KENYA’S MUSHROOM INDUSTRY BUSINESS INVESTMENT OPPORTUNITIES.
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Transcript of KENYA’S MUSHROOM INDUSTRY BUSINESS INVESTMENT OPPORTUNITIES.
KENYA’S MUSHROOM INDUSTRY
BUSINESS INVESTMENT OPPORTUNITIES
Overview of the Study
• Agri-Pro Focus initiated an exploration to identify business opportunities in Kenya’s mushroom industry.
• Objective; To facilitate business linkages across countries.
• By sharing information across countries and to industry actors on market size of potential opportunities,
• And brokering linkages to potential business partners – directly and indirectly.
Methodology Methodology • Interview of key actors in mushroom value chain;
input suppliers, producers, and marketers.
• Focus was on actors that can engage potential partners on a B2B level.
Limitations
• Few B2B level players in the mushroom industry
• Getting information from market actors.
Estimation of the market size was therefore based on information from very limited actors.
Findings: OverviewFindings: Overview
• Kenya has an estimated demand of between 540-1200 tons of mushrooms annually.
• Commercial production started in 1997 with 4 firms; Agridutt, Eldoret Mushrooms, Rift Valley Mushrooms and Olive mushrooms.
• Commercial varieties produced are button and oyster. Others are Shitake, Reishi, Gernoderma and Potabela.
Production and Production and MarketingMarketing
• The industry is still nascent with an estimated 200 with less than 5 large scale growers.
• Large scale producers account for about 60% of production estimated at 500 tons annually.
• Average production capacity is; 8 tons monthly for large scale producers and 20 to 100 Kg for small scale producers.
• Tourists and the upper and middleclass population in Nairobi and Mombasa constitute the largest market.
• But the demand outstrips supply – Kenya imports approximately 150 tons annually.
Limitations in the Limitations in the industryindustry
• Technology; most small holder producers have inadequate skills in mushroom production.
• Production structures; control of the environment in mushroom growing structures is a challenge.
• Spawn; 80% of spawn used in Kenya is imported. Some firms multiply and sell to small holder producers but failure rate is high.
• Substrate; most farmers have challenges developing their own substrate.
• Value addition technologies are limited making marketing of mushrooms a challenge
Business OpportunityBusiness Opportunity
• Production and supply of quality spawn;
• Production and supply of substrate
• Supply of production technologies.
• Supply of Post-harvest handling and processing
technologies
Demand DriversDemand Drivers• Large scale producers’ demand for inputs is
influenced by the market demand.
• Small holder farmers get into mushroom
production as a result of influence from others.
Businesses Businesses PartnershipsPartnerships
Olive Mushrooms Ltd.
•Establishing a modern lab to produce spawn
•Processing mushroom and access to European
markets
ENDEND