How To Start Mushroom Processing Business

Fresh mushroom is a highly perishable item. Therefore, it demands commercial processing and packaging for enhancing the shelf life. Find here a comprehensive mushroom processing business plan sample checklist.

Gradually, mushrooms are becoming popular nowadays. They are rich in minerals and vitamins and very low in fat and sugar. Additionally, the productivity of mushroom is higher than any crop. Apart from the fresh selling, you can sell the processed mushroom for a longer period of time.

If you are already a commercial mushroom grower, this business is just perfect for you. Additionally, you can establish an individual processing unit also. However, you must ensure the availability of the fresh mushrooms in desired quantity for processing purpose.

Any individual can start mushroom processing business as small and medium scale basis. The business demands moderate capital investment and ensures very remunerative profits.

Mushroom Processing Market Potential

Mushrooms are very popular in most of the developed countries. In addition, they are becoming popular in many developing countries also. Additionally, the demand for organically grown mushroom is increasing very fast.

Basically, mushrooms are a rich source of nutrients such as vitamins, selenium, and potassium. They are fat-free, cholesterol-free, and are very low in sodium and gluten content. The market for mushrooms is projected to grow significantly in most regions of the world in the next five years.

However, there are several factors for the growth. The list includes a rise in the consumption of processed food and growing awareness about health and wellness. Also, R&D and innovations to enhance the applicability and continuously improving technologies to increase their shelf-life are projected to drive this market. Star hotels, exclusive restaurants, certain caterers are the bulk consumers and a firm tie-up for regular supply with some of them are advisable.

Also Read: How To Start A Commercial Button Mushroom Cultivation Business

Mushroom Processing Business Plan

You must have a business plan or project report in hand before initiating the business. it is advisable to craft a specific business according to your investment capacity and business size. Additionally, do study the local market first to gain the information about the product and market demand.

There are different types of mushrooms available in the market. Additionally, check the packaging that has the great demand. Accordingly, you will need to prepare the business plan.

After deciding the product, determine the plant and machinery investment. Additionally, calculate the raw material cost, utility investment, and marketing expenses. Prepare a marketing and product promotion strategy for your products.

Mushroom Processing Business Compliance

processed or canned mushrooms are edible products. Therefore, the business demands specific licenses and permissions from the several Govt. agencies. However, it hugely depends on the location where you are starting the unit.

In addition, if you are targeting the export market, then it demands export-import license also. And if you want to export the products to the Europian countries, then you must obtain the ISO 9000/IS 14000 Certification.

In India, you will need to register your business first ROC. However, you can also start the business as proprietorship also. Additionally, you will ned to have the FSSAI license. Additionally, check the upcoming tax liabilities related to this business.

Location For Mushroom Processing

In starting this business, you will need to secure a location. Generally, a 1000 Sq Ft space is sufficient for a small scale operation. Additionally, you will need to check the availability of utilities like water, electricity, and labor.

However, the most important consideration is the availability of the raw materials. You must establish the unit nearby the mushroom growers.

Raw  Materials For Mushroom Processing

The most crucial raw material is good quality fresh mushrooms. Generally, the shelf life of fresh mushrooms is few hours. Therefore, the location has to be very close to the cultivation area.

In addition, you must arrange the prior arrangements with some cultivators for the regular supply. Future planning may include mushroom cultivation for captive consumption. Other required raw materials are salt and citric acid that require in small quantities.

Drying Processes for Mushroom Processing

1. Freeze Drying

In this technology, the most superior method is Vacuum freeze drying system. Generally, the sublimation process helps to evaporate the water from ice phase to vapor at low temperature. Therefore, it produces the dried product close to the fresh product and quick in rehydration. However, the main limitation of this system is the high energy cost. Therefore, you can use this process for high-value products like mushrooms only.

2. Vacuum Drying

In this process, heat sensitive products are dried under vacuum at low temperature. The product is superior to air-drying and sun drying. This method is widely practiced due to its fair product quality and economics.

3. Microwave drying

This is the latest system emerging in dehydration. In this process, you can get superior product quality similar to freeze drying. In addition, the cost of microwave drying is lower than that of freeze drying.

4. Hot air drying

This system is simply hot air circulation over the product. In addition, you can control the temperature for evaporation so that water is gently evaporated as it reaches the surface by osmosis.

5. Sun drying:

This is an age-old traditional drying system. Here, you can use the solar energy at low Cost. This takes the longest time and the risk of product deterioration during drying is high. Sanitary methods have been developed and in some cases, solar heat is utilized by using solar cells/MS plates and air is circulated in closed chambers by a fan. Improvements in this system will further reduce energy cost.

Also Read: 200+ Profitable & Money Making Agriculture Business Ideas

Mushroom Processing Machine

According to the drying and processing method, you will need to procure the machinery for your unit. The list includes:

  • Baby Boiler
  • Tray type dehydrator
  • Can Seamer
  • Can reforming with rubber rollers
  • Exhaust box
  • Steam Jacketed kettles
  • Weighing Scales
  • Lab equipment

Mushroom Processing Technology

First of all, procuring the right manufacturing technology is an important aspect of this business. You must obtain the technology from the Govt. agencies. Here we put a brief detail of manufacturing process for your ready reference.

First of all, wash the fresh mushrooms in cold water and then blanch in boiling water for around 3-4 minutes. Then, dehydrate them in drier and pack. It is advisable to pre-treat fresh mushrooms in a solution containing brine to prevent discoloration.

Additionally, packing is very critical as the formation of moisture contaminates mushrooms very quickly. Hence you can use plain cans and brine of 2% salt and 0.2% citric acid for packing. The cans are exhausted at 19O C for 7-8 minutes, sealed and processed under pressure for around half an hour.

Generally, the yield of the final product depends on the quality of dryer, manufacturing process employed, moisture content in fresh mushrooms and moisture required in the final products. However, you can expect an average yield of 25%.

Promote Your Mushroom Processing Business

marketing and promotions are important for the overall success of any business. Therefore, according to your marketing plan, you must promote your product and business. It is advisable to establish a local distribution network. Make sure, your product is available in the stores where from customers can buy the product.

Additionally, concentrate on the institutional sales also. Generally, B2B selling ensures the good volume in this type of business. In addition, you must promote your mushroom processing business in the international market also.