1) The financial model was developed in close cooperation with the current owners and industry experts of the mushroom business.

2) Financial calculations were carried out using Excel-model, which is a proprietary development of Inventica.

3) The financial model is 100% automated:

• Values of project parameters can be changed.
• The total number of parameters - over 500 (the month of the start of the project, the list and cost of obtaining permits, the area of premises, the specification of equipment and its cost, the staffing table, the mass of the substrate block, the yield of the finished product from the mass of the substrate, the duration of the production cycle, the cost and amount of mycelium required for the production of 1 kg of oyster mushrooms, the structure of sales channels, the share of products supplied for drying, the cost of selling products, lending parameters, etc.).
• Changing any of the project parameters leads to automatic recalculation of the model.
• The ability to quickly recalculate allows you to independently calculate various strategies and scenarios for the development of your business, even if you do not know the basics of financial modeling and investment management.

Thus, you get a universal decision-making tool, with the help of which you can correct the concept of the project, choosing the optimal values of the parameters of your future business.

Today, the market for cultivated mushrooms has developed an extremely favorable environment for investment in the industry. Non-core investors interested in diversifying their core business are showing particular interest in the mushroom business.

Inventica highlights the following key industry benefits for the future investor:

The market demonstrates a colossal growth rate

The main driver for the development of domestic production was the food embargo introduced in 2014 in response to economic sanctions from the West. In particular, the ban included mushrooms from Poland, which previously accounted for over 90% of the total import of cultivated mushrooms in the Russian Federation, which, in turn, formed almost 85% of the supply of the Russian champignon and oyster mushroom market.

With the introduction of a ban on supplies, Russian companies have an opportunity to rapidly increase the production of products that are in stable demand in the market. In 2017-2018 the annual increase in the volume of production of cultivated mushrooms in Russia exceeded 50%.

State support gives additional acceleration to the market

In 2017, the Ministry of Agriculture of the Russian Federation proposed to support mushroom production by including it in the State Program for the Development of Agriculture for 2013-2020. Mushroom projects can now count on reimbursement from the state budget of 20% of capital costs (for the Far East - 25%).

The market has a rather low base in terms of the volume of mushroom consumption per person.

So, at the end of 2018, the consumption of champignons amounted to only 0.44 kg per person, which is significantly less than in developed countries (from 2 to 5 kg per person per year). The volume of consumption of exotic mushrooms (oyster mushrooms, shiitake, eringi, etc.) in Russia is insignificant, while all over the world these mushrooms show an increase in consumption, confidently displacing traditional champignons from the market.

If we focus on the world level of per capita consumption, then the optimal consumption for Russia is the consumption of at least 300 thousand tons of products per year, which is almost 4 times less than the current production base of the market.

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