BIBLIOGRAPHY TAYNAN, DEBORAH W. APRIL, 2008...
BIBLIOGRAPHY
TAYNAN, DEBORAH W. APRIL, 2008 Production and Marketing of Shiitake
Mushroom at Bonglo, Atok Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: Prof. Cuanguey E. Luke, BSc
ABSTRACT
This study aimed to find out the production practices, source of information and
technology, marketing practices, net income and return on investment in shiitake
mushroom production and the problems that were encountered by the growers.
An in-depth interview, guided with a close and open-ended questionnaire were
used to collect relevant data and information.
The results of the study showed that majority of the respondents were engaged in
vegetable gardening and recently in shiitake mushroom production. All the growers used
mushroom houses or shed for production and used small sizes of oak logs as media for
growing mushroom. Growers practiced storing oak logs in the mushroom houses. Spawns
were planted around the oak logs, submerge the oak logs in water for 24 hours then wait
for 10 days before harvesting. Respondents attended seminar about shiitake mushroom
production. Packaging materials of the respondents were cellophane and styrofoam.
Market outlets of the respondents were in the locality. Majority of the respondents
delivered their product. The selling prices were based in the prevailing market price. Two
of the respondent’s encountered negative net income/return on investment.
Major problems that were encountered by the growers in production were the
occurrences of pest/insect and lack of knowledge in producing shiitake mushroom. They
also encountered problems in marketing their products because of the delayed payment of
the shiitake mushroom, limited market outlet and lack of promotional activities.
In producing shiitake mushroom, they should follow the rigth procedures and
follow up seminars and trainings are recommended to the shiitake mushroom producers
to gain more knowledge.
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TABLE OF CONTENTS
Page
Bibliography...……………….................................................................................... i
Abstract………………………………………………………………………………. i
Table of Contents……………………………………………………………………... iii
INTRODUCTION
Rationale of the Study……………………………………………………….. 1
Statement of the Problem……………………………………………………. 2
Objectives of the Study…………………………………................................ 3
Importance of the Study……………………………………………………... 3
Scope and Limitation of the study…………………………………………… 4
REVIEW OF LITERATURE
History of mushroom……………………………………………………….. 5
Types of Mushroom………………………………………………………… 6
Shiitake Mushroom…………………………………………………………. 7
Management Consideration/Option………………………………………… 8
Market Consideration………………………………………………………. 9
METHODOLOGY
Locale and time of the study………………………………………………… 11
Respondents of the Study……………………………………………………. 11
Data Collection……………………………………………………………… 11
Data Gathering………………………………………………………………. 11
Data Analysis………………………………………………………………... 11
iii
RESULTS AND DISCUSSION
General Information of the Respondents……………………………………. 12
Production Practices of shiitake Mushroom……………................................. 14
Source of Information and Technology…………………………………….... 16
Market aspects………………………………………….……………………. 16
Marketing Practices…………………………………………………………. 18
Cost and Return Analysis…………...……………………………………….. 19
Problems Encountered in Production……………………………………….. 20
Marketing Problems…………………………………………………………. 21
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary…………………………………………………………………….. 22
Conclusions…………………………………………………………………. 23
Recommendations…………………………………………………………… 24
LITERATURE CITED ………………………………..………………………….... 25
APPENDIX……….………………………………….…………………………….. 26
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1
INTRODUCTION
Rationale
The municipality of Atok derived its name from its location. It is the short term of
the native dialect “nanpapatok shi shontog” which means “top of the mountain” or “on
the mountain top”. Municipality of Atok is geographically located at the center portion of
Benguet Provice. It is 44 km. from the Capitol of Benguet which is La Trinidad. It is
bounded on the west by Kapangan on the south by Tublay, on the north by Kibungan and
Buguias and in the east by Kabayan and Bokod. Atok has an elevation of 2400 meters
above sea level located at Paoay and Cattubo, the highest point along Halsema Highway.
The terrain is generally mountainous with a slope ranging from 40-60% degrees. The
climate is temperate with two pronounced seasons. The wet seasons starts in the month of
May and ends in October. The wettest part of the year is July and August. Dry season
starts in November and ends in May. The municipality is accessible through land
transportation and Igorots particularly the kankana-ey and the Ibalois inhabit it. Farming
is the main economic activities in the area producing highland/semi temperate vegetables
for the Metro Manila market, other outlets in the lowlands. The major crops planted are
cabbage, potatoes, carrots, chayote and rice in the lower parts of the area. Other variety of
crops like lettuce, celery, Chinese cabbage, beans, tomatoes and cucumber are planted in
the various areas but minimal. (Draft Report, 2006).
Production and Marketing of Shiitake Mushroom
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Politically, it is divided into eight barangay’s namely Abiang, Poblacion,
Caliking, Central Naguey, Topdac, Paoay and Cattubo. But original barrios were Paoay,
Naguey, Central Abiang and Caliking. This study was conducted at Paoay Atok, Benguet.
Particularly in sitio Bonglo.
Some resident’s of Bonglo were invited to attend so cold seminar on how to rear
shiitake mushroom which is know to be more advantageous to the health. Four residents
namely Mr. Ruadap, Mr. Malbin, Mr. Taynan and Mr. Baquian responded to that seminar
and started the shiitake mushroom production. From their first harvest, some problems
occurred but some co-producers from other places gave them some knowledge on how to
increase the production of shiitake mushroom. Until now shiitake growers continue to
produce and supply Bonglo with shiitake mushroom.
Mushroom cultivation in the province of Benguet is very limited inspite of the
environment, which is very suitable for mushroom production. This limitation is
attributed not only to improper dissemination of available information but also to the lack
of practical technology the local farmers in the locality could avail of.
This study was conducted to show the profitability of shiitake mushroom
production. The result will serve as a basis for decision-making for the household or
entrepreneur to go into business. It can provide information for shiitake growers to
improve their management and marketing practices.
Statement of the Problem
The study intended to answer the following questions:
1. What are the practices involved in shiitake production?
Production and Marketing of Shiitake Mushroom
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2. What are the source of information and technology in shiitake production?
3. What are the marketing practices of shiitake mushroom growers?
4. What are the, net income and return on investment that could be derived for
shiitake mushroom production.
5. What are the major problems in production and marketing encountered by the
growers of shiitake mushroom in Bonglo Atok Benguet?
Objective of the Study
The study aimed to:
1. Determine the practices involve in shiitake production
2. Determine the source of information and technology in shiitake production.
3. Determine the marketing practices of shiitake mushroom growers.
4. Determine the, net income and return of investment that could be derived for
shiitake mushroom production.
5. Determine the major problems in production and marketing encountered by the
growers of shiitake mushroom in Bonglo Atok Benguet?
Importance of the Study
One of the deciding factors in enterprise development is the profitability of that
kind of enterprise you would like to establish. The result of the study will serve as a basis
for decision-making for the household or entrepreneur to go into business. It can also
provide information for shiitake growers to improve their management and marketing
practices.
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
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Scope and Limitation of the Study
This study described the production and marketing practices of the four shiitake
mushroom growers in Bonglo, Atok Benguet.
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REVIEW OF LITERATURE
History of Mushroom
Long ago, people discovered that certain wild mushrooms were delicious to eat.
For thousands of years wild mushrooms were gathered. They were enjoyed at royal
banquets and valued by poorer folk as well because they were not only good to eat but
free for picking. The cultivating or artificial planting of mushroom began in Europe about
200 years ago. Although many different kinds of mushrooms are good to eat, one kind-
the field mushroom-grows particularly well under cultivation. The modern cultivation
mushroom is closely related to the common field mushroom. The cultivated mushroom
belongs to the fungi or fungus plant group. Mushrooms and other fungi have no
chlorophyll, and so they are unable to make their own food by means of photosynthesis,
as green plant do. Instead, all mushroom take their food from the matter they grow upon
(Yerkovick, 1968).
Yerkovick, (1968) cited that mushrooms are fungus plant; they do not require
sunlight for growth as green plants do. Cultivated mushrooms are grown in darkness
because there is then fewer tendencies for the mushroom to darken in color and to
become dried out. Mushrooms have many different shapes. Some of the best known
kinds, including the cultivated mushrooms.
