Financial Viability of Mushroom Growers (Farmers) at Cisarua, Bandung

Abstract

The purposes of this study are to analyze the mushroom growers’ financial viability, to analyze how working capital is managed, and to evaluate the investment opportunity. The study was conducted in Cisarua, Bandung. Each mushroom grower was being interviewed as part of data gathering and the data gathered were processed and analyzed. Most of the mushroom growers’ capital was from their own pocket. Offering from bank or other financial institution to support the mushroom growers is of no avail because of avoiding interest rate. Mushroom growers harvest everyday ranging from 10 kilograms to 200 kilograms. Mushroom prices are determined by market or the direct buyer. There are challenges faced by the mushroom growers, the human capital, weather, and the intermediaries (called bandar). The owner itself is the one managing the business so it is being sustained. Sustained in a way that is, it is properly supervised and controlled. As an investment opportunity, each investor may earn 3.7% as a return on investment per month. At present, some of the mushroom growers have varieties of product as well, and there are owners that are doing an expansion in other parts of the world.