You are on page 1of 25

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

2.0 NO 1 2 3 4 5 6 7 8 9 10 11 TABLE OF CONTENTS CONTENTS Objective Parties Involved Selection of Mushroom Cultivation Project location Production planning Production and Financial Analysis Marketing Plan Business development Risk Action Plan for the expected Labor Planting Plans PAGE 5 5 5 6 6 8

SUMMARY OF COMPANY / BUSINESS / INDIVIDUAL Company name, the name of the prime mover and the proposed project. Project Management Market and economic Advanced power project costs Equity and Loan needs Collateral MoA support (as the District Agricultural Department / State)

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


KEY PART 1. INTRODUCTION The purpose of the development plan / business projects Project Purpose

2. PROJECT BACKGROUND Company Company Name and No. Introduction Address No. and No. Tel. Fax Bank Company Company Secretary Auditors of the Company Capital paid in the Awarded and Board of Directors of the Company (Profile) Project Location and current status - close to the road / Resources Water / infrastructure Technical and technological Suitability of land Agroiklim Summer and water quality Selection of commodities The need and cost of infrastructure Existing technology will be used Input and others

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


3. MARKET AND ECONOMY Market analysis and marketing plan Price products on the market

4. FINANCE The financial statements and the profit and loss financial flows (cash flow). Financial resources, equity, and the IRR, NPV, B / C Ratio and others. Capital return point, Period Delay Loan repayment schedule

5. ORGANIZATION AND MANAGEMENT

6. ASSESSMENT / MONITORING RECOMMENDED

7. JUSTIFICATION

8. CONCLUSION

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


PROPOSAL IN MUSHROOM CULTIVATION COMMERCIAL IN LOT 129, Kuala Nerang, Kedah.

COMPANY NAME: KEDAH AGRO FARM (AS-123 456-P) LOCATION: Kuala Nerang, Kedah AREA: 50 acres OFFICE: NO 41 PARK COUNTRY Sapura, Kuala Nerang PHONE / FAX: +6013-8353889 DATE: 15 SEPTEMBER 2011

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


a. OBJECTIVE 1. Involving young people themselves as indigenous in the commercial agriculture, especially agricultural using the technology without used the extensive land as well meet the government's intention to make agriculture is a form of business profitable. 2. Sales rate of more than RM 250,000.00 per year. 3. Being an agricultural project in particular for the purpose of example and training for Agriculture Ministry. 4. Providing employment opportunities to the side the local community. 5. For the production of 200 kg per day, a contract employee required for the preparation of the bag is 10-15 people and the packaging is a total of 10 people.

b. PARTIES INVOLVED 1. Mushroom Project (Kedah Agro Farm) / Youth 4B-Operators 2. Department of Agriculture, Malaysia - Mentor Project 3. FAMA-Marketing and logistics 4. MARDI-Technical Advisory 5. Agricultural Bank - Project Finance financiers

c. SELECTION OF OYSTER MUSHROOM 1. In general, fungi do not require the use of land as a medium of agricultural waste sawdust rubber is the main media. 2. Effective use of space for bags of mushrooms arranged on the shelf. 3. Potential to maximize and diversify the use of ground rubber plantations, oil palm, fruit, or the home village as the Felda. 4. The ability to do production planning for round (fruiting) can be expected.

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


5. Stable monthly price movement (resource Gazette FAMA 2000 items). 6. Oyster mushrooms have some variety as Oyster Mushroom Gray, White, Red Samar, Blue and Yellow.

d. PROJECT LOCATION Agricultural land in Kg.New Kuala Nerang, Kuala Nerang-owned Farmers Cooperative, on a 10-year lease of 50 acres. Assessed the agreement for RM 300 Thousand in collaboration with shares of 30%. The project site is selected based on the following factors: 1. Set in the range of 120 KM from Penang (hub marketing) for marketing and

logistics facilities vegetables perishable. The area included in the Corridor North. 2. A clean area surrounded by trees for prevent pollution emissions, especially

as it located about 1 KM from the main road. 3. Location has a basic infrastructure such as piped water, electricity and

complete way. 4. Near the village area of the facility workforce is also to provide employment

side to the local community, particularly for youth around the district of Kuala Nerang, Kedah.

e. PRODUCTION PLANNING The main factors is essential to plan production and calculations.

