1. Brief Investment Memorandum
The business plan of a mushroom and oyster mushroom farm is focused on a city with a population of up to 700 thousand people who can Buy penis envy mushrooms. Demand for artificially grown mushrooms is growing steadily in Russia, reaching consumption levels of at least 60,000 tons (up from 25-28,000 tons in 2014).
- The increase in demand is due to the fact that farmers have learned to grow mushrooms, and people have become more attentive to what they eat.
- On average, a resident of Russia eats 1 kg of mushrooms per year. Europeans eat – 5-6 kg. This suggests that the Russian mushroom market is at the stage of development.
- The technology for growing mushrooms is based on a material base similar to greenhouse management.
It is important to monitor the environmental conditions and the quality of seedlings. So, in Europe, automated mushroom farms are already operating on renewable energy sources.
- Payback period — 8 months;
- The amount of initial investment is 2,500,000 rubles;
- Break-even point — for 3 months;
- The average monthly profit is 400,000 rubles.
2. Description of the business, product or service
The project considers 4 types of products:
- Raw fresh mushrooms.
- Varietal champignons in packs of 1.5 and 10 kg.
- Raw oyster mushrooms.
- Selected sorted oyster mushrooms in packs of 3 and 5 kg.
Mushrooms are supposed to be sold: in markets and shops, to public catering enterprises and municipal organizations.
A license to grow mushrooms is not required.
3. Description of the market
The Russian mushroom market has existed for 30 years. During this time, the market has grown from primitive farming to a heavily invested industry.
Key Market Indicators
From 2014 to 2019 the market volume grew by 50% – from 28,000 to 56,000 tons per year. The average growth rate is 15-17%.
In 2019, it is planned to launch an agricultural complex for growing champignons and oyster mushrooms “Uzlovaya” in the Tula region. The design output capacity is 25,000 tons per year.
According to experts, the production and consumption of mushrooms will grow by 6-7% per year. This is due to the trend towards a healthy lifestyle, eco-friendly nutrition, the expansion of retail chains, the emergence of farms and the introduction of technologies that will make the process cheaper and more profitable due to full automation.
General characteristics of consumption
The structure of mushroom consumption in Russia does not differ from the European one. Europeans often eat champignons and oyster mushrooms. On average, a resident of Russia eats 1 kg of mushrooms per year, and Europeans – 5-6 kg. This suggests that the Russian mushroom market is at the stage of development.
Competition in the mushroom production market is moderate. Not all large agricultural holdings and farms have yet moved to the development of this market.
In 2019, the most mushrooms were produced in the Moscow region – 6 thousand tons, the Kursk region – 2000 tons, the Krasnodar Territory and Stavropol Territory – 5500 tons.
The largest mushroom farms in Russia are: Russian Mushroom OJSC, Agrogrib (Kaluga and Tula Regions); “Mushroom Rainbow” (Kursk region); Greenhouse complex “Green Line” (Krasnodar Territory); National Mushroom Company Kashira (Moscow Region); “Orix” (Samara region, Tatarstan), etc.
Volumetric and dynamic assessment of the potential market capacity
The maximum volume of mushroom sales for a city with a population of 500 thousand people will be 500 tons per year. If we subtract seasonality and those who do not eat mushrooms – 50%, then the volume will be 250 tons.
Part of the products will be supplied for processing to food industry enterprises: for the production of dry mixes, food concentrates, soup sets, pizza.
If we take into account the minimum wholesale price – 270-300 rubles per 1 kg, then the market volume can reach 95-105 million rubles a year, excluding sales to the commercial sector.