When we think of mushrooms, we often think of the soft caps & stems that we see
in the grocery store. Hidden underground, however, is the vast majority of the mushroom
mass itself- the network of feathery mycelia. These mycelia, often seen when turning
Production and Marketing of Shiitake Mushroom
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over compost, are what the mushroom uses to absorb food & moisture. The cap & stem
that we commonly eat is just the fruiting body (Beetz and Kustudia, 2004).
Small-scale mushroom production represents an opportunity for farmers
interested in an additional enterprise and is a specialty option for farmers without much
land. This publication is designed for market gardens who wants to incorporate
mushrooms into their system and for those farmers who want to use mushroom
cultivation as a way to extract value from woodlot thinning and other “waste” materials.
Mushroom production can play an important role in managing farm organic wastes when
agricultural and food processing by-products are used as growing media for edible fungi.
The spent substrate can then be composted and applied directly back to the soil. Many
people are intrigued by mushroom nutritional and medicinal properties, in addition to
their culinary appeal. Mushrooms contain many essential amino acid; white button
mushrooms for example, contain more protein than kidney beans. Shiitake mushrooms
are less nutritious, but are still a good source of protein. As a group, mushrooms are also
containing some unsaturated fatty acids; provide several of the minerals potassium,
phosphorus, calcium, and magnesium (Beetz and Kustudia, 2004).
Types of Mushrooms
Shiitake mushrooms (Dentinal edodes), have a rich, meaty texture. The brown
caps often grow up to 3-4 inches in diameter. They have been highly prized in the Orient
for centuries and scientists are researching its medicinal, anti-viral properties. Indoors,
the kits can be stored from 55 to 75F and will produce 2-3 pounds within 3 months.
Production and Marketing of Shiitake Mushroom
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Oyster mushrooms (Pleurotus spp) are named for the fact that their flavor &
texture resembles oysters. The mushroom itself comes in different colors, depending on
species, from pink, cream, white & gray. The white mushroom is the easiest to grow and
will fruit over a wide temperature range from 55-75 F. These mushrooms are particularly
sensitive to humidity and need to be misted 2-3 times per day.
Enoki mushrooms (Flammulina velutipes) have long delicate stems, joined at the
base both the caps and stems are edible and are best eaten raw to take advantage of this
variety's crisp texture. Toss them into salads, sandwiches, or as a garnish for soups. Enoki
require a colder environment, 45 degrees compared to growing temperatures of about 60
degrees, which other varieties require (Arzeena, 1997).
Shiitake Mushroom
Shiitake mushroom (pronounced Shee Ta Kay) are a traditional delicacy in Japan,
Korea and China. For at least a thousand years, shiitake mushrooms have been grown on
logs, outdoors, in the temperature mountainous, region of Asia. To this day, shiitakes
figure as the most popular of all the gourment mushrooms. Only in the past several
decades have techniques evolved for its rapid cycle cultivation indoors, on supplemented,
heat-treated sawdust-based substrates. Cultivation of this mushroom is a centerpiece of
Asian culture, having employed thousands of people for centuries. We may never know
who actually first cultivated shiitake. The first written record of shiitake cultivation can
be traced to Wu Sang Kwuang who was born in china during the Sung Dynasty (960-
1127 AD). He observed that, by cutting logs from tress w/c harbored this mushroom;
more mushroom grew when the loss were “soaked and striked”. In 1904, the Japanese
Production and Marketing of Shiitake Mushroom
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researchers Dr. Shozaburo Mimura published the first studies of inoculating logs with
cultured mycelium. Once inoculated, logs produce six months to a year later. With the
modern methods described here, the time period from inoculation to fruiting is reduced to
only a few weeks (Staments, 1994).
Shiitake is the second most widely cultivated mushrooms in the world. In the past
four decades, shiitake cultivation has grown to become a worldwide, multi-billion dollar
industry. For centuries, this mushroom has been grown in Asia using traditional methods.
Today, a steadily increasing market for fresh shiitake outside of Asia has created a
demand for localized shiitake production in many new areas. By adapting traditional
methods and developing new ones, growers around the world are successfully producing
shiitake at many different scales, from backyard hobbyists to part-time farmers to large
corporate endeavors (Przybylowics and Donoghue, 1988).
Shiitake Mushrooms is becoming well known as a superior way to improve your
health and stimulate your immune system. Try it to build resistance against virus,
infection, the common cold and macular degeneration, among many other ailments.
Much research has been done in recent years, and numerous immunostimulating qualities
have been attributed to this wonderful fungus
(http://www.herbalextractsplus.com/shiitake-mushroom.cfm).
Management Considerations/Options
Shiitake mushrooms offer a good example for those interested in mushroom
production. They may be cultivated using wild-simulated or artificial conditions. Wild-
simulated mushroom enterprises generally use white oak logs under shaded forest
Production and Marketing of Shiitake Mushroom
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conditions and are best suited for the small-scale producer with an operation of 5,000 or
fewer logs. High-intensity cultivation employs compressed sawdust/grain blend logs or
blocks for growing medium and indoor growing environments. This method also requires
a much larger capital investment including dedicated growing houses with climate
control, sawdust logs (which may be pre-inoculated), and special equipment. Because of
the large initial capital investments required, high-intensity mushroom cultivation incurs
much greater economic risk than in wild-simulated operations.
Typical small-scale wild-simulated shiitake operations produce mushrooms on
logs under forest shade conditions. Suitable growing logs are hardwood species and are
four to eight inches in diameter and three to four feet long. Tree species desired include
the white oak family, elm, sweetgum, yellow-poplar, hornbeam, ironwood, hard maple,
blackgum, black locust, and white ash. White oak is often cited as the most desirable
species. Species in the red oak family should be avoided as should pine species due to
their fungicidal resins. Tree species are chosen with consideration given to moderate bark
thickness as mushroom "pins" must be able to push through the bark at the onset of
fruiting. The bark also serves as a barrier to other fungi. Another consideration essential
to successful shiitake production is bark retention which may be accomplished by cutting
trees during dormant months (e.g. October through February). Logs should be handled
gently to preserve bark and should be inoculated within two weeks after cutting to avoid
infection from other fungal species (Kays et al.).
Market Consideration
Production and Marketing of Shiitake Mushroom
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One of the important decisions is whether the mushroom will be marketed fresh
or dried. Once the market has been defined, decisions can be made concerning the
fruiting strategy and the amount of capital and labor that can be profitably invested.
Dried shiitake has the long storage life can be endure long shipping times without
losing quality. This means that the fruiting area can be remote from the market. Dried
shiitake can be produce seasonally in large quantities and then sold throughout the year.
Generally, dried shiitake brings lower price than en equivalent weight of fresh
mushrooms sold on the fresh markets.
Fresh-market shitake must be grown where it can be rapidly delivered to the
market. Because, even under ideal conditions, fresh shitake has a shelf life of about two
weeks, long shipping times can result in mushroom deterioration and loss of revenue. The
higher price paid for shitake compensates the grower for the higher facility and labor
costs needed to produce, market, package, and store and transport a perishable product
(Przybylowics, Donoghue, 1988).
Production and Marketing of Shiitake Mushroom
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METHODOLOGY
Locale and Time of the Study
The study was conducted at Bonglo Paoay, Atok Benguet, where mushroom can
grow because it’s favorable environment suitable for mushroom production.
Respondents of the Study
There are four (4) growers of shiitake mushroom in Bonglo Paoay, Atok Benguet,
who served as respondents of the study.
Data Collection
An in depth interview using a close and open-ended questionnaires was used by
the researcher in gathering data.
Data Gathered
The data gathered were profile of respondents, production and marketing
practices and problems, and cost and production data.
Data Analysis
The data gathered were tabulated and analyzed using simple statistical tools sush
as frequency counts and percentage, descriptive analysis. A cost and return analysis was
also done.
Production and Marketing of Shiitake Mushroom
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RESULTS AND DISCUSSION
General Information of the Respondents
This section shows the general information of the respondents. It includes the age,
gender, civil status, educational attainment, number of years engaged in shiitake
mushroom production and other source of income aside from mushroom production.
