Status of mushroom industry in Kenya

By Mary W. Gateri

Mushroom Stakeholders Workshop, 13th March 2013, Fair View Hotel, Nairobi.

Presentation orderGeneral IntroductionProductionMarketingGeneral features of the Industry

IntroductionThe mushroom industry in Kenya is

still in its infancy stage, growing slowly but steadily.

Cultivation started in 1970 with Button mushroom (Agaricus bisporous) introduced by Lonrho E.A LTD.

In 2003, Oyster mushroom (Pleurotus spp) was introduced and became a favourite of small- scale growers

Introduction cont…Other mushrooms grown but on a

small scale for medicinal purposes are Reishi (G. lucidan) and Shiitake (Lentinula edodes)

Kenya boasts of three large scale farms - Olive farm, Rift valley, and Devan mushrooms

Small-scale production is concentrated in Western, Nyanza, Nairobi, Central and coastal counties

Introduction cont…Kenya has several wild mushroom

species which are also consumed. They include Cantharellus spp, Termitomycetes spp, Pleurotus spp, Auricularia spp, Russula spp to mention a few

Of the 42 tribes in Kenya, 38 are known to consume mushrooms

The key wild mushroom consumers and traders are found in Western and coastal Kenya

ProductionKenya’s production is pegged at 500

t per annum with a potential demand of 30,800 t per annum

The farm gate value of this production is KES 225 million (USD 2,678,570) with a retail value of KES 340 million (USD 4,047, 620)

Production cont..90% of this production is Button

mushroom which comes mainly from large scale farms.

Small-scale farmers who comprise 80% of the growers produce the rest which is mainly Oyster mushroom

Production cont…Inputs for production such as

substrates are cheap and easily available locally

80% of Button mushroom used locally is imported from Sylvan, a French multinational company located in S.A. Price is KES. 800 (USD 9)

20% is prepared locally, the main producer being JKUAT. The price of this spawn is KES 600 (USD 7)

Production Cont…Spawn for oyster mushroom is

produced locally by several spawn producers ranging from private to large Gov. organizations and high institutions of learning. Cost is KES. 600 (USD 7)

Spawn for Reishi and Shiitake mushrooms is also imported with a little being made locally.

Production cont…Cultivation uses polythene bags and

the shelve method is adopted in most farms

Some Oyster mushroom farmers however use the hanging method (bags hang from the roof), an innovation that requires testing and developing

Production Cont..Four CBO’s in partnership with a

local NGO (Wild living) also cultivate cantharellus in conserved and well managed forests along the coast

With the current production, demand outstrips supply

But with the shift of consumer preference towards healthy organically grown foods, Production is expected to improve

Production cont…ConstraintsAccessibility to good quality spawn at

an affordable priceUnavailability of adequate informationLack of capital for investment

especially for the Button typeA poor consumption trend by the locals

Marketing The two types of mushrooms with an

established local market are oyster and Button mushrooms

Oyster mushroom is cheap to grow, commands a cheaper price but still hard to sell

Button mushroom requires larger capital investment, commands a higher price but sells more easily

Marketing cont…Compared to other sources of protein

like beef, mushrooms fetch a premium price

Retail price for Oyster is KES 600/KG (USD 7) and KES 1.200/KG (USD14) for Button while beef retails at KES 350/KG (USD 4)

This makes mushroom a high value crop most Kenyans cannot afford (56% live below poverty line which is 1 USD/day)

Marketing cont…Existing local market outlets include -Formal which are big outlets like Kenya

airways, hospitals, supermarkets, Hotels and Restaurants (dominated by large-scale farms)

-Informal which are small outlets like green grocers and open air markets

Small-scale farmers are unable to penetrate these markets due to lack of sustained volumes

Marketing cont…Export markets are barely exploitedFew large-scale farms export to

Tanzania, Uganda, Ruanda and SudanKenya is yet to exploit the European

market under the Lome Cotonou Agreement, the USA market under AGOA and the rest of COMESA

Exports average 16 t/annum worth KES 3.9 million (USD 46,430)

Marketing cont…MUSHROOM DATA IMPORTS/EXPORTS(Source CBIK)

YEAR2007 2008 2009 2010 2011

Exports (t) 58 2 3.7 8.5 1.9

Value M(KES)

10 0.26 0.55 1.9 0.47

Imports (t) 213 70 53 14 135

Values M( KES)

19.2 6.3 4.1 15.3 19.1

Marketing cont…Wild mushrooms are mostly

consumed by the locals, appearing after along drought

Few are traded in local open air markets (fresh or dried) and a little is sold in super stores

Wild living (a local NGO) assists in marketing the Cantharellus to local tourist hotels and restaurants as well as International European markets

Marketing cont…ChallengesExpansion of domestic markets

through intensive education on the nutrition and health benefits of mushrooms

Exploration of export marketsDevelopment of value-added

products to increase the range in the markets

General features of the industryIndustry has great opportunities for

employment, income generation and food and nutrition security for Kenyans.

Can engage women and youth who have no land ownership

As an emerging crop, not much research has been undertaken to improve the value chain

General features cont…Needs improvement in production

practices, enterprise development and marketing techniques

Consumer awareness campaigns are crucial to create local demand that would improve the industry

Industry requires investors, intensive research and extension

THE ENDThank you