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Factory-like Edible Mushrooms Project of Jilin City
2016/11/28     Source:

1. Introduction to the Project

1.1 Project Background

1.1.1 Product Introduction

Edible mushrooms refer to the edible mushroom (large fungi) with the large fruiting body. In China, there are more than 300 varieties of edible mushrooms, most of which belong to basidiomycotina. The common fungi are fragrant mushroom, straw mushroom,    mushroom, black fungi, white fungi, hedgehog fungi, bamboo fungi, tricholoma matsutake, dried mushroom, Russula and bolete, etc.; a few of them belong to ascomycotina, including morel, saddle fungi and truffle, etc. The above fungi grow in the different regions and in the different ecological environment.

1.1.2 Market Prospect

In recent years, the edible fungi industry in the world has made rapid progress, it has increased at the annual growth rate of 7-10%, and the annual growth rate of our country reaches about 20% and the good growth momentum has been kept. With the development for nearly 10 years, the edible fungi industry of our country has preliminarily established the multiple consumption industries of dry and fresh products, deep-processed food, medicine and health products, etc., involving the multiple fields such as agriculture, forestry, animal husbandry, biological industry, food industry (canned food processing) and pharmaceutics, etc. On the whole, the edible fungi industry of our country is gradually becoming complete.

The edible fungi workshop production is the transformation from the manual small-scale production to the mechanical and special production. Such a mode has effectively improved the labor productivity and the fungi stick making standard degree, made the edible fungi production become more special and the division of work clearer, effectively promoted the scale production, driven the development level of the edible fungi industry, strengthened the development of the local edible fungi industry and made great contribution to the increase of employments and the national tax revenue. In 2012, the sales of edible fungi reach 20 million tons, the sales income is nearly 120 billion yuan, the growth rate is more than 30% and there are nearly 8000 practitioners; the remarkable economic and social values have been created and the great development potential has been shown. With the continuous improvement of people’s living standard and scientific dieting awareness, the development potential of the edible fungi market will be great. The key points of the food in the 21st century are the health food and functional food and the edible fungi are among the best health food and it will undoubtedly have the wide development prospect. Therefore, the development of the edible fungi industry has the broad market prospect and good economic benefits.

As a major edible fungi producer in the world, China has not only the rich fungi varieties but also the high output. There are more than 900 varieties of edible fungi in our country, and the annual output of fresh fungi reaches 8.76 million tons, accounting for 65% of the total output in the world, which is indispensable to a lot of countries. Golden mushroom, dried mushroom, white fungi and cap fungi, as the main products, have the output ranking the first in the world all the time. In addition, China is a country with the huge population and cheap labor force, which makes the price of the same type of products 1/3 less than that in the Europe and the US. Furthermore, the country regards the cultivation of edible fungi as the main project to support the poor, which makes the edible fungi rapidly developed in the whole country and the edible fungi products have become the main exported agricultural products and processed food of our country. The edible fungi industry, as an emerging industry, with the development for more than 10 years, has gradually become the pillar industry of agriculture and rural economy. However, for many reasons, there exist a lot of problems in the production and sales of the edible fungi of our country and its market potential has not been given full play.  

At present, there are a lot of edible fungi products, but those quickly accepted and eaten by people are still the fresh products. According to the present situation of the edible fungi market, the fresh products are made to promote the market development and occupy the market share, which are the measures taken by a lot of edible fungi production enterprises. The fresh products, because they are not processed, keep the original quality and taste of the fungi, fresher and more delicious than the dried products. In addition, they are not processed, so the cost is relatively low. It can be said that the fresh products have occupied the main share of the sales of edible fungi for many years. However, with the improvement of people’s understanding, the deep-processing of edible fungi products will become the necessary trend of the development of the edible fungi industry and industrialization and standardization complement each other. For the edible fungi production, standardization can be achieved only via the industrialization. Only the deep-processing is actively developed can the additional values of the products be continuously increased, the competitiveness of the products in the market be strengthened and the current market problems of the edible fungi be resolved.

In recent years, with the promotion of the agricultural modern development by the central government, the edible fungi workshop production of China has taken on the situation of rapid progress. In recent years, the workshop production enterprises have appeared like mushrooms after the rain. Especially after China entered the WTO, the competition at home and abroad has been intensified and the developed countries have set the new trade barriers (such as pesticide residue control), so the small-scale extensive production mode of the edible fungi industry of our country has faced the serious challenges. The relevant experts point out: “the rapid growth of the output of edible fungi of our country was achieved by depending on the expansion of the production area and cultivation units in the past and the production of edible fungi of our country must transform from the quantity type to the quality and benefit type as soon as possible now and the core is the suitably expand the production scale of an independent economic auditing unit.”

The edible fungi products of our country are mainly domestically sold. The edible fungi, as the high-end food have been served on people’s table usually in the festivals and holidays. In recent years, with the rapid improvement of people’s income level and the strengthening of the consumption capabilities, but the productivity is not sufficient, the price is still high. At present, the possession per capita in our country is only 5kg, not less than 1/4 of a developed country. With the workshop production, it will be helpful to rapidly increase the output of edible fungi, people will be easier to buy the fresh edible fungi, the demand and consumption will be also obviously increased, and especially the anti-season production makes people able to eat the fresh fungi food so as to improve the economic benefits. In addition, after the deep-processing of edible fungi (health products and ready-to-eat products), not only the additional values of the edible fungi can be greatly increased but also the production scale will be increased, the production cost will be reduced, the sales channels will be expanded and the products can be sold to other countries and regions. Therefore, the project has the good market prospect.

1.1.3 Technical Analysis

The closed mechanical and standard annual cultivation technology with the facilities is taken. In the closed workshop building designed according to the demand of mushroom growth in the different climatic conditions in the different regions, the temperature control, humidity control, air control and light control equipment are used to create the artificial environment; the automatic (semi-automatic) operation of the mechanical equipment is taken to carry out the high-efficiency production; the employees are organized to carry out the orderly production via the modern enterprise management model; in the unit space, the 3D annual cultivation in a scale is taken to achieve the safe, green (organic) standard good-quality edible mushrooms, which are packaged, processed and sold in the market at home and abroad. It is a new cultivation method integrating the modern agricultural enterprise management and improving the annual replanting index, the operation efficiency of the facilities and equipment and the fund turnover rate to achieve the remarkable economic benefits in a short period of time.

1.1.4 Advantageous Conditions of Project Construction

(1) Policy conditions

Jilin (China-Singapore) Food Zone encourages the pilot development in some aspects such as system, mechanism, science and technology, etc., gives the support of policies, taxation and funds, etc. and provides the strong policy support for the enterprise entering the zone.

(2) Construction conditions

The fundamental construction of Jilin (China-Singapore) Food Zone has been completed, the “connection of 7 aspects and 1 leveling” has been achieved, some facilities of water, power, heating and communication, etc. can be provided via the complete and matching public engineering pipelines of the zone, the basic conditions of the project are assured and there is the developed transport on the factory site.

(3) Personnel advantages

The project zone neighbors Jilin City and Changchun City where there are about 20 agricultural colleges and universities, about 30 national and provincial agricultural scientific research institutes such as Institute of Special Products of the Chinese Academy of Agricultural Science, providing the agricultural scientific and technological support for the enterprises in the food zone.

(4) Resource advantages

In the food zone, there is the farmland of 0.1 million hectare, including the dry land of 60000 hectares and vegetable planting area of10000 hectares. It is the main vegetable supply area of Changchun City and Jilin City. The sufficient vegetable planting area can meet the material demand of the project construction.

3Location advantages

With the deepening of the international cooperation in the Tumen River region, Northeast China is becoming the hub of economic activities in Northeast Asia. Jilin City is located in the hinterland of the economic circle of Northeast Asia, radiating Northeast China and going deep into mainland China and other countries such as Japan, South Korea, North Korea and Russia, etc. Its status of becoming the important food processing base and material distributing center in Northeast Asia will gradually become prominent.


Jilin City is one of the 5 major comprehensive traffic hubs with the complete transport modes in Northeast China, with the complete transport facilities such as expressways, railways and airports, etc. Some large power stations (plants) such as Baishan Hydropower Station, Fengman Hydropower Station and Hongshi Hydropower Station, etc. support the life line of the energy industry, with the total installed capacity of 4 million KW. 

1.2 Content and Scale of Project Construction

1.2.1 Product plan

The whole project is planned to be build at two stages (completed in 2 years) to achieve the daily output of 20 tons of fresh mushrooms (including 10 tons of white golden mushrooms and 10 tons of Pleurotus eryngii).

1st-stage: build 12000m2 standard mushroom house, invest 65 million yuan for the production and equipment, with the annual output of 3600 tons of white golden mushrooms, annual output value of 50.4 million yuan and profit of 26.64 million yuan.

2nd-stage: build the 12000m2 standard mushroom house, invest 70 million yuan for the production and equipment, with the annual output of 3600 tons of fresh Pleurotus eryngii, annual output value of 64.8 million yuan and profit of 28.8 million yuan.

1.2.2 Construction contents

Because the standard workshop buildings are taken for the production, the project can have its operation scale set according to the amount of raised capital and market sales capacity, for example, 3 tons/day, 5 tons/day, 10 tons/day, 15 tons/day and 20 tons/day. however, viewed from the scale benefits, it is suitable to have the starting scale of 5 more than tons/day (including 5 tons/day), and the output of the project is temporarily determined to be 20 tons/day, 24000m2 standard mushroom houses shall be built, about 46 temperature and humidity control mushroom rooms shall be built and the relevant equipment for the yearly factory production of edible mushrooms shall be purchased. 

