Status of mushroom industry in Kenya

Status of mushroom industry in Kenya By Mary W. Gateri Mushroom Stakeholders Workshop, 13th March 2013, Fair View Hotel, Nairobi.

Presentation order • General Introduction • Production • Marketing • General features of the Industry

Introduction • The mushroom industry in Kenya is still in its infancy stage, growing slowly but steadily. • Cultivation started in 1970 with Button mushroom (Agaricusbisporous) 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 Cantharellusspp, 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

Production • Kenya’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… Constraints • Accessibility to good quality spawn at an affordable price • Unavailability of adequate information • Lack of capital for investment especially for the Button type • A 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 exploited • Few large-scale farms export to Tanzania, Uganda, Ruanda and Sudan • Kenya 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…

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… Challenges • Expansion of domestic markets through intensive education on the nutrition and health benefits of mushrooms • Exploration of export markets • Development of value-added products to increase the range in the markets

General features of the industry • Industry 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 END Thank you

Status of mushroom industry in Kenya