Canned Mushroom (Export Oriented)

Introduction

Mushroom, a fungus fruit body, is considered a delicious food all over the world because of its taste aroma and structure. It is full of nutrients, low in calories, high in proteins, Vitamins, Minerals and a rich source of folic acid. It is an alternate choice for weight conscious people and anaemic patients. It has 4.9% protein content which is more than cow milk, green vegetables such as beans, etc.

Mushrooms are highly perishable commodity and should be marketed and consumed as soon as possible after harvest because of their high moisture content (90.92%). However, its shelf-life can be enhanced for a larger period by way of processing. Generally mushrooms are processed-frozen, dried and canned.

This project profile has been prepared for canning of mushrooms for a 100% Export-Oriented Unit. The Agricus bisporus (White button) type of mushroom is suitable and preferred for commercial canning.

Some of the benefits for Export-Oriented Units are mentioned below:—

1. The unit may import free of duty capital goods, raw materials, components prototypes, office equipments and consumables for office equipments, material handling equipments, etc.

2. An Export Oriented Unit/Export Processing Zone (EOU/EPZ) Unit may export goods manufactured through an Export House/Trading House/Star Trading House.

3. Foreign equity upto 100% is permissible in case of EOUs and EPZ units.

4. EOU/EPZ units will be eligible for concessional rent for lease of industrial plot and standard design factory building sheds.

5. EOUs/EPZ units will be exempted from payment of corporate income tax for a block of five years during the first eight years of operations.

6. Net foreign exchange earned by an EOU/EPZ unit can be clubbed with the net foreign exchange of its parent/associate company in the domestic tariff area for the purpose of according Export House, Trading House or Star Trading House status later.

Market Potential

It has been estimated that the export market of canned mushrooms in the world trade is about US $1.0 billion. The world trade of mushroom is expected to reach a staggering figure of US $ 15 billion by next 5 years. The present global demand of mushroom is about 115,000 tonnes per annum. It is also estimated that the gap between the demand and supply of mushroom in the world market is around 25 lakh tonnes. The consumption of mushroom is going up at the rate of around 10% in international market. At present, China, Taiwan and Indonesia are the main producers of mushroom products which also capture the major share of world market. Over 50% of the total world production of the mushroom, is sold in fresh form, mainly in producers’ domestic markets. The balance is processed i.e. dried, frozen, canned etc. It has also been estimated that 50% of the mushrooms for processing are canned.

The major importing countries are Germany, U.S.A., Canada, Japan, Australia, etc. In India, present production is around 30000 M.T. As per the information available from APEDA (2001–2002), 15897 M.T. of Mushroom of the value of Rs. 72,47,54,829 is exported. Total export is divided into two categories i.e. Fresh Mushroom 1,17,97,631 Kg, Value Rs 51,05,30,325 and prepared and preserved 40,99,258 kg, value Rs. 21,42,24,504 which is a very negligible figure as compared to the world share.

Basis and Presumption

1. This project is based on two shifts and 300 working days in a year.

2. To run the unit viably throughout the year, the other fruits and vegetables can be canned with the same machinery and equipments whenever mushroom is not available.

3. The yield of canned mushroom has been considered as 60% based on fresh mushroom. The drain weight of canned mushroom has been taken as 440 gms. in each A-2-1/2 can.

4. The cost of machinery and equipments/materials indicated refers to a particular make and the prices are approximate to those prevailing at the time of preparation of this profile.

5. The cost of packaging, forwarding, tax, etc., is taken @ 10% of the cost of machinery and equipments.

6. The cost of installation and electrification is taken @ 10% of the cost of machinery and equipments.

7. Non-refundable deposits-project cost, trial production, FPO fees, etc., are considered under preoperative
expenses.

8. Depreciation has been taken on:

(i) Building @ 5%, and
(ii) Plant and Machinery @ 20%.

9. Interest on total capital investment has been taken @ 12% per annum.

10. Minimum 40% of the total investment is required as margin money.

11. Pay back period of the project will be 7 years with yearly instalments.

12. Break-even Point has been calculated on the full capacity utilization.

13. For smooth functioning of the unit, it is suggested that unit should have own arrangements for cultivation of mushroom for consistency and regular availability of quality raw materials.

14. Mushroom cuttings/stems can be utilized for preparation of mushroom pickles and sold in local markets to get additional profit.

Implementation Schedule

The following steps are involved in implementation of the project:

(a) Selection of site
(b) Form of ownership
(c) Feasibility report
(d) Registration with DIC
(e) Arrangement of finance (term loan and working capital)
(f) Construction of factory shed and building
(g) Procurement of machinery and equipment
(h) Plant erection and electrification
(i) Recruitment of manpower
(j) Arrangement of raw material including packaging material
(k) Selection of marketing channel
(l) Miscellaneous: power and water Connection, Pollution Control Board Clearance, etc.

As it is a 100% Export Oriented Unit of canned mushroom, normally two years are required to implement the project. Efficient planning and simultaneous operations will be major factors for timely start of the production.