These were presented in Table 1.
Age .Half (50%) of the respondents were 54 years old, one (25 %) was 49 years
old, and one (25 %) was 31 years old. It indicates that the respondents were on their
middle age.
Gender .All the respondents were male. This shows that male’s were more
interested in mushroom production than the females.
Civil status .Majority (75 %) of the respondents were married and one (25 %) was
single. It shows that married people were more interested in mushroom production than
the single person.
Educational attainment .Two (50 %) of the respondents have attended formal
education having reached high school level and two (50%) elementary level.
Numbers of years engaged in mushroom production .Majority (75 %) of the
respondents have been engaged in mushroom production for 2 years and 25 % had been
engaged in mushroom production for a year. This result reveals that shiitake mushroom
production just is a new enterprise in Bonglo Atok Benguet.
Production and Marketing of Shiitake Mushroom
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Other sources of income .There were other sources of income of the respondents
aside from the mushroom production such as gardening/vegetable production (57.14 %)
employment as laborer (28.57 %). These are the hired laborers that were hired by co-
farmers and government employee (14.28 %).
Table 1. General information of the respondents
CHARACTERISTICS
FREQUENCY
PERCENTAGE
Age
31
1 25
49
1 25
54
2 50
TOTAL
4
100
Gender
Male
4 100
Female
0
0
TOTAL 4 100
Civil status
Single
1 25
Married
3
75
TOTAL 4 100
Production and Marketing of Shiitake Mushroom
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Table 1. continued…
CHARACTERISTICS FREQUENCY PERCENTAGE
Educational attainment
Elementary
graduate
2 50
High
School
graduate
2 50
TOTAL 4 100
Years engaged in mushroom
Production
1
year
1 25
2
year
3 75
TOTAL 4 100
Other sources of income
Employment
1 14.8
Laborer 2 28.58
Gardening
4 57.14
* Multiple responses
Production Practices of Shiitake Mushroom
This section shows the practices/process involved in shiitake mushroom
production. It includes mushroom house, source of logs and spawns, cutting logs, storing,
and method of planting, soaking/submerge, post harvest and marketing.
Production and Marketing of Shiitake Mushroom
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Mushroom house. All respondents have mushroom house but differ in size, as 20
x 40 ft, 22 x 16 ft, 18 x 24 ft, and 10 x 18 ft. The mushroom houses were made up of
wood, plastic; and they used plastics to cover the sides, and the roofing was iron steel.
Logs .The respondents got their oak logs in the forest they owned. According to
the respondents, the oak logs used should be in their mature stage and theirs the proper
time in getting oak logs; you need to consider the proper timing of its moisture content.
Spawns .Respondents bought the spawns at the Benguet State University (BSU).
Cutting logs .Respondents cut their oak logs into small sizes. Some respondents
say that good measurement of the oak logs for good production was one (1) meter so that
it would be easily carried and soaked.
Storing .All of the respondents store their small oak logs in the mushroom house
for three (3) weeks.
Method of planting .All (100 %) respondents has the same way of planting the
spawns. They make small wholes around the oak logs and plant the spawns.
According to the respondents, after they planted the spawns, they store the oak
logs for one (1) year and five (5) month. While the oak logs were stored, the frequency of
watering was once a week so that the moisture content of the oak logs will be maintained.
Soaking/submerge .All (100 %) respondents soaked or submerged the oak logs
after one year five months storage in the mushroom house for twenty-four (24) hours.
Then they wait for ten (10) days before harvesting. While waiting, frequency of watering
was twice a day.
Harvesting .All (100 %) respondents harvest their product manually. Majority
(75%) of the respondents harvest their product in 4-7 days.
Production and Marketing of Shiitake Mushroom
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Production Data
Table 2 shows the production data of the respondents. Respondents A harvested
181 kilos of shiitake mushroom, 168 kilos was sold and 13 kilos was used at home.
Respondent B harvested 64 kilos of shiitake, out of those 64 kilos, he sold 55 kilos and 9
kilos was used at home. Respondent C harvested 33 kilos of shiitake, 28.85 kilos was
sold and 4015 for home consumption. This shows that the respondents harvest has wide
range gap.
Table 2. Production data
PARTICULARS (kls.)
RESPONDENTS
A
B
C
D
Harvested
181
64
33
Sold
168
55
28.85
Home
consumption
13
9 4.15
5
Source of Information and Technology in Shiitake Production
Seminars .All of the respondents attended seminars that were held at Benguet
State University (BSU) conducted by Dr. Bernard Tad-awan and company.
The respondents say that their other source of information was from their co-
producers from other places and from their friends.
Marketing Aspect
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Table 3 shows the marketing aspect. This includes the packaging materials,
outlets, and ways of disposing product.
Packaging
materials .The respondents used cellophane (75 %) and Styrofoam (75
%) as their packaging materials.
Market outlets .Majority (70 %) of the respondents sell their product to the
neighbors. 1 (25 %) sell to the retailer and 25 % sell at restaurant. This shows that the
major buyers of the respondents were in the locality.
Ways of disposing product. Most (75 %) of the respondents delivered their
products to the buyers and 50 % of buyers picked-up the product.
Table 3. Marketing aspect
CHARACTERISTICS
FREQUENCY
PERCENTAGE
Packaging materials
Cellophane
3 75
Styrofoam
3 75
Outlets
Retailers (stores)
1
25
Neighbors
3 75
Restaurants
1
25
Ways of disposing
Delivered
3
75
Pick-up
2
50
*Multiple responses
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Marketing Practices
Table 4 presents the marketing practices of the respondents. It includes mode of
selling, price determination and basis in pricing.
Mode of selling .Most (75 %) of the respondents sells through cash on delivery,
while some (75 %) of the respondents sell in credit.
Price determination. Majority (75 %) of the respondents set their own market
price for their product. Respondents sell their product P100.00 per half kilo of the
shiitake mushroom.
Basis in pricing. Majority (75 %) of the respondents based their price on
prevailing market price. This shows that the producers depend on the market price and
not in the production cost.
Table 4. Marketing practices
CHARACTERISTICS FREQUENCY
PERCENTAGE
Mode
of
selling
Cash
on
delivery
3 75
Credit
3
75
Price determination
Set
by
farmer
3 75
Set
by
buyers
0 0
Basis in pricing
Based
on
production
cost
0 0
Based on prevailing market price
3
75
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*Multiple responses
Cost and Return
Table 5 shows the sales, cost, net income and return on investment of the
respondents. Total costs of the respondents were Php. 12,407, Php. 8,349, Php. 7,868 and
Php. 7,418 respectively. As to the net income, two of the respondents have positive net
income, one encountered negative. Return on investment of the respondent were 170%,
31%, (27%) respectively. This shows that respondents C has negative return on
investment and respondent D don’t have net income and return on investment because of
not having sales.
Table 5. Cost and Return
PARTICULARS
RESPONDENTS
A
B
C
D
A. Sales
Shiitake mushroom
33,600
11,000
5,770
Non
cash
(home
consumption)
1,000
B. Expenses
Variable cash cost
Packing materials
60
49
10
Spawns
6,500
3,500
3,500
3,500
TOTAL
6,560
3,549
3,510
3,500
Variable non cost
Logs
1,500
1,000
1,500
2,000
Family labor
Submerging
30
30
30
30
Watering
15
15
15
15
Harvesting
30
30
30
15
Production and Marketing of Shiitake Mushroom
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TOTAL
1,575
1,075
1,575
2,060
TOTAL
VARIABLE
COST
8,135
4,624
5,085
5,560
Table 5 continued…
PARTICULARS
RESPONDENTS
A
B
C
D
3. Fixed non cost
Salary
1,000
2,500
1,500
1,000
Depreciation cost
Mushroom house 3,152
1,000
1,063
438
Logs
100
200
200
400
Plastic crates
20
20
20
20
TOTAL
FIXED
COST 4,272
3,720
2,783
1,858
TOTAL
COST 12,407
8,344
7,868
7,418
NET
INCOME 21,193
2,656
(2,098)
ROI
(%) 170
31
(27)
Problem Encountered in Producing Shiitake Mushroom
Table 6 presents the problems encountered in shiitake mushroom production. The
major problems identified by the respondents include occurrences of pest/insect (100%)
and insufficient knowledge in producing shiitake (100%).
Table 6. Production problems encountered in producing shiitake mushroom
PARTICULARS
FREQUENCY
PERCENTAGE
Production and Marketing of Shiitake Mushroom
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Occurrence
of
pest/insect
4 100
Insufficient
knowledge
in
production
4 100
* Multiple responses
Marketing Problems Encountered by the Respondents
Table 7 shows the marketing problems of the respondents. There were 3 problems
encountered by the respondent. These were delayed payment (75%), limited market
outlet (75%) and lack of promotional activities (75%).
Table 7. Marketing Problem Encountered
PARTICULARS
FREQUENCY PERCENTAG
Delay of payment of shiitake mushroom
3
75
Limited
market
outlet
3 75
Lack
of
promotional
activities 3 75
* Multiple Responses
Production and Marketing of Shiitake Mushroom
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SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
This research work aimed to identify the production and marketing of shiitake
mushroom in Bonglo, Atok, Benguet, to determine the production practices, source of
information and technology, marketing practices, net income and return on investment
that could be derived from shiitake mushroom production and problems encountered by
the growers in terms of production and marketing.
There were 4 respondents of the study who were engaged in shiitake mushroom
production. This study was conducted in Bonglo, Atok Benguet. Data gathering was done
through personal interview using guide questionnaire.
Half (50%) of the respondents were on their middle age, they were all male, and
majority (75%) were married, they are all literate, majority (75%) were engaged in
mushroom and vegetable production. As to the production practices, majority, (75%) of
the respondents used mushroom house for production. Small sizes of oak logs were
used/good for production. Storing of oak logs was practiced by the respondents. Spawns
are planted around the oak logs. Oak logs were in water submerge for 24 hours. The
producer will wait for 10 days before harvesting. Method of harvesting was done
manually. All the respondents attended the seminar on mushroom production at Benguet
State University. As to the marketing aspect and marketing practices, most (75%) used
cellophane and styrofoam as their packaging materials. Market outlets of the respondents
were in the locality. Majority (75%) delivered their product to the end users. Respondents
set their own price and it was based on the prevailing market price. As to the net income
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
23
and return on investment of the respondents, two respondents encountered
negative net income because of higher expense than sales and the other did not
sell his produce. The major production problems encountered by the respondents
include the following; occurrences of pest/insects and lack of knowledge and
technology in producing shiitake mushroom. The marketing problems
encountered by the respondents were; delay of payment of shiitake mushroom,
limited market outlet and lack of promotional activities.
Conclusions
Based on the results of the study, the following conclusions were drawn.
1. Mushroom houses were used by the shiitake growers.
2. Attendance to seminar is major source of information and technology in
shiitake production.
3. Market outlet of the shiitake producers were in the locality.
4. All the respondents based the price of their product on the prevailing market
price.
5. Respondents encountered problems in production due to occurrences of
pest/insects and lack of knowledge.
6. The marketing problems that were encountered by the respondents were delay
of payment, limited market outlet and lack of promotional activities.
Production and Marketing of Shiitake Mushroom
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24
Recommendations
In line with the findings of the study, the following recommendations were made:
1. Growers of shiitake mushroom should follow the right procedures in
producing shiitake mushroom.
2. Follow up seminars and trainings are recommended to the shiitake mushroom
growers in order for the growers to gain more knowledge on pest and disease
control to be updated on mushroom production.
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
25
LITERATURE CITED
ANONYMOUS, 2006. Comprehensive Land Use Plan and Zoning Ordinance.
Draft Report Atok, Cordilere Highland Agriculture and Resource Management
project.2006
ANONYMOUS 2005. Shiitake Mushroom Herbal Supplement from Herbal Extract Plus.
Accessed on 18 Aug. 2007
ARZEENA, H. 1997. Low Cost Mushroom Production at Home.
http://www.gardenguides.com/how-to/tipstechniques/vegetables/mushroom.asp.
Accessed on 16 Aug. 2007
BEETZ, A. and KUSTUDIA, M. 2004. Mushroom Cultivation and Marketing.
http://attra.ncat.org/attra-pub/mushroom.html. Accessed on16 Aug. 2007
KAYS,S.S. et al.2007 Shiitake Mushroom-Letinus Edodes.
http://www.naturalresources.umd.edu/pages/shiitake.htm. Accessed on 16 Aug.
2007
PRZYBYLOWICS, P. and DONOGHUE, J. 1988. Shiitake Grower Handbook.Northwest
Mycological Consultant,Inc.
STAMENTS, P.1994. Growing Gourment and Medical Mushroom. Pp 259
YERKOVICK, R.J. 1968. Mushroom for Market. Follett Publishing Company Chicago.
NewYork. Pp 7-8, 11,33
Production and Marketing of Shiitake Mushroom
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26
APPENDIX A
Questionnaire
1. General information
Name: __________________________________
Age: ______________ Gender: _________male ________female
Civil Status:
______________single
______________married
______________widow/er
______________separated/divorced
Educational Attainment: (kindly check)
Graduate Undergraduate
Elementary level ____________ _______________
High school level ____________ _______________
College level ____________ _______________
Vocational ____________ _______________
No. of years engaged in mushroom production
___________less than one year
____________one
year
____________two
years
___________others;
specify____________________________
Production and Marketing of Shiitake Mushroom
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27
Sources of income aside from mushroom production:
____________employment (pls. specify) ____________________
____________sari-sari
store
____________hired
labor
____________gardening
____________other;
specify__________________________
2. Farm profile
A. type of farm:
___________mushroom house ___________size of mushroom
house
___________open field _____________size of farm
B. type of mushroom house:
____________steel/plastic
roofing
____________wood/plastic
roofing
____________other;
specify______________________________
C. how much did you spend to start your business? ____________________
D. Production:
a. source of planting :
Spawns Logs
_________bought ___________bought
_________donated __________owned
_________others;
specify__________________________________
Production and Marketing of Shiitake Mushroom
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28
b. frequency of watering:
____________once
a
day
_____________twice
a
day
____________other;
specify
c. time of harvesting:
_______days __________how many days
_______weeks __________how many weeks
d. Cost of production
________
spawns
others,
specify
________
Logs ___________
________
mushroom
house
___________
e. Labor cost
________
planting
others,
specify
________
harvesting
___________
________
submerging
___________
f. Production data
Particulars Volume Value
(P)
Harvested
Sold
Home consumption
Production and Marketing of Shiitake Mushroom
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E. Source of information regarding mushroom production
_______ seminars
_______ trainings
F. Marketing Aspects
a.
Packaging:
_______
cellophane
_______
styrofoam
b.. Outlets:
__________whole
sellers
__________retailer
(stores)
__________neighbors
__________other;
specify________________________
c. How do you dispose your product?
________delivered
________pick-up
G. Marketing Practices
a. Mode of selling:
_______cash
on
delivery
_______credit
________consignment
Production and Marketing of Shiitake Mushroom
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b. pricing determination:
_________set by the farmer
________set by the buyer
________other;
specify_______________________________
c. what is your bases in pricing your product:
________based on production cost
________based on prevailing market price
________other;
specify_______________________________
H. Problems encountered in production:
_______lack
of
facilities
_______lack
of
capital
_______occurrences
of
pest/insects
_______insufficient
in
knowledge
in producing shiitake mushroom
_______0ther,
specify:
____________________________________
I. Marketing problems encountered:
_______delay
of
payment
_______limited
market
outlet
_______lack of promotional activities
_______others,
specify:
________________________________________
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
TAYNAN, DEBORAH W. APRIL, 2008 Production and Marketing of Shiitake
Mushroom at Bonglo, Atok Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: Prof. Cuanguey E. Luke, BSc
ABSTRACT
This study aimed to find out the production practices, source of information and
technology, marketing practices, net income and return on investment in shiitake
mushroom production and the problems that were encountered by the growers.
An in-depth interview, guided with a close and open-ended questionnaire were
used to collect relevant data and information.
The results of the study showed that majority of the respondents were engaged in
vegetable gardening and recently in shiitake mushroom production. All the growers used
mushroom houses or shed for production and used small sizes of oak logs as media for
growing mushroom. Growers practiced storing oak logs in the mushroom houses. Spawns
were planted around the oak logs, submerge the oak logs in water for 24 hours then wait
for 10 days before harvesting. Respondents attended seminar about shiitake mushroom
production. Packaging materials of the respondents were cellophane and styrofoam.
Market outlets of the respondents were in the locality. Majority of the respondents
delivered their product. The selling prices were based in the prevailing market price. Two
of the respondent’s encountered negative net income/return on investment.
Major problems that were encountered by the growers in production were the
occurrences of pest/insect and lack of knowledge in producing shiitake mushroom. They
also encountered problems in marketing their products because of the delayed payment of
the shiitake mushroom, limited market outlet and lack of promotional activities.
In producing shiitake mushroom, they should follow the rigth procedures and
follow up seminars and trainings are recommended to the shiitake mushroom producers
to gain more knowledge.
ii
TABLE OF CONTENTS
Page
Bibliography...……………….................................................................................... i
Abstract………………………………………………………………………………. i
Table of Contents……………………………………………………………………... iii
INTRODUCTION
Rationale of the Study……………………………………………………….. 1
Statement of the Problem……………………………………………………. 2
Objectives of the Study…………………………………................................ 3
Importance of the Study……………………………………………………... 3
Scope and Limitation of the study…………………………………………… 4
REVIEW OF LITERATURE
History of mushroom……………………………………………………….. 5
Types of Mushroom………………………………………………………… 6
Shiitake Mushroom…………………………………………………………. 7
Management Consideration/Option………………………………………… 8
Market Consideration………………………………………………………. 9
METHODOLOGY
Locale and time of the study………………………………………………… 11
Respondents of the Study……………………………………………………. 11
Data Collection……………………………………………………………… 11
Data Gathering………………………………………………………………. 11
Data Analysis………………………………………………………………... 11
iii
RESULTS AND DISCUSSION
General Information of the Respondents……………………………………. 12
Production Practices of shiitake Mushroom……………................................. 14
Source of Information and Technology…………………………………….... 16
Market aspects………………………………………….……………………. 16
Marketing Practices…………………………………………………………. 18
Cost and Return Analysis…………...……………………………………….. 19
Problems Encountered in Production……………………………………….. 20
Marketing Problems…………………………………………………………. 21
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary…………………………………………………………………….. 22
Conclusions…………………………………………………………………. 23
Recommendations…………………………………………………………… 24
LITERATURE CITED ………………………………..………………………….... 25
APPENDIX……….………………………………….…………………………….. 26
iv
1
INTRODUCTION
Rationale
The municipality of Atok derived its name from its location. It is the short term of
the native dialect “nanpapatok shi shontog” which means “top of the mountain” or “on
the mountain top”. Municipality of Atok is geographically located at the center portion of
Benguet Provice. It is 44 km. from the Capitol of Benguet which is La Trinidad. It is
bounded on the west by Kapangan on the south by Tublay, on the north by Kibungan and
Buguias and in the east by Kabayan and Bokod. Atok has an elevation of 2400 meters
above sea level located at Paoay and Cattubo, the highest point along Halsema Highway.
The terrain is generally mountainous with a slope ranging from 40-60% degrees. The
climate is temperate with two pronounced seasons. The wet seasons starts in the month of
May and ends in October. The wettest part of the year is July and August. Dry season
starts in November and ends in May. The municipality is accessible through land
transportation and Igorots particularly the kankana-ey and the Ibalois inhabit it. Farming
is the main economic activities in the area producing highland/semi temperate vegetables
for the Metro Manila market, other outlets in the lowlands. The major crops planted are
cabbage, potatoes, carrots, chayote and rice in the lower parts of the area. Other variety of
crops like lettuce, celery, Chinese cabbage, beans, tomatoes and cucumber are planted in
the various areas but minimal. (Draft Report, 2006).
Production and Marketing of Shiitake Mushroom
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Politically, it is divided into eight barangay’s namely Abiang, Poblacion,
Caliking, Central Naguey, Topdac, Paoay and Cattubo. But original barrios were Paoay,
Naguey, Central Abiang and Caliking. This study was conducted at Paoay Atok, Benguet.
Particularly in sitio Bonglo.
Some resident’s of Bonglo were invited to attend so cold seminar on how to rear
shiitake mushroom which is know to be more advantageous to the health. Four residents
namely Mr. Ruadap, Mr. Malbin, Mr. Taynan and Mr. Baquian responded to that seminar
and started the shiitake mushroom production. From their first harvest, some problems
occurred but some co-producers from other places gave them some knowledge on how to
increase the production of shiitake mushroom. Until now shiitake growers continue to
produce and supply Bonglo with shiitake mushroom.
Mushroom cultivation in the province of Benguet is very limited inspite of the
environment, which is very suitable for mushroom production. This limitation is
attributed not only to improper dissemination of available information but also to the lack
of practical technology the local farmers in the locality could avail of.
This study was conducted to show the profitability of shiitake mushroom
production. The result will serve as a basis for decision-making for the household or
entrepreneur to go into business. It can provide information for shiitake growers to
improve their management and marketing practices.
Statement of the Problem
The study intended to answer the following questions:
1. What are the practices involved in shiitake production?
Production and Marketing of Shiitake Mushroom
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2. What are the source of information and technology in shiitake production?
3. What are the marketing practices of shiitake mushroom growers?
4. What are the, net income and return on investment that could be derived for
shiitake mushroom production.
5. What are the major problems in production and marketing encountered by the
growers of shiitake mushroom in Bonglo Atok Benguet?
Objective of the Study
The study aimed to:
1. Determine the practices involve in shiitake production
2. Determine the source of information and technology in shiitake production.
3. Determine the marketing practices of shiitake mushroom growers.
4. Determine the, net income and return of investment that could be derived for
shiitake mushroom production.
5. Determine the major problems in production and marketing encountered by the
growers of shiitake mushroom in Bonglo Atok Benguet?
Importance of the Study
One of the deciding factors in enterprise development is the profitability of that
kind of enterprise you would like to establish. The result of the study will serve as a basis
for decision-making for the household or entrepreneur to go into business. It can also
provide information for shiitake growers to improve their management and marketing
practices.
Production and Marketing of Shiitake Mushroom
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Scope and Limitation of the Study
This study described the production and marketing practices of the four shiitake
mushroom growers in Bonglo, Atok Benguet.
Production and Marketing of Shiitake Mushroom
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REVIEW OF LITERATURE
History of Mushroom
Long ago, people discovered that certain wild mushrooms were delicious to eat.
For thousands of years wild mushrooms were gathered. They were enjoyed at royal
banquets and valued by poorer folk as well because they were not only good to eat but
free for picking. The cultivating or artificial planting of mushroom began in Europe about
200 years ago. Although many different kinds of mushrooms are good to eat, one kind-
the field mushroom-grows particularly well under cultivation. The modern cultivation
mushroom is closely related to the common field mushroom. The cultivated mushroom
belongs to the fungi or fungus plant group. Mushrooms and other fungi have no
chlorophyll, and so they are unable to make their own food by means of photosynthesis,
as green plant do. Instead, all mushroom take their food from the matter they grow upon
(Yerkovick, 1968).
Yerkovick, (1968) cited that mushrooms are fungus plant; they do not require
sunlight for growth as green plants do. Cultivated mushrooms are grown in darkness
because there is then fewer tendencies for the mushroom to darken in color and to
become dried out. Mushrooms have many different shapes. Some of the best known
kinds, including the cultivated mushrooms.
When we think of mushrooms, we often think of the soft caps & stems that we see
in the grocery store. Hidden underground, however, is the vast majority of the mushroom
mass itself- the network of feathery mycelia. These mycelia, often seen when turning
Production and Marketing of Shiitake Mushroom
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over compost, are what the mushroom uses to absorb food & moisture. The cap & stem
that we commonly eat is just the fruiting body (Beetz and Kustudia, 2004).
Small-scale mushroom production represents an opportunity for farmers
interested in an additional enterprise and is a specialty option for farmers without much
land. This publication is designed for market gardens who wants to incorporate
mushrooms into their system and for those farmers who want to use mushroom
cultivation as a way to extract value from woodlot thinning and other “waste” materials.
Mushroom production can play an important role in managing farm organic wastes when
agricultural and food processing by-products are used as growing media for edible fungi.
The spent substrate can then be composted and applied directly back to the soil. Many
people are intrigued by mushroom nutritional and medicinal properties, in addition to
their culinary appeal. Mushrooms contain many essential amino acid; white button
mushrooms for example, contain more protein than kidney beans. Shiitake mushrooms
are less nutritious, but are still a good source of protein. As a group, mushrooms are also
containing some unsaturated fatty acids; provide several of the minerals potassium,
phosphorus, calcium, and magnesium (Beetz and Kustudia, 2004).
Types of Mushrooms
Shiitake mushrooms (Dentinal edodes), have a rich, meaty texture. The brown
caps often grow up to 3-4 inches in diameter. They have been highly prized in the Orient
for centuries and scientists are researching its medicinal, anti-viral properties. Indoors,
the kits can be stored from 55 to 75F and will produce 2-3 pounds within 3 months.
Production and Marketing of Shiitake Mushroom
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Oyster mushrooms (Pleurotus spp) are named for the fact that their flavor &
texture resembles oysters. The mushroom itself comes in different colors, depending on
species, from pink, cream, white & gray. The white mushroom is the easiest to grow and
will fruit over a wide temperature range from 55-75 F. These mushrooms are particularly
sensitive to humidity and need to be misted 2-3 times per day.
Enoki mushrooms (Flammulina velutipes) have long delicate stems, joined at the
base both the caps and stems are edible and are best eaten raw to take advantage of this
variety's crisp texture. Toss them into salads, sandwiches, or as a garnish for soups. Enoki
require a colder environment, 45 degrees compared to growing temperatures of about 60
degrees, which other varieties require (Arzeena, 1997).
Shiitake Mushroom
Shiitake mushroom (pronounced Shee Ta Kay) are a traditional delicacy in Japan,
Korea and China. For at least a thousand years, shiitake mushrooms have been grown on
logs, outdoors, in the temperature mountainous, region of Asia. To this day, shiitakes
figure as the most popular of all the gourment mushrooms. Only in the past several
decades have techniques evolved for its rapid cycle cultivation indoors, on supplemented,
heat-treated sawdust-based substrates. Cultivation of this mushroom is a centerpiece of
Asian culture, having employed thousands of people for centuries. We may never know
who actually first cultivated shiitake. The first written record of shiitake cultivation can
be traced to Wu Sang Kwuang who was born in china during the Sung Dynasty (960-
1127 AD). He observed that, by cutting logs from tress w/c harbored this mushroom;
more mushroom grew when the loss were “soaked and striked”. In 1904, the Japanese
Production and Marketing of Shiitake Mushroom
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researchers Dr. Shozaburo Mimura published the first studies of inoculating logs with
cultured mycelium. Once inoculated, logs produce six months to a year later. With the
modern methods described here, the time period from inoculation to fruiting is reduced to
only a few weeks (Staments, 1994).
Shiitake is the second most widely cultivated mushrooms in the world. In the past
four decades, shiitake cultivation has grown to become a worldwide, multi-billion dollar
industry. For centuries, this mushroom has been grown in Asia using traditional methods.
Today, a steadily increasing market for fresh shiitake outside of Asia has created a
demand for localized shiitake production in many new areas. By adapting traditional
methods and developing new ones, growers around the world are successfully producing
shiitake at many different scales, from backyard hobbyists to part-time farmers to large
corporate endeavors (Przybylowics and Donoghue, 1988).
Shiitake Mushrooms is becoming well known as a superior way to improve your
health and stimulate your immune system. Try it to build resistance against virus,
infection, the common cold and macular degeneration, among many other ailments.
Much research has been done in recent years, and numerous immunostimulating qualities
have been attributed to this wonderful fungus
(http://www.herbalextractsplus.com/shiitake-mushroom.cfm).
Management Considerations/Options
Shiitake mushrooms offer a good example for those interested in mushroom
production. They may be cultivated using wild-simulated or artificial conditions. Wild-
simulated mushroom enterprises generally use white oak logs under shaded forest
Production and Marketing of Shiitake Mushroom
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conditions and are best suited for the small-scale producer with an operation of 5,000 or
fewer logs. High-intensity cultivation employs compressed sawdust/grain blend logs or
blocks for growing medium and indoor growing environments. This method also requires
a much larger capital investment including dedicated growing houses with climate
control, sawdust logs (which may be pre-inoculated), and special equipment. Because of
the large initial capital investments required, high-intensity mushroom cultivation incurs
much greater economic risk than in wild-simulated operations.
Typical small-scale wild-simulated shiitake operations produce mushrooms on
logs under forest shade conditions. Suitable growing logs are hardwood species and are
four to eight inches in diameter and three to four feet long. Tree species desired include
the white oak family, elm, sweetgum, yellow-poplar, hornbeam, ironwood, hard maple,
blackgum, black locust, and white ash. White oak is often cited as the most desirable
species. Species in the red oak family should be avoided as should pine species due to
their fungicidal resins. Tree species are chosen with consideration given to moderate bark
thickness as mushroom "pins" must be able to push through the bark at the onset of
fruiting. The bark also serves as a barrier to other fungi. Another consideration essential
to successful shiitake production is bark retention which may be accomplished by cutting
trees during dormant months (e.g. October through February). Logs should be handled
gently to preserve bark and should be inoculated within two weeks after cutting to avoid
infection from other fungal species (Kays et al.).
Market Consideration
Production and Marketing of Shiitake Mushroom
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One of the important decisions is whether the mushroom will be marketed fresh
or dried. Once the market has been defined, decisions can be made concerning the
fruiting strategy and the amount of capital and labor that can be profitably invested.
Dried shiitake has the long storage life can be endure long shipping times without
losing quality. This means that the fruiting area can be remote from the market. Dried
shiitake can be produce seasonally in large quantities and then sold throughout the year.
Generally, dried shiitake brings lower price than en equivalent weight of fresh
mushrooms sold on the fresh markets.
Fresh-market shitake must be grown where it can be rapidly delivered to the
market. Because, even under ideal conditions, fresh shitake has a shelf life of about two
weeks, long shipping times can result in mushroom deterioration and loss of revenue. The
higher price paid for shitake compensates the grower for the higher facility and labor
costs needed to produce, market, package, and store and transport a perishable product
(Przybylowics, Donoghue, 1988).
Production and Marketing of Shiitake Mushroom
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METHODOLOGY
Locale and Time of the Study
The study was conducted at Bonglo Paoay, Atok Benguet, where mushroom can
grow because it’s favorable environment suitable for mushroom production.
Respondents of the Study
There are four (4) growers of shiitake mushroom in Bonglo Paoay, Atok Benguet,
who served as respondents of the study.
Data Collection
An in depth interview using a close and open-ended questionnaires was used by
the researcher in gathering data.
Data Gathered
The data gathered were profile of respondents, production and marketing
practices and problems, and cost and production data.
Data Analysis
The data gathered were tabulated and analyzed using simple statistical tools sush
as frequency counts and percentage, descriptive analysis. A cost and return analysis was
also done.
Production and Marketing of Shiitake Mushroom
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RESULTS AND DISCUSSION
General Information of the Respondents
This section shows the general information of the respondents. It includes the age,
gender, civil status, educational attainment, number of years engaged in shiitake
mushroom production and other source of income aside from mushroom production.
These were presented in Table 1.
Age .Half (50%) of the respondents were 54 years old, one (25 %) was 49 years
old, and one (25 %) was 31 years old. It indicates that the respondents were on their
middle age.
Gender .All the respondents were male. This shows that male’s were more
interested in mushroom production than the females.
