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

2. Presentation order General Introduction Production Marketing General features of the Industry

3. Introduction The 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

4. 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

5. 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

6. 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)

7. 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

8. 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)

9. 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.

10. 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

11. 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

12. 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

13. 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

14. 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)

15. 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

16. 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)

17. Marketing cont… MUSHROOM DATA IMPORTS/EXPORTS(Source CBIK ) YEAR 20072008200920102011 Exports (t)5823.78.51.9 Value M (KES) 100.260.551.90.47 Imports (t)213705314135 Values M ( KES) 19.26.34.115.319.1

18. 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

19. 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

20. 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

21. 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

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