Costing For Oyster Mushroom

Grey Oyster Mushroom harvested from Pagoh Project at Panchor, Muar.

Grey Oyster Mushroom (Pleurotus sajor-caju) under Badiciomycetes Family or locally known as Cendawan Tiram Kelabu was a popular commodity to produce in Malaysia in lowland area. This mushroom was popular among growers due to raw material availability, easy to grow, suitable in lowland area, tasty, reasonable price, high nutritional value and long shelf life compare to other types of mushroom. There was about 30,000 mushroom species in Malaysia. Study shown that most mushroom contain Polysacharide element that able to improve human body immunity system. This mushroom doest not perform photosyntesis and reproduction system by Spores.

I managed to involved in Oyster mushroom project during my tenure in Muar Agriculture District Office. About 20 mushroom project implemented from 2005 - 2009 under Pagoh Agriculture Development Project. Below is the cashflow w develop during that period. A standard mushroom house structure sized 20 feet by 40 feet constructed for 10,000 mushroom bag. There was bigger structure 30 feet x 100 feet to cater 50,000 bag. The harvest of oyster mushroom started 35-40 days after inoculation and an average 150 gram per bag was collected in Muar. Average price for fresh mushroom was recorded at RM 5.00 per kilogram. The contract price with Anchor Company about RM 4.50 per kilogram. The retail price for mushroom ranging fro RM 5.00 - RM 8.00 per kilogram.

Belaw are the Grey Oyster Mushroom cashflow based on locality at Muar District:-

i) Development Costs:
a. Land preparation = RM 2,000
b. Mushroom Structure = RM 14,000
c. Steamer = RM 5,000
d. Inoculation Room = RM 4,000
e. Lab Equipment + Others = RM 5,000
f. Miscellaneous = RM 3,000
SUB-TOTAL 1 = RM 33,000

ii) Operation Costs
a. Plastic Bag (RM8.00/kg) = RM 1,290
b. Saw Dust (RM 80.00/ton) = RM 2,000
c. Rice bran (RM 700/ton) = RM 1,750
d.Oyster Substrate (RM 2.50) = RM 1,785
e. Ring & Cap (RM 0.15/unit) = RM 3,750
f. Rest Cap (RM 0.10/unit) =RM 2,500
g. Fuel (RM30 for 30,000) = RM 750
h. Wages (RM800/head/cycle) = RM 2,000
i. Transportation = RM 500
j. Others costs = RM 1,600
SUB-TOTAL 2 = RM 17,925

Total Costs of Production (Sub Total 1 + Subtotal 2) = RM 50,925.00

Estimated Gross Income (3,750 x RM 5.00/kg) = RM 18,750.00
It takes 6th year for mushroom project to reach Positive value (RM 7,708/year).

Production cost per bundle = RM 0.60
Operation cost for one bundle = RM 0.47
Break-even Point for mushroom = 6 th year


Growing mushroom was a big challenge for new farmers. the most issue in growing mushroom is the high initial capital for mushroom structures and equipment. The knowledge and skill has to be excellent for mushroom growing activity. There was a lot of diseases and pests in mushroom cultivation. I have seen may new player fail in mushroom project. Some of the reason due to lack of capital, low production, low quality, uncertain price, monsoon flood, attack of pests and mostly due to the disease attack. Increase in operational cost also contribute to failure.

GROW MUSHROOM....HIGH LEVEL KNOWLEDGE...
SERIOUS DISEASE.... ABLE TO LOST ALL CAPITAL...
RAW MATERIAL... PRICE KEEP INCREASE....
HIGH QUALITY MUSHROOM...NO PREMIER PRICE

By
M Anem
Muar