Mushroom Sausages

Agriculture Enterprise

EAG 344-0

M.M.B.S.Silva

UWU/EAG/13/0035

Export Agriculture

3rd Year, 2nd Semester

1

Introduction

• It is hard to find nutritious and Sri Lankan Spicy Sausages in local markets

• High in protein

• Enriched with Sri Lankan spices

• No preservatives and artificial flavors added

• Home-made

• Suitable for Vegetarians

2

• Vision

To be known as one of the mushroom farm which produces quality, nutritious healthy mushroom sausages in the Sri Lanka

General Company Description

3

• Mission

To provide quality, nutritious and spicy mushroom sausages to meet the demand of the market and adopt developed technology and produce new products from mushroom

4

Location

• Address: 93,High Level Gardens , Kawdupelella

• 1 Acre land

5

Objectives

1) Short term Objectives

-Increase the number of customers for mushroom sausages

-Develop a good distribution method

6

2) Long Term Objectives

-Increase Production of mushroom sausages by 20% in 2021

-To provide fresh mushroom sausages to the market with least price

-Reduce Production cost by 10% in 2020

-Increase consumer satisfaction by 25% in 2020

-Enter to the export market within 6 years

7

Legal form of Ownership

• Sole proprietorship

8

Products and services• Main product: Mushroom Sausages

• Additional products:

Fresh mushrooms ( Over foreign season , Low demand period for mushroom sausages)

Dry mushrooms (Dry season, For lower production of mushroom)

• Services: Train mushroom farmers in the area

9

Factors Affecting for Competitive Advantage

• Sell products of the highest quality and healthiest way

• Use natural spices for sausage production

• Trained labors for obtain quality products

• Continue to expand daily sales by adding more skilled labor

• Trained nearby mushroom farmers to produce mushroom

• Advertise though internet

10

Pricing

Consumer pack

Consist with 5 mushroom sausages Retail price= Rs.170/=

Bulk price =Rs.150/=

Consist with 10 mushroom sausages Retail price= Rs.320/=

Bulk price =Rs.290 /=

Whole saler pack

1kg packagePrice is Rs.600/=

2kg packagePrice is Rs.1100/= 11

SWOT Analysis1)Strengths • New idea for market• Favorable environmental

conditions• Higher consumer demand• Taste of mushroom sausages• Raw material with lower cost• Lesser initial investment

2)Weakness• Lack of experience in the business• No diversification in the

production• Mushrooms are spoiled in 3 to 4

days• Low storage facilities• Low delivery facilities

3)Opportunities• High demand• Adopt latest technology• Raise the production to meet

international market• Made delivery as early to avoid

loss due to spoilage of product

4)Threats• Demand fluctuations• High competition• Assurance of quality standards• Existing mushrooms market• Government policies

12

CustomersVegetarian People Children Knowledgeable

people

Age 5-80 3-14 30-60

Gender Male& female Male and female Male/female

Location Hindu And Buddhist People

Matale District People work at

executive

level,Teachers,

officers

Income level High High &middle High

Social class High High/middle High

Education High - High

13

Business Customers

Industry Hotels Restaurants Spice Gardens

Location Matale, Nuwara

Eliya, Kandy

Matale,Kandy Matale, Kandy,

Kegalle

Size of firm Large scale Large Scale Large Scale

Quality High quality High quality Middle, High

Their customers Foreigners Foreigners and

local customers

Foreigners

14

Competition

• Main Competitors

1.Keels Sausages, Keels' Foods Products PLC

2.Cargills Sausages, Cargills (Ceylon) PLC

3.Biraha Sausages

4.Elephant house beef sausages

5.Prima Sausages

6.All mushroom producers and mushroom value added product producer

15

Promotional Strategies

• No large promotion works( Because mushroom sausage have large demand)

• Consumer attractive package

• Promote it as healthy and nutritious products

• Advertise in local newspaper

• Web page

(online advertisements for promote mushroom sausages and online sales)

16

Distribution Channel

• Two three wheelers will be used for delivering the products to the markets

17

Sales Forecast

90000

103500

119025

0

20000

40000

60000

80000

100000

120000

140000

2018 2019 2020

Un

its

year

Total Sales

• 15 % sales growth rate is expected

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Operational Plan

Out House Operation

1. Collect Mushroom from farm and nearby mushroom farmers

2. Collect spices, dry and grind properly

3. Design packing materials

19

In House Operation• Ingredients: Oyster Mushrooms, Fine Sea Salt, Garlic, Black Pepper,

clove, Cardamom, Brown Rice Flour

• Steps:

1. Oyster Mushrooms Cleaned

2. Mushroom chopped with Garlic

3. Add the Clove, Black Pepper, Cup Brown Rice Flour, All Spices and salt to the Grinder and mixed well

4. Push the mixture into the vegetarian sausage casings using a sausage-making machine/funnel

5. The wrapped sausages steam for 30 minutes

6. Remove from the steamer and allow the sausages to cool

7. Then refrigerate for 30 or 30+ minutes if possible

8. Check the quality with standard and distribute to the market

20

Personnel Plan

• The personnel plan contains four employees addition to me

No of employee Monthly Salary(Rs)

Sausage Maker 2 15000 per each

Driver 1 10000

Cleaner 1 10000

21

Key Partners

Mushroom

Farmers

Government

Super Markets

Business

Owners

Key ActivitiesProduction of

mushroom

Collecting

Spices

Production of

Sausages

Distribution

Marketing

Value

Propositions

100% Natural

products

Use Sri Lankan

Spices

100%

Vegetarian

Fresh, Spicy

Taste

Health

benefits

Unique

Product

Customer

RelationshipMushroom

Sausage

recipes for

customers

Online web

page

Customer

Segments

Vegetarian

People

Knowledgeable

People

Children

Tourists

(foreigners)

Key ResourcesMachinery

Mushroom

production

unit

Labours

ChannelWeb Site

Social Media

Super Markets

Cost Structure

Raw material cost

Machinery cost

Labour Cost

Packing cost

Revenue Streams

Selling the Product

Business Model

22

Break Even Analysis

40171.41

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

20000 40000 60000 80000 100000

Rev

enu

e

Units

Break Even Analysis

fixed cost Total revenue Total Cost

Breakeven point (unit) = Fixed costContribution

=84360021

=40171.4123

Financial Statements

24

Thank You…..!

M.M.B.S.Silva

UWU/EAG/13/0035

Export Agriculture

3rd Year , 2nd Semester

25