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ATTRA // MUSHROOM CULTIVATION AND MARKETING

By Alice Beetz & Lane GreerNCAT Agriculture SpecialistsSeptember 1999

Introduction

The market for mushrooms has been expandingin recent years. The trend is away from thecanned product toward fresh and driedmushroom sales. Recently The Packer , a produceindustry weekly, reported that, according to arecent marketing survey, of the families thatpurchased mushrooms in the previous year,86% purchased button mushrooms and 70%purchased specialty species (1). The AmericanMushroom Institute, however, reported that the1997-98 season saw a decline in the specialtymushroom segment of the market after a decadeof steadily increasing sales. Many people are interested in the nutritional

and medicinal aspects of mushrooms.Mushrooms contain many essential amino acidsand can be a valuable food source. White

button mushrooms contain more protein thankidney beans but less than milk. Shiitakemushrooms are less nutritious, but still areimportant as a potential protein source (2). Lowin fat, mushrooms also provide vitamins (B

1, B

2,

C) and minerals.

Asian traditions maintain that some of thespecialty mushrooms provide health benefits.Chinese doctors use at least 50 species.

800-346-9140

Appropriate Technology Transfer for Rural Areas

ATTRA is the national sustainable agriculture information center funded by the USDA’s Rural Business -- Cooperative Service .

Abstract: The market for mushrooms continues to grow due to interest in their nutritional and health benefits.Their potential to serve in waste management has yet to be fully explored. As fungi, mushrooms have life cyclesvery different from those of green plants. The choice of species to raise depends on what growth media areavailable and on market considerations. Oyster mushrooms grow on many substrates and are easiest for abeginner. Shiitake already has earned considerable consumer demand. Mycorrhizal types of mushrooms, suchas chanterelles and matsutake have not been successfully cultivated. Commercial cultivation of morels islimited to a single facility which uses a patented process. Truffle production requires a significant investment of time before production begins. The evaluation of a commercial mushroom enterprise should include a carefulanalysis of potential markets. Many information resources are referenced for further research.

Table of Contents

Mushroom Growth.......................................................2

How to Begin .................................................................3Choosing a Mushroom Species...................................3Species for Beginners....................................................3Mushrooms Not Commonly Cultivated....................7Pest Management..........................................................8Markets for Mushrooms...............................................9Market Research............................................................9References ......................................................................11Resources .......................................................................11Suppliers ........................................................................13

MUSHROOM CULTIVATION AND

MARKETING

H ORTICULTURE P RODUCTION G UIDE




Recent scientific evidence suggests that manymushroom species do indeed containsubstances which may prevent or alleviatecancer, heart disease or viral infections. Tworecent titles detail existing research on thebenefits of mushrooms. See theResourcessection at the end of this guide for more

information.

The production of mushrooms can play animportant role in managing organic wasteswhich have become problematic as landfillsreach capacity. Many by-products fromagricultural production and food processing canbe used as growing media in mushroomproduction. The materials remaining afterharvest can be composted and applied directlyto the soil as an organic amendment.

As a result of all of these factors, interest incultivating the edible fungi has grown.Mushroom production may offer opportunity tothose willing to develop a commercial operationas an additional enterprise for the farm or ruralcommunity, or for farmers without largeacreages. The following material is offered tothose considering this option as a newenterprise. An attempt has also been made toinclude resources for entrepreneurs who wish todo further research.

It should be made clear at the outset thatmushroom production is labor- andmanagement-intensive. Specialty mushroomshave very frequently been promoted as being a"get rich quick" kind of enterprise. On thecontrary, it takes a considerable amount ofknowledge, research time, planning, and capitalinvestment to set up a commercial productionsystem. Once in production, sporadic fruiting,invasion of "weed" fungi, and unreliable market

prices are problems which producers must beprepared to handle.

Mushroom Growth

Production of mushrooms is completelydifferent from growing green plants. A personconsidering mushroom production shouldbecome thoroughly familiar with the life cycles

of fungi. A plant pathology text is a goodresource for this initial research task.

Mushrooms do not contain chlorophyll andtherefore depend on other plant material (the“substrate”) for their food. Commonly culturedmushrooms are saprophytes — plants that feed

on dead plant material. The part of theorganism that we see and call a mushroom isreally just the fruiting body. Unseen is themycelium — tiny threads that grow throughoutthe substrate collecting nutrients by breakingdown the organic material. For different speciesof mushrooms, the preferred growing mediumvaries. Some species can grow on a wide rangeof materials and others can’t. After themycelium has grown throughout the substrate,and when its specific requirements are met, the

mushroom will fruit. Humidity, light,temperature, and carbon dioxide-to-oxygenratio are conditions which typically determinewhen a mushroom will fruit.

Nearly all of the common button mushrooms( Agaricus spp.) produced commercially in theUnited States are grown in expensive, high-techstructures designed to minimize pest pressuresand to control the growing environment.Managers control not only temperature,humidity, and light, but also ratios of gases in

the atmosphere. The production systems arehighly developed and very efficient. The goal isalways to decrease the time it takes to proceedfrom prepared substrate to fruiting and harvest.When cycles are shortened, production per yearincreases and potential profits rise.

Typically, the mushroom farmer manipulatesthe atmospheric conditions first to favormycelium growth until it fully occupies thesubstrate. Later the atmospheric conditions are

changed to those necessary to initiate andcomplete fruiting (usually different from thoseideal for mycelial growth).

There are alternative methods of producingmushrooms. Paul Stamets of Fungi Perfecti (3)has spent most of his life studying their growthand cultivation. His book Growing Gourmet &

Medicinal Mushrooms (see Resources section for




more information) is an invaluable resource foranyone considering the cultivation of anymushroom. He suggests methods of growingoutside on logs, on stumps, and in the garden,as well as indoor cultivation in bags and oncolumns. Whether these methods can bedeveloped into competitive commercial schemes

depends upon the abilities of the entrepreneuradapting them. Peter Oei, in Manual on

Mushroom Cultivation , describes in some detailalternative mushroom production systemssuccessfully used in developing countries.Many ideas for low-input systems are included.In practice, however, it is unlikely that thebeginner can successfully compete with existinghighly capitalized and efficient mushroomcompanies in the wholesale market. Only bydeveloping a market niche for a high-quality

fresh product or by producing a mushroom-based food item can a small-scale beginner hopeto compete.

How to Begin

The choice of which species to grow should bethoroughly researched. The beginner should becompletely familiar with the various fungi lifecycles and should know the parameters ofgrowth required by each. Two basic referencesare: The Mushroom Cultivator by Stamets and

Chilton and the aforementioned GrowingGourmet and Medicinal Mushrooms by Stamets.See the Resources section for more information.

A mushroom cultivation kit (check withsuppliers listed below) is often a good way tolearn how to grow a particular species beforebeginning commercial production. Accuratetechnical and financial records can be used torealistically gauge whether or not commercialproduction will be profitable. At the same time,

a system for creating conditions favorable to thevarious stages of growth can be designed andtested.

For a commercial operation, the producer mustfirst collect the substrate material into which thechosen species will grow. Mushroom speciesare often very particular about their substrates.The substrate is fermented, pasteurized, or

sterilized in order to prevent or reducecompetition from fungi other than the chosenspecies. The growing medium is theninoculated with spawn. See the Supplierssection for spawn sources.

Choosing a Mushroom Species

Having access to an economical growingmedium suitable to the species chosen is animportant factor in deciding which species togrow. The amount of processing necessary toprepare the substrate for the spawn is anotherconsideration. The chart below lists commonspecies and the materials upon which they arecommercially cultivated (4, 5).

Species for Beginners

The final choice of a species to grow dependsupon the waste materials available for use assubstrate, an appropriate facility, cost ofnecessary equipment, the level of skillrequired to manage the life cycle of thefungus, and the market already establishedfor that species. Considering these criteria,oyster (Pleurotus spp.) and shiitake (Lentinusedodes) mushrooms are probably best for mostnovices. They are relatively easy to grow andthere is a growing market, thanks mostly to

efforts of large commercial producers ofwhite button ( Agaricus) mushrooms whohave been diversifying into other specialtymushrooms.

Although these experienced and highlycapitalized operators create stiff competition,there may still be a place in the market for thesmall but efficient producer. Excellent service,top quality, and consistent supply mightsubstitute for the lowest wholesale price with

some local customers, particularly gourmetchefs. In addition, shiitakes grown on logs maydevelop into a separate niche market, becausethey are considered to be of higher quality andmay have a longer shelf life than shiitakesgrown on sawdust substrates (the most commonmass-produced method). Oyster mushrooms,with limited shelf life, may also have anadvantage in nearby markets.




Mushroom Cultivation MediaGrowing Medium Mushroom Species

Ricestraw Straw (Volvariella)Oyster (Pleurotus)Common ( Agaricus)

Wheatstraw Oyster (Pleurotus)Common ( Agaricus)

StrophariaStraw (Volvariella)

Coffee pulp Oyster (Pleurotus)Shiitake (Lentinus)

Sawdust Shiitake (Lentinus)Oyster (Pleurotus)HericiumEar ( Auricularis)Ganoderma (Reishi)Winter (Flammulina)

Sawdust-straw Oyster (Pleurotus)

StrophariaCotton waste from textile industry Oyster (Pleurotus)

Straw (Volvariella)

Cotton seed hulls Oyster (Pleurotus)Shiitake (Lentinus)

Logs Nameko (Pholiota)Shiitake (Lentinus)White jelly (Tremella)

Sawdust-rice bran Nameko (Pholiota)Ear ( Auricularis)Coprinus

Winter (Flammulina)Shiitake (Lentinus)

Corncobs Oyster (Pleurotus)HericiumShiitake (Lentinus)

Paper Oyster (Pleurotus)Stropharia

Horse manure (fresh or composted) Common ( Agaricus)

Crushed bagasse and molasses wastesfrom sugar industry

Oyster (Pleurotus)

Water hyacinth/Water lily Oyster (Pleurotus)

Straw (Volvariella)Oil palm pericarp waste Straw (Volvariella)

Bean straw Oyster (Pleurotus)Cotton straw Oyster (Pleurotus)Cocoa shell waste Oyster (Pleurotus)

Coir Oyster (Pleurotus)Banana leaves Straw (Volvariella)

Distillers grain waste Hericium




Oyster mushrooms

Oyster mushrooms (Pleurotus spp.) are oftenrecommended as a good choice for beginningmushroom cultivators because they are easier togrow than many of the other species, and theycan be grown on a small scale with moderate

initial investment. Although commonly grownon sterile straw from wheat or rice, they can beproduced from a wide variety of high-cellulosewaste materials. Some of these materials do notrequire sterilization, only pasteurization, whichis less expensive. Another advantage ofgrowing oyster mushrooms is that a highpercentage of the substrate is converted tofruiting bodies, increasing potentialprofitability.

Oyster mushrooms have great potential as anintegral part of a sustainable agriculture system.Many types of organic wastes generated inproduction or by the food processing industryare added to the waste stream annually. Thesematerials could support oyster mushroomproduction, if systematically collected andprocessed.

Although there are no books devoted entirely tooyster mushroom production, Stamets’ booksprovide basic information. There has been

research into using various agricultural andforest wastes as substrates, some of which isreported in the recently published MushroomBiology and Mushroom Products, edited by D.J.Royce (6). Peter Oei (5) documents a number ofcommercial production systems for some strainsgrown in developing countries. LawrenceWeingarten describes his production process onhis website, complete with photos:http://sorex.tvi.cc.nm.us/nama/cult/i-grow-2.htm

Oyster mushroom cultivation has onesignificant drawback: some people are allergicto the spores. In these cases, air-cleaningequipment or respirators are necessary in orderto work in the production facility.

The consumer market for oyster mushrooms isbeing developed by the larger mushroom

companies as they diversify their operations.However, because of the short shelf life of manyoyster mushroom varieties, this species mayoffer a special advantage to the local growerwho markets directly and can consistentlydeliver a fresh, high-quality product.

Shiitake mushrooms

Shiitakes (Lentinus edodes) are well suited as alow-input alternative enterprise because they,like oyster mushrooms, can be grown on asmall-scale with a moderate initial investment.Shiitake mushroom production is the mostdeveloped specialty mushroom option. Itscultivation has been well investigated and acommercial market already exists. Shiitakemushrooms are grown on logs outside or are

produced inside on synthesized sawdust logs oron sawdust in bags. See the brief description ofthese production systems below. Severalexcellent books are also listed below.

Log Production

Hardwood logs approximately 4 – 6" in diameterof a length easily handled (commonly 4 ‘) arecut during their dormant season. Oaks,sweetgum, cottonwood, beech, birch, willowand other non-aromatic hardwoods are

appropriate species. The denser woods produceup to twice as long as the softer ones. Smallerdiameter logs produce sooner than bigger ones,but for a shorter time. Logs are handled so thatthere is as little loss of bark and contact with soilas is possible. They are inoculated with spawn,using a strain selected for the temperature andfruiting regime appropriate to the productionsystem. There is a wide variety of spawn fromwhich to choose.

After inoculation, the mycelium growsthroughout the log. During this time, theproducer may need to move the logs, protectthem from sun and wind, and spray or mistthem to maintain the necessary humidity foreventual fruiting. When the substrate (log) isfully occupied and conditions are right, thelog is soaked and/or shocked to beginfruiting.




Harvesting at the proper stage of developmentalso requires close attention from themushroom farmer. Shiitakes must be picked atthe correct time to ensure premium prices.Post-harvest storage, packaging, and shippingcan be costly.

Many shiitakes are raised organically, but thereare "weed" fungi as well as other pests such asslugs and flies which can reduce production orquality. The producer must be prepared tocontrol these pests or lose some of the crop. Itis, however, easier to organically produceshiitake mushrooms than some of the othermushrooms. In order to label a product“organic,” the production process must undergoa process called certification. Severalorganizations and some states currently certify

organic production. Federal regulations willsoon be the law. For further information, calland request the ATTRA publication OrganicCertification.

Studies have shown that log production ofshiitakes is only marginally profitable if laborand management costs are taken intoconsideration. It is possible that as a part of anintegrated farming system, such an enterprisecould become a profit center to utilize off-seasonlabor or to enhance overall profitability. If the

farm includes agroforestry practices such asriparian buffers or windbreaks, a shiitake areamight be incorporated there.

Growing on sawdust

Now, most shiitakes are raised on a sterilizedsawdust substrate. This method, although itallows for a much faster fruiting cycle and ahigh level of return (110% or more of initial dryweight), demands a greater capital investment

and more skillful management than logproduction. In order to achieve fruiting asquickly as possible, the producer must provide abuilding in which temperature and moisture canbe manipulated. The building must be keptclean to avoid contamination.

Equipment to pasteurize or sterilize and mix themedium may be needed and can represent a

significant initial investment. At current prices,these costs may be difficult for a beginningproducer to recover. Growing mushrooms onsawdust requires attention to detail—especiallycareful monitoring—and timely processing ofthe blocks or bags. Several books listed below,including Stamets (1993) and Przybylowicz and

Donoghue (1990) offer more details of thisproduction method.

Marketing shiitakes

It is possible to find U.S.-produced fresh ordried shiitake mushrooms in specialty foodstores and many large supermarkets throughoutthe country. Some analysts suggest that themarket may have less potential for expansionnow than was predicted in the 1980s. Otherspecialty mushrooms may capture some of thismarket if the overall demand for mushroomsdoes not increase.

It is therefore very important to plan amarketing strategy carefully before committingto a shiitake mushroom venture.

Possibilities include:

• Direct marketing of the fresh or driedproduct (farmers markets, gourmet chefs,internet or mail order offerings)

• value-added products (mushroom sauces,dried entrée mixes, teas)

• wholesale system set up for fresh produce(contract or to wholesaler).

Local grocery stores may be interested in buyingthis specialty product directly. A grower ineastern Arkansas stated that local grocery chainswere only interested in her shiitake mushroomsafter she could assure them of a year-roundsupply. She decided that she had to add either

indoor log or substrate in order to meet thisrequirement. Natural foods stores are anotherpotential market which may be more tolerant ofa seasonal supply situation.

The price for shiitake mushrooms fluctuatesthroughout the season. Prices are highest in thewinter when supply is low, and lowest insummer when production peaks. Except in very




mild climate areas, the only logs which fruit inwinter are those maintained indoors. Usingstrains selected to fruit at cooler temperaturescan lengthen the harvest season to capture morefavorable prices.

There are several methods shiitake growers can

use to preserve their crop during times whenprices are low. Persimmon Hill Berry Farm (7)tackled the challenges of marketing their ownvalue-added product by building a commercialkitchen and developing a special shiitakemushroom sauce.

Operations that make value-added productsmay be able to provide a market for smallshiitake producers in their areas. ThePersimmon Hill Berry Farm in Missouri is a

good example. Area growers can freeze theirsurplus mushrooms until enough haveaccumulated to make sale and delivery to thefacility worthwhile. Likewise, during heavyproduction in warm weather, mushrooms can beheld frozen until there is time to process them.Growers get a better price and Persimmon Hillcan increase its product sales.

Another way to avoid the depressed prices ofhigh supply periods is to dry the product.Hardscrabble Enterprises (8) buys several

grades of dried shiitakes. Growers supplyingthis company ship the dried product directly toWest Virginia. Contact Paul Goland for furtherdetails for specifications on drying themushrooms, shipping requirements, and pricesfor various grades.

Sources of further information on shiitakes

Several states, including Pennsylvania,California, and Oregon, support university

research and may have Extension specialists toprovide information to growers in their state.Others have Extension publications withinformation specific to the area. Some of theseresources are available electronically on theWorldwide Web.

In states without these resources, one of the bestways to trouble-shoot and learn about

production is to share information with othergrowers. There are a number of local growerorganizations, many of which publishnewsletters. State Extension horticulturalspecialists should be aware of localorganizations or you can contact the NorthAmerican Mycological Association (see

Resources below).

There are also several books that have beenpublished on shiitake production. SeeResources: (shiitakes) for more information.

Mushroom Species Not Commonly Cultivated

Some species of mushrooms are notcommercially cultivated. Many of these aremycorrhizzal types, that is, they grow only

in conjunction with the roots of higher plantspecies. Morels, matsutakes, andchanterelles are familiar examples of suchmushrooms.

This type of mushroom is the hardest kind togrow commercially since the needs of both thefungus and the host plant must be met in orderto produce a commercial crop. Also, the hostplant typically must reach a certainphysiological maturity before the fungus willfruit. For trees, this maturity may be measured

in decades. Nevertheless, both truffles andmorels are now being grown commercially inthis country.

Morels

Commercial small-scale production of morels isnot currently a practical option. At this time,morels are being grown at a production facilityin Alabama using a patented process. Thepatent is owned by Terry Farms and is the only

known successful commercial process forfruiting these highly valued mushrooms out ofseason.

Spawn is available to establish a morel patchfrom several suppliers. If successful, thesemushrooms fruit in the Spring at the same timethat wild morels do. Market prices are,understandably, the lowest of the year during




this natural fruiting season. Drying the productfor year around sales might have potential, ifcommercial quantities are produced from thepatch.

Truffles

In the future, truffles (Tuber spp.) may holdpotential for beginning cultivators. Becausethese fungi grow underground on tree roots, theproducer can concentrate on caring for the treesand may not need extensive knowledge of thefungus itself. The requirements of the Tuber spp. are met by choosing an appropriate hostplant (oak or hazelnut), inoculating its rootswith the spawn, and planting it.

Correct soil and environmental conditions

must be maintained until the tree reachesmaturity and fruiting begins. Production oftruffles is still experimental. Frank Garland,who raised the first truffles in the U.S., haswritten a growers’ guide based on hisexperience (9).

Other Mycorrhizal Species

Mushroom researchers continue to investigatethe growth of other species so that they can becultivated for the commercial market. Until such

production systems are developed, chanterelles,boletes, and matsutake (pine) mushrooms willcontinue to be collected from the wild for sale tothe specialty mushroom market.

In some parts of the country, foraging for wildmushrooms is a viable commercial venture.ATTRA’s mandate excludes us from providinginformation on species that are not cultivatedcommercially; therefore we cannot offerinformation on commonly collected species.

However, Mushroom, The Journal of Wild Mushrooming (see Resources below) is anexcellent source on foraging for wildmushrooms. There are numerous localmycological societies as well. Often thesegroups schedule “forays” — trips to knownmushroom habitats — where the inexperiencedcan learn about and identify various speciesfrom more knowledgeable mushroomers.

It is critical that anyone foraging for wildmushrooms be absolutely certain aboutidentifying characteristics. There are manybooks available on the subject, but if at allpossible, it is a good idea to learn from someonewho has field experience as well. There havebeen some well-publicized instances of

mistaken identity recently. Even veryknowledgeable people have made fatalmistakes. If the mushroom is to be sold, issuesof liability must be addressed. Since foraging isregulated in some areas, a call to the stateDepartment of Agriculture is anotherprerequisite before heading to the woods.

With proper management, foraging can besustainable and environmentally unobtrusive.It is important to disturb as little of the natural

environment as possible when foraging. Wildmushrooms require a very specific set ofenvironmental conditions to grow and spread.If the area in which they are growing becomestoo disturbed, the entire mushroom stand maydie. It is also good to leave some mushrooms tomature spores so that they will repopulate andproduce more mushrooms in the future.

Pest Management

The best strategy for managing any pest is

provided by integrated pest management (IPM).IPM views pests as a natural part of the farmenvironment and considers various options toalter the agroecosystem to decrease its carryingcapacity for the pest.

The producer must first be able to identify pestsand must then determine at what level theybecome an economic threat to the crop. Becausespecialty mushroom production is so new in theUnited States, pest complexes are just beginning

to be identified. Local agents or state Extensionspecialists can assist with identification of pestsand determining economic thresholds.

The second step in IPM is monitoring. Traps orbaits are used to determine whether pests arepresent and to estimate how many. If numbersincrease, control measures can be implementedquickly, before populations explode. The




numbers and types identified by monitoring areused to determine whether or not to take action,and what type of action to take.

Knowing the life history of each pest makes itpossible to design a strategy to attack it at a"weak link" in its life cycle. Extensive

knowledge about the pest's predator complexand its function in the local ecology are alsonecessary ingredients for a successful IPMprogram. Check local or land grant universitylibraries for references on specific insects.

As an example, mushroom flies, a common pestof various cultivated mushrooms, are attractedto the smell of decaying vegetation such asmushroom media. Screening the mushroomhouse ventilation system keeps adult flies out.

Good screening, double doors and, ideally, apositive atmospheric pressure within themushroom structure will help prevent the entryof flies or airborne contaminants. Adult fungusflies are also drawn to standing pools of wateron solid benches, on walks, or under benches.Therefore, further prevention of pest problemsis accomplished by eliminating places wherewater can accumulate.

Biocontrol options exist for certain mushroompests, among them the sciarid fly. A predatory

nematode attacks this pest in its larval form inthe composting substrate. Many toxic pesticideshave been replaced by this beneficial nematode.

Sanitation is essential to least-toxic mushroomproduction systems. This means the productionstructures and equipment must be kept freefrom contamination. Preparing a growingmedium with no pest nematode larvae, or eggsshould also be a basic part of the sanitationprogram. If the substrate is composted, it

should be done in an area distant from thegrowing facility. Spent media should bemarketed to landscapers and nurseries, if thereis no on-farm use for it. Disposal should takeplace away from the mushroom productionfacility. Otherwise, it will attract pests and theproblem will become worse. If natural logs orstumps are used, inoculation with spawn soonafter cutting and minimal contact with soil willreduce contamination by pathogens.

Markets for Mushrooms

Since the 1950s, per capita demand in the U.S.for the white button mushroom as well asspecialty varieties has increased dramatically(10). The mushroom industry in the UnitedStates is currently dominated by large, well-

established companies. Most are located inPennsylvania and California. The productionhouses are constantly full of mushrooms inevery stage of production. Mushrooms raisedin these systems can be sold on the wholesalemarket and still earn a profit. It is verydifficult, however, for a beginning grower tocompete with these companies in wholesalemarkets.

The small-scale commercial production of whitebutton mushrooms and other Agaricusmushrooms such as portobellas and creminismay not be economically viable and is notrecommended for the beginner. A significantcapital outlay and a high level of managementskills are required to begin production and, atcurrent prices, recovery of the initial investmentmay not be possible. Marketing is extremelycompetitive. More information about the buttonmushroom business is available from TheAmerican Mushroom Institute (see Resources).

Although many mushrooms have beeninvestigated and can be cultivated, the marketfor specialty mushrooms is still limited. Thepotential mushroom producer would be wise tothoroughly investigate demand for each speciesbefore committing large amounts of time andcapital to the production stage of the enterprisedevelopment.

Direct marketing at local farmers’ markets,restaurants, or supermarkets may be an

opportunity in some locations. Most wholesalecustomers will require assurances of consistentsupply and quality before they will commit topurchasing from unknown or less convenientsources.

Market Research

Perhaps the most challenging problem indeveloping new enterprises is assessing the




market. Nevertheless, growers are stronglyencouraged to assess market opportunitiesbefore beginning. The following section isadapted from a resouce sheet entitled “DoingYour Own Market Research” by CornellExtension Specialist Judy Green (11).

When considering growing mushrooms as adiversification strategy, farmers must first askthemselves the following questions:

• Is there a market for this? Will I be able tosell enough mushrooms at a price above mycost of production?

• Will growing and selling mushrooms beconsistent with my family’s goals and myfarm business goals?

• Do I have the resources needed to besuccessful? (A complete inventory shouldinclude skills, labor and management time,sources of information, assistance and credit,input suppliers, processors and distributors.)

• Will it be profitable? (Use projected incomeand expenses for an “average future year” todetermine whether revenues will be higherthan estimated costs of production.)

• Can I afford to produce mushrooms? (Anew enterprise may take several years tobecome profitable.)

The goals in market assessment are: 1) toproject the volume of sales and the price toreasonably expect to achieve with a newenterprise, (needed to analyze profitability andcash flow potential); and 2) to gatherinformation about potential buyers andcompetitors (helps in developing a marketstrategy).

This next set questions of can be answeredthrough market research:

• What is the total market size at present forthis product within a given area?

• How many competitors are there for thismarket? What are their strengths and

weaknesses? What type of buyers are theytargeting?

• What prices can buyers expect to receive fora given level of quality?

• What trends are there in consumption,

competition, and pricing?

• What are the characteristics of buyers of thisproduct or service? Age? Income level?Lifestyle? What are they looking for?Where are they looking for it? How can I doa better job than my competitors in meetingtheir needs?

• What proportion or share of the marketmight I expect to capture?

Research is especially important when you areconsidering an innovative enterprise or a newmarket. Some common methods for conductingprimary research include: observation, writtensurveys, personal interviews, and test marketing(offering your product on a limited basis inorder to evaluate potential sales).

Another aspect of market research includesevaluating the competition. This will help youdetermine the market as it already is, and willassist you in determining niches your productcould fill. To find out more about yourcompetitors, use their products. Talk to them.You may be surprised how much informationthey will share.

Further business assistance is availablethrough local Small Business Administrationoffices. In addition, the ATTRA publicationEvaluating a Rural Enterprise is available uponrequest.

Further Resources

Two mushroom publications that includeproduction information are The MushroomGrowers Newsletter, and Mushroom, The Journal of Wild Mushrooming. Subscription information isincluded with citations for several key booksunder Publications in the Resources section




below. A list of mushroom websites is alsoincluded.

Conclusion

The commercial cultivation of mushrooms is notfor everyone. It requires someone who is familiar

with fungus life cycles and is willing to commitresources to research, to designing a system, andto business development. The mushroomcultivator must be able to carry out operations ontime, be attentive to details, and be vigilant aboutpest invasions. In many cases, marketingrequires excellent public relations skills.

Nevertheless, there is potential for an innovatorwho can use an existing facility, obtain a low-cost substrate, and produce a reliable supply ofa high quality product. Producing a nutritiousfood at a profit, while using materials thatwould otherwise be considered “waste,”constitutes a valuable service in the self-sustaining community we might envision forthe future. It is a challenge some will find worthtaking.

References:

1) Anon. 1997. Market trends. Mushroom

Grower’s Newsletter. February. p. 3.

2) Royce, Daniel J. and Lee C. Schisler. 1980.Interdisciplinary Science Reviews. Vol. 5,No. 4. p. 324 – 331.

3) Fungi PerfectiP.O. Box 7634Olympia, WA 98507(206) 426-9292http://www.fungi.com/culture.html

4) Anon. 1981. Food, Fuel, and Fertilizer fromOrganic Wastes. National Academy Press,Washington, DC. p. 27 – 37.

5) Oei, Peter. 1991. Manual on MushroomCultivation. TOOL Foundation,Amsterdam. p. 49 – 50.

This publication is available for $50 from Mushroompeople (address below inSuppliers ).

6) Royce, D.J. (ed.) 1996. Mushroom Biologyand Mushroom Products: Proceedings of theSecond International Conference, UniversityPark, PA, June 9 – 12, 1996. Penn State, StatePark, PA.581 p.

7) Earnie Bohner

Persimmon Hill Berry FarmRR 1 Box 220Lampe, MO 65681(417) 779-5443

8) Hardscrabble EnterprisesHC 71, Box 42Circleville, WV 26804(304) 358-2921Contact: Paul Goland

9) Garland, Franklin. 1996. Truffle Cultivation

in North America. Garland GourmetMushrooms and Truffles, Inc., Hillsborough,NC. 41 p.

Available for $15 from:Garland GourmetMushrooms and Truffles,Inc.3020 Ode Turner Rd.Hillsborough, NC 27278(919) 732-3041(919) 732-6037 [email protected]

10) Anon. 1993. Bits and pieces. MushroomGrowers. Newsletter. October. p. 2.

11) Green, Judy. 1988. Doing your own marketresearch. Farming Alternatives. CornellUniversity Resource Sheet #6. November.6 p.

Resources:

Publications:

Breene, William M. 1989. Nutritional and medicinalvalue of exotic mushrooms. p. 87 – 105. In: Anon.Shiitake Mushrooms: The Proceedings of a NationalSymposium and Trade Show, May 3-5, 1989. St.Paul, MN. Sponsored by University of Minnesota, etal. 217 p.

http://www.fungi.com/culture.html

http://www.fungi.com/culture.html




To order this publication, send $20 to:Center for Alternative Crops& Animal Products305 Alderman Hall1970 Folwell Ave.University of MinnesotaSt. Paul, MN 55108(612) 625-5747

Hobbs, Christopher and Michael Miovic (ed.). 1995.Medicinal Mushrooms : An Exploration of TraditionHealing & Culture, Third Edition, Botanical Press.ISBN: 1884360017.

Lee, William H.R., and Joan A. Friedrich. 1997.Medicinal Benefits of Mushrooms: Healing for MoreThan 20 Centuries—Their Effects on Cancer,Diabetes, Heart Disease and More. Keats Publishing.48 p. ISBN: 0879837187

Widely available for $3.50.

National Agricultural Library (NAL) periodicallypublishes Quick Bibliographies (QB), results of adatabase search on a given topic. QB’s have beenpublished for both shiitake and oyster mushrooms.They can be downloaded from the NAL website orobtained from:

National Agricultural Library10301 Baltimore Blvd.Beltsville, MD 20705(301) 504-5755

http://www.nalusda.gov/afsic/AFSIC_pubs/

Oei, Peter. 1991. Manual on Mushroom Cultivation:Techniques, Species and Opportunities forCommercial Application in Developing Countries.TOOL Publications, Amsterdam, The Netherlands.274 p.

This publication is available for $50 from Mushroompeople (address below in Suppliers ).

Stamets, Paul and J.S. Chilton. 1983. The MushroomCultivator. Agarikon Press, Olympia, WA. 415 p.

Includes general growing parameters for sixteenspecies and covers every aspect of mushroomcultivation. Available for $24.95 from:

Fungi PerfectiP.O. Box 7634Olympia, WA 98507(800) 780-9126 or (260) 426-9292

Stamets, Paul. 1993. Growing Gourmet andMedicinal Mushrooms. Ten Speed Press. Berkeley,CA. 552 p.

Companion volume to The Mushroom

Cultivator. Updates culture and growingtechniques, adds growing information on newvarieties, discusses strain selection for cultivation. Available for $50 from Fungi Perfecti (see addressabove).

Mushroom, the Journal of Wild Mushrooming is aquarterly periodical that primarily contains

information on foraging with some information oncultivation.

Available for $16/year from:Mushroom, the Journal of WildMushrooming861 Harold St.Moscow, ID 83843

The Mushroom Grower's Newsletter is a monthlynewsletter containing commercial information andreporting current prices of mushrooms at SanFrancisco and New York markets.

Available for $24/year from:The Mushroom Company5140 Lombardy LaneKlamath Falls, OR 97603

http://www.mushroomcompany.com/

Associations:

The North American Mycological Association(NAMA) provides a bi-monthly newsletter , The Mycophile, and publishes an annual directory whichprovides names and address of all NAMA membersand every mycology association in North America.

Annual memberships are $15. Contact:NAMA3556 OakwoodAnn Arbor, MI 48104-5213(313) 971-2552

http://sorex.tvi.cc.nm.us/nama/

A source of information on the mushroom industry isthe American Mushroom Institute.

Contact them at:American Mushroom Institute907 E. Baltimore PikeKennett Square, PA 19348(215) 388-7806

http://americanmushroominst.org/index.htm

Websites:

Websites often make address changes. If not found at thisaddress, a search of the Web should access currentlocations.








American Mushroom Institute:http://www.americanmushroominst.org/consumer.htm

The American Type Culture Collection Homehttp://www.atcc.org/

Mushroom People Books

http://www.thefarm.org/mushroom/

National Agricultural Statistics Services forMushroomshttp://usda.mannlib.cornell.edu/reports/nassr/other/zmu-bb/

Mycologue Publicationshttp://www.pacificcoast.net/~mycolog/

Mycological Resources on the Internethttp://www.keil.ukans.edu/~fungi/

Mycological Resources on the Internet:Directorieshttp://muse.bio.cornel.edu/~fungi/fdirect

Penn State’s Mushroom Site:http://MushroomSpawn.cas.psu.edu/

Resources: (shiitake)

Rafats, Jerry. 1996. Shiitake: Cultivated Mushroom.Quick Bibliography Series B:90-4.National Agricultural Library, Beltsville, MD.

A bibliography of articles on shiitake mushrooms.Though somewhat dated (published in 1996), thiscollection still contains valuable information for shiitake producers. This publication is available free from:

National Agricultural Library10301 Baltimore Blvd.Beltsville, MD 20705(301) 504-5755

http://www.nalusda.gov/

Harris, Bob. 1994. Growing Shiitake Commercially.2nd ed. Science Tech Publishers, Madison, WI. 72 p.Large scale cultivation of shiitakemushrooms using traditional oak logs.Information from many years' work,including material from recent visits tocommercial farms and research facilitiesin Japan. Some of the most modern andcost effective methods are presented with photographs and drawings. Available

from Mushroompeople (see address inSuppliers )

Jones, Kenneth. 1995. Shiitake: The HealingMushroom. Healing Arts Press, Rochester, VT.120 p.

Widely available for $8.95.

Kozak, M.E. and J. Krawcyzk. 1989. GrowingShiitake Mushrooms in a Continental Climate. 2nded. Field & Forest Products, Peshtigo, WI. 114 p.

To order this publication, send $12 postage paidto:

Field & Forest Products, Inc.N 3296 Kozuzek Rd.Peshtigo, WI 54157(800) 792-6220

Przybylowicz, Paul and John Donoghue. 1990.Shiitake Growers Handbook. Kendall/Hunt

Publishing Co. Dubuque, IA. 217 p. An authoritative book about shiitake. It covers awide range of topics from log cultivation to thenewer capital intensive sawdust cultivation.Information varies between scientific material and practical. Emphasis is on presenting as muchinformation as possible rather than selectivelychoosing the best or most advanced methods. Adefinite must for your shiitake cultivation library.Widely available for $25.

Suppliers:

Allied Mushroom Products Co.P.O. Box 4909Tontitown, AR 72770501-361-5938

Amycel SpawnP.O. Box 560Avondale, PA 19311610-869-4041http://www.amycel.com/

Field & Forest ProductsN3296 Kozuