BIBLIOGRAPHY CAGA, ANIE D. APRIL ...
BIBLIOGRAPHY
CAGA, ANIE D. APRIL 2011. Oyster Mushroom Production and Marketing by
Members of Ampucao Forest Products Center Association Incorporation. Benguet State
University, La Trindad, Benguet.
Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT
The study was conducted to (1) describe the production and marketing practices of the
farmers involved in mushroom production; (2) identify their market outlets; (3) evaluate the
profitability of the mushroom and fruiting bag production; and (4) identify the problems
encountered by the respondents in production and marketing of mushroom.
There were two sets of respondents; 9 mushroom growers and 4 fruiting bag producers.
The data and information were gathered by means of a survey questionnaire and supplemented
with a personal interview of the respondents. The data gathered were tabulated and analyzed
using frequency counts and percentages. Cost and return analysis was employed in the analysis
of the profitability of mushroom production.
Result shows that mushroom growers and fruiting bag producers were of middle age.
Majority of them reached college level.
Findings show that most of the mushroom growers have concrete and galvanized type of
mushroom house and they used straw instead of nylon strings in hanging their fruiting bags.
They sprinkle their mushroom fruiting bags once a day after harvesting. Majority of them harvest
daily during the first 1 to 3 months of growing. All of them were selling their produced
mushrooms. Cellophane is their common packaging material and most of their market outlets
were their neighbors and they personally deliver the fresh mushroom to their buyers. Most of
them sold on cash basis upon delivery and they set their own price based on the prevailing
market price.
The major problem of the mushroom growers in production was the occurrences of pest
and diseases. In marketing, they cannot meet the demand of their customers due to small volume
of harvest.
In the production practices of fruiting bag, all the respondents used drums as a substitute
for autoclave. Their markets for the fruiting bags were the members of the association as well as
non-members and farmers in other areas who were interested in producing mushroom. They also
deliver their products, to their customers by hiring vehicles to transport their products.
Contamination of fruiting bags was their serious problem in producing fruiting bags. As
to their problem in marketing, limited market outlet was the major problem. As shown in the
result of cost and return analysis, the fruiting bag production had higher net income as compared
to mushroom production which has lower net income.
TABLE OF CONTENTS
Page
Bibliography..……………………………………………………………….....
i
Abstract ………………………………………………………………………..
i
Table of Contents……………………………………………………………....
iii
INTRODUCTION …………………………………………………………….
1
Rationale…………………………………………………………………
1
Statement of the Problem………………………………………………..
3
Objectives of the Study…………………………………………………..
4
Importance of the Study…………………………………………………
3
Scope and Delimitation of the Study……………………………………
4
REVIEW OF LITERATURE ………………………………………………….
5
Historical Background ………………………………………………….
5
Types of Mushrooms …………………………………………………...
6
Nutritional Value ……………………………………………………….
8
Market Consideration …………………………………………………..
9
METHODOLOGY ……………………………………………………………
11
Locale and Time of the Study……………………………………………
11
Respondents of the Study………………………………………………..
11
Data Gathering Procedure……………………………………………….
11
Data to be Gathered……………………………………………………...
11
Data Analysis…………………………………………………………….
12
RESULTS AND DISCUSSION ………………………………………………
13
Profile of the Respondents ………………………………………………
13
Farm Assets…………………………………………………………….
15
Production Practices of Mushroom
Growers………………………………………………………………….
16
Materials Used ……………………………………………………….....
16
Watering ………………………………………………………………...
16
Harvesting ……………………………………………………………….
16
Distribution of Harvest ………………………………………………….
17
Mushroom Producers Marketing
Practices …………………………………………………………………
18
Problems Encountered by Mushroom
Producers ………………………………………………………………..
19
Production Practices of the Fruiting
Bag Producers …………………………………………………………..
20
Materials
21
Production Data …………………………………………………………
22
Marketing Practices of Fruiting
Bag Producers …………………………………………………………..
23
Problems Encountered by the Producers
of Fruiting Bag …………………………………………………………..
25
Cost and Return Analysis for a Six Months
Mushroom Production and a Monthly
Fruiting Bag Production ………………………………………………...
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS …………….
28
Summary ………………………………………………………………...
28
Conclusions ……………………………………………………………..
30
Recommendations ………………………………………………………
31
LITERATURE CITED…………………………………………………………
32
APPENDIX ……………………………………………………………………
33
A. Survey Questionnaire for Mushroom
Producer………………………………………………………………
34
B. Survey Questionnaire for Mushroom
Fruiting Bag Producer ………………………………………………
37
1
INTRODUCTION
Rationale
Itogon is a first class municipality in the province of Benguet with a total
population of 48,778 people in 8,588 households. The town is bounded on the northwest
by the municipality of La Trinidad and Tublay, on the northeast by the municipality of
Bokod, on the southwest by the province of Nueva Viscaya, on the south by the province
of Pangasinan, and on the west by the municipality of Tuba and Baguio City. It has nine
barangays which Ampucao is included and it was generally inhabited by Ibalois. The
main source of livelihood is mining and secondary to mining is agriculture.
Fifty years ago, some parts of Philex Mines were the hunting ground of some of
the indigenous inhabitants of the outlaying sitios. Later, these became their pasture lands
and at the same time their kaingin sites. They planted crops such as camote, camoteng
kahoy, gabi and others.
Most, if not all of the indigenous inhabitants earned their living by backyard
gardening, animal raising, kaingin, farming, hunting and fishing for family consumption.
Gold panning along the river gave them extra family income especially for the residence
of Sal-angan, Banget, Piaki, 745, and Nayen. According to the old folks of the place,
water supply was abundant and clean before the establishment of the Philex Mines.
Moreover, they used to enjoy the undisturbed environment, preserved natural resources,
the peaceful wildlife habitats, and the original land configuration and the freshness of the
air (Panawan, 2010).
The environment has changed when the Philex Mines started its operation. The
people who are affected in the operation formed an organization to claim their stakes in
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
2
the company. In 1984. the company gave them “sloshing canal” as source of extra
income. However, in 1997 the amount of gold produced from the sloshing canal started
to dwindle so the people of Itogon negotiated with Philex Mines for other economic
supports. They organized the TIHCAPOSI, an association of the people of Itogon living
at the outlaying areas of the Philex Mines. The association made a MOA with the
company to help them establish livelihood projects. The company committed to provide
the needed materials and capital under its Social Development and Management Program
(SDMP) through its Community Relations Department and the Municipal Agriculture
Office of Itogon, Benguet.
The SDMP-Philex Company distributed the Income Generating Projects in
Barangay Ampucao. Sitio Sal-angan for the aquaculture, sitio 745 for coffee production,
Ampucao Proper for beekeeping and sitio Cruz for mushroom production. Since the
projects are willing within the barangay Ampucao, they decided to form an association to
oversee these IGPs. The name of the association is Ampucao Forest Product Center
Association, Incorporation (AFPCAI).
On November 2008, banana mushroom production was first started by sitio Sal-
angan but the project failed because there is no source of banana for mass production.
This discouraged the people to continue. The association wanted to transfer the project
site to sitio Sta. Fe but the residence opposed it so it was brought to sitio Cruz. The
mushroom production project started in December 2008 with a small room until the
members of the association decided to put up a production building. The building was
planned as a production center and at the same time a training center for members and
other farmers who are interested to produce mushroom. The construction of the building
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
3
which is 18 by 24 square feet structure started on July 14, 2010 through Bayanihan by the
local residents of the place. The production of mushroom is continues even though the
building construction is on going because the association sell its produced fruiting bags to
the interested members and other farmers through package deal.
Importance of the Study
The result of the study would provide benchmark information on mushroom
production in Sitio Cruz, Ampucao, Itogon, Benguet. The information gathered from the
study would serve as a guide for those entrepreneurs who are interested in producing and
buying substrates; for the association to improve their operation; for the other researchers
who will conduct related studies; and extension agents that can make use of the valuable
information for workable strategies influencing mushroom production.
Furthermore, the overall result of the study could provide important insights to
concerned groups involved in the development of mushroom production and those who
plan to buy only substrate from the producers.
Statement of the Problem
The study was conducted to find out the profitability of mushroom production by
the association, farmers and members of the association engaged in mushroom
production. Thus, the study aimed to answer the following questions:
1. What are the production and marketing practices of the association and the
farmers?
2. Where are the market outlets of the product?
3. Are the farmers gaining profit from mushroom production?
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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4. Is mushroom fruiting bag production profitable?
5. What are the problems encountered by the association and the farmers in the
production and marketing of mushroom?
Objectives of the Study
The study aimed to:
1. Describe the production and marketing practices of the association and the
farmers involved in mushroom production;
2. Identify market outlets of the producers;
3. Evaluate the profitability of mushroom production by the farmers;
4. Evaluate the profitability of mushroom fruiting bag production by the
association; and
5. Identify the problems encountered by the association and the farmers in the
production and marketing of mushroom.
Scope and Delimitation of the Study
The study focused on the mushroom production and marketing in Sitio Cruz,
Ampucao. It evaluated the profitability of mushroom production and marketing by the
farmers and the profitability of fruiting bag production by the association.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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REVIEW OF LITERATURE
Historical Background
Long ago, people discovered certain kind of mushrooms were delicious to eat.
Four thousand years wild mushrooms were gathered at royal banquets and valued by poor
folks as well because they were not only good to eat but free for picking. The cultivation
or artificial planting of mushroom began in Europe about 220 years ago. Although many
different kinds of mushrooms are good to eat, one kind is the field mushroom that grows
particularly well under cultivation. The modern cultivated mushroom is closely related to
the common field mushroom. Also the cultivated mushroom belongs to the fungi, fungus
plant group (Yerkovish, 1968 as cited by Taynan, 2008).
Many places adopted the cultivation of mushroom in Southeast Asia which
Philippines is included. Banganan and Gumihid (1999) cited that mushroom cultivation
in the country is considered as one of the income generating industries. Aside from
providing employment throughout the year, it also yields high economic returns at the
earliest possible time. They also added that the potential of mushroom production in the
Philippines is big because of its good climate condition in some areas of the country that
is suited for mushroom cultivation.
Recognizing the potential of growing mushrooms as a small business or cottage
industries that can provide additional income and requiring low capital investment but
fast return on investment, some international development organization such as FAO,
UNESCO, IRRI, ADB, ATI (Appropriate Technology International) and CDG (Carl
Duisberg Geselchaft), provided seed funds to help promote mushroom production
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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especially for small scale business both in urban and rural areas of the Philippines
(Quimio, 2002).