Civil status .Majority (75 %) of the respondents were married and one (25 %) was
single. It shows that married people were more interested in mushroom production than
the single person.
Educational attainment .Two (50 %) of the respondents have attended formal
education having reached high school level and two (50%) elementary level.
Numbers of years engaged in mushroom production .Majority (75 %) of the
respondents have been engaged in mushroom production for 2 years and 25 % had been
engaged in mushroom production for a year. This result reveals that shiitake mushroom
production just is a new enterprise in Bonglo Atok Benguet.
Production and Marketing of Shiitake Mushroom
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Other sources of income .There were other sources of income of the respondents
aside from the mushroom production such as gardening/vegetable production (57.14 %)
employment as laborer (28.57 %). These are the hired laborers that were hired by co-
farmers and government employee (14.28 %).
Table 1. General information of the respondents
CHARACTERISTICS
FREQUENCY
PERCENTAGE
Age
31
1 25
49
1 25
54
2 50
TOTAL
4
100
Gender
Male
4 100
Female
0
0
TOTAL 4 100
Civil status
Single
1 25
Married
3
75
TOTAL 4 100
Production and Marketing of Shiitake Mushroom
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Table 1. continued…
CHARACTERISTICS FREQUENCY PERCENTAGE
Educational attainment
Elementary
graduate
2 50
High
School
graduate
2 50
TOTAL 4 100
Years engaged in mushroom
Production
1
year
1 25
2
year
3 75
TOTAL 4 100
Other sources of income
Employment
1 14.8
Laborer 2 28.58
Gardening
4 57.14
* Multiple responses
Production Practices of Shiitake Mushroom
This section shows the practices/process involved in shiitake mushroom
production. It includes mushroom house, source of logs and spawns, cutting logs, storing,
and method of planting, soaking/submerge, post harvest and marketing.
Production and Marketing of Shiitake Mushroom
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Mushroom house. All respondents have mushroom house but differ in size, as 20
x 40 ft, 22 x 16 ft, 18 x 24 ft, and 10 x 18 ft. The mushroom houses were made up of
wood, plastic; and they used plastics to cover the sides, and the roofing was iron steel.
Logs .The respondents got their oak logs in the forest they owned. According to
the respondents, the oak logs used should be in their mature stage and theirs the proper
time in getting oak logs; you need to consider the proper timing of its moisture content.
Spawns .Respondents bought the spawns at the Benguet State University (BSU).
Cutting logs .Respondents cut their oak logs into small sizes. Some respondents
say that good measurement of the oak logs for good production was one (1) meter so that
it would be easily carried and soaked.
Storing .All of the respondents store their small oak logs in the mushroom house
for three (3) weeks.
Method of planting .All (100 %) respondents has the same way of planting the
spawns. They make small wholes around the oak logs and plant the spawns.
According to the respondents, after they planted the spawns, they store the oak
logs for one (1) year and five (5) month. While the oak logs were stored, the frequency of
watering was once a week so that the moisture content of the oak logs will be maintained.
Soaking/submerge .All (100 %) respondents soaked or submerged the oak logs
after one year five months storage in the mushroom house for twenty-four (24) hours.
Then they wait for ten (10) days before harvesting. While waiting, frequency of watering
was twice a day.
Harvesting .All (100 %) respondents harvest their product manually. Majority
(75%) of the respondents harvest their product in 4-7 days.
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
16
Production Data
Table 2 shows the production data of the respondents. Respondents A harvested
181 kilos of shiitake mushroom, 168 kilos was sold and 13 kilos was used at home.
Respondent B harvested 64 kilos of shiitake, out of those 64 kilos, he sold 55 kilos and 9
kilos was used at home. Respondent C harvested 33 kilos of shiitake, 28.85 kilos was
sold and 4015 for home consumption. This shows that the respondents harvest has wide
range gap.
Table 2. Production data
PARTICULARS (kls.)
RESPONDENTS
A
B
C
D
Harvested
181
64
33
Sold
168
55
28.85
Home
consumption
13
9 4.15
5
Source of Information and Technology in Shiitake Production
Seminars .All of the respondents attended seminars that were held at Benguet
State University (BSU) conducted by Dr. Bernard Tad-awan and company.
The respondents say that their other source of information was from their co-
producers from other places and from their friends.
Marketing Aspect
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
17
Table 3 shows the marketing aspect. This includes the packaging materials,
outlets, and ways of disposing product.
Packaging
materials .The respondents used cellophane (75 %) and Styrofoam (75
%) as their packaging materials.
Market outlets .Majority (70 %) of the respondents sell their product to the
neighbors. 1 (25 %) sell to the retailer and 25 % sell at restaurant. This shows that the
major buyers of the respondents were in the locality.
Ways of disposing product. Most (75 %) of the respondents delivered their
products to the buyers and 50 % of buyers picked-up the product.
Table 3. Marketing aspect
CHARACTERISTICS
FREQUENCY
PERCENTAGE
Packaging materials
Cellophane
3 75
Styrofoam
3 75
Outlets
Retailers (stores)
1
25
Neighbors
3 75
Restaurants
1
25
Ways of disposing
Delivered
3
75
Pick-up
2
50
*Multiple responses
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
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Marketing Practices
Table 4 presents the marketing practices of the respondents. It includes mode of
selling, price determination and basis in pricing.
Mode of selling .Most (75 %) of the respondents sells through cash on delivery,
while some (75 %) of the respondents sell in credit.
Price determination. Majority (75 %) of the respondents set their own market
price for their product. Respondents sell their product P100.00 per half kilo of the
shiitake mushroom.
Basis in pricing. Majority (75 %) of the respondents based their price on
prevailing market price. This shows that the producers depend on the market price and
not in the production cost.
Table 4. Marketing practices
CHARACTERISTICS FREQUENCY
PERCENTAGE
Mode
of
selling
Cash
on
delivery
3 75
Credit
3
75
Price determination
Set
by
farmer
3 75
Set
by
buyers
0 0
Basis in pricing
Based
on
production
cost
0 0
Based on prevailing market price
3
75
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
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*Multiple responses
Cost and Return
Table 5 shows the sales, cost, net income and return on investment of the
respondents. Total costs of the respondents were Php. 12,407, Php. 8,349, Php. 7,868 and
Php. 7,418 respectively. As to the net income, two of the respondents have positive net
income, one encountered negative. Return on investment of the respondent were 170%,
31%, (27%) respectively. This shows that respondents C has negative return on
investment and respondent D don’t have net income and return on investment because of
not having sales.
Table 5. Cost and Return
PARTICULARS
RESPONDENTS
A
B
C
D
A. Sales
Shiitake mushroom
33,600
11,000
5,770
Non
cash
(home
consumption)
1,000
B. Expenses
Variable cash cost
Packing materials
60
49
10
Spawns
6,500
3,500
3,500
3,500
TOTAL
6,560
3,549
3,510
3,500
Variable non cost
Logs
1,500
1,000
1,500
2,000
Family labor
Submerging
30
30
30
30
Watering
15
15
15
15
Harvesting
30
30
30
15
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
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TOTAL
1,575
1,075
1,575
2,060
TOTAL
VARIABLE
COST
8,135
4,624
5,085
5,560
Table 5 continued…
PARTICULARS
RESPONDENTS
A
B
C
D
3. Fixed non cost
Salary
1,000
2,500
1,500
1,000
Depreciation cost
Mushroom house 3,152
1,000
1,063
438
Logs
100
200
200
400
Plastic crates
20
20
20
20
TOTAL
FIXED
COST 4,272
3,720
2,783
1,858
TOTAL
COST 12,407
8,344
7,868
7,418
NET
INCOME 21,193
2,656
(2,098)
ROI
(%) 170
31
(27)
Problem Encountered in Producing Shiitake Mushroom
Table 6 presents the problems encountered in shiitake mushroom production. The
major problems identified by the respondents include occurrences of pest/insect (100%)
and insufficient knowledge in producing shiitake (100%).