PRODUCTION 1. Aging period - 45 days after injecting seeds. 2. Time off (fruiting interval) between the collections of revenue is 10 days. 3. Maturity period is 3 days of closure of open (Closed again on Day 5).
6

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


4. Production frequency of 4 times. 5. Mixed Media: Wood Dust 100:10:1 500gm/bag 6. Seeds: 1 Bottle / 25 bag 7. Production: 200 kg per day 8. Results per Beg: 60 gm 9. Wage work. a. Preparation of 17 cents bag.

b. Packaging 7 cents bags. c. Management RM 10,000 a month. 10. Rental RM 300 per month 11. Marketing a. Net Weight 10gm / pack b. Price RM 4.00/kg

Production equipment requirements.

1. Pondok Mushroom (2 units) - two (2) units huts have built for a production goal. One unit of placing bags of mushrooms during the production and another place mushroom bag replacement after expiration of the first booth production.

2. Steamed (2 units) - capacity for a steamers in the 1000 bag. For the production of 200 kg per day, to inject 3.833 steamer bags 2 bags a day needed to meet this goal. Bags will be steamed mushrooms at 12-hour intervals and will allow cooling for 48 hours before the seed is injected. Steamed will be made at a minimum temperature of 100 C for detoxifying bacteria media mix.
7

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


14. Fog spraying system (sprinkler mist system) (2units) - to be constructed to control the temperature in the hut to less than 28 C and the percent moisture more than 80%. 15. Mixer Machine - in order to save manpower and obtain a uniform mixture of media. 16. Other equipment - including equipment and services eradication of pests, such as refrigerators and electric lights. 17. Non-injection and storage - the need to provide room specifically for the injection room and the room to minimize damage dust storage to reduce losses or more use of media materials. f. PRODUCTION AND FINANCIAL ANALYSIS 1. Key Cost Factors Provision of Equipment and Building RM 136.724. Mushrooms Booths 1. 2 cottages mushrooms need 38 thousand of 22.79% of the total financing. 2. The huts are available to produce current and additional booths are required to meet production after the expiry of the first booth production. 3. It is also available for aging time before production is for 45 days. 4. Capacity to accommodate the total number of booths bag of mushrooms for a production to avoid waste of space. 5. Each booth will be divided into three sections closed to minimize the risk of infection mushrooms.

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


Steamer 1. 2. 2 steamer unit costing 10 thousand of 6% of financing expenses. Steamer is a critical tool for the following factors should be considered for

placement in mushrooms. The capacity to be able to meet the steamer daily production goals. The time taken for the steaming bag of mushrooms is for 12 hours at 100C. The time required to cool the bag mushrooms at room temperature is over 48 hours.

Two steamers are required for the production of 200 kg of mushrooms day steamed best done during day to avoid mistakes. Fixed expenses (overhead) and Rental Management. 1. Total actual cost was RM 18.197 for each round planting. 2. This amount is 10.91% of the cost of financing or RM 0:40 RM 0:38 per bag or per RM. 3. Rate this cost per bag will decrease if the production increased. For example, the increase in production increased. For example; increase production by 5kg per day will reduce this cost by 1:56% for every dollar or to reduce the cost per bag of 0.01. Operating expenses - RM 33.074 (58%) per season 1. Expenditure required providing 46 000 bag seasonal mushrooms and mushroom packing 200 kg pack day was 29,496.50. 2. This is a 16:49% of the total funding or RM 0:40 per bag or per RM 0:58 RM. 3. Rate this cost is proportional to the amount of planned production.

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


4. Revenue for the current round will be saved for amount for operating expenses for both rounds next. 5. Sawdust cultivation of rubber as a basic media accounted for 13.91% of total expenditure operations.