In the Cordillera, production of mushroom is very limited despite of the
prevailing environment. Local farmers are reluctant to engage into the venture because
of the lack of local-specific technologies and because of the virtual lack of substrates
aside from sawdust. However, oyster mushroom business in the region has been proved
to be profitable venture and locally sustainable with all the local specific technologies
identified and support system to be in place, can gradually become an industry for the
region in the future. The Shiitake counterpart would need more time when oyster
mushroom entrepreneurs would develop confidence to expand (Banganan and Gumihid,
1999).
Benguet is one contributor in mushroom production. Luis (2006) stated as cited
by Carino (2010), “Benguet is the best environment to raise mushrooms because of its
temperate climate. Growing them also makes a high pitch for organic farming since
mushroom need no fertilizer or other chemicals.”
Types of Mushrooms
Identification of mushroom is not easy. Even there are many field guide that
show pictures of mushroom, it is very necessary to examine mushrooms on the hand very
carefully before conclusion as to its identify is made (Quimio, 2002).
Chang and Miles (2004) wrote that there are about 74,000 number of known
describe species of fungi. There are about 14,000 mushroom species that we currently
know, 50% or 7,000 mushroom species are considered to posses varying degrees of
edibility and more than 3,000 species from 31 genera are regarded as prime edible
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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mushrooms. Only 200 of them were experimentally grown, 100 economically cultivated,
approximately 60 commercially cultivated, and about 10 have reached an industrial scale
of production in many countries. Furthermore, about 2,000 are medicinal mushroom
with a variety of health attribute.
Quimio (2002) mentioned that Pleurotus is one of the choice edible mushrooms
which can be cultivated in the tropics. It has gained importance only in the last decade
and is now being cultivated in many countries in the subtropical and temperate zones. In
Europe, it is known as the oyster mushroom (P. ostreatus) in China it is called as the
abalone mushroom (P. abalanusor and P. cystidiosus).
One reason for the great interest in species of Pleurotus is its great taste and
nutritional appeal and also it secrete a wide range of enzymes which can degrade all the
three key categories of polysaccharides. It is also capable of growing on a wide range of
substrates and the strains of this species are plentiful and easy to grow (Chang and Miles,
2004).
Stamets (1993) stated that Shiitake as a counterpart of Oyster mushroom
pronounced as “shee ta’kay” are traditional delicacy in Japan, Korea and China. For at
least a thousand years, Shiitake mushrooms have been grown on logs, outdoors in the
temperate mountainous region of Asia. It is also the most popular of all the gourmet of
mushrooms. Only in the past several decades have techniques evolved for its rapid cycle
cultivation indoors, on supplemented, heat-treated sawdust-based substrates.
Shiitake comes from Japan ‘shii’, which means oak and ‘take’ which means
mushrooms and it is the second largest cultivated mushrooms species in the world
(Anonymous, 2006).
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Nutritional Value
One of the main health problems in our country is malnutrition which usually
increases the fatality rate. Being aware of nutritious foods and eating them during daily
meals would help lessen the problem. In terms of nutritional content, mushroom is very
much recommended (Galeng, 2002).
As cited by Garmonnac (2005), mushrooms are very healthy source of nutrients.
Base on daily weight, oyster mushrooms have substantial protein ranging from 15-35%
and contain significant quantities of free amino acids. They are replete with assorted
vitamins such as vitamin C (30-144 mg per 100 grams) and vitamin B, niacin (1098 mg
per 100 grams).
Oyster mushroom (Pleurotus ostreatus) is extremely delicious as well as
conferring various health-giving properties. Traditionally, it has been used to strengthen
veins and relax tendons. In China oyster mushroom is indicated for joint and muscle
relaxation. A product containing oyster mushroom, called “Tendon-easing powder,” is
effective in the treatment of lumbago, numbed limbs, and tendon and blood vessel
discomfort. In the Czech Republic, extracts have been made from the fruiting bodies of
the main ingredient in dietary preparations recommended for prevention of high
cholesterol. The dried oyster mushrooms are said to be high in iron, so they are
potentially good blood builders. The recommended dose is 3-9 grams daily (Hobbs,
1998).
Log-grown Shiitakes are more nutritious than commercial grown Shiitakes grown
on sawdust blocks. It is perfect for vegetarians, gourmets, gardeners and health.
Shiitakes are low in fat, high in protein, vitamins and minerals. Fresh and dried shiitake
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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mushrooms are used nutritionally to fight cancer, fibrocystic breast disease, high blood
pressure and viruses, to strengthen the immune system, improve circulation, and reduced
cholesterol (Williams and Williams, 1992).
Quimio (2002) stated and Buya (1999) cited that mushrooms are also good
sources of essential minerals such as calcium and phosphorus. It is also low in
cholesterol and calories and it is often referred to as “slimming food”.
Market Consideration
Moraa (1979) as cited by Dulagan and Crescini (2000), marketing is viewed in
two dimensions; either simple operational or a highly complex one.
Panaloyou (1985) as cited by Dulagan and Crescini (2000), that an efficient
marketing system is expected to provide efficient and economic services and ownership,
transfer in the movement of commodities from the producers to the consumers an
effective price-making mechanism. Agricultural marketing services in many less
developed nations are costly and exhibit low productivity.
Taynan (2008) revealed that one of the critical 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.
The process of drying is not only to make it possible to preserve for a long time,
but also enhances its flavor with a unique taste. Dried mushroom has the long storage
life, can endure long shipping times without losing quality. It can be produced seasonally
in large quantities and sold throughout the year. Dried mushrooms most especially
Shiitake brings lower price than an equivalent weight of fresh mushrooms sold in the wet
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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markets. Mushrooms have shelf life about two weeks, long shipping times can result in
mushroom deterioration and loss of revenue.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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METHODOLOGY
Locale and Time of the Study
The study was conducted in Sitio Cruz, Itogon, Benguet, where the mushroom
project of the SDMP-Philex Company Income Generating Project is located. It was
conducted from December to January 2010.
Respondents of the Study
The respondents of the study were the members of the association engaged in
mushroom production and marketing and the officers of the association including those
that are involved in fruiting bag production. Complete enumeration was employed in the
selection of respondents with a total number of 13 consisting of mushroom producers and
fruiting bags producers.
Data Gathering Procedure
The primary data were collected through a semi-structured survey questionnaire
supplemented with personal interview. The researcher did participatory observation by
staying with the workers while doing the mushroom production. Copies of the
questionnaires were distributed personally to the respondents.
Data Gathered
The data gathered were the following; production and marketing practices;
market outlets; production cost and returns and problems encountered by the farmers and
association in mushroom production and marketing.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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Data Analysis
The data gathered were tabulated and analyzed using simple statistical tools such as
frequency counts and percentages, descriptive analysis. Profitability analysis in
mushroom production was done using cost and return analysis.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 contains the profile of respondents as to age, civil status, occupation,
highest educational attainment and membership to association. These are discussed in
detail in the following sections.
Age. The age of respondents ranges from 21-56 years old. Most of them (46.15%)
belonged to age bracket 30-38 years old. This was followed by the age bracket ranging
from21-29 with 30.76%, ages 48 -56 with 15.40% and ages 39-47 with 7.69%.
The result shows that there was a wide distribution in the age of respondents. This
implies that young and old people can engaged in mushroom production.
Civil status. Most of the respondents were married that composed 84.62% and
7.69% are single and widowed. It implies that most married farmers are more active in
livelihood activities.
Occupation. Majority of the respondents have no occupation or they were plain
housewives and they claimed that they considered mushroom production as their
occupation. The other respondents make mushroom production as their secondary
occupation or sideline. The result proved that mushroom cultivation could provide
employment for people who are jobless despite of age, sex and educational attainment.
Highest educational attainment. Most of the mushroom growers (61.54%) reached
college level and they claimed that mushroom production is a good source of income for
their family.
Membership to association. Eight or 61.54% of the respondents were member of
the association and five or 38.46% are non member of the association.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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This implies that most of the respondents love to participate in livelihood
activities to support their association.
Table 1. Profile of respondents
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Age (years)
21 – 29
4
30.76
30 – 38
6
46.15
39 – 47
1
7.69
48 – 56
2
15.40
TOTAL
13
100.00
Civil status
Single
1
7.69
Married
11
84.62
Widow
1
7.69
TOTAL
13
100.00
Occupation
None (housewife)
8
61.54
Farmer
1
7.69
Vegetable retailer
2
15.39
Business woman
1
7.69
Government employee
1
7.69
TOTAL
13
100.00
Highest educational attainment
Elementary
1
7.69
High school
3
23.08
College
9
69.23
TOTAL
13
100.00
Membership to association
Member
8
61.54
Non-member
5
38.46
TOTAL
13
100.00
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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Type of Mushroom House Used by the
Growers
Type of Farm. Table 2 shows the farm profile of the respondents according to
type of farm. Only one or 11.12% of the respondent have used veranda and four or
44.44% have concrete and galvanized mushroom house.
Farm Assets and Production Practices of
Mushroom Growers
All of the respondents have mushroom house and used weighing scale in term of
their assets (Table 3).
This implies that all of the growers protecting their mushroom from insects and
strong typhoon that may destroy their products. Mushroom needs a clean and well
maintained surrounding to maintain a good quality of product because mushrooms are
very sensitive.
Table 2. Type of mushroom house used by the growers
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Concrete mushroom house
4
44.44
Galvanized mushroom house
4
44.44
Veranda
1
11.12
TOTAL
9
100.00
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Materials used
Most of the respondents have used straw instead of nylon strings as a holding
material for the fruiting bag if they hang it. They used straw because it is more
economical than nylon strings and it can reduce the waste problem.
Watering
Majority of the respondents states that they sprinkle their mushrooms once a day
and the rest says that they water twice a day considering the temperature in their area.
Some also added that they scraped the fruiting bags as a part of cleaning before watering
the bags. Scraping the black portion of the fruiting bags is to encourage mushroom to
sprout.
Harvesting
The respondents claimed that daily harvesting is from the first to third months
while the rest says that during the last months of growing, they experienced twice to
thrice a week harvesting time. The reason why there is a decreased in the volume of their
harvest in the last few months is because the fruiting bag reached its maximum capacity
to produced mushrooms and the fruiting bags are turning black which indicates
composition of the mixed materials. In addition most, most of them says that the fruiting
bags lasts from 6 – 8 months of growing. Some also claims that the life span of the
fruiting bags depends on the way they care. They said that if both side of the bags were
opened, the life span of the fruiting bag decreases but they harvest higher volume of fresh
mushroom on the first months of growing.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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Table 3. Assets and production practices of mushroom growers
PARTICULAR
FREQUENCY
PERCENTAGE
Equipment
Mushroom house
9
100.00
Weighing scale
9
100.00
Materials used
Straw
8
88.88
Nylon
1
11.12
TOTAL
9
100.00
Watering
Twice a day
3
33.33
Once a day
6
66.67
TOTAL
9
100.00
Harvesting
Daily
5
55.56
Every other day
4
44.44
TOTAL
9
100.00
Distribution of Harvest
All of the respondents stated that they sold 89% and consumed at home 7% of the
total produced mushroom. Four of them mentioned that 4% of the total harvest were
given to their friends (Table 4).
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Table 4. Distribution of harvest
DISTRIBUTION FREQUENCY PERCENTAGE VOLUME PERCENTAGE
(kg)
Sold
9
100.00
704.82
89
Home consumption
9
100.00
55.43
7
Given to friends
4
44.44
31.68
4
*Multiple response
Table 5. Distribution of total volume of harvest
DISTRIBUTION
VOLUME
PERCENTAGE
Sold
704.83
89
Home consumption
55.43
7
Given to friends
31.68
4
Mushroom Producers Marketing Practices
Packaging materials. One hundred percent of the respondents make used of
cellophane as one of their packaging materials, 44.44% make used of Styrofoam, 22.22%
have used banana leaves and 11.12% have used paper plate.
This implies that the growers are not acquainted with the proper used of
packaging materials that are non-toxic and safe to the health of the consumers.
Market outlets. Table 5 shows that most of the market outlets of the mushroom
growers are their neighbors (66.67%), next is retailer (55.56%) and the wholesaler
(11.12%).
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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The result shows that the produced mushroom is in adequate to supply a bigger
market.
Product disposal. One hundred percent of the farmers delivered their produced
products to their outlet. This implies that the growers have this strategy to establish a
good impression to their customers.
Mode of selling. All of the respondents are practicing cash on delivery basis in
selling their produced mushroom to avoid credit and loss of revenue.
Problems Encountered by Mushroom Producers
Table 7 shows the different problems of the mushroom growers. Most of the
mushroom growers (88.88%) claimed that occurrence of pest and insects such as beetles,
white worms, black worms, bugs and fruit flies are their number one problem. Three
(33.33%) of the respondents mentioned that lack of capital is one of their problem. One
(11.12%) of them stated that lack of skill is another problem; as a result there is a small
volume of harvest. they mentioned that one method of eliminating the pest is “pis-itox”
or they pinch the pest using their hand to avoid multiplication of the insect pest.
Marketing
Majority of the mentioned problems in marketing of mushrooms is they cannot
meet the demand of their costumer because they have small volume of produced
mushrooms. The respondents added that if they can only produce a bigger volume of
harvest to supply a bigger market, then they can establish a permanent market outlet like
restaurant, stores and others. One of the respondent reason out why there is limited
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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market outlet is because the volume of harvest is less than 1 kilo so she cannot sell the
product.
Table 6. Mushroom producers marketing practices
PARTICULAR
FREQUENCY
PERCENTAGE
Packaging materials used*
Cellophane
9
100.00
Styrofoam
4
44.44
Paper plate
1
11.12
Banana leaves
2
22.22
Market outlets*
Wholesaler
1
11.12
Retailer
5
55.56
Neighbors
6
66.67
Mode of selling*
Delivered
9
100.00
Pick-up
2
22.22
Mode of payment*
Cash on delivery
9
100.00
Credit
1
11.12
Basis of pricing
Prevailing market price
9
100.00
TOTAL
9
100.00
*Multiple response
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
21
Table 7. Problems encountered by mushroom producers
PROBLEM
FREQUENCY
PERCENTAGE
Production*
Lack of capital
3
33.33
Occurrence of pest and diseases
8
88.88
Lack of skill
1
11.12
Marketing
Limited market outlets
1
11.12
Lack of knowledge in packaging
1
11.12
Cannot meet the demand of consumer
7
77.76
TOTAL
9
100.00
*Multiple response
Production Practices of the Fruiting Bag Producer
Equipment and Asset. All of the respondents have used drums as their substitute
for autoclave because they stated that buying an autoclave requires a high cost of return
and they have only limited capital as a starting venture. The respondents also mentioned
that they have inoculation chamber and these are divided into small dark rooms where the
substrate will be incubated.
Materials. All of the respondents have used these materials as follows; sawdust,
rice bran, manila lime, planting spawn, plastic bag, rubber band, hose-ring, rags and
weighting scale. They stated that mixing different level of percentage of the materials has
made in experimental way before they come up of their preferred mixture. Most of them
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
22
learned the process from the association. It is also mentioned that they attended some
seminars which involved mushroom production to acquire more knowledge on how to do
the process well.
Procedures
1. Sift the sawdust, lime and rice bran as well.
2. Mixed well the sawdust and rice bran
3. Pour water and lime in a jar and stir and add to the mixed rice bran and
sawdust.
4. Pot the mixture in the plastic bags and weight 1.25-1.50 kg per bag.
5. Put the hose-ring on the mouth of the substrate bag and make a hole at the
center of the hose-ring.
6. Put the rags at the center of the hose-ring, cover it with paper or newspaper
and prepared for cooking.
7. Pile the substrates to the drum, cover the top of the drum and steam for 10
hours.
8. Removed from the drum and prepare for planting.
9. Plant every substrate bag and put into the incubation room.
Production Data
All the respondents claimed that they produced fruiting bag every month with a
total average of 1,088 fruiting bags produced per time. Every fruiting bag cost 33.44
pesos on average. Two of the respondents (50%) says that they sell their fruiting bags at
35.00 pesos, one (25%) mentioned that they sell at 33.33 pesos each fruiting bag, while
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
23
25% stated that they used their fruiting bags to produce mushroom. All the respondents
stated that they were producing per month
Table 8. Production practices of fruiting bag producer
PARTICULAR
FREQUENCY
PERCENTAGE
Equipment and assets*
Drums
4
100
Incubation chamber
4
100
Weighing scale
4
100
Materials*
Sawdust
4
100
Rice bran
4
100
Manila lime
4
100
Spawns
4
100
Plastic bag
4
100
Rubber band
4
100
Hose ring
4
100
Rags
4
100
*Multiple responses
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
24
Table 9, Production data
PARTICULAR
FREQUENCY PERCENTAGE
Frequency of production of fruiting bags
Every month
4
100
Fruiting bag produced per month
700
1
25
1,000
1
25
1,250
1
25
1,400
1
25
TOTAL
4
100
Price per bag
None used for own production of mushroom
1
25
33.33
1
25
35.00
2
50
Marketing Practices of the Fruiting Bag Producers
Market outlets. Table 10 shows that the market outlets of the fruiting bag
producers are the mushroom producers that are member of the association (75%), one of
them (25%) claimed that they used for their own mushroom production.
This implies that there are few people in the area who are interested in producing
mushroom. This also proved the statement of Banangan and Gumihid that local farmers
are reluctant to engage in production of mushroom
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
25
How the product will be disposed. Most of the fruiting bag producers (66.66%)
stated that they deliver their products to their customer. Also, they added that not all of
them owned vehicles so they hire the vehicles used in delivering their products to their
customer.
Mode of selling, pricing determination and basis of pricing. The respondents are
practicing cash on delivery in selling their products and as to their pricing determination
are all set by the producer based on the prevailing market price.
Table 10. Fruiting bag producers marketing practices
PARTICULAR
FREQUENCY
PERCENTAGE
Market outlets*
Members of association
3
75
Non-member of the association
1
25
Producers in other areas
1
25
Used for own mushroom production
1
25
Product disposal
Delivered
2
66.66
Pick-up
1
33.34
TOTAL
3
100.00
Mode of selling
Cash basis
3
100.00
TOTAL
3
100.00
Price determination
Set by farmer
3
100.00
TOTAL
3
100.00
Basis of pricing
Based on prevailing market price
3
100.00
TOTAL
3
100.00
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
26
Problems Encountered by the Producers of
Fruiting Bags
Production. The respondents’ entire problem in the production of fruiting bag is
the contamination of fruiting bags. They stated that the causes of contamination were
eaten by rats because of the contained rice bran and also reckless potting that the
substrates will be having holes. They added that out of 1,000 fruiting bags, there are 200
that are contaminated. This implies that contamination is a serious problem in the
production of fruiting bags.
Marketing. Most of the respondents’ problem in marketing is limited market
outlet (66.66%) because the people are not very well acquainted about mushroom
production. In relation, there are few farmers that cultivated mushroom.
Table 11. Problems encountered by the fruiting bags producers
PARTICULAR
FREQUENCY
PERCENTAGE
Production
Contamination of fruiting bags
4
100.00
Limited sources of materials
2
50.00
Lack of capital
1
25.00
Insufficient skills and knowledge in
1
25.00
producing fruiting bags
Marketing
Limited market outlet
2
66.66
Lack of promotional activities
1
33.34
TOTAL
3
100.00
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
27
Cost and Returns Analysis for a Six Months Mushroom
Production and a Monthly Fruiting Bag Production
As shown in the table12, the average net income of the mushroom growers in 6
months is P15, 041 while the average net income of the fruiting bags producer in a month
is 92,646. The fruiting bag producer have higher net income of P85.14 in term of per
fruiting bag basis in 6 months while the mushroom grower have only P43.88 per fruiting
bag in 6 months.
The result implies that the fruiting bag producer have higher net income as
compared to those who are producing mushroom. The cost of production in producing
mushroom is much higher than the cost of the production in producing bags. The result
proves that oyster mushroom business in the Cordillera region is a profitable venture,
most especially in Benguet province where raw materials are available and also the good
climate condition.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
28
Table 12. Cost and return analysis for mushroom and fruiting bag production per month
PARTICULAR
MUSHROOM
FRUITING
BAG
PRODUCTION
PRODUCTION
Per producer Per fruiting Per
Per fruiting
bag
producer
bag
Gross Revenue
118,789
91.38
220,426.50 202.59
Cost of Production
Fruiting bags
43,968.88
33.82
Labor
15,415.88
11.86
39,780
36.56
Straw
302.88
0.23
Depreciation
2,060.94
1.59
37,687.50
34.64
Transport cost
3,300
3.03
Sawdust
10,150.50
9.33
Rice bran
10,989
10.10
Planting spawn
17,082
15.70
Manila lime
663
0.61
Plastic bag
7,440
6.84
Rags
258
0.24
Rubber band
430.50
0.40
TOTAL COST
61,748
47.50
127,780.50 117.45
NET INCOME
57,041
43.88
92,646
85.14
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
29
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted in Ampucao, Itogon, Benguet. Study sought to attend
to the following objectives; 1) describe the production and marketing practices of the
association and the farmers involved in mushroom production; 2) identify market outlets
of the producers; 3) evaluate the profitability of mushroom production by the farmers; 4)
evaluate the profitability of mushroom fruiting bag production by the association; and 5)
identify the problems encountered by the association and the farmers in the production
and marketing of mushroom.
There were two sets of respondents; the oyster mushroom producers and the
fruiting bags producers. Total enumeration was employed in the selection of
respondents.
Most of the respondents ages ranges from 21-56 years old. Majority are married
and have reached college level. As to their occupation, most have no occupation or plain
housewives and also most of them are member of the association.
All of the mushroom growers have mushroom house and majority of them have
concrete and galvanized type of mushroom house. They have also weighing scale and
most of them have used straw instead of nylon strings in hanging their fruiting bags.
They sprinkle their mushrooms once a day after harvesting. Majority were
harvesting daily during the first months of growing. All of them sold their mushrooms
and consuming 7% of the total harvest at home.
As to the marketing practices of mushroom growers, they make used of
cellophane as one of their major packaging materials. Most of their market outlets are
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
30
their neighbors and they disposed their mushroom through personal delivery. All of the
mushroom growers have practiced cash on delivery basis in selling their products and
they also set their own price based on the prevailing market price.
The problems encountered by the mushroom growers in terms of production and
marketing were; occurrences of pest and diseases, lack of capital, lack of skills, cannot
meet the demand of their customer and lack of knowledge in packaging.
In the production practices of the fruiting bag producers, all of them have used
drums as a substitute for autoclave. They have also used the same materials as follows;
sawdust, rice bran, Manila lime, planting bag, rubber band, hose-ring, rags and weighing
scale.
As to their marketing practices, they sell their produced product to the mushroom
producers that are member and non-member of the association and producers in other
areas who are interested in producing mushroom. Most of them were delivering their
produced fruiting bags to their customer. All of them were practicing cash basis upon
delivery and they sell their fruiting bags based on prevailing market price.
The problems encountered by the fruiting bags producers were; contamination of
fruiting bags, limited sources of materials, lack of capital and insufficient in knowledge
in producing fruiting bags. As to their problem in marketing, limited market outlet was
the major problem.
For the cost and return analysis for the fruiting bag and mushroom production, the
fruiting bag production have higher net income while the mushroom production have
lower net income. Also, the cost for fruiting bag production is lower as compared to the
mushroom production.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
31
Conclusions
Based on the findings, the conclusions drawn are:
1. Most of the respondents belonged to middle age group, married and plain
housewives. Majority had reached college level and most are members of the
association.
2. Most of the mushroom growers have concrete and galvanized type of
mushroom house. All fruiting bag producer had used drums as a substitute for autoclave.
Both mushroom growers and fruiting bag producers are delivering their products to their
customers and they were practicing cash on delivery.
3. The mushroom growers were selling their products to their neighbors, retailers
and wholesalers while the fruiting bag producer sell their products to the members and
non-members of the association, producers in other areas who are interested in producing
mushrooms.
4. Mushroom growers has higher cost of production and lower net income or
profit while the fruiting bag producers has lower cost of production and higher returns or
profit.
5. Occurrences of pest and diseases was the major problem of the mushroom
growers in production while marketing of fresh mushrooms, they cannot meet the
demand of their customers.
In the production of fruiting bag, their major problem was the contamination of
fruiting bags while in marketing, they have limited market outlets because there are few
mushroom growers.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
32
Recommendations
1. Mushroom growers and fruiting bag producers should participate and be aware
of seminars and trainings regarding production and marketing of mushrooms to enhance
their knowledge managing their business.
2. Mushroom grower must be encouraged to learn how to produce fruiting bags
so that their cost of production will be reduced.
3. The farmers involved in the production of mushroom must be encouraged to
produce more fresh mushrooms to supply the demand of their customer and to have
stabilized market outlets.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
33
LITERATURE CITED
ANONYMOUS, 2006. Natural Log Marketing. Retrieved July 26, 2010 from http:ww
w.mycosource.com/shiilogs.htm.
BANGANAN, G.P. and B.B. GUMIHID. 1999. Queegrobeehn Enterprise. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp. 4-6.
CHANG, T.S. and P.G. MILES. 2004. Mushrooms: Cultivation, Nutritional Value,
Medicinal Effect and Environmental I(mpact. 2nd ed. Boca Raton London New
Washington, D.C;CRC Press. Pp. 6, 206.
DULAGAN, J.S. and A.O. CRESCINI. 2000. Baseline study on banana production and
marketing in Tuba and Sablan, Benguet. BS Thesis. Benguet State University, La
Trinidad, Benguet P. 10.
GALENG, J.P. 2002. Verification on the effect of cold treated bags on the yield of White
Oyster mushroom (Pleurotus hybridus) BS Thesis. Benguet State University, La
Trinidad, Benguet. P. 3.
GAMONNAC, C.D. 2005. Growth and contamination of pure culture and spawn of
oyster (Pleurotus sp) mushroom as affected by hydrogen peroxide. BS Thesis.
Benguet State University, La Trinidad, Benguet. P.3.
HOBBS, C. 1998. Medicinal Mushroom III. Retrieved September 9, 2010, from http://
www. christopherhobbs.com/website//library/articles/article _ files/mushrooms_
med03.html.
PANAWAN, J.N. 2010. Shamag ni Tihcaposi. Vol. 1,No. 1. The official publication of
Tihcaposi, Pacdal, Tuba, Benguet. P. 8.
QUIMIO, T. H. 2002. Tropical Mushroom Cultivation, Mandaluyong City: Cacho
Hermanos, Inc. Pp. 2,17,71.
STAMETS, P. 1993. Growing Gourmet and Medicinal Mushrooms. Hongkong: Ten
Speed Press. P. 259.
TAYNAN, D.W. 2008. Production and Marketing of Shiitake Mushroom at Bonglo,
Paoay, Atok, Benguet. BS Thesis. Benguet State University, La Trinidad,
Benguet. Pp. 9-10.
WILLIAMS, D. and WILLIAMS, S. 1992. Lost Creek Shiitake Mushroom Farm:
Retrieved July 23, 2010. from:http//shitakemushroomlog.com.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
34
APPENDIX A
Survey Questionnaire for Mushroom Producer
Respondent No. ___________
I. Personal Profile
Name (Optional) ________________________________________________
Age ____________________Civil Status ( ) Single ( ) Married ( ) widow
Occupation _____________________________________________________
Educational attainment____________________________________________
Are you a member of the association? ( ) Yes ( ) No
If member, What association? ____________________________________________
II. Farm Profile
A. Type of farm
( ) with mushroom house
( ) without mushroom house
( ) concrete mushroom house
( ) galvanized iron mushroom house
( ) others, specify _______________________________________________
Size of mushroom house_______________________________
B. Production Practices and Cost
1. Cost of equipments and assets
PARTICULAR
QUANTITY
UNIT
LIFE
DEPRECIATION
COST
SPAN
Mushroom House
Others, specify
2. . Cost of inputs/materials cost
PARTICULAR
QUANTITY
UNIT COST
TOTAL COST
Fruiting bags
Others, specify
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
35
3. Labor cost
ACTIVITY
NO. OF MAN-DAYS UNIT COST TOTAL COST
Preparation of the area
(including put-up of the
fruiting bags
Watering
Harvesting
Packaging
Others, specify
4. Production data
PARTICULAR
FREQUENCY
VOLUME
TOTAL
VALUE (per
OF
HARVESTED
VOLUME
kilo)
HARVESTING
PER TIME
PER MONTH
OR YEAR
Fresh mushroom
5. Distribution of harvest
PARTICULAR
QUANTITY
VALUE
Total harvest
Sold
Consumed at home
Given to friends/neighbors
Others, specify
B. Marketing
1. Packaging materials used and cost
PACKAGING MATERIALS
QUANTITY
UNIT COST TOTAL COST
USED
Cellophane
Styrofoam
Others, specify
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
36
2. Market outlets
( ) wholesaler
( ) retailer
( ) neighbors
( ) others, specify _______________________
_______________________
3. How do you disposed your product?
( ) Delivered
( ) Pick-up
( ) Others, specify ________________________
________________________
________________________
4. Mode of selling
( ) Cash on delivery
( ) Credit
( ) Consignment
5. Pricing determination
( ) Set by farmer
( ) set by buyer
( ) Others, specify _____________________________
6. Basis of pricing
( ) based on production cost
( ) based on prevailing market price
( ) others, specify____________________________________
C. Problems Encountered
1. Production
( ) lack of capital
( ) occurrences of pest/insects
( ) insufficient in knowledge in producing mushrooms
( ) others, specify _________________________________________
2. Marketing
( ) delay of payments
( ) limited market outlet
( ) lack of promotional activities
( ) others, specify ____________________________________________
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
37
APPENDIX B
Survey Questionnaire for Mushroom Fruiting Bag Producer
Respondent No. ___________
I. Personal Profile
Name (Optional) ________________________________________________
Age ____________________Civil Status ( ) Single ( ) Married ( ) widow
Occupation _____________________________________________________
Educational attainment____________________________________________
Are you a member of the association? ( ) Yes ( ) No
If member, What association? ____________________________________________
II. Production Profile
A. Production Practices and Cost
1. Cost of equipments and assets
PARTICULAR
QUANTITY
UNIT
LIFE
DEPRECIATION
COST
SPAN
Sterilizer
Autoclave
Inoculation chamber
Others, specify
2. . Cost of inputs/materials cost
PARTICULAR
QUANTITY
UNIT COST
TOTAL COST
Sawdust
Rice bran
Fertilizer
Spawns
Plastic bag
Others, specify
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
38
3. Labor cost
ACTIVITY
NO. OF MAN-DAYS UNIT COST TOTAL COST
Preparation of media
4. Production data
How often do you produce mushroom fruiting bags?_______________________
How many mushroom fruiting bags do you produce per time?________________
How much do you sell per bag?________________________________________
B. Marketing
1. Market outlets
( ) mushroom producers in the area who are members of the association
( ) Other mushroom producers in the area who are not members of the association
( ) other mushroom producers in other areas
( ) others, specify _______________________
_______________________
3. How do you disposed your product?
( ) Delivered
( ) Pick-up
( ) Others, specify ________________________
________________________
________________________
4. Mode of selling
( ) Cash on delivery
( ) Credit
( ) Consignment
5. Pricing determination
( ) Set by farmer
( ) set by buyer
( ) Others, specify _____________________________
6. Basis of pricing
( ) based on production cost
( ) based on prevailing market price
( ) others, specify____________________________________
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
39
C. Problems Encountered
1. Production
( ) lack of capital
( ) limited source of materials
( ) insufficient in knowledge in producing fruiting bags
( ) others, specify _________________________________________
2. Marketing
( ) delay of payments
( ) limited market outlet
( ) lack of promotional activities
( ) others, specify ____________________________________________
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
CAGA, ANIE D. APRIL 2011. Oyster Mushroom Production and Marketing by
Members of Ampucao Forest Products Center Association Incorporation. Benguet State
University, La Trindad, Benguet.
Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT
The study was conducted to (1) describe the production and marketing practices of the
farmers involved in mushroom production; (2) identify their market outlets; (3) evaluate the
profitability of the mushroom and fruiting bag production; and (4) identify the problems
encountered by the respondents in production and marketing of mushroom.
There were two sets of respondents; 9 mushroom growers and 4 fruiting bag producers.
The data and information were gathered by means of a survey questionnaire and supplemented
with a personal interview of the respondents. The data gathered were tabulated and analyzed
using frequency counts and percentages. Cost and return analysis was employed in the analysis
of the profitability of mushroom production.
Result shows that mushroom growers and fruiting bag producers were of middle age.
Majority of them reached college level.
Findings show that most of the mushroom growers have concrete and galvanized type of
mushroom house and they used straw instead of nylon strings in hanging their fruiting bags.
They sprinkle their mushroom fruiting bags once a day after harvesting. Majority of them harvest
daily during the first 1 to 3 months of growing. All of them were selling their produced
mushrooms. Cellophane is their common packaging material and most of their market outlets
were their neighbors and they personally deliver the fresh mushroom to their buyers. Most of
them sold on cash basis upon delivery and they set their own price based on the prevailing
market price.
The major problem of the mushroom growers in production was the occurrences of pest
and diseases. In marketing, they cannot meet the demand of their customers due to small volume
of harvest.
In the production practices of fruiting bag, all the respondents used drums as a substitute
for autoclave. Their markets for the fruiting bags were the members of the association as well as
non-members and farmers in other areas who were interested in producing mushroom. They also
deliver their products, to their customers by hiring vehicles to transport their products.
Contamination of fruiting bags was their serious problem in producing fruiting bags. As
to their problem in marketing, limited market outlet was the major problem. As shown in the
result of cost and return analysis, the fruiting bag production had higher net income as compared
to mushroom production which has lower net income.
TABLE OF CONTENTS
Page
Bibliography..……………………………………………………………….....
i
Abstract ………………………………………………………………………..
i
Table of Contents……………………………………………………………....
iii
INTRODUCTION …………………………………………………………….
1
Rationale…………………………………………………………………
1
Statement of the Problem………………………………………………..
3
Objectives of the Study…………………………………………………..
4
Importance of the Study…………………………………………………
3
Scope and Delimitation of the Study……………………………………
4
REVIEW OF LITERATURE ………………………………………………….
5
Historical Background ………………………………………………….
5
Types of Mushrooms …………………………………………………...
6
Nutritional Value ……………………………………………………….
8
Market Consideration …………………………………………………..
9
METHODOLOGY ……………………………………………………………
11
Locale and Time of the Study……………………………………………
11
Respondents of the Study………………………………………………..
11
Data Gathering Procedure……………………………………………….
11
Data to be Gathered……………………………………………………...
11
Data Analysis…………………………………………………………….
12
RESULTS AND DISCUSSION ………………………………………………
13
Profile of the Respondents ………………………………………………
13
Farm Assets…………………………………………………………….
15
Production Practices of Mushroom
Growers………………………………………………………………….
16
Materials Used ……………………………………………………….....
16
Watering ………………………………………………………………...
16
Harvesting ……………………………………………………………….
16
Distribution of Harvest ………………………………………………….
17
Mushroom Producers Marketing
Practices …………………………………………………………………
18
Problems Encountered by Mushroom
Producers ………………………………………………………………..
19
Production Practices of the Fruiting
Bag Producers …………………………………………………………..
20
Materials
21
Production Data …………………………………………………………
22
Marketing Practices of Fruiting
Bag Producers …………………………………………………………..
23
Problems Encountered by the Producers
of Fruiting Bag …………………………………………………………..
25
Cost and Return Analysis for a Six Months
Mushroom Production and a Monthly
Fruiting Bag Production ………………………………………………...
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS …………….
28
Summary ………………………………………………………………...
28
Conclusions ……………………………………………………………..
30
Recommendations ………………………………………………………
31
LITERATURE CITED…………………………………………………………
32
APPENDIX ……………………………………………………………………
33
A. Survey Questionnaire for Mushroom
Producer………………………………………………………………
34
B. Survey Questionnaire for Mushroom
Fruiting Bag Producer ………………………………………………
37
1
INTRODUCTION
Rationale
Itogon is a first class municipality in the province of Benguet with a total
population of 48,778 people in 8,588 households. The town is bounded on the northwest
by the municipality of La Trinidad and Tublay, on the northeast by the municipality of
Bokod, on the southwest by the province of Nueva Viscaya, on the south by the province
of Pangasinan, and on the west by the municipality of Tuba and Baguio City. It has nine
barangays which Ampucao is included and it was generally inhabited by Ibalois. The
main source of livelihood is mining and secondary to mining is agriculture.
Fifty years ago, some parts of Philex Mines were the hunting ground of some of
the indigenous inhabitants of the outlaying sitios. Later, these became their pasture lands
and at the same time their kaingin sites. They planted crops such as camote, camoteng
kahoy, gabi and others.
Most, if not all of the indigenous inhabitants earned their living by backyard
gardening, animal raising, kaingin, farming, hunting and fishing for family consumption.
Gold panning along the river gave them extra family income especially for the residence
of Sal-angan, Banget, Piaki, 745, and Nayen. According to the old folks of the place,
water supply was abundant and clean before the establishment of the Philex Mines.
Moreover, they used to enjoy the undisturbed environment, preserved natural resources,
the peaceful wildlife habitats, and the original land configuration and the freshness of the
air (Panawan, 2010).
The environment has changed when the Philex Mines started its operation. The
people who are affected in the operation formed an organization to claim their stakes in
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the company. In 1984. the company gave them “sloshing canal” as source of extra
income. However, in 1997 the amount of gold produced from the sloshing canal started
to dwindle so the people of Itogon negotiated with Philex Mines for other economic
supports. They organized the TIHCAPOSI, an association of the people of Itogon living
at the outlaying areas of the Philex Mines. The association made a MOA with the
company to help them establish livelihood projects. The company committed to provide
the needed materials and capital under its Social Development and Management Program
(SDMP) through its Community Relations Department and the Municipal Agriculture
Office of Itogon, Benguet.
The SDMP-Philex Company distributed the Income Generating Projects in
Barangay Ampucao. Sitio Sal-angan for the aquaculture, sitio 745 for coffee production,
Ampucao Proper for beekeeping and sitio Cruz for mushroom production. Since the
projects are willing within the barangay Ampucao, they decided to form an association to
oversee these IGPs. The name of the association is Ampucao Forest Product Center
Association, Incorporation (AFPCAI).
On November 2008, banana mushroom production was first started by sitio Sal-
angan but the project failed because there is no source of banana for mass production.
This discouraged the people to continue. The association wanted to transfer the project
site to sitio Sta. Fe but the residence opposed it so it was brought to sitio Cruz. The
mushroom production project started in December 2008 with a small room until the
members of the association decided to put up a production building. The building was
planned as a production center and at the same time a training center for members and
other farmers who are interested to produce mushroom. The construction of the building
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which is 18 by 24 square feet structure started on July 14, 2010 through Bayanihan by the
local residents of the place. The production of mushroom is continues even though the
building construction is on going because the association sell its produced fruiting bags to
the interested members and other farmers through package deal.
Importance of the Study
The result of the study would provide benchmark information on mushroom
production in Sitio Cruz, Ampucao, Itogon, Benguet. The information gathered from the
study would serve as a guide for those entrepreneurs who are interested in producing and
buying substrates; for the association to improve their operation; for the other researchers
who will conduct related studies; and extension agents that can make use of the valuable
information for workable strategies influencing mushroom production.
Furthermore, the overall result of the study could provide important insights to
concerned groups involved in the development of mushroom production and those who
plan to buy only substrate from the producers.
Statement of the Problem
The study was conducted to find out the profitability of mushroom production by
the association, farmers and members of the association engaged in mushroom
production. Thus, the study aimed to answer the following questions:
1. What are the production and marketing practices of the association and the
farmers?
2. Where are the market outlets of the product?
3. Are the farmers gaining profit from mushroom production?
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4. Is mushroom fruiting bag production profitable?
5. What are the problems encountered by the association and the farmers in the
production and marketing of mushroom?
Objectives of the Study
The study aimed to:
1. Describe the production and marketing practices of the association and the
farmers involved in mushroom production;
2. Identify market outlets of the producers;
3. Evaluate the profitability of mushroom production by the farmers;
4. Evaluate the profitability of mushroom fruiting bag production by the
association; and
5. Identify the problems encountered by the association and the farmers in the
production and marketing of mushroom.
Scope and Delimitation of the Study
The study focused on the mushroom production and marketing in Sitio Cruz,
Ampucao. It evaluated the profitability of mushroom production and marketing by the
farmers and the profitability of fruiting bag production by the association.
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REVIEW OF LITERATURE
Historical Background
Long ago, people discovered certain kind of mushrooms were delicious to eat.
Four thousand years wild mushrooms were gathered at royal banquets and valued by poor
folks as well because they were not only good to eat but free for picking. The cultivation
or artificial planting of mushroom began in Europe about 220 years ago. Although many
different kinds of mushrooms are good to eat, one kind is the field mushroom that grows
particularly well under cultivation. The modern cultivated mushroom is closely related to
the common field mushroom. Also the cultivated mushroom belongs to the fungi, fungus
plant group (Yerkovish, 1968 as cited by Taynan, 2008).
Many places adopted the cultivation of mushroom in Southeast Asia which
Philippines is included. Banganan and Gumihid (1999) cited that mushroom cultivation
in the country is considered as one of the income generating industries. Aside from
providing employment throughout the year, it also yields high economic returns at the
earliest possible time. They also added that the potential of mushroom production in the
Philippines is big because of its good climate condition in some areas of the country that
is suited for mushroom cultivation.
Recognizing the potential of growing mushrooms as a small business or cottage
industries that can provide additional income and requiring low capital investment but
fast return on investment, some international development organization such as FAO,
UNESCO, IRRI, ADB, ATI (Appropriate Technology International) and CDG (Carl
Duisberg Geselchaft), provided seed funds to help promote mushroom production
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especially for small scale business both in urban and rural areas of the Philippines
(Quimio, 2002).
In the Cordillera, production of mushroom is very limited despite of the
prevailing environment. Local farmers are reluctant to engage into the venture because
of the lack of local-specific technologies and because of the virtual lack of substrates
aside from sawdust. However, oyster mushroom business in the region has been proved
to be profitable venture and locally sustainable with all the local specific technologies
identified and support system to be in place, can gradually become an industry for the
region in the future. The Shiitake counterpart would need more time when oyster
mushroom entrepreneurs would develop confidence to expand (Banganan and Gumihid,
1999).
Benguet is one contributor in mushroom production. Luis (2006) stated as cited
by Carino (2010), “Benguet is the best environment to raise mushrooms because of its
temperate climate. Growing them also makes a high pitch for organic farming since
mushroom need no fertilizer or other chemicals.”
Types of Mushrooms
Identification of mushroom is not easy. Even there are many field guide that
show pictures of mushroom, it is very necessary to examine mushrooms on the hand very
carefully before conclusion as to its identify is made (Quimio, 2002).
Chang and Miles (2004) wrote that there are about 74,000 number of known
describe species of fungi. There are about 14,000 mushroom species that we currently
know, 50% or 7,000 mushroom species are considered to posses varying degrees of
edibility and more than 3,000 species from 31 genera are regarded as prime edible
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mushrooms. Only 200 of them were experimentally grown, 100 economically cultivated,
approximately 60 commercially cultivated, and about 10 have reached an industrial scale
of production in many countries. Furthermore, about 2,000 are medicinal mushroom
with a variety of health attribute.
Quimio (2002) mentioned that Pleurotus is one of the choice edible mushrooms
which can be cultivated in the tropics. It has gained importance only in the last decade
and is now being cultivated in many countries in the subtropical and temperate zones. In
Europe, it is known as the oyster mushroom (P. ostreatus) in China it is called as the
abalone mushroom (P. abalanusor and P. cystidiosus).
One reason for the great interest in species of Pleurotus is its great taste and
nutritional appeal and also it secrete a wide range of enzymes which can degrade all the
three key categories of polysaccharides. It is also capable of growing on a wide range of
substrates and the strains of this species are plentiful and easy to grow (Chang and Miles,
2004).
Stamets (1993) stated that Shiitake as a counterpart of Oyster mushroom
pronounced as “shee ta’kay” are traditional delicacy in Japan, Korea and China. For at
least a thousand years, Shiitake mushrooms have been grown on logs, outdoors in the
temperate mountainous region of Asia. It is also the most popular of all the gourmet of
mushrooms. Only in the past several decades have techniques evolved for its rapid cycle
cultivation indoors, on supplemented, heat-treated sawdust-based substrates.
Shiitake comes from Japan ‘shii’, which means oak and ‘take’ which means
mushrooms and it is the second largest cultivated mushrooms species in the world
(Anonymous, 2006).
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Nutritional Value
One of the main health problems in our country is malnutrition which usually
increases the fatality rate. Being aware of nutritious foods and eating them during daily
meals would help lessen the problem. In terms of nutritional content, mushroom is very
much recommended (Galeng, 2002).
As cited by Garmonnac (2005), mushrooms are very healthy source of nutrients.
Base on daily weight, oyster mushrooms have substantial protein ranging from 15-35%
and contain significant quantities of free amino acids. They are replete with assorted
vitamins such as vitamin C (30-144 mg per 100 grams) and vitamin B, niacin (1098 mg
per 100 grams).
Oyster mushroom (Pleurotus ostreatus) is extremely delicious as well as
conferring various health-giving properties. Traditionally, it has been used to strengthen
veins and relax tendons. In China oyster mushroom is indicated for joint and muscle
relaxation. A product containing oyster mushroom, called “Tendon-easing powder,” is
effective in the treatment of lumbago, numbed limbs, and tendon and blood vessel
discomfort. In the Czech Republic, extracts have been made from the fruiting bodies of
the main ingredient in dietary preparations recommended for prevention of high
cholesterol. The dried oyster mushrooms are said to be high in iron, so they are
potentially good blood builders. The recommended dose is 3-9 grams daily (Hobbs,
1998).
Log-grown Shiitakes are more nutritious than commercial grown Shiitakes grown
on sawdust blocks. It is perfect for vegetarians, gourmets, gardeners and health.
Shiitakes are low in fat, high in protein, vitamins and minerals. Fresh and dried shiitake
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mushrooms are used nutritionally to fight cancer, fibrocystic breast disease, high blood
pressure and viruses, to strengthen the immune system, improve circulation, and reduced
cholesterol (Williams and Williams, 1992).
Quimio (2002) stated and Buya (1999) cited that mushrooms are also good
sources of essential minerals such as calcium and phosphorus. It is also low in
cholesterol and calories and it is often referred to as “slimming food”.
Market Consideration
Moraa (1979) as cited by Dulagan and Crescini (2000), marketing is viewed in
two dimensions; either simple operational or a highly complex one.
Panaloyou (1985) as cited by Dulagan and Crescini (2000), that an efficient
marketing system is expected to provide efficient and economic services and ownership,
transfer in the movement of commodities from the producers to the consumers an
effective price-making mechanism. Agricultural marketing services in many less
developed nations are costly and exhibit low productivity.
Taynan (2008) revealed that one of the critical 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.
The process of drying is not only to make it possible to preserve for a long time,
but also enhances its flavor with a unique taste. Dried mushroom has the long storage
life, can endure long shipping times without losing quality. It can be produced seasonally
in large quantities and sold throughout the year. Dried mushrooms most especially
Shiitake brings lower price than an equivalent weight of fresh mushrooms sold in the wet
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markets. Mushrooms have shelf life about two weeks, long shipping times can result in
mushroom deterioration and loss of revenue.
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METHODOLOGY
Locale and Time of the Study
The study was conducted in Sitio Cruz, Itogon, Benguet, where the mushroom
project of the SDMP-Philex Company Income Generating Project is located. It was
conducted from December to January 2010.
Respondents of the Study
The respondents of the study were the members of the association engaged in
mushroom production and marketing and the officers of the association including those
that are involved in fruiting bag production. Complete enumeration was employed in the
selection of respondents with a total number of 13 consisting of mushroom producers and
fruiting bags producers.
Data Gathering Procedure
The primary data were collected through a semi-structured survey questionnaire
supplemented with personal interview. The researcher did participatory observation by
staying with the workers while doing the mushroom production. Copies of the
questionnaires were distributed personally to the respondents.
Data Gathered
The data gathered were the following; production and marketing practices;
market outlets; production cost and returns and problems encountered by the farmers and
association in mushroom production and marketing.
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Data Analysis
The data gathered were tabulated and analyzed using simple statistical tools such as
frequency counts and percentages, descriptive analysis. Profitability analysis in
mushroom production was done using cost and return analysis.
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RESULTS AND DISCUSSION
Profile of the Respondents
Table 1 contains the profile of respondents as to age, civil status, occupation,
highest educational attainment and membership to association. These are discussed in
detail in the following sections.
Age. The age of respondents ranges from 21-56 years old. Most of them (46.15%)
belonged to age bracket 30-38 years old. This was followed by the age bracket ranging
from21-29 with 30.76%, ages 48 -56 with 15.40% and ages 39-47 with 7.69%.
The result shows that there was a wide distribution in the age of respondents. This
implies that young and old people can engaged in mushroom production.
Civil status. Most of the respondents were married that composed 84.62% and
7.69% are single and widowed. It implies that most married farmers are more active in
livelihood activities.
Occupation. Majority of the respondents have no occupation or they were plain
housewives and they claimed that they considered mushroom production as their
occupation. The other respondents make mushroom production as their secondary
occupation or sideline. The result proved that mushroom cultivation could provide
employment for people who are jobless despite of age, sex and educational attainment.
Highest educational attainment. Most of the mushroom growers (61.54%) reached
college level and they claimed that mushroom production is a good source of income for
their family.
Membership to association. Eight or 61.54% of the respondents were member of
the association and five or 38.46% are non member of the association.
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This implies that most of the respondents love to participate in livelihood
activities to support their association.
Table 1. Profile of respondents
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Age (years)
21 – 29
4
30.76
30 – 38
6
46.15
39 – 47
1
7.69
48 – 56
2
15.40
TOTAL
13
100.00
Civil status
Single
1
7.69
Married
11
84.62
Widow
1
7.69
TOTAL
13
100.00
Occupation
None (housewife)
8
61.54
Farmer
1
7.69
Vegetable retailer
2
15.39
Business woman
1
7.69
Government employee
1
7.69
TOTAL
13
100.00
Highest educational attainment
Elementary
1
7.69
High school
3
23.08
College
9
69.23
TOTAL
13
100.00
Membership to association
Member
8
61.54
Non-member
5
38.46
TOTAL
13
100.00
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Type of Mushroom House Used by the
Growers
Type of Farm. Table 2 shows the farm profile of the respondents according to
type of farm. Only one or 11.12% of the respondent have used veranda and four or
44.44% have concrete and galvanized mushroom house.
Farm Assets and Production Practices of
Mushroom Growers
All of the respondents have mushroom house and used weighing scale in term of
their assets (Table 3).
This implies that all of the growers protecting their mushroom from insects and
strong typhoon that may destroy their products. Mushroom needs a clean and well
maintained surrounding to maintain a good quality of product because mushrooms are
very sensitive.
Table 2. Type of mushroom house used by the growers
CHARACTERISTIC
FREQUENCY
PERCENTAGE
Concrete mushroom house
4
44.44
Galvanized mushroom house
4
44.44
Veranda
1
11.12
TOTAL
9
100.00
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Materials used
Most of the respondents have used straw instead of nylon strings as a holding
material for the fruiting bag if they hang it. They used straw because it is more
economical than nylon strings and it can reduce the waste problem.
Watering
Majority of the respondents states that they sprinkle their mushrooms once a day
and the rest says that they water twice a day considering the temperature in their area.
Some also added that they scraped the fruiting bags as a part of cleaning before watering
the bags. Scraping the black portion of the fruiting bags is to encourage mushroom to
sprout.
Harvesting
The respondents claimed that daily harvesting is from the first to third months
while the rest says that during the last months of growing, they experienced twice to
thrice a week harvesting time. The reason why there is a decreased in the volume of their
harvest in the last few months is because the fruiting bag reached its maximum capacity
to produced mushrooms and the fruiting bags are turning black which indicates
composition of the mixed materials. In addition most, most of them says that the fruiting
bags lasts from 6 – 8 months of growing. Some also claims that the life span of the
fruiting bags depends on the way they care. They said that if both side of the bags were
opened, the life span of the fruiting bag decreases but they harvest higher volume of fresh
mushroom on the first months of growing.
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Table 3. Assets and production practices of mushroom growers
PARTICULAR
FREQUENCY
PERCENTAGE
Equipment
Mushroom house
9
100.00
Weighing scale
9
100.00
Materials used
Straw
8
88.88
Nylon
1
11.12
TOTAL
9
100.00
Watering
Twice a day
3
33.33
Once a day
6
66.67
TOTAL
9
100.00
Harvesting
Daily
5
55.56
Every other day
4
44.44
TOTAL
9
100.00
Distribution of Harvest
All of the respondents stated that they sold 89% and consumed at home 7% of the
total produced mushroom. Four of them mentioned that 4% of the total harvest were
given to their friends (Table 4).
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Table 4. Distribution of harvest
DISTRIBUTION FREQUENCY PERCENTAGE VOLUME PERCENTAGE
(kg)
Sold
9
100.00
704.82
89
Home consumption
9
100.00
55.43
7
Given to friends
4
44.44
31.68
4
*Multiple response
Table 5. Distribution of total volume of harvest
DISTRIBUTION
VOLUME
PERCENTAGE
Sold
704.83
89
Home consumption
55.43
7
Given to friends
31.68
4
Mushroom Producers Marketing Practices
Packaging materials. One hundred percent of the respondents make used of
cellophane as one of their packaging materials, 44.44% make used of Styrofoam, 22.22%
have used banana leaves and 11.12% have used paper plate.
This implies that the growers are not acquainted with the proper used of
packaging materials that are non-toxic and safe to the health of the consumers.
Market outlets. Table 5 shows that most of the market outlets of the mushroom
growers are their neighbors (66.67%), next is retailer (55.56%) and the wholesaler
(11.12%).
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The result shows that the produced mushroom is in adequate to supply a bigger
market.
Product disposal. One hundred percent of the farmers delivered their produced
products to their outlet. This implies that the growers have this strategy to establish a
good impression to their customers.
Mode of selling. All of the respondents are practicing cash on delivery basis in
selling their produced mushroom to avoid credit and loss of revenue.
Problems Encountered by Mushroom Producers
Table 7 shows the different problems of the mushroom growers. Most of the
mushroom growers (88.88%) claimed that occurrence of pest and insects such as beetles,
white worms, black worms, bugs and fruit flies are their number one problem. Three
(33.33%) of the respondents mentioned that lack of capital is one of their problem. One
(11.12%) of them stated that lack of skill is another problem; as a result there is a small
volume of harvest. they mentioned that one method of eliminating the pest is “pis-itox”
or they pinch the pest using their hand to avoid multiplication of the insect pest.
Marketing
Majority of the mentioned problems in marketing of mushrooms is they cannot
meet the demand of their costumer because they have small volume of produced
mushrooms. The respondents added that if they can only produce a bigger volume of
harvest to supply a bigger market, then they can establish a permanent market outlet like
restaurant, stores and others. One of the respondent reason out why there is limited
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market outlet is because the volume of harvest is less than 1 kilo so she cannot sell the
product.
Table 6. Mushroom producers marketing practices
PARTICULAR
FREQUENCY
PERCENTAGE
Packaging materials used*
Cellophane
9
100.00
Styrofoam
4
44.44
Paper plate
1
11.12
Banana leaves
2
22.22
Market outlets*
Wholesaler
1
11.12
Retailer
5
55.56
Neighbors
6
66.67
Mode of selling*
Delivered
9
100.00
Pick-up
2
22.22
Mode of payment*
Cash on delivery
9
100.00
Credit
1
11.12
Basis of pricing
Prevailing market price
9
100.00
TOTAL
9
100.00
*Multiple response
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Table 7. Problems encountered by mushroom producers
PROBLEM
FREQUENCY
PERCENTAGE
Production*
Lack of capital
3
33.33
Occurrence of pest and diseases
8
88.88
Lack of skill
1
11.12
Marketing
Limited market outlets
1
11.12
Lack of knowledge in packaging
1
11.12
Cannot meet the demand of consumer
7
77.76
TOTAL
9
100.00
*Multiple response
Production Practices of the Fruiting Bag Producer
Equipment and Asset. All of the respondents have used drums as their substitute
for autoclave because they stated that buying an autoclave requires a high cost of return
and they have only limited capital as a starting venture. The respondents also mentioned
that they have inoculation chamber and these are divided into small dark rooms where the
substrate will be incubated.
Materials. All of the respondents have used these materials as follows; sawdust,
rice bran, manila lime, planting spawn, plastic bag, rubber band, hose-ring, rags and
weighting scale. They stated that mixing different level of percentage of the materials has
made in experimental way before they come up of their preferred mixture. Most of them
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learned the process from the association. It is also mentioned that they attended some
seminars which involved mushroom production to acquire more knowledge on how to do
the process well.
Procedures
1. Sift the sawdust, lime and rice bran as well.
2. Mixed well the sawdust and rice bran
3. Pour water and lime in a jar and stir and add to the mixed rice bran and
sawdust.
4. Pot the mixture in the plastic bags and weight 1.25-1.50 kg per bag.
5. Put the hose-ring on the mouth of the substrate bag and make a hole at the
center of the hose-ring.
6. Put the rags at the center of the hose-ring, cover it with paper or newspaper
and prepared for cooking.
7. Pile the substrates to the drum, cover the top of the drum and steam for 10
hours.
8. Removed from the drum and prepare for planting.
9. Plant every substrate bag and put into the incubation room.
Production Data
All the respondents claimed that they produced fruiting bag every month with a
total average of 1,088 fruiting bags produced per time. Every fruiting bag cost 33.44
pesos on average. Two of the respondents (50%) says that they sell their fruiting bags at
35.00 pesos, one (25%) mentioned that they sell at 33.33 pesos each fruiting bag, while
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25% stated that they used their fruiting bags to produce mushroom. All the respondents
stated that they were producing per month
Table 8. Production practices of fruiting bag producer
PARTICULAR
FREQUENCY
PERCENTAGE
Equipment and assets*
Drums
4
100
Incubation chamber
4
100
Weighing scale
4
100
Materials*
Sawdust
4
100
Rice bran
4
100
Manila lime
4
100
Spawns
4
100
Plastic bag
4
100
Rubber band
4
100
Hose ring
4
100
Rags
4
100
*Multiple responses
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Table 9, Production data
PARTICULAR
FREQUENCY PERCENTAGE
Frequency of production of fruiting bags
Every month
4
100
Fruiting bag produced per month
700
1
25
1,000
1
25
1,250
1
25
1,400
1
25
TOTAL
4
100
Price per bag
None used for own production of mushroom
1
25
33.33
1
25
35.00
2
50
Marketing Practices of the Fruiting Bag Producers
Market outlets. Table 10 shows that the market outlets of the fruiting bag
producers are the mushroom producers that are member of the association (75%), one of
them (25%) claimed that they used for their own mushroom production.
This implies that there are few people in the area who are interested in producing
mushroom. This also proved the statement of Banangan and Gumihid that local farmers
are reluctant to engage in production of mushroom
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How the product will be disposed. Most of the fruiting bag producers (66.66%)
stated that they deliver their products to their customer. Also, they added that not all of
them owned vehicles so they hire the vehicles used in delivering their products to their
customer.
Mode of selling, pricing determination and basis of pricing. The respondents are
practicing cash on delivery in selling their products and as to their pricing determination
are all set by the producer based on the prevailing market price.
Table 10. Fruiting bag producers marketing practices
PARTICULAR
FREQUENCY
PERCENTAGE
Market outlets*
Members of association
3
75
Non-member of the association
1
25
Producers in other areas
1
25
Used for own mushroom production
1
25
Product disposal
Delivered
2
66.66
Pick-up
1
33.34
TOTAL
3
100.00
Mode of selling
Cash basis
3
100.00
TOTAL
3
100.00
Price determination
Set by farmer
3
100.00
TOTAL
3
100.00
Basis of pricing
Based on prevailing market price
3
100.00
TOTAL
3
100.00
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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Problems Encountered by the Producers of
Fruiting Bags
Production. The respondents’ entire problem in the production of fruiting bag is
the contamination of fruiting bags. They stated that the causes of contamination were
eaten by rats because of the contained rice bran and also reckless potting that the
substrates will be having holes. They added that out of 1,000 fruiting bags, there are 200
that are contaminated. This implies that contamination is a serious problem in the
production of fruiting bags.
Marketing. Most of the respondents’ problem in marketing is limited market
outlet (66.66%) because the people are not very well acquainted about mushroom
production. In relation, there are few farmers that cultivated mushroom.
Table 11. Problems encountered by the fruiting bags producers
PARTICULAR
FREQUENCY
PERCENTAGE
Production
Contamination of fruiting bags
4
100.00
Limited sources of materials
2
50.00
Lack of capital
1
25.00
Insufficient skills and knowledge in
1
25.00
producing fruiting bags
Marketing
Limited market outlet
2
66.66
Lack of promotional activities
1
33.34
TOTAL
3
100.00
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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Cost and Returns Analysis for a Six Months Mushroom
Production and a Monthly Fruiting Bag Production
As shown in the table12, the average net income of the mushroom growers in 6
months is P15, 041 while the average net income of the fruiting bags producer in a month
is 92,646. The fruiting bag producer have higher net income of P85.14 in term of per
fruiting bag basis in 6 months while the mushroom grower have only P43.88 per fruiting
bag in 6 months.
The result implies that the fruiting bag producer have higher net income as
compared to those who are producing mushroom. The cost of production in producing
mushroom is much higher than the cost of the production in producing bags. The result
proves that oyster mushroom business in the Cordillera region is a profitable venture,
most especially in Benguet province where raw materials are available and also the good
climate condition.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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Table 12. Cost and return analysis for mushroom and fruiting bag production per month
PARTICULAR
MUSHROOM
FRUITING
BAG
PRODUCTION
PRODUCTION
Per producer Per fruiting Per
Per fruiting
bag
producer
bag
Gross Revenue
118,789
91.38
220,426.50 202.59
Cost of Production
Fruiting bags
43,968.88
33.82
Labor
15,415.88
11.86
39,780
36.56
Straw
302.88
0.23
Depreciation
2,060.94
1.59
37,687.50
34.64
Transport cost
3,300
3.03
Sawdust
10,150.50
9.33
Rice bran
10,989
10.10
Planting spawn
17,082
15.70
Manila lime
663
0.61
Plastic bag
7,440
6.84
Rags
258
0.24
Rubber band
430.50
0.40
TOTAL COST
61,748
47.50
127,780.50 117.45
NET INCOME
57,041
43.88
92,646
85.14
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted in Ampucao, Itogon, Benguet. Study sought to attend
to the following objectives; 1) describe the production and marketing practices of the
association and the farmers involved in mushroom production; 2) identify market outlets
of the producers; 3) evaluate the profitability of mushroom production by the farmers; 4)
evaluate the profitability of mushroom fruiting bag production by the association; and 5)
identify the problems encountered by the association and the farmers in the production
and marketing of mushroom.
There were two sets of respondents; the oyster mushroom producers and the
fruiting bags producers. Total enumeration was employed in the selection of
respondents.
Most of the respondents ages ranges from 21-56 years old. Majority are married
and have reached college level. As to their occupation, most have no occupation or plain
housewives and also most of them are member of the association.
All of the mushroom growers have mushroom house and majority of them have
concrete and galvanized type of mushroom house. They have also weighing scale and
most of them have used straw instead of nylon strings in hanging their fruiting bags.
They sprinkle their mushrooms once a day after harvesting. Majority were
harvesting daily during the first months of growing. All of them sold their mushrooms
and consuming 7% of the total harvest at home.
As to the marketing practices of mushroom growers, they make used of
cellophane as one of their major packaging materials. Most of their market outlets are
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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their neighbors and they disposed their mushroom through personal delivery. All of the
mushroom growers have practiced cash on delivery basis in selling their products and
they also set their own price based on the prevailing market price.
The problems encountered by the mushroom growers in terms of production and
marketing were; occurrences of pest and diseases, lack of capital, lack of skills, cannot
meet the demand of their customer and lack of knowledge in packaging.
In the production practices of the fruiting bag producers, all of them have used
drums as a substitute for autoclave. They have also used the same materials as follows;
sawdust, rice bran, Manila lime, planting bag, rubber band, hose-ring, rags and weighing
scale.
As to their marketing practices, they sell their produced product to the mushroom
producers that are member and non-member of the association and producers in other
areas who are interested in producing mushroom. Most of them were delivering their
produced fruiting bags to their customer. All of them were practicing cash basis upon
delivery and they sell their fruiting bags based on prevailing market price.
The problems encountered by the fruiting bags producers were; contamination of
fruiting bags, limited sources of materials, lack of capital and insufficient in knowledge
in producing fruiting bags. As to their problem in marketing, limited market outlet was
the major problem.
For the cost and return analysis for the fruiting bag and mushroom production, the
fruiting bag production have higher net income while the mushroom production have
lower net income. Also, the cost for fruiting bag production is lower as compared to the
mushroom production.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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Conclusions
Based on the findings, the conclusions drawn are:
1. Most of the respondents belonged to middle age group, married and plain
housewives. Majority had reached college level and most are members of the
association.
2. Most of the mushroom growers have concrete and galvanized type of
mushroom house. All fruiting bag producer had used drums as a substitute for autoclave.
Both mushroom growers and fruiting bag producers are delivering their products to their
customers and they were practicing cash on delivery.
3. The mushroom growers were selling their products to their neighbors, retailers
and wholesalers while the fruiting bag producer sell their products to the members and
non-members of the association, producers in other areas who are interested in producing
mushrooms.
4. Mushroom growers has higher cost of production and lower net income or
profit while the fruiting bag producers has lower cost of production and higher returns or
profit.
5. Occurrences of pest and diseases was the major problem of the mushroom
growers in production while marketing of fresh mushrooms, they cannot meet the
demand of their customers.
In the production of fruiting bag, their major problem was the contamination of
fruiting bags while in marketing, they have limited market outlets because there are few
mushroom growers.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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Recommendations
1. Mushroom growers and fruiting bag producers should participate and be aware
of seminars and trainings regarding production and marketing of mushrooms to enhance
their knowledge managing their business.
2. Mushroom grower must be encouraged to learn how to produce fruiting bags
so that their cost of production will be reduced.
3. The farmers involved in the production of mushroom must be encouraged to
produce more fresh mushrooms to supply the demand of their customer and to have
stabilized market outlets.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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LITERATURE CITED
ANONYMOUS, 2006. Natural Log Marketing. Retrieved July 26, 2010 from http:ww
w.mycosource.com/shiilogs.htm.
BANGANAN, G.P. and B.B. GUMIHID. 1999. Queegrobeehn Enterprise. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp. 4-6.
CHANG, T.S. and P.G. MILES. 2004. Mushrooms: Cultivation, Nutritional Value,
Medicinal Effect and Environmental I(mpact. 2nd ed. Boca Raton London New
Washington, D.C;CRC Press. Pp. 6, 206.
DULAGAN, J.S. and A.O. CRESCINI. 2000. Baseline study on banana production and
marketing in Tuba and Sablan, Benguet. BS Thesis. Benguet State University, La
Trinidad, Benguet P. 10.
GALENG, J.P. 2002. Verification on the effect of cold treated bags on the yield of White
Oyster mushroom (Pleurotus hybridus) BS Thesis. Benguet State University, La
Trinidad, Benguet. P. 3.
GAMONNAC, C.D. 2005. Growth and contamination of pure culture and spawn of
oyster (Pleurotus sp) mushroom as affected by hydrogen peroxide. BS Thesis.
Benguet State University, La Trinidad, Benguet. P.3.
HOBBS, C. 1998. Medicinal Mushroom III. Retrieved September 9, 2010, from http://
www. christopherhobbs.com/website//library/articles/article _ files/mushrooms_
med03.html.
PANAWAN, J.N. 2010. Shamag ni Tihcaposi. Vol. 1,No. 1. The official publication of
Tihcaposi, Pacdal, Tuba, Benguet. P. 8.
QUIMIO, T. H. 2002. Tropical Mushroom Cultivation, Mandaluyong City: Cacho
Hermanos, Inc. Pp. 2,17,71.
STAMETS, P. 1993. Growing Gourmet and Medicinal Mushrooms. Hongkong: Ten
Speed Press. P. 259.
TAYNAN, D.W. 2008. Production and Marketing of Shiitake Mushroom at Bonglo,
Paoay, Atok, Benguet. BS Thesis. Benguet State University, La Trinidad,
Benguet. Pp. 9-10.
WILLIAMS, D. and WILLIAMS, S. 1992. Lost Creek Shiitake Mushroom Farm:
Retrieved July 23, 2010. from:http//shitakemushroomlog.com.
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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APPENDIX A
Survey Questionnaire for Mushroom Producer
Respondent No. ___________
I. Personal Profile
Name (Optional) ________________________________________________
Age ____________________Civil Status ( ) Single ( ) Married ( ) widow
Occupation _____________________________________________________
Educational attainment____________________________________________
Are you a member of the association? ( ) Yes ( ) No
If member, What association? ____________________________________________
II. Farm Profile
A. Type of farm
( ) with mushroom house
( ) without mushroom house
( ) concrete mushroom house
( ) galvanized iron mushroom house
( ) others, specify _______________________________________________
Size of mushroom house_______________________________
B. Production Practices and Cost
1. Cost of equipments and assets
PARTICULAR
QUANTITY
UNIT
LIFE
DEPRECIATION
COST
SPAN
Mushroom House
Others, specify
2. . Cost of inputs/materials cost
PARTICULAR
QUANTITY
UNIT COST
TOTAL COST
Fruiting bags
Others, specify
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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3. Labor cost
ACTIVITY
NO. OF MAN-DAYS UNIT COST TOTAL COST
Preparation of the area
(including put-up of the
fruiting bags
Watering
Harvesting
Packaging
Others, specify
4. Production data
PARTICULAR
FREQUENCY
VOLUME
TOTAL
VALUE (per
OF
HARVESTED
VOLUME
kilo)
HARVESTING
PER TIME
PER MONTH
OR YEAR
Fresh mushroom
5. Distribution of harvest
PARTICULAR
QUANTITY
VALUE
Total harvest
Sold
Consumed at home
Given to friends/neighbors
Others, specify
B. Marketing
1. Packaging materials used and cost
PACKAGING MATERIALS
QUANTITY
UNIT COST TOTAL COST
USED
Cellophane
Styrofoam
Others, specify
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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2. Market outlets
( ) wholesaler
( ) retailer
( ) neighbors
( ) others, specify _______________________
_______________________
3. How do you disposed your product?
( ) Delivered
( ) Pick-up
( ) Others, specify ________________________
________________________
________________________
4. Mode of selling
( ) Cash on delivery
( ) Credit
( ) Consignment
5. Pricing determination
( ) Set by farmer
( ) set by buyer
( ) Others, specify _____________________________
6. Basis of pricing
( ) based on production cost
( ) based on prevailing market price
( ) others, specify____________________________________
C. Problems Encountered
1. Production
( ) lack of capital
( ) occurrences of pest/insects
( ) insufficient in knowledge in producing mushrooms
( ) others, specify _________________________________________
2. Marketing
( ) delay of payments
( ) limited market outlet
( ) lack of promotional activities
( ) others, specify ____________________________________________
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
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APPENDIX B
Survey Questionnaire for Mushroom Fruiting Bag Producer
Respondent No. ___________
I. Personal Profile
Name (Optional) ________________________________________________
Age ____________________Civil Status ( ) Single ( ) Married ( ) widow
Occupation _____________________________________________________
Educational attainment____________________________________________
Are you a member of the association? ( ) Yes ( ) No
If member, What association? ____________________________________________
II. Production Profile
A. Production Practices and Cost
1. Cost of equipments and assets
PARTICULAR
QUANTITY
UNIT
LIFE
DEPRECIATION
COST
SPAN
Sterilizer
Autoclave
Inoculation chamber
Others, specify
2. . Cost of inputs/materials cost
PARTICULAR
QUANTITY
UNIT COST
TOTAL COST
Sawdust
Rice bran
Fertilizer
Spawns
Plastic bag
Others, specify
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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3. Labor cost
ACTIVITY
NO. OF MAN-DAYS UNIT COST TOTAL COST
Preparation of media
4. Production data
How often do you produce mushroom fruiting bags?_______________________
How many mushroom fruiting bags do you produce per time?________________
How much do you sell per bag?________________________________________
B. Marketing
1. Market outlets
( ) mushroom producers in the area who are members of the association
( ) Other mushroom producers in the area who are not members of the association
( ) other mushroom producers in other areas
( ) others, specify _______________________
_______________________
3. How do you disposed your product?
( ) Delivered
( ) Pick-up
( ) Others, specify ________________________
________________________
________________________
4. Mode of selling
( ) Cash on delivery
( ) Credit
( ) Consignment
5. Pricing determination
( ) Set by farmer
( ) set by buyer
( ) Others, specify _____________________________
6. Basis of pricing
( ) based on production cost
( ) based on prevailing market price
( ) others, specify____________________________________
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
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C. Problems Encountered
1. Production
( ) lack of capital
( ) limited source of materials
( ) insufficient in knowledge in producing fruiting bags
( ) others, specify _________________________________________
2. Marketing
( ) delay of payments
( ) limited market outlet
( ) lack of promotional activities
( ) others, specify ____________________________________________
Oyster Mushroom Production and Marketing by Members of Ampucao Forest Products Center
Association Incorporation. CAGA, ANIE D. APRIL 2011
Document Outline
- Oyster Mushroom Production and Marketing byMembers of Ampucao Forest Products Center Association Incorporation
- BIBLIOGRAPHY
- TABLE OF CONTENTS
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDICES