TECHNOLOGICAL AND ECONOMIC ASSESSMENT OF MUSHROOM CULTIVATION IN NIGERIA

Abstract

In this study, a cottage level technology has been proposed for the commercial exploitation of mushroom biotechnology in Nigeria. The profitability of the mushroom cultivation technology has been established at 2.5, 3.75 and 5.0 tonnes capacities per annum using investment options A or B for two mushroom varieties. Option C becomes relatively marginally profitable for Pleurotus ostreatus only at 3.75 tonnes capacity per annum. Option A entails the complete process of spawn production and mushroom cultivation. Option B involves purchasing the spawn from a separate organisation and then using the spawn for mushroom cultivation while C which is considered for only P. ostreatus involves purchasing the ready-to-fruit spawned bags for incubation and fructification. The engineering economy studies revealed that the venture could be profitable with selling price above one hundred and seventy-four naira (N174) and one hundred and fifteen naira (N115) per kilogram of Volvariella volvacea and Pleurotus ostreatus respectively. The study also shows that investors should target the low income group by working towards being a "low-price producer". This could be achieved by adopting the option B with the proposed techniques at above 75% capacity utilization. Profitability and sensitivity analyses show option C to be a relatively risky investment which could easily be affected by competition and price instability. Option B is the most favoured for investors because of the lower capital investment requirement and favourable profitability indices. The business risk is also shared between the mushroom grower and spawn producers.