'In just 90 days, I could get over Shs. 50 million from the 7,000 stems of oyster mushrooms I grew. Each stem produces an average of 1.5kg of mushrooms because 90 day period, and a kilo of mushrooms ranges from between Shs. 5000 and Shs. 8000.'
Mr. Kiddu Abel of the African Grower's association (U) Limited
Mr. Kiddu who's referred to above is right, mushrooms do grow quick. Their complete growth cycle is an average of 15 weeks (about 4 months), even when utilizing rudimentary methods. In Uganda it's common to grow them with polythene bags suspended from the ceiling/roofs of dark grass thatched huts. The polythene bags being stuffed with damp cotton seedlings along with maize brand, cotton or timber waste. With modern methods however matrix bars mushroom., the mushrooms commence to sprout after 1-3 days.
So with the above in mind, how do you start to generate income to "feed the gods" of Kampala and it's surrounding areas?
FIRST THE CONS
1. Small Market.
Whilst mushrooms are technically not vegetables, they are often classified therefore and owing to a low-level of disposable income, they are often not considered essential by Ugandans and therefore market is often limited by supermarkets and several markets. The East African and International markets depending on a few other research reports I have viewed seem to exhibit that exports from Uganda would not be competitive in comparison with other countries. Industry will not therefore be significant but I however believe that the demand still outstrips the supply and with an increasing middle class, it's expected that demand for mushrooms will continue steadily to grow.
2. Perish ability
Mushrooms are highly perishable and must be consumed fast or properly preserved just after harvest; either through drying them or freezing. For the more complex farmer, I would recommend that you preserve them by drying them using a tunnel dryer. A tunnel dryer is estimated per Uganda Investment Authority (UIA) to cost $250. At September 2012's exchange rate that is about Shs 632,000. I however expect that to be the non commercial type since the commercial ones have been in the number of $6,500 but I think the non commercial is a good starting point. There is of course a chance that the creative manufacturers of Katwe near Kampala can make you a local tunnel dryer.
An alternative to drying is to have refrigeration facilities to keep them fresh as some consumers including export markets prefer fresh to dried mushrooms.
3. Water.
Mushrooms need constant way to obtain water and a moist dimly lit environment to grow favorably. We therefore recommend having an underground water tank to ensure constant way to obtain water.
4. Edible types.
Identifying and consuming only the edible types is difficult, poisonous types with harmful toxins can certainly be mistaken for edible ones. I'd recommend that you contact an experienced grower to help you get the commercial and edible type of mushrooms. The most frequent types in Uganda being the oyster and the button types.
AND NOW THE PROS
1. Little Space.
Growing mushrooms doesn't need plenty of land or space. It is specially fitted to a Kampala suburb dweller and mushrooms could be grown in your backyard or store.
2. Simple process.
Mushroom growing is straightforward and doesn't require plenty of expertise and intensive care. The art of mushroom growing could be mastered quickly and easily as compared to other agricultural products or plants.
A word of caution, inspite of the easy learning, it's worth visiting a farmer in Uganda to obtain first hand training. You can try Kabale district which owing to its cooler climate is renowned for mushroom growing and even has modern commercial facilities.
3. Profitability and return on investment.
I estimate the Return on Investment because of this sector is as follows:
Launch capital (A): Shs.4,420,000
Profitability (B): 19,170,000
Return on Capital (A/B): 0.23 years
Final word
Mushroom growing is simple to master and with low start-up costs and returns in about 3 months as shown above. This is therefore a cracking venture to start. It can also be a sustainable venture as mushrooms are an excellent alternative supply of protein.
Mushroom growing therefore has got the double good thing about being profitable and beneficial to the city (as a healthy living option).
Otherwise best of luck!
For over 8 years I have worked with several clients providing audit, accounts, tax and advisory in sectors which range from agriculture, mining, entertainment, financial services and technology.
My client portfolio in Uganda, The Bahamas and The Channel Islands, United Kingdom has equally been diverse and this experience has given me a "well rounded" view of business including several clients in this sector.