PMPC-OYSTER MUSHROOM PRODUCTION

QUEZON I PROVINCE

DSWD-DAR Convergence on Livelihood Assistance for Agrarian Reform Beneficiaries Project (CLAAP)

I. PROJECT SUMMARY

A. PROJECT TITLE: OYSTER MUSHROOM PRODUCTION

B. PROJECT PROPONENT

Name of ARBO: PINAGBAKURAN MULTI-PURPOSE COOPERATIVE (PMPC)

Location: Agrarian Reform Community (ARC) Cluster CONCEPCION-SAMPALOC,_
Barangay Concepcion Pinagbakuran, Sariaya, Quezon
Name of Contact Person: MS. LORNA E. ALCAYDE _________________________
Position in the ARBO: ___ BOD CHAIRPERSON ___________________________________
Contact No./Email Address: _09092016847__________________________________

C. PROJECT BENEFICIARIES

Particular Total Male Female

No. of ARBs 18 4 14
- Under Listahanan
- Under Pantawid Pamilya 9 0 9
- Determined under SLP
Means Test
No. of non-ARBs/SHFs/ 3 2 1
Farmworkers
Total 30 6 24

D. TOTAL PROJECT COST AND FUNDING SOURCE

Total Project Cost: PhP____760,516.00_____________
Source: CLAAP Funds: 750,000.00 (98.6%)
ARBO Equity: PhP_10,516.00_ (_1.4_%)

E. EXPECTED BENEFITS
No. of jobs created: 32 jobs
Annual net Income: PhP 526,968.00
Return on Investment (enterprise level): 1st cycle/ 46.57%, 2nd cycle/86.20%
Average Annual Net Income per Beneficiary: PhP15,809.04

II. BACKGROUND/RATIONALE

The Convergence on Livelihood Assistance for Agrarian Reform Beneficiaries Project (CLAAP) is
a development partnership between the Department of Agrarian Reform (DAR) and the

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Department of Social Welfare and Development (DSWD) which aims to support DAR’s thrust to
expand and increase farmer’s access to economic opportunities.

The project was introduced in the Agrarian Reform Community (ARC) Cluster Concepcion-
Sampaloc Cluster, Sariaya, Quezon wherein Pinagbakuran Multi-Purpose Cooperative (PMPC) is
located. The ARC CLAAP Orientation was conducted to identify the project beneficiaries that
belong to the marginalized sector in the area. Since this is a collaboration project with DSWD,
members of Pantawid Pampamilyang Pilipino Program (4Ps) are included to be interviewed
under Sustainable Livelihood Project (SLP) Means Test. SLP was undertaken to determine the
qualified 30 project recipients. It was found out through SLP Means Test, there are Agrarian
Reform Beneficiaries (ARBs), ARB Households, smallholder farmers, farm workers and members
of Pantawid Pamilyang Pilipino Program (4Ps) members in the ARC who are in need of assistance
and intervention from the government to boost their income through provision of livelihood
projects.

Farming is the main activity of farmers in the area. The major soil type in the area consists of
mountain soil that requires supplementation of soil nutrients from organic and inorganic
fertilizers. Crop predominantly planted at present are coconuts, coffee, citrus, papaya, banana,
cassava and vegetables. The site is basically a vegetable-producing barangay where most of its
population produces vegetables for their livelihood. However, in spite of being vegetable
growers and producers, crop yield is at low production and cannot cope with the present
demand in the market. Another problem is the community is the scarcity of water resources.
Water is sold at 50 pesos per cubic meter. This is why during the conduct of Agricultural
Extension services on Fruits and Vegetable Production from April to October 2017 it was
identified that Oyster Mushroom Production is recommended as a source of alternative
livelihood.

III. PROJECT OBJECTIVES

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The Oyster Mushroom Production in ARC Cluster Concepcion-Sampaloc as a secondary

commodity aims to alleviate the quality of life of the 30 CLAAP beneficiaries, Six (6) men and 24
women through land productivity and effective marketing system income during these times that
price of coconut is very low.

Specifically it aims to :
 Equip 30 ARBs with the knowledge and skills in Oyster Mushroom Production through
the provision of training by year 2019;
 Provide the 30 ARBs with seed capital assistance to develop and sustain the identified
livelihood/micro enterprises;
 Promote 100% use of organic fertilizers and pesticides in order to produce quality and
healthy oyster mushroom;
 Strengthen partnership with the participating Non-Government Agencies (NGAs), Line
Agencies (LAs), and Local Government Units (LGUs);
 Realized an income of at least 5,000 pesos for the project recipients after the
completion of the first year-second cycle.
 Increase the farm income of the ARBs by at least 18% and
 Ensure 100% sustainability of the project and expansion of the oyster mushroom
production by processing 50% of the produce.
 Improve capacity of woman and man farmers to improve their agricultural production
 Increase number of women adopting new technologies or crops

IV. PROJECT DESCRIPTION AND MAJOR STRATEGIES

Oyster Mushroom Production is a very feasible project in the barangay considering the shortage
of water in the vicinity. At present the cost of water is very high amounting up to 50 pesos per
cubic meter. Growing mushrooms is highly due to low- production cost, abundance of cheap
substrates from agro wastes and high demand, which will be profitable to the mushroom
growers.

The project will train 30 beneficiaries into a full mushroom grower by providing technical
capacity development as follows ;

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No. of No. of No. of Estimated Planned

Type/Title of Training Batches Participants Days per Budget (PhP) Implementation
per Batch Batch Schedule (Month/Year)
1. Enhancement Training on Oyster 1 30 2 50,000.00 March 2019
Mushroom Production &
Management
2. Business Planning Seminar 1 30 5 100,000.00 March 2019
3. Training on Oyster Mushroom 2 15 2 50,000.00 July 2019
Processing
3. Seminar on Policies, Systems & 1 30 2 50,000.00 June 2019
Procedure
4. Farm & Business Management 1 30 2 50,000.00 April 2019
Seminar

The project will provide a seed capital of 15,000 pesos per qualified beneficiary. The seed
capital in the total amount of Php450,000.00 ( 15,000 x 30) will be granted by CLAAP
in kind which includes purchase of production inputs, raw materials, etc). The pre-
selected ARB and Non-ARB members (30) of the PMPC will be the direct recipient
while the organization will be the indirect recipient of this project.

The same strategy will be applied on the next cropping season following the clear-
cut policies approved prior to the implementation of this project stipulating the
sharing arrangement between direct and indirect beneficiaries.

A. Technical Aspect

Intended as a livelihood enterprise, the CLAAP beneficiaries will be engaging in Oyster

Mushroom Production primarily to make available nutritious food in the kitchen and at the same
time as a source of additional income. The average yield per fruiting bag is 1 kilo however it is
assumed that only 75 percent or 0.75 kilos will be sold and the remaining 25 percent equivalent
to 0.25 kilos is allowance for personal consumption and non-quality produce.

The variety of mushroom to be cultured is the White Oyster Mushroom (scientific name :
Pleurotus florida). Below is the detailed information necessary in the said project.

 Criteria for the Site Selection :

1. There should be sufficient space for expansion
2. Fresh water should be available
3. Temperature range of the area should be suitable for the specific mushroom to
be produced
4. Availability of transportation/proximity to market
5. Not too windy and sunny

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 Buildings and Farm Lay-out

1. Farm Design
When designing the farm layout, areas where pests and disease
organisms would normally occur can be classified as “dirty”(for example
where the compost is produced). Movement between these and the
“clean” areas should be restricted.
2. Growing and Storage Areas
Ideally, the growing areas should be sealed at all but on entrance. Strict
quarantine should be enforced with footbaths supplied at all entrance
and the opening of doors kept to a minimum.

In this proposal, it is assumed that we will use ready-made fruiting bags so the process in the
production of substrate bags, pasteurization of bags and inoculation of bags with sorghum
seeds will not be discussed. Then the next process is the incubation of bags.

 Incubation of bags
Clean around and inside the incubation house using a broom. Always inspect for
cleanliness before entering with new spawn bags. Then when the incubation
house is already clean, transfer the fruiting bags to the mushroom incubation
house. Bags can be placed horizontally or vertically. Note: At the beginning, little
ventilation and light should be allowed. After 10 days, the ventilation must be
regulated. At 20-25 days, area should be well- ventilated and more light can be
let in for constant monitoring.

 Growing of Mushrooms
While undergoing incubation, the mushroom house/room must be prepared to
provide all the requirements for fruiting such as cool, temperature, aeration and
humidity.

After one (1) month incubation, transfer the fruiting bags in the mushroom
house/room where they will undergo maturation period for another month. Hang
the fruiting bags inside the mushroom house by using 20 meters of polyethylene
ropes.

Afterwards, open the bags carefully by removing the rubber band, the newspaper
covering and the cotton fibers. The opened mouth will serve as the growing point
of the fruiting bodies.

Maintain the required moisture content of the fruiting bags for the growths of
fruiting bodies by hand spray watering the bags four (4) times a day for the first
25-37 days. The floor and the walls of the house should also be water sprayed.

On the third day, pinheads or primordial will develop. At this time, the bags will
no longer be watered but only the walls and the floor.

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 Harvesting Mushrooms
Harvest period is expected on the fourth and fifth day and harvesting goes for two
(2) to Three (3) days.

In harvesting, remove the whole mushroom including its stump by grasping its
stalk and gently pulling it out. Do not use knife to avoid leaving any stump on the
bed as this would rot and the adjacent mushrooms may be infected.

As much as possible, care must be taken not to disturb the other small buttons.

After fruiting, the bags should rest for five (5) to seven (7) days. During rest period,
monitor the temperature (25oC to 28oC), relative humidity (85 to 90%) and
moisture (65 to 70%). After each rest period, normal flushing or fruiting will follow
and the cycle is repeated. The complete fruiting cycle lasts for a minimum of four
(4) months.
 Post-Harvest Handling of Mushrooms
Mushrooms in the button stage of growth are more succulent, hence they are
more preferred than the fully opened ones.

Harvested mushrooms may be placed in plastic trays or in any other suitable

containers.

Mushrooms will stay fresh up to 5-6 days if placed in refrigerated condition.

B. Marketing Aspect

PMPC shall sell the oyster mushroom that the cluster have produced and will act as the
consolidator in nearby public markets, trading centers like “Sentrong Pamilihang Pang-
Agrikultura ng Quezon” and other potential market outlets such as SM City-Lucena and the
Metro Gaisano Malls.

Operational Aspect

The Department of Agrarian Reform-Quezon 1 through the Provincial Program Beneficiaries

Development Division (PPBDD) is responsible for the full implementation of the project. The DAR
will coordinate and tie-up with Pinagbakuran MPC through Memorandum of Agreement (MOA) in
the achievement of the project objective and shall manage the implementation at the field in
coordination with the participating ARBO. The DAR will do the procurement activities out of the
seed capital of Php15,000.00 per project beneficiary. It includes purchase of fruiting bags,
production inputs, supplies and materials, technology and meals, venue, training kit and other
logistical requirements of the livelihood/microenterprise development, subject to the
procurement rules and regulation under RA No. 9184.

Under the CLAAP project, the thirty (30) identified beneficiaries will be provided with seed capital
of Php15,000.00 each. As per project guidelines, the selected project recipients will be organized

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into clusters with at least 15 members per cluster. Aside from the seed capital of Php 15,000 each,
there will be an additional Php 10,000 budget for each recipient intended for capability building
on care and management of livelihood business to ensure promising result and income.

Enhancing the capability and capacity of the beneficiaries is needed to develop their skills.

V. ORGANIZATION AND MANAGEMENT

A. Brief Profile of the ARBO Proponent

The Lead ARBO, Pinagbakuran MPC (PMPC) is originally registered with the CDA on October 4,
2001 pursuant to Presidential Decress No. 175. The cooperative re-registerd with CDA as per RA
9520 on March 22, 2010.

As of April 2018, PMPC has 71 members consisting of 48 males and 23 females with 48 ARBs. It
has a complete set of officers and Board of Directors(BODs). The cooperative is engaged in of
catering equipment rentals, credit services and Hog Fattening Project under Agrarian Production
Credit Program (APCP).

B. Management Set-up including roles and responsibilities of ARBO and project beneficiaries in the
operation of the enterprise

The project will be managed by the Pinagbakuran MPC. They will set policy systems and
provide direction for the operationalization of the project. The Core Management Team headed
by the Manager shall supervise the overall implementation of the project. He will be supported
by the two COMAT members, the bookkeeper and the cashier.

Operational Policies will be formulated/finalized upon project approval and prior to its
implementation based on the CLAAP Memorandum between DAR and the ARBOs.

For the operation of this project, the following shall be installed:

Project Manager

 Take cares of the over-all operation of the project by providing general direction,
supervision, management and administrative;

 Implement the duly approved policies and procedures or any directive or

instruction of the Board of Directors with regard to the project;

 Provide and submit to the Board of Directors monthly reports on the status of
project and recommend appropriate policy;

 Negotiate and forge contract with the identified buying industry.

 Facilitate planning and implementation.

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Marketing Supervisor

 The Marketing supervisor shall take charge in the buying and consolidating of high
value vegetables from the farmer producers.

 Also in charge of the delivery to the buying partner;

 Encourage more farmers to join in the production program.

Cashier

 Maintain full and complete record of cash transactions;

 Ensure that all cash collections are deposited in accordance with the policies set
by the BOD;

 Have custody of all funds and documentations of all assets, liabilities, income and
expenditures relating to the project;

 Monitor and review the financial management operations of the project subject
to limitations and control as may be prescribed by the BOT;

Bookkeeper

 Install adequate and effective bookkeeping system;

 Responsible for the maintenance of and safekeeping of books and records of

account of the project;

 Responsible for the production of books and records of account at the time of
audit or inspection;

 Prepare Monthly report and gives feedback to the Manager and Marketing
Supervisor during meeting or as the need requires;

Quality Control

 Ensure that the vegetables are in good quality according to the standards of the
buying industrial company;

 Provide training and seminar to the farmer producer to ensure that the required
quality is achieved and to minimize the losses on the part of the farmer producer;

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C. Policies and Procedures to be adopted in the operation of the enterprise.

Policy, Systems and Procedures shall be formulated and adopted in the operation of the
enterprise. As mentioned earlier, project beneficiaries will be provided with seed capital of
Php15,000.00 each and additional Php10,000.00 for the trainings and seminars.

The seed capital of PhP 15,000.00 each for the 30 eligible beneficiaries in the total amount of
PhP 450,000.00 will be used in the implementation of the proposed project. After each cycle,
the seed capital including the net profit will be rolled over to finance the preceding cycles up to
the third year in order to sustain the livelihood enterprise. The profit sharing will be 90 percent
for the CLAAP beneficiary and 10 percent for the Lead ARBO.

VI. FINANCIAL PROJECTIONS

 Projected Cost and Returns (for 3 year operation) – show how much will be the expected annual
net income/profit per beneficiary (per cycle or per year depending on type of enterprise), or
cost and return analysis for one hectare (in case of crop production). Show also the expected
Return on Investment (ROI) of the enterprise.

Schedule 1. Projected Income Statement

Note: Indicate as footnote the detailed assumptions per cost item.

 Discuss other benefits of the project in terms of employment generated, effects in terms of
expansion of agricultural production or increase in productivity per hectare in comparison to
the present condition of beneficiaries

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VII. PROMOTION OF GENDER EQUALITY

The 30 selected project beneficiaries involved in this project are composed of ARB/ARB
Households, farm workers and 4Ps members of which 6 are males and 24 are females. Since
most of them are females the project intended is manageable by women members. If both
men and women help each other, work will be done easier and time and resources will be
managed effectively and efficiently.

VIII. PROJECT COST AND FUNDING SOURCES

A. Project Cost Summary

Component Project Cost by Funding Source (PhP)

CLAAP ARBO Equity Total
a. Technical Capacity Development 300,000.00 300,000.00
b. Seed Capital Assistance 450,000.00 10,516.00 460,516.00
Total 750,000.00 760,516.00

B. Breakdown of Project Cost Estimates

Component/Activity Specifics Quantity Unit Cost (PhP) Total Amount

(PhP)
a. Technical Capacity
Development
Training1 Enhancement Training 2 days x 30 834.00/day 50,000.00
on Oyster mushroom pax
Production
Management
Training2 Business Planning 5 days x 30 667.00/day 100,000.00
Seminar pax
Training3 Training on Oyster 2 days x 30 834.00/ day 50,000.00
Mushroom Processing pax
Training4 Seminar on Policies, 2 days x 30 834.00/ day 50,000.00
Systems & Procedure pax
Training5 Farm & Business 2 days x 30 834.00/ day 50,000.00
Management Seminar pax
Sub-total 300,000.00
b. Seed Capital Assistance
Labor Cost 10,000.00
Material Cost 399,560.00
Contingency (10%) 40,956.00
c. Land Rental (ARBOs 10,000.00
equity)
Sub-total 460,516.00
Total 760,516.00

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IX. MONITORING AND EVALUATION

The DAR and PMPC will monitor the project during and after its implementation for sustainability.
The cluster members will do the recording and taking care of the livelihood enterprise.

It is better to assess and measure if the project objectives were met and see to it that the
expected output and outcome were delivered effectively and efficiently? Major part of the
monitoring and evaluation is to determine the output gained from the project. It is proper to
monitor and evaluate the following output:

1. Income of 30 CLAAP beneficiaries

2. Seed capital of Php15,000.00 each provided to 30 beneficiaries
3. Technical capability and capacity development conducted
4. Increase in percentage in income by 15% at the end of December 2019
5. Management of the project by the cooperative

X. SUSTAINABILITY PLAN

The Department of Agrarian Reform is committed to provide support and technical

assistance to match the commitment of the ARBO and member-beneficiaries for the
sustainability of the project.

The Pinagbakuran MPC as the lead ARBO will sustain the project by continually adopting the
new livelihood business and learning how to maximize income by building strong links with
the internal and external markets.

Adoption and taking care of the livelihood business promotes additional income. Other
members who would want to have an extra income will undergo the same process of farm
enterprise and can coordinate with PMPC. The gains of the coop from this project can be
used for the roll-over.

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XI. ATTACHMENTS
 List of CLAAP Beneficiaries
 ARBO/FO Resolutions
 Municipal/Barangay Map indicating location of proposed enterprise

Prepared by: Reviewed by :

EPIFANIA N. CARDOZA ELENITA A. HERRERIA

ARPO I/DF OIC-CARPO, PPBDD

Recommending Approval : Approved by :

CELESTINA M. SANTAYANA RENE E. COLOCAR

OIC-PARPO II Regional Director

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