This document outlines the requirements for manpower, materials, land, and cost evaluations for growing approximately 10 tons of oyster mushrooms per month. The evaluations include two scenarios: one where the land is owned and one where the land is leased, for both South African and Austrian contexts. At the end of each scenario, we will calculate the cost per kg of mushrooms.
Land Area and Growing Space Requirements
- Total Space Needed: 2666 cubic meters for growing mushrooms.
- Total Bags Needed per Month: 1333 bags, with each bag occupying 1 cubic meter of space.
- Growing Period: 60 days (bags rotated weekly).
South African Scenario
Assumptions:
| Category | Details |
| Minimum Wage | R25.42/hour |
| Additional Pay | R3,000/month |
| Total Pay per Hour | R42.47/hour |
| Hours per Month | 176 hours |
| Monthly Salary per Worker | R10,472.64 |
| Number of Workers | 4 workers |
| Total Worker Cost per Month | R41,890.56 |
| Farm Manager Salary | R50,000 |
| Total Labor Cost (Workers + Manager) | R91,890.56 |
| Manpower | 4 workers |
| Bags Prepared per Day | 31 bags/day |
| Bags Prepared per Week | 155 bags/week |
1. Material Costs
| Category | Leased Land (R) | Owned Land (R) |
| Straw | R 20,000.00 | R 20,000.00 |
| Plastic Bags | R 4,265.60 | R 4,265.60 |
| Water | R 1,166.40 | R 1,166.40 |
| Labor (incl. manager) | R 91,890.56 | R 91,890.56 |
| Rent | R 93,310.00 | R – |
| Electricity | R 8,100.00 | R 8,100.00 |
| Additional Supplies | R 5,332.00 | R 5,332.00 |
| Total Cost (per month) | R 209,748.16 | R 126,754.56 |
2. Labour Costs
| Labour Category | Amount Needed | Salary per Month | Total Monthly Cost | Calculation |
| Farm Manager Salary | 1 Manager | R50,000 | R50,000 | Fixed salary |
| Worker Salaries | 4 Workers | R10,472.64 per worker | R41,890.56 (4 workers) | R42.47/hour x 8 hours/day x 22 days/month = R7,472.64 + R3,000 = R10,472.64 |
| Total Labour Cost | 4 Workers + Manager | R91,890.56 | 4 x R10,472.64 + R50,000 = R91,890.56 |
3. Facility and Utilities
South Africa Facility and Utilities (Leased Land)
| Expense Category | Amount Needed | Cost per Unit | Total Monthly Cost | Calculation |
|---|---|---|---|---|
| Rent (if leased) | 2666 cubic meters | R35/cubic meter | R93,310 | 2666 cubic meters x R35/cubic meter = R93,310 |
| Electricity | 4.5 kWh/hour, 24 hours/day | R2.50/kWh | R8,100 | 4.5 kWh x 24 hours/day x 30 days/month x R2.50 = R8,100 |
| Additional Supplies (Updated) | 1333 bags + R750/month | R3.20/bag | R5,332 | 1333 bags x (R3.50 + R0.50 + R0.25) = R5,332 |
| Total | R106,742 | Total = R93,310 + R8,100 + R5,332 |
South Africa Facility and Utilities (Owned Land)
| Expense Category | Amount Needed | Cost per Unit | Total Monthly Cost | Calculation |
|---|---|---|---|---|
| Rent (if owned land) | No rent | – | R0 | No rent |
| Electricity | 4.5 kWh/hour, 24 hours/day | R2.50/kWh | R8,100 | 4.5 kWh x 24 hours/day x 30 days/month x R2.50 = R8,100 |
| Additional Supplies (Updated) | 1333 bags + R750/month | R3.20/bag | R5,332 | 1333 bags x (R3.50 + R0.50 + R0.25) = R5,332 |
| Total | R13,432 | Total = R0 + R8,100 + R5,332 |
4. Total Estimated Monthly Costs (South Africa)
| Total Estimated Monthly Costs (South Africa) | ||
| Category | Cost (ZAR) – Leased Land | Cost (ZAR) – Owned Land |
| Straw | R20,000 | R20,000 |
| Plastic Bags | R4,265.60 | R4,265.60 |
| Water | R1,166.40 | R1,166.40 |
| Labor (incl. manager) | R91,890.56 | R91,890.56 |
| Rent | R93,310 | R0 |
| Electricity | R8,100 | R8,100 |
| Additional Supplies | R5,332 | R5,332 |
| Total Monthly Costs | R224,064.56 | R130,754.56 |
Cost per kg of Mushrooms
Leased Land: R224,064.56 / 10,000 kg = R22.41 per kg
Owned Land: R130,754.56 / 10,000 kg = R13.08 per kg
Austrian Scenario
Assumptions:
| Category | Details |
| Minimum Wage | €10.00/hour |
| Monthly Salary per Worker | € 1,760.00 |
| Number of Workers | 3 workers |
| Total Worker Cost per Month | € 5,280.00 |
| Farm Manager Salary | € 15,000 |
| Total Labor Cost (Workers + Manager) | € 20,280.00 |
| Manpower | 3 workers for substrate preparation and bagging |
1. Material Costs
| Category | Leased Land (€) | Owned Land (€) |
| Straw | € 1,200.00 | € 1,200.00 |
| Plastic Bags | € 293.26 | € 293.26 |
| Water | € 23.33 | € 23.33 |
| Labor (incl. manager) | € 20,280.00 | € 20,280.00 |
| Rent | € 13,330.00 | € – |
| Electricity | € 486.00 | € 486.00 |
| Additional Supplies | € 5,332.00 | € 5,332.00 |
| Total Cost (per month) | € 41,134.59 | € 27,614.59 |
2. Labour Costs
| Category | Amount Needed | Cost per Unit | Total Monthly Cost | Calculation |
|---|---|---|---|---|
| Farm Manager Salary | 1 Manager | €15,000/month | €15,000 | Fixed salary |
| Worker Salaries | 3 Workers | €10/hour | €1,760 per worker | €10/hour x 8 hours/day x 22 days/month = €1,760 |
| Total Labour Cost | 3 Workers + Manager | €20,280 | 3 workers x €1,760 + €15,000 = €20,280 |
3. Facility and Utilities
Austria Facility and Utilities (Leased Land)
| Expense Category | Amount Needed | Cost per Unit | Total Monthly Cost | Calculation |
| Rent (if leased) | 2666 cubic meters | €5/cubic meter | € 13,330 | 2666 cubic meters x €5/cubic meter = €13,330 |
| Electricity | 4.5 kWh/hour, 24 hours/day | €0.15/kWh | € 486 | 4.5 kWh x 24 hours/day x 30 days/month x €0.15 = €486 |
| Additional Supplies (Updated) | 1333 bags + €50/month | €3.20/bag | € 5,332 | 1333 bags x (€3.50 + €0.50 + €0.25) = €5,332 |
| Total | € 19,148 | Total = €13,330 + €486 + €5,332 |
Austria Facility and Utilities (Owned Land)
| Expense Category | Amount Needed | Cost per Unit | Total Monthly Cost | Calculation |
| Rent (if owned land) | No rent | – | € 0 | No rent |
| Electricity | 4.5 kWh/hour, 24 hours/day | €0.15/kWh | € 486 | 4.5 kWh x 24 hours/day x 30 days/month x €0.15 = €486 |
| Additional Supplies (Updated) | 1333 bags + €50/month | €3.20/bag | € 5,332 | 1333 bags x (€3.50 + €0.50 + €0.25) = €5,332 |
| Total | € 5,818 | Total = €0 + €486 + €5,332 |
4. Total Estimated Monthly Costs (Austria)
Scenario 1: When the Land is Leased
| Category | Cost (EUR) – Leased Land |
| Straw | € 1,200 |
| Plastic Bags | € 293.26 |
| Water | € 23.33 |
| Labour (incl. manager) | € 20,280 |
| Rent | € 13,330 |
| Electricity | € 486 |
| Additional Supplies | € 5,332 |
| Total | € 40,944.59 |
Scenario 2: When the Land is Owned
| Category | Cost (EUR) – Owned Land |
| Straw | € 1,200 |
| Plastic Bags | € 293.26 |
| Water | € 23.33 |
| Labour (incl. manager) | € 20,280 |
| Rent | € 0 |
| Electricity | € 486 |
| Additional Supplies | € 5,332 |
| Total | € 27,614.59 |
Cost per kg of mushrooms (Leased Land): €40,944.59 / 10,000 kg = €4.09 per kg
Cost per kg of mushrooms (Owned Land): €27,614.59 / 10,000 kg = €2.76 per kg
5. Total Estimated Monthly Costs All
| Context Scenario | Total Cost | Cost per kg |
| South Africa – Leased Land | R224,064.56 | R22.41/kg |
| South Africa – Owned Land | R130,754.56 | R13.08/kg |
| Austria – Leased Land | € 40,944.59 | €4.09/kg |
| Austria – Owned Land | € 27,614.59 | €2.76/kg |
Cash Flow
1. List of Expenses Provided For:
South Africa (Leased and Owned Land)
- Straw (Substrate): R20,000 per month.
- Plastic Bags: R4,265.60 per month.
- Water: R1,166.40 per month.
- Labour (4 Workers + Manager): R91,890.56 per month.
- Rent (Leased Land): R93,310 per month (for the leased scenario).
- Electricity: R8,100 per month.
- Additional Supplies: R5,332 per month.
Austria (Leased and Owned Land)
- Straw (Substrate): €1,200 per month.
- Plastic Bags: €293.26 per month.
- Water: €23.33 per month.
- Labour (3 Workers + Manager): €20,280 per month.
- Rent (Leased Land): €13,330 per month (for leased scenario).
- Electricity: €486 per month.
- Additional Supplies: €5,332 per month.
2. Assumptions Used in the Cash Flow Calculations:
- Sales Growth:
- Months 1-3: No sales during the setup phase.
- Months 4-6: Sales of 200 kg/day.
- Months 7-9: Sales of 500 kg/day.
- Months 10-24: Sales of 800 kg/day.
- Gross Profit Margin: 30%.
- Interest Rate: Prime + 3% = 10%.
- Payment Terms: 30-day delay in receiving payments.
- Cost Assumptions:
- South Africa Leased Land: Total monthly fixed cost of R224,064.56.
- South Africa Owned Land: Total monthly fixed cost of R130,754.56.
- Austria Leased Land: Total monthly fixed cost of €40,944.59.
- Austria Owned Land: Total monthly fixed cost of €27,614.59.
3. Month When the South African Operation Will Be Cash Positive:
- South Africa Leased Land: Cash-positive in Month 13.
- South Africa Owned Land: Cash-positive around Month 9.
EBITDA (Nett Profit) for Year 1 and Year 2 (SA and Austria):
| Scenario | Year | Total Revenue | Total Costs | EBITDA |
| South Africa Leased Land | Year 1 | R2,737,080 | R2,688,774.72 | R48,305.28 |
| South Africa Owned Land | Year 1 | R1,843,440 | R1,569,054.72 | R274,385.28 |
| Austria Leased Land | Year 1 | € 448,980 | € 409,445.90 | € 39,534.10 |
| Austria Owned Land | Year 1 | € 278,580 | € 261,650.90 | € 16,929.10 |
| South Africa Leased Land | Year 2 | R5,806,560 | R2,688,774.72 | R3,117,785.28 |
| South Africa Owned Land | Year 2 | R5,806,560 | R1,569,054.72 | R4,237,505.28 |
| Austria Leased Land | Year 2 | € 842,400 | € 409,445.90 | € 432,954.10 |
| Austria Owned Land | Year 2 | € 842,400 | € 261,650.90 | € 580,749.10 |
Cash Flow Projections:
South Africa (Leased Land) – Indicating months to “cash-positive.”
| Month | Total Costs (R) | Revenue (R) | EBITDA (R) | Cumulative Cash Flow (R) |
| 1 | 247,397.31 | 0 | -247,397.31 | -247,397.31 |
| 2 | 247,397.31 | 0 | -247,397.31 | -494,794.62 |
| 3 | 247,397.31 | 0 | -247,397.31 | -742,191.93 |
| 4 | 247,397.31 | 125,820 | -121,577.31 | -863,769.24 |
| 5 | 247,397.31 | 125,820 | -121,577.31 | -985,346.55 |
| 6 | 247,397.31 | 125,820 | -121,577.31 | -1,106,923.86 |
| 7 | 247,397.31 | 314,550 | 67,152.69 | -1,039,771.17 |
| 8 | 247,397.31 | 314,550 | 67,152.69 | -972,618.48 |
| 9 | 247,397.31 | 314,550 | 67,152.69 | -905,465.79 |
| 10 | 247,397.31 | 503,280 | 255,882.69 | -649,583.10 |
| 11 | 247,397.31 | 503,280 | 255,882.69 | -393,700.41 |
| 12 | 247,397.31 | 503,280 | 255,882.69 | -137,817.72 |
| 13 | 247,397.31 | 503,280 | 255,882.69 | 118,064.97 |
South Africa (Owned Land)
| Month | Total Costs (R) | Revenue (R) | EBITDA (R) | Cumulative Cash Flow (R) |
| 1 | 130,754.56 | 0 | -130,754.56 | -130,754.56 |
| 2 | 130,754.56 | 0 | -130,754.56 | -261,509.12 |
| 3 | 130,754.56 | 0 | -130,754.56 | -392,263.68 |
| 4 | 130,754.56 | 125,820 | -4,934.56 | -397,198.24 |
| 5 | 130,754.56 | 125,820 | -4,934.56 | -402,132.80 |
| 6 | 130,754.56 | 125,820 | -4,934.56 | -407,067.36 |
| 7 | 130,754.56 | 314,550 | 183,795.44 | -223,271.92 |
| 8 | 130,754.56 | 314,550 | 183,795.44 | -39,476.48 |
| 9 | 130,754.56 | 314,550 | 183,795.44 | 144,318.96 |
Cash Flow Projections for Austria (Leased Land):
Progressed to month where the operation is cash positive.
| Month | Total Costs (€) | Revenue (€) | EBITDA (€) | Cumulative Cash Flow (€) |
| 1 | 35,116.85 | 0 | -35,116.85 | -35,116.85 |
| 2 | 35,116.85 | 0 | -35,116.85 | -70,233.70 |
| 3 | 35,116.85 | 0 | -35,116.85 | -105,350.55 |
| 4 | 35,116.85 | 12,582 | -22,534.85 | -127,885.40 |
| 5 | 35,116.85 | 12,582 | -22,534.85 | -150,420.25 |
| 6 | 35,116.85 | 12,582 | -22,534.85 | -172,955.10 |
| 7 | 35,116.85 | 31,455 | -3,661.85 | -176,616.95 |
| 8 | 35,116.85 | 31,455 | -3,661.85 | -180,278.80 |
| 9 | 35,116.85 | 31,455 | -3,661.85 | -183,940.65 |
| 10 | 35,116.85 | 50,328 | 15,211.15 | -168,729.50 |
| 11 | 35,116.85 | 50,328 | 15,211.15 | -153,518.35 |
| 12 | 35,116.85 | 50,328 | 15,211.15 | -138,307.20 |
| 13 | 35,116.85 | 50,328 | 15,211.15 | -123,096.05 |
| 14 | 35,116.85 | 50,328 | 15,211.15 | -107,884.90 |
| 15 | 35,116.85 | 50,328 | 15,211.15 | -92,673.75 |
| 16 | 35,116.85 | 50,328 | 15,211.15 | -77,462.60 |
| 17 | 35,116.85 | 50,328 | 15,211.15 | -62,251.45 |
| 18 | 35,116.85 | 50,328 | 15,211.15 | -47,040.30 |
| 19 | 35,116.85 | 50,328 | 15,211.15 | -31,829.15 |
| 20 | 35,116.85 | 50,328 | 15,211.15 | -16,618.00 |
| 21 | 35,116.85 | 50,328 | 15,211.15 | -402.85 |
| 22 | 35,116.85 | 50,328 | 15,211.15 | 14,808.30 |
Cash Flow Projections for Austria (Own Land):
| Month | Total Costs (€) | Revenue (€) | EBITDA (€) | Cumulative Cash Flow (€) |
|---|---|---|---|---|
| 1 | 21,785.85 | 0 | -21,785.85 | -21,785.85 |
| 2 | 21,785.85 | 0 | -21,785.85 | -43,571.70 |
| 3 | 21,785.85 | 0 | -21,785.85 | -65,357.55 |
| 4 | 21,785.85 | 12,582 | -9,203.85 | -74,561.40 |
| 5 | 21,785.85 | 12,582 | -9,203.85 | -83,765.25 |
| 6 | 21,785.85 | 12,582 | -9,203.85 | -92,969.10 |
| 7 | 21,785.85 | 31,455 | 9,669.15 | -83,299.95 |
| 8 | 21,785.85 | 31,455 | 9,669.15 | -73,630.80 |
| 9 | 21,785.85 | 31,455 | 9,669.15 | -63,961.65 |
| 10 | 21,785.85 | 50,328 | 28,542.15 | -35,419.50 |
| 11 | 21,785.85 | 50,328 | 28,542.15 | -6,877.35 |
| 12 | 21,785.85 | 50,328 | 28,542.15 | 21,664.80 |
Fertilizer Potential from Spent Mushroom Substrate
After harvesting, the leftover straw from oyster mushroom production, known as spent mushroom substrate (SMS), can be repurposed as fertilizer. For every ton of mushrooms produced, 3-5 tons of SMS are generated. Nutrient content typically includes 1-2% nitrogen (N), 0.3-0.6% phosphorus (P), and 1-1.5% potassium (K). With 10 tons of mushrooms per month, the SMS could fertilize around 1.5 to 2.5 hectares, depending on crop nutrient needs. This adds significant value to the mushroom production cycle.