The needs of cost reduction and maximizing the use of equipment

1. Reducing costs a. Increase the amount of production of each bag. Among the factors to be considered is the hot weather will hinder the growth of mushrooms or cause mushrooms are dry and light. b. For this purpose the spray system will be activated in automatically if the temperature exceeds 28 C and to maintain minimum humidity at 80C. c. Maximizing the use of mushrooms and cottage area steamer. Booth design must be planned for put the total number of bag required for each round in a bag. This is to prevent mixed bag of mushrooms during the planting and the next planting. d. Because the cost of management and operations is fixed, one- The only way to reduce costs is to increase the total production.

2. Time off (Inter-fruiting) and production a. Rest time between each collection of revenues. I. Increase in production of half-time (fruiting interval) will results in an increase the number of bag of mushrooms. II. This will cause the cost of equipment and fixed costs will also increase because of the longer time required to produce results. III. If the longer time required for production, loan repayment period will also increase.

10

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


b. Earnings per bag. -Production of each bag is very important because the production each bag to be of high will reduce the number of bags required. c. Increasing the frequency of earnings (fruiting cycles) - Increase in production of 4 times from 5 times to increase the ratio of income to capital, but increase the loan payments. d. Price For the purpose of calculating the market price worth RM 4.00 per kg is used. Price increases will affect the positive for all factors of cost and loan repayment

Please refer to table below for the effects of constant change financing and financial ratios e. Effect of Constant Change Rest time & Results / bag constant production price Time mature aging Time

11

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


In general, the following two factors will have a positive impact on the project without incurring additional financing. a) Increase production of each bag b) The rising price of mushrooms.

f. Income I. Disposal of media as compost After the expiry of the current generation, the media used can be sold as compost or as a mixture of compost making. For each planting is 13.800 kg of waste can be gathered If sold at wholesale price RM 1.00 per kg available income is RM 13.800. II. Completion Sales mushroom bag. Mushroom bags ready to be sold to small operators not able to provide enterprises of capital or capital for households home who want to approach the oyster industry can be buy a bag that has been injected at a price of RM 1.50. Average preparation cost is RM 1:03.

12

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


g. Financing and returns Development loans Loan Operations Total First year income Loan repayment period RM 136, 724 RM 30,027 RM 166,751 RM 360 ,500 602 days / 1 year 8 months 2 days.

Financial analysis (@ 15-year project period) NPV@10% IRR B/C @ 10% RM482, 967 95.18% 6.69

g. MARKETING PLAN FIRST STAGE 1. Marketing will be done through the Marketing Board Federal Agriculture (FAMA). a. Done to enable operators to focus attention to the management and cultivation. b. FAMA will help with the logistics and marketing. c. Experience and reliability before entering the open market on their own. 2. Supply is done through supply contracts. a. The second way: the concept of the market guarantees 100% Methods beginning of the beginning of the project through bank loans.

THE SECOND STAGE 1. Marketing is still done by FAMA, but using different supply contracts. The first way: the concept of security per cent market
13

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


2. Method to be used after loan is repaid or gains the trust of the open market. Marketing will be done in person to supermarkets, markets wholesalers, wet markets and any area or method sales are for a maximum price.

g. MARKETING PLAN FIRST STAGE 1. Marketing will be done through the Marketing Board Federal Agriculture (FAMA). a. Done to enable operators to focus attention to the management and cultivation. b. FAMA will help with the logistics and marketing. c. Experience and reliability before entering the open market on their own. 2. Supply is done through supply contracts. a. The second way: the concept of the market guarantees 100% Methods beginning of the beginning of the project through bank loans. THE SECOND STAGE 1. Marketing is still done by FAMA, but using different supply contracts. The first way: the concept of security per cent market 2. Method to be used after loan is repaid or gains the trust of the open market. Marketing will be done in person to supermarkets, markets wholesalers, wet markets and any area or method sales are for a maximum price. Marketing apart from FAMA will be divided according to regulations to avoid dependence on a space market only.

14

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


h. BUSINESS DEVELOPMENT. Increased production a. This can be done through two methods. I. Investment on the existing unit by adding equipment. This will result in the company had out of pocket or take out a loan. II. Network providers (sub-vendors). The company has regular suppliers to meet their needs and increase production without involving their own investment. Network providers (sub-vendors) - networking a. Before this method can be implemented a number of basic need done. b. Marketing is not solely relying on FAMA. c. States will be able to compete in foreign markets such as supermarkets and covers an area outside of Klang. c. Examples of Wholesale prices Alor Setar: The wholesale price of all the suppliers RM 4.70 The price of wholesale supplier results by number of set RM 4.90 The purchase price of a sudden or out of agreement - RM 5.00 In essence, the wholesale price of the DMI is RM 5.00 - RM 6.00 d. Advantages of this method are Support a steady supply to meet market existing .Main problem is the market now inconsistent supply. Helping small producers by providing space marketing to them, especially indigenous producers. Their main failure of production capacity small and disabled to provide consistent supply. The price factor to be considered by setting a price minimum. If the market price falls

15

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


below mushrooms minimum prices, increased costs will occur and causing many manufacturers lost operational capability. i. EXPECT ACTION PLAN FOR RISK. Truffles are sensitive to pollution and weather, and it requires a clean environment and temperature control. A. Temperature and humidity I. summer temperatures will hinder the production of mushroom and grows II. Mist spraying device (sprinkler Mist System) installed in in each of the mushroom house to dampen the temperature hut if the temperature exceeds the prescribed level. III. Mushroom roof will also be watered manually 2 times day to reduce the temperature in the hut and mushroom house clean of dust or pollen plants. B. Buildings and equipment. I. Cleaning schedule for the booth as sweeps should be made to ensure material that may pest insects. II. Construction of a high cement wall 6 up and down inch soil surface to prevent insects or animals the crawling and into the huts. III. Feeds pests such as cockroaches, ants, mice will also be placed in the hut. IV. Tools pesticide (electrical Insect Killer), if necessary loaded with fine nets to eliminate insects. IV. Injecting rooms should be built from materials that do not fine dust, especially the walls. VI. The entrance to any part of the production areas or storage of seeds needs to be always and only the concerned only enter if necessary.
16

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


VII. Mushroom seeds supplied by a secure quality. VIII. Dikontaminasi process will be done to the injection room before each round is used, the mushroom house and the shelves after the end of each aging cycle. c. ENVIRONMENT I. Construction of drains to prevent water entry into in tents, warehouses and places of sawdust. II. The environment should be cleaned regularly cut the grass in surrounding areas to prevent the breeding of insects especially mosquitoes. III. Have lots of tree planting around the area the lowering the temperature. d. PERSONNEL I. Only personnel / employees concerned can injection into the huts and rooms. II. Use of protective clothing will be enforced if necessary to limit the entry of personnel into the hut especially visitors. III. Personnel are not allowed to bring food, drinks to in the mushroom huts in the area or smoking especially the production of dust deposits prevent fires.

j. LABOR Management a. General Manager: Nor Aklima Bt Mohd Noor, 26years, Former Officer in the Ministry of Information Technology Education Malaysia. Have an experience in management information and planning for large-scale in marketing. b. Technical Supervisor: Noor Aina Bt Nor Adzlan, 25years, technical skills in the field electric and electronics will help in terms of building structure. She will help direct the project in Kedah area.
17

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


c. Plant Supervisor: Nur Amiera Najwa Bt Che Nordin, 25years, Year Certification Agriculture Institute of Agriculture, Malaysia will help operation of the project directly. Operations a. Handling the daily cost of operation will be done in contract in accordance with the production, as reported in the cost schedule. b. 3 permanent employees for the purpose of handling and care operations.

18

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS


ESTIMATED PROJECT START MUSHROOM NEEDS DEATHS (RM 20,000) MATTER 1. CONSTRUCTION AND EQUIPMENT 1.1 Building 1 - Mushroom House (415 'X 40) Luggage storage (5'5) Luggage mixing media, bagging and steam, bag and store media goods (10'X10 ') Non-injection seed (5'X5 ") Luggage collection results (15 "x 30") 1.2 Set a kitchen, steamer bags @ RM 500/set 1.3 Close, neck & stopper bags @ 15 cents / set 1.4 Equipment watering equipment sub-buckets, dipper and others TOTAL 16,8680 1 set 100 7,200 sets 1,080 Can be worn for three years. 2 sets 1,000 1 unit 14,500 Luggage collection of bags contains 3.600 mushrooms (estimate 12kg/days) Estimated sales of: QUANTITY ESTIMATE(RM) NOTE

19

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

2. MUSHROOM CULTIVATION MATERIAL (FOR 3.600 BAG / X SEASON 2 SEASON / YEAR = 7.200 BAG / YEAR) 2.1 Dust timber @ 20 cents / kg 2.2 bran fine @ 50cents/kg 2.3 Agricultural Lime @ 20cents/kg 2.4 Plastic PP 6 "X13", 0.6 @ RM8/kg 2.5 Seed Mushroom @ RM 1:20 2.6 Gas @ 7 cents / bag 240 bottles 7,200 workers 288 504 30bag/bottles Rates steamed using drum 2.7 Water consumption 2.8 Miscellaneous - Clorox, Alcohol 2.9 Wage workers @ RM 550 X 2 First Month 1 worker 100 68 1,100 Wages of workers in the third month is taken from the sales mushroom yield. TOTAL NETT TOTAL 3,320 20,000 3,600kg 360kg 38kg 38kg 720 180 72 288 500gm/bag 500gm/bag 5gm/bag 200kpg/kg

20

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

ESTIMATED PROJECT START MUSHROOM NEEDS (GROSS RM 3,000 / MONTH) ESTIMATED CASE (RM) 1. TARGET AND EQUIPMENT 1.1 Building I - House provision (20'X15') Space saving media (5'X10 ') Transfer (3'X10 ') Outdoor media slang, bagging & steamed beg media (10'X15 ') injectable media room (7'X10 ') 1.2 Building II - Mushroom House 20'X40 ' (including the bag rack media) 16,000 Gathering space to load 6.000 bags of mushrooms estimate 20kg/day 1.3 Set a kitchen, steamer beg, 2 sets @ RM 500 / set 1.4 Watering parts 1 set 1.5 Various small equipment - bucket / dipper, etc TOTAL 24,400 100 300 1,000 7,000 NOTES

21

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

2. MUSHROOM CULTIVATION MATERIAL (FOR 6.000 BAG / X SEASON 2 SEASON / YEAR = 12.000 BAG PER YEAR. 2.1 Dust timber, 6,000 kg @ 20 cents Refined 2.2 600kg Bran @ 50 cents 2.3 lime 60kg @ 20 cents 2.4 Close, neck & stopper set of 12.000 bags @ 15 cents 2.5 Plastic PP 6 'X 13', 0.6 @ RM 8kg 2.6 Mushroom seeds 2.6 400 bottles @ RM 1:20 2.7 Gas @ 7 cent / bag x 12,000 2.8 Use of water & fire 2.9 Miscellaneous TOTAL TOTAL AMOUNT 840 2000 400 5,472 29,872 480 240 200kg 1,200 300 12 1,8000 3,000kg/1 season 300kg/season 30kg/season Can be reusable for 3 years

22

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

GROSS CALCULATION RM3, 000/ month Production 20kg/days Each beg budgeted 50/gm / quote Every day needs to go to beg the media 400 bag / day (400 bag x 50 gm = 20 kg) Each bag the media 15 days interspersed quotes results. There needs to be: 400 x 15 media day beg = beg 6.000 media. Daily Results fungi Daily gross income 20kg/days the sales price RM5/kg 20kgxRM5.00=100/days

23

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

BIBLIOGRAFI

24

PROPOSAL FOR INVESTMENT IN COMMERCIAL FUNGUS

APPENDIX

25