nobody does better than somebody who does wholeheartedly.

REFERENCES
Goodness of mushroom: * http://www.naturalnews.com/024548_mushrooms_cancer_food.html * http://www.shroomery.org/11298/Volvariella-volvacea

Nutrition value of Volvariella volvacea: * http://www.mushroomsource.com/mushroom-nutrition.html

Mushroom culture procedure: * Adapted from Mr. Jesus P. Oreiro’s procedure

Definitions: * http://en.wikipedia.org/wiki/Selenium * http://en.wikipedia.org/wiki/Niacin * http://en.wikipedia.org/wiki/Riboflavin

GLOSSARY

* Mushroom culture
- The process of growing mushrooms.

* Riboflavin
- Also known as vitamin B2 is an easily absorbed micronutrient with a key role in maintaining health in humans and animals. . As such, vitamin B2 is required for a wide variety of cellular processes. It plays a key role in energy metabolism, and for the metabolism of fats, ketone bodies, carbohydrates, and proteins. This nutrient is found in Volvariella volvacea.

* Niacin
- One of five vitamins (when lacking in human diet) associated with a pandemic deficiency disease. This vitamin is found in volvariella volvacea. Niacin has been used to increase levels of HDL cholesterol in the blood and has been found to modestly decrease the risk of cardiovascular events in a number of controlled human trials.

* Selenium
-Selenium is a trace mineral that is essential to good health but required only in small amounts. Selenium is incorporated into proteins to make selenoproteins, which are important antioxidant enzymes. The antioxidant properties of selenoproteins help prevent cellular damage from free radicals. Free radicals are natural by-products of oxygen metabolism that may contribute to the development of chronic diseases such as cancer and heart disease. Other selenoproteins help regulate thyroid function and play a role in the immune system. * Urea
- a white soluble crystalline compound with a saline taste and serves as fertilizer in mushroom production.

* Nutrient
- substances that enrich the body. * Protein
- is an organic compound made of amino acids which plays a vital role in our daily activities for the reason that it gives energy to the body. * Cholesterol
- a steroid molecule that if taken in too much, may cause high blood pressure because this substance thickens the wall of the arteries.

APPENDICES
Procedure in mushroom culture
1. Gather clean, long and thoroughly dried banana leaves, preferably those that are still hanging on the tree. Avoid using old and contaminated bedding materials.
2. Cut the leaves 18 inches long and bundle them.
3. Soak the bundled materials in water overnight.
4. On the area where the mushroom will be cultured, prepare the bed. Place 2 stick-poles horizontally, 18 inches apart. Place another 2 stick-poles, vertically 1 meter apart from the first two stick-poles.
5. Set the bundled materials side by side, closely knit together, evenly and compactly on the entire length of the bed.
6. For every one gallon of water, add 3 tablespoons of sugar, as well as 2 tablespoons of urea. Stir the mixture thoroughly and sprinkle the solution on the bed. Water generously.
7. Press the layer by hands or by stepping on it to make it compact and to level the surface. Stop watering when water starts to drip-off the bed.
8. Cover the layer with newspaper. The oil used in printing newspapers is an additive on the growth of the mushroom.
9. The spawn about the size of the thumb is planted along sides, 2 inches from the edge of the bundles, about 3 to 4 inches apart.
10. Fold the newspaper inward to hold the spawn in place and avoid being washed off during watering.
11. Add fresh Madre de cacao leaves after each layer to generate more heat which is suitable for the growth of the mushrooms.
12. Repeat steps e to k for the production of the next layer. Stop when you have reached the 4th layer.
13. Trim the sides to allow the mushroom to grow freely. Place the trimmings on top of the bed to serve as cover.
14. After some time, cover the mushroom bed with polyethylene plastic cellophane.
Nutritional Value of Mushrooms
100 grams of uncooked, paddy straw mushrooms contain the following nutrients: * Folate (Vitamin B9) - 16.0 mcg * Niacin (Vitamin B3) - 3.6 mg * Niacin (Vitamin B3) - 3.6 mg * Pantothenic Acid (Vitamin B5) - 1.5 mg * Riboflavin (Vitamin B2) - 0.4 mg * Thiamin (Vitamin B1) - 0.1 mg * Vitamin B6 - 0.1 mg * Copper - 0.3 mg * Iron - 0.5 mg * Magnesium - 9.0 mg * Phosphorus - 86.0 mg * Potassium - 318 mg * Selenium - 9.3 mcg * Zinc - 0.5 mg * Fiber
Paddy mushroom in its egg- stage with its veil still closed. Volvariella volvacea in its almost fully grown stage with its cap almost revealed. Freshly harvested straw mushrooms ready for market.

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