Technical Aspects

Process of Manufacture White button mushrooms (Agarious bisporus) are preferred over other types
of mushrooms for canning. Commercially, mushrooms are canned in brine. The process involves the
following steps:

(a) Picking: Mushrooms are picked at button stage (cap. diameter 2-2.5 cm) by gentle hand twisting. The soil and portion carrying any microbial flora is then cut off/removed with the help of a sharp edge stainless steel knife/blade. The stalk length should preferably be kept 0.5-1 cm. long.

(b) Sorting and Grading: Diseased, damaged/bruised, shrivelled and browned mushrooms are discarded andonly the healthy white and tight buttons are selected and separated into two grades i.e. cap. diameter up to 2.5 cm with compact head as ‘A’ and cap. diameter beyond 2.5 cm as ‘B’ grade.

(c) Washing: Graded mushrooms are thoroughly washed 3-4 times in cold running water to remove adhering dirt, soil, etc. without damaging or rubbing them excessively.

(d) Blanching: To inhibit enzymatic activity, blanching is necessary. It also inactivates micro-organisms and removes the air from the raw materials to achieve a satisfactory and uniform pack.

Mushrooms are blanched in boiling water for 2-3 minutes followed by immediate cooling in cold water. However, to reduce leaching losses,steam blanching is preferred, because the leaching losses in boiling water had been estimated to be about 30%.

(e) Filling of Cans: Mushrooms are commercially packed in two can sizes i.e. A-1 tall can and A-2.5. A-1 tall cans are preferred by retailers while A-2.5 cans are liked by hoteliers, exporters and other establishments. The blanched mushrooms are filled into cans with declared drain weight i.e. 440 gms in A-2.5 can.

(f) Brining: After filling the cans with mushrooms strained hot brine solution of 2% common salt, 1% sugar and 0.05% citric acid is added upto the brim of the can. Brining adds flavour to the product, reduces processing time and enhances the shelf life of canned mushrooms.

(g) Exhausting: After brining, cans are exhausted to remove any entrapped air and other accumulated gases from the product to ensure a longer shelf life.

Cans filled with brine solution are fed to the exhaust box for a specified period of time depending upon the length of exhaust tunnel and size of container. The shorter the tunnel, the longer will be the time required for exhausting. Exhausting can also be performed by placing the filled cans in boiling water till temperature of the centre of can reaches 85 - 90º C for 1-2 mts.

(h) Seaming/Can Closing: Immediately after exhausting, cans are sealed with the help of a double seamer to get hermetically sealed container. Sealed cans are then placed in upside down position to sterilize the closed lids.

(i) Processing/Sterilization: Processing, also designated as sterilization, is an indispensable unit operation in canning. This is accomplished by processing the hermetically sealed cans at a pressure of 15 lbs PSI for a specified period of time depending upon the size of can and altitude of processing place. However, for areas like Shimla, processing time for A-2.5 size cans is recommended to be 45 minutes.

(j) Cooling: Cooling of cans is done immediately after sterilization in cold running water to room temperature in order to give an abrupt shock to the micro-organisms to get rid of their adverse activities.

(k) Labelling and Storage: The cooled cans are stored in a cool dry place and smeared with grease to
remove any adhering moisture from the can body to avoid rusting. Cans are kept at ambient temperature for 8-10 days to check any swell, leakage, puffing and other disorders before labelling.

Before the cans are exposed for sale, proper labelling is done to meet statutory requirements of Fruit Products Order, 1955, Prevention of Food Adulteration Act, 1954 and Packed Commodities (Regulation) Act, 1975.

Quality Control and Standards

The specifications of Fruit Products Order, 1955 and Prevention of Food Adulteration Act, 1954 Certification are mandatory. The canned mushrooms should conform to the specifications laid down in F.P.O. 1955.

The ISO 9000-2000, HACCP, ISO-14000 series and European norms series standards promise a frame work which may guide the entrepreneurs towards fulfilment of a commitment of quality of products.

ISO series standards are available with the Bureau of Indian Standards from their headquarters office:
9, Bahadurshah Zafar Marg, New Delhi-110002.

Production Capacity (per annum)

Pollution Control

The entrepreneurs are advised to contact concerned State Pollution Control Board for detailed guidance in the matter.

However, the water effluent in this industry is generated during cleaning, washing, pre-treatment, blanching of raw materials. It is advisable to test the water discharge as per specifications laid down by the Bureau of Indian Standards. The provision of such treatment has been made in the profile.

Energy Conservation

Although the energy requirement is small yet some important points for conservation of energy are given below:

1. In electrical installations appropriate electric motors should be used and properly installed.
2. There should be no leakage of steam from pipe line.

Financial Aspects
A. Fixed Capital

(ii) Machinery and Equipment

B. Working Capital (per month)

i) Personnel

(ii) Raw Material

(iii) Utilities

(iv) Other Contingent Expenses

V) Working Capital for 3 months Rs. 3,81,45,000

Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com