Table 6. Production problems encountered in producing shiitake mushroom
PARTICULARS
FREQUENCY
PERCENTAGE
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
21
Occurrence
of
pest/insect
4 100
Insufficient
knowledge
in
production
4 100
* Multiple responses
Marketing Problems Encountered by the Respondents
Table 7 shows the marketing problems of the respondents. There were 3 problems
encountered by the respondent. These were delayed payment (75%), limited market
outlet (75%) and lack of promotional activities (75%).
Table 7. Marketing Problem Encountered
PARTICULARS
FREQUENCY PERCENTAG
Delay of payment of shiitake mushroom
3
75
Limited
market
outlet
3 75
Lack
of
promotional
activities 3 75
* Multiple Responses
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
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SUMMARY, CONCLUSION AND RECOMMENDATION
Summary
This research work aimed to identify the production and marketing of shiitake
mushroom in Bonglo, Atok, Benguet, to determine the production practices, source of
information and technology, marketing practices, net income and return on investment
that could be derived from shiitake mushroom production and problems encountered by
the growers in terms of production and marketing.
There were 4 respondents of the study who were engaged in shiitake mushroom
production. This study was conducted in Bonglo, Atok Benguet. Data gathering was done
through personal interview using guide questionnaire.
Half (50%) of the respondents were on their middle age, they were all male, and
majority (75%) were married, they are all literate, majority (75%) were engaged in
mushroom and vegetable production. As to the production practices, majority, (75%) of
the respondents used mushroom house for production. Small sizes of oak logs were
used/good for production. Storing of oak logs was practiced by the respondents. Spawns
are planted around the oak logs. Oak logs were in water submerge for 24 hours. The
producer will wait for 10 days before harvesting. Method of harvesting was done
manually. All the respondents attended the seminar on mushroom production at Benguet
State University. As to the marketing aspect and marketing practices, most (75%) used
cellophane and styrofoam as their packaging materials. Market outlets of the respondents
were in the locality. Majority (75%) delivered their product to the end users. Respondents
set their own price and it was based on the prevailing market price. As to the net income
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
23
and return on investment of the respondents, two respondents encountered
negative net income because of higher expense than sales and the other did not
sell his produce. The major production problems encountered by the respondents
include the following; occurrences of pest/insects and lack of knowledge and
technology in producing shiitake mushroom. The marketing problems
encountered by the respondents were; delay of payment of shiitake mushroom,
limited market outlet and lack of promotional activities.
Conclusions
Based on the results of the study, the following conclusions were drawn.
1. Mushroom houses were used by the shiitake growers.
2. Attendance to seminar is major source of information and technology in
shiitake production.
3. Market outlet of the shiitake producers were in the locality.
4. All the respondents based the price of their product on the prevailing market
price.
5. Respondents encountered problems in production due to occurrences of
pest/insects and lack of knowledge.
6. The marketing problems that were encountered by the respondents were delay
of payment, limited market outlet and lack of promotional activities.
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
24
Recommendations
In line with the findings of the study, the following recommendations were made:
1. Growers of shiitake mushroom should follow the right procedures in
producing shiitake mushroom.
2. Follow up seminars and trainings are recommended to the shiitake mushroom
growers in order for the growers to gain more knowledge on pest and disease
control to be updated on mushroom production.
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
25
LITERATURE CITED
ANONYMOUS, 2006. Comprehensive Land Use Plan and Zoning Ordinance.
Draft Report Atok, Cordilere Highland Agriculture and Resource Management
project.2006
ANONYMOUS 2005. Shiitake Mushroom Herbal Supplement from Herbal Extract Plus.
Accessed on 18 Aug. 2007
ARZEENA, H. 1997. Low Cost Mushroom Production at Home.
http://www.gardenguides.com/how-to/tipstechniques/vegetables/mushroom.asp.
Accessed on 16 Aug. 2007
BEETZ, A. and KUSTUDIA, M. 2004. Mushroom Cultivation and Marketing.
http://attra.ncat.org/attra-pub/mushroom.html. Accessed on16 Aug. 2007
KAYS,S.S. et al.2007 Shiitake Mushroom-Letinus Edodes.
http://www.naturalresources.umd.edu/pages/shiitake.htm. Accessed on 16 Aug.
2007
PRZYBYLOWICS, P. and DONOGHUE, J. 1988. Shiitake Grower Handbook.Northwest
Mycological Consultant,Inc.
STAMENTS, P.1994. Growing Gourment and Medical Mushroom. Pp 259
YERKOVICK, R.J. 1968. Mushroom for Market. Follett Publishing Company Chicago.
NewYork. Pp 7-8, 11,33
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
26
APPENDIX A
Questionnaire
1. General information
Name: __________________________________
Age: ______________ Gender: _________male ________female
Civil Status:
______________single
______________married
______________widow/er
______________separated/divorced
Educational Attainment: (kindly check)
Graduate Undergraduate
Elementary level ____________ _______________
High school level ____________ _______________
College level ____________ _______________
Vocational ____________ _______________
No. of years engaged in mushroom production
___________less than one year
____________one
year
____________two
years
___________others;
specify____________________________
Production and Marketing of Shiitake Mushroom
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27
Sources of income aside from mushroom production:
____________employment (pls. specify) ____________________
____________sari-sari
store
____________hired
labor
____________gardening
____________other;
specify__________________________
2. Farm profile
A. type of farm:
___________mushroom house ___________size of mushroom
house
___________open field _____________size of farm
B. type of mushroom house:
____________steel/plastic
roofing
____________wood/plastic
roofing
____________other;
specify______________________________
C. how much did you spend to start your business? ____________________
D. Production:
a. source of planting :
Spawns Logs
_________bought ___________bought
_________donated __________owned
_________others;
specify__________________________________
Production and Marketing of Shiitake Mushroom
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28
b. frequency of watering:
____________once
a
day
_____________twice
a
day
____________other;
specify
c. time of harvesting:
_______days __________how many days
_______weeks __________how many weeks
d. Cost of production
________
spawns
others,
specify
________
Logs ___________
________
mushroom
house
___________
e. Labor cost
________
planting
others,
specify
________
harvesting
___________
________
submerging
___________
f. Production data
Particulars Volume Value
(P)
Harvested
Sold
Home consumption
Production and Marketing of Shiitake Mushroom
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29
E. Source of information regarding mushroom production
_______ seminars
_______ trainings
F. Marketing Aspects
a.
Packaging:
_______
cellophane
_______
styrofoam
b.. Outlets:
__________whole
sellers
__________retailer
(stores)
__________neighbors
__________other;
specify________________________
c. How do you dispose your product?
________delivered
________pick-up
G. Marketing Practices
a. Mode of selling:
_______cash
on
delivery
_______credit
________consignment
Production and Marketing of Shiitake Mushroom
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30
b. pricing determination:
_________set by the farmer
________set by the buyer
________other;
specify_______________________________
c. what is your bases in pricing your product:
________based on production cost
________based on prevailing market price
________other;
specify_______________________________
H. Problems encountered in production:
_______lack
of
facilities
_______lack
of
capital
_______occurrences
of
pest/insects
_______insufficient
in
knowledge
in producing shiitake mushroom
_______0ther,
specify:
____________________________________
I. Marketing problems encountered:
_______delay
of
payment
_______limited
market
outlet
_______lack of promotional activities
_______others,
specify:
________________________________________
Production and Marketing of Shiitake Mushroom
at Bonglo, Atok Benguet / Deborah W. Taynan. 2008
Document Outline
- Production and Marketing of ShiitakeMushroom at Bonglo, Atok Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale
- Statement of the Problem
- Objective of the Study
- Importance of the Study
- Scope and Limitation of the Study
- REVIEW OF LITERATURE
- History of Mushroom
- Types of Mushrooms
- Shiitake Mushroom
- Management Considerations/Options
- Market Consideration
- METHODOLOGY
- RESULTS AND DISCUSSION
- General Information of the Respondents
- Production Practices of Shiitake Mushroom
- Production Data
- Source of Information and Technology in Shiitake Production
- Marketing Aspect
- Marketing Practices
- Cost and Return
- Problem Encountered in Producing Shiitake Mushroom
- Marketing Problems Encountered by the Respondents
- SUMMARY, CONCLUSION AND RECOMMENDATION
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDIX