How to Make Mushroom Spawn
The following tips will help you make your own mushroom spawn at home.
1. Finding Mushroom Mycelium
To make large amounts of mushroom spawn, first find edible mushrooms with their stems intact. Popular choices included morels and oyster mushrooms. When picking these mushrooms, be sure to keep the bottom of the stem intact, as this is the part of the mushroom that is attached to the mycelium that is needed for spawn. Cut the bottom inch of the stem from the mushroom and save them for spawning.
If it isn’t possible to find living mushroom stems to pick, or if there is any uncertainty about which local mushroom are edible rather than poisonous, it’s best to be cautious and purchase a bit of pre-made mushroom spawn to use in place of the mushroom stems. This is also an easier method for beginners.
2. Multiplying Mushroom Spawn
Cut corrugated cardboard into pieces that will fit into a large bucket and soak in warm water for several hours. Drain the water, then tear the cardboard layers apart to reveal the corrugated section. Place the corrugated cardboard in the bucket and add the mushroom stems or pre-made mushroom spawn, then cover with additional cardboard. It’s best to keep the spawn in a dark place and be sure it doesn’t dry out. This method of making mushroom spawn can take several months, so be patient. When the cardboard is covered in a whitish dusting, the spawn has multiplied and is ready to use.
3. Planting Mushrooms
When the mushroom spawn is complete, it is ready to be used to inoculate a substrate to begin growing mushrooms. Inoculation is a bit like planting seeds: just mix the spawn with the substrate and moisten, then keep in a cool, dark place.
Unlike most traditional plants that grown in soil, mushrooms are quite picky about their substrate, or growing medium. Some grow best in rich compost or manure, others in soil and still others on wood. Be sure to research the best location and substrate for the deserted type of mushroom before inoculation.
PRODUCTION INVESTMENT
Costs & Returns:
8.1 The cost components of such a model along with the basis for costing are exhibited in Annexures I. A summary is given in the figure below. Inclusive of 5% contingencies, the project cost works out to around Rs.50 Lakhs.
(Rs. In Lakhs)
| Project Cost | Amount |
| Land & Site Development | 21.47 |
| Building | 15.00 |
| Plant & Machinery | 11.90 |
| Contingency | 1.42 |
| Total | 49.79 |
8.2 The major components of the model are:
· Land Acquisition & Development: (Rs. 21.47 lakhs): On an average the cost of land can be put at Rs. 20 lakhs in rural areas/forest areas in States like Uttaranchal, NE Hilly States etc.
· Building (Rs. 15.00 lakhs): This is the cost of high density polythene sheet growing room of 30000 sq.ft.
· Plant & Machinery (Rs. 11.90 lakhs per annum): This is the cost of setting up a sprayer room acquiring galvanised tubs, iron racks and thermometers.
8.3 Recurring Production Cost (Rs. 6.83 lakhs): Recurring production costs are brought out in Annexure II. The main components are raw material like wheat straw or rice bran, chemicals, cost of power & water and packaging material etc. Labour costs have been computed at Rs. 800 per man-day. These can, however, vary from location to location depending upon prevailing wage level or minimum statutory wages fixed. Recurring costs work out to Rs. 6.83 lakhs per annum.
Returns from the Project:
8.4 The yield from this unit would be 40000 kgs. per annum. Valued at Rs. 4000 per kg. the gross return would be Rs. 16 lakhs per annum. Annexure III gives profitability calculations.
Project Financing:
8.5 Balance Sheet: The projected balance sheet of the model is given at Annexure IV. There would be three sources of financing the project as below:
Source Rs in Lakhs
Farmer’s share 24.9
Capital subsidy 10.0
Term loan 14.9 Total 49.8
8.6 Profit & Loss Account: Annexure V presents the cash flow statement and Annexure VI projects the profit and loss account. Gross profit works out to Rs. 9.2 lakhs per annum.
8.7 Repayment of Term Loan: The term loan will be repaid in 11 equated 6 monthly installments of Rs.1.36 lakhs with a moratorium of 12 months. (vide Annexure VII). The rate of interest would have to be negotiated with the financing bank. It has been put at 12% in the model. The repayment schedule is given in Annexure VII-A.
8.8 Depreciation calculations are given in Annexure VIII.
8.9 IRR/BCR: The viability of the project is assessed in Annexure IX over a period of 10 years. The IRR works out to 17.14 and the BCR to 1.1.
8.10 The Debt Service coverage ratio calculations are presented in Annexure X. The average DSCR works out to 2.42.
8.11 Payback Period: On the basis of costs and returns of the model as assessed above, the pay back period is estimated at 6.36 years (vide Annexure XI).
8.12 Break-even Point: The break even point will be reached in the 3rd year. At this point fixed cost would work out to 58.1% of gross sales – vide Annexure XII.
Vaani Groups 