Ewrr

The main objective of this study was to identify and clarify actors and their functions in the mushroom
value chain in Kegalle district of Sri Lanka. Primary data were collected from 70 mushroom producers,
20 intermediaries, and 40 consumers using household survey through questionnaires, focused group
discussions and personal observations. Secondary data were gathered from mushroom farming instructors,
Export Development Board, Sri Lanka, and Department of Agriculture, Kegalle District office. In analyzing
the results descriptive statistics and inferential statistics were used. All the mushroom producers were sole
proprietors. Most of them were unregistered sole proprietors. Structure-Conduct-Performance approach of
mushroom producers revealed a perfectly competitive market structure. Most of the mushroom producers
had not adhered to the recommendations given by the department of agriculture on the mushroom house.
Most of the farmers had production in the range of 50- 100 kg per season. While the consumer got the highest
price from the mushroom producer as LKR 61, Collectors got the lowest price and the highest fluctuation in
the price. There are five mushroom market channels in Kegalle district. Majority of the producers (42.9%)
sold their harvest directly to the consumers only. Oyster mushroom was the main variety that most of the
consumers (85.3%) had experienced. Major constraints found in the mushroom value chain were shortage of
the substrate and spawn, difficulty in finding suitable labor and lack of storage facilities. Major opportunities
were increasing customer awareness about the mushroom, subsidies provided by the authorities and
inventions of machines to solve labor problem. There was high need for institutional intervention in
increasing the consumer awareness as the producer themselves didn’t have the ability to engage in
promotion. There was clear need for setting a certification program or establishing standards for quality
control in the mushroom production.