1.3 Total Investment of the Project and Capital Raising

The total investment of the project is 135 million yuan, including the construction investment of 108 million yuan.

Table 1: Summary Table of the Total Investment of the Project 

Unit: 10 thousand yuan


Expense Name

Amount of Investment

Proportion of Total Investment %



Construction investment





Interest in the construction period





Current funds





Total investment of the project (1+2+3)




1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

After the output of the project is reached, the annual sales income will be 180 million yuan and the profit will be 32.143 million yuan, with the investment recovery period of 4.2 years (after the tax, including the construction period of 2 years) and the investment profit rate of 23.8%.

Table 2: List of Major Indexes for Forecast of Financial Benefits







Business income

10 thousand yuan/a


Normal year


Total profit

10 thousand yuan/a


Normal year


Internal financial yield rate of the investment



After the income tax


Net financial value (Ic=10%)

10 thousand yuan


After the income tax (operating period of 10 years)


Recovery period of all the investment (after the tax)



Including the construction period of 2 years


Investment profit rate




Note: “RMB10, 000” in the Table shall be RMB.

1.4.2 Social Evaluation

After the project is completed, it can increase the employments of the local people, increase the local people’s income, improve the citizens’ living standard and make great contribution to the increasing of the social employment rate. The implementation of the project can effectively promote the development of the upper-stream and lower-stream enterprises and other relevant industries so as to promote the local rapid economic development.

1.5 Cooperative Ways

Joint venture

1.6 What to be Invested by Foreign Party

Funds and technologies

1.7 Construction Site of the Project

Jilin (China-Singapore) Food Zone

1.8 The On-going Condition of Project

The cooperative proposal of the project has been established.

2. Introduction to Partner

2.1 Basic Conditions

Name: Jilin (China-Singapore) Food Zone

Address: Jilin City, Jilin Province

Legal representative: Li Changshan (Director of the Management Committee)

2.2 Overview

Jilin (China-Singapore) Food Zone, located in Jilin City, Jilin Province, is the project between the Chinese and Singaporean governments to establish the international cooperation in the food quality and safety fields. 

The food zone is divided into the core zone and control zone.

The core zone is located between Changchun City, the capital city of Jilin Province and Jilin City, the second largest city of Jilin Province, with the planned area of 57km2, including the construction land of 36km2. The emphasis goes to build 6 major functional districts, that is, food processing district, storage and logistic district, modern commercial residential district, scientific research service district, leisure and holiday district and ecological protection district, etc.

Around the core zone, with rivers and mountains, etc. as the natural barriers, the 1450km2 control district is planned. According to the OIE standard, the nonstandard epidemic disease breeding demonstration park is built and the modern agricultural experiment demonstration project is carried out via the strict control and management. Jilin(China-Singapore) Food Zone, with the construction of the food quality and safety assurance system as the core, the construction objectives of “4 districts and 1 city” are finally achieved via China-Singapore cooperation, that is, international first-rate safety and health food production demonstration district, modern agricultural development demonstration district; industrialization, urbanization and agricultural modernization overall planning demonstration district; Changchun-Jilin-Tumen Development and Opening Strategy Pilot Demonstration District; a modern ecological and livable city built between Jilin City and Changchun City.

In the industrial development direction, according to the industrial plan of Jilin Food Zone, the emphasis goes to develop the meat products industry; milk products industry; grain refined and deep-processing industry and health product industry focused on the refined and deep-processing of special resources of Changbai Mountain. Build the comprehensive new food industry city integrating food development, production, sales and logistics, etc.

In addition, depending on the location and resource advantages of the food zone, some emerging industries such as biomedicine, electronic information, advanced equipment manufacturing, energy conservation and environmental protection and new energy, etc. are developed. Some industries of modern logistics, education and training, ecological tourism, headquarters economy, business exhibitions and conferences and finance and insurance, etc. are developed. According to the urban construction plan of the food zone, the development and construction of the urban infrastructure, real estate, commerce and trade, etc. is comprehensively carried out.

2.3 Contact Method

Contact person: Liu Hongyu

Tel: 0432-68089293  18704324111

Fax: 0432-64118432

E-mail: liuhongyu_9920@163.com


Contact Methods of Project City(Prefecture)

Contact unit: Jilin Bureau of Economic and Technological Cooperation

Contact person: Liu Aiguo

Tel: 0432-62026489

E-mail: 1103817842@qq.com

Website of the city/prefecture: www.jlszsw.gov.cn


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