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NYARI & NGERENYA COMMUNITY BASED ENTERPRISES

FINANCED BY: CARRIED OUT BY:

NATURE KENYA

P.O. BOX 44486 - 00100

NAIROBI, KENYA

E-MAIL: office@naturekenya.org

SIMON G. ANYONA

COMMUNITY AND ORGANIZATIONAL DEVELOPMENT

INSTITUTE (CODIT INSTITUTE)

P.O. BOX 41670 – 00100

NAIROBI, KENYA

E-MAIL: office@codit.org

MUSHROOM FARMING

VALUE CHAIN ANALYSIS

& BUSINESS PLAN

2009

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Abbreviations:

CBO - Community Based Organization

CBS - Central Bureau of Statistics

CODIT - Community and Organizational Development Institute

FFS - Farmer Field School

HACCP - Hazard Analysis and Critical Control Points

KAPP - Kenya Agricultural Productivity Program

KEBS - Kenya Bureau of Standards

Kg - Kilogram

KRA - Kenya Revenue Authority

Ltd - Limited

Ml - Milliliters

NK - Nature Kenya

SHG - Self Help Group

Sh - Shilling

VAT - Value Added Tax

VCA - Value Chain Analysis

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TABLE OF CONTENTS:

ABBREVIATIONS: ................................................................................................................. 2

1. INTRODUCTION AND BACKGROUND: ............................................................................. 4

1.1 Current status of mushroom production in Kenya: ................................................... 4

1.2 The oyster mushroom: ............................................................................................... 4

1.3 Mushroom farming in Kilifi District: ........................................................................ 4

2. MUSHROOM VALUE CHAIN ANALYSIS .......................................................................... 6

2.1. Value Chain Map: .................................................................................................... 6

2.2. Functions and actors within the mushroom value chain: ......................................... 6

2.2. Functions and actors within the mushroom value chain: ......................................... 7

2.2.1. Input supply: ...................................................................................................... 7

2.2.2 Production: ......................................................................................................... 8

2.2.3. Markets and marketing: ..................................................................................... 8

3. THE MUSHROOM BUSINESS PLAN: ................................................................................. 9

3.1 Is there a business opportunity? ................................................................................ 9

3.2 Current status of the business: ................................................................................. 10

3.3 Challenges the groups have been facing: ................................................................ 11

3.3.1 Lack of commitment from members: ............................................................... 11

3.3.2 Lack of locally available cheap and high quality spawn:................................. 11

3.3.3 High cost of inputs: .......................................................................................... 11

3.3.4 Low production levels: ..................................................................................... 11

3.3.5 Collapse of Songea Water Project:................................................................... 12

3.4 Production cost and market prices: ......................................................................... 12

4. SUMMARY AND WAY FORWARD: ................................................................................. 14