important elements of the project. It is impor- tant at this stage to take a strategic approach and examine the specifics at macro level. During this stage, your own strengths and ambitions should be considered in depth and factored into the concept. But equally important are the environmental conditions, the target market you are going to produce for, the necessary per- mits and last, but not least: arranging financing.
• Know your own company/environment. The simplest way to do this is by making a SWOT analysis. What are your strengths, weaknesses, opportunities and threats?
Pitfall: If you want to invest in ‘high tech’ your entire company must be ready for this step. You need to have the right people capable of suppor- ting and managing this technology. In addition, in many parts of the world, sourcing and keeping labour is becoming increasingly difficult for mushroom farms that harvest manually. You should ask yourself what the situation currently is in your region, and what it is likely to be in five years’ time. What are the alternatives?
• What is the goal of your company/ organisation?
Every company and situation is different, but it is important to know whether you intend to sell compost, produce compost for your own use or both in the future. Time has shown that various, different systems have developed and been improved in various markets.
There are fully vertically integrated companies, large composting companies that only sell com- post, but also composting companies that trade in mushrooms but delegate growing activities (partly) to third parties.
Pitfall: A failure to create sufficient scale to excel in one link in the mushroom growing supply chain. If you integrate vertically you need to be able to focus on producing substrate, growing mushrooms and marketing and selling your produce. Each of these components requires specialist knowledge and attention to be succes- sful. This can be challenging for smaller-scale companies. Producing small volumes of compost is also often more complicated than producing larger volumes. This is often linked to knowledge and levels of investment, but also to the fact that batches are small, and fluctuations in the availability and quality of the raw materials cannot be compensated for to a sufficient extent.
At vertically integrated companies, you often see that a dip in the supply not only means you have to buy mushrooms from elsewhere so you can continue to serve your customers, but also
Expansions at Coenegrachts Substrate in Belgium in 2012. The thought process of expanding an existing compost yard is rather similar to so-called greenfield construction.
causes lower production. So it costs you money on two fronts. In addition, the availability of labour is increasingly becoming a factor that affects strategic choices. The sector has invested heavily in reducing labour costs but now it is more vital to invest in securing labour availability.
• Market.
Depending on your specific situation, you will have to investigate potential market develop- ments in the future. By the market I mean your primary, direct customer. This can be a grower and/or a processor. It is also vital to have a clear picture of your competitors/colleagues and a good idea of the direction their future develop- ment is likely to take. What stage is your local market in: niche market, development/growth or scaling-up stage. Local production - the importance of producing for the local consumer market is gaining momentum, but you have to bear in mind that substrate and fresh mushrooms can be transported over ever greater distances. So do not confine your scope just to your local market but take a wider geographical view.
Pitfall: Overproduction in an existing market. This pressurises the price structure, drives up-scaling but also increases professionalism of the industry. How agile are you or do you want to become as a business? Are you flexible - or willing - enough to engage in the battle for business?
• Funding.
The possibility to fund, or arrange financing, greatly depends on your plans and financial health and status. Interest and depreciation rates are fairly stable, but it is crucial to properly define the fluctuating costs of the raw materials
It is vital to have a clear picture of your market and your competitors.
MUSHROOM BUSINESS 35
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48
