Production and marketing of fresh and dried straw mushroom in the 2nd district of Capiz

Abstract

JMEM's Straw Mushroom is a partnership form of business owned by four proponents who equally share the business's capital and profit and losses. Its business location was in Brgy. Pangabuan, Jamindan, Capiz. The venture produced and marketed fresh and dried straw mushrooms in the 2nd District of Capiz. Straw mushrooms are produced through substrate or growing materials, such as rice straw, dried banana leaves, and water hyacinth. In a two-meter bed, 5 kg of straw mushrooms are produced daily. For maximum use of space, there were 6 tired beds and 10 individual beds in the production site. The demand for the product was derived based on the projected total households. The market share of fresh straw mushrooms for the next 5 years was estimated to be 7.75%, 9.50%, 11.18%, 11.30%, and 11.43%. On the other hand, the market share for dried straw mushrooms has been estimated to be 9.68%, 11.86%, 13.97%, 14.13%, and 14.29%. The five-year operation period was based on the survey conducted on the households and the market. The business has an initial investment of P1,329,768.00, including the start-up cost, fixed investment, and working capital. The projected sales for fresh straw mushrooms will be P466,950.00, P589,820.00, P739,230.00, P754,374.00, and P795,257.00. On the other hand, dried straw mushroom for the 1st,, 2nd , 3rd , 4th, and 5th years of operation will be P1,876,640.00, P2,353,360.00, P2,890,104, P3,051,716.00, and P3,183,080.00. The firm helped the economy by generating employment, thus reducing the 2nd District of Capiz's unemployment rate and paying taxes to both national and local governments. Furthermore, based on the results of the study, it was found that the project is feasible, having a Return on Investment of 131%, a Payback Period of 0.72 months, and a Net Present Value of P2,708,144.45 and an Internal Rate of Return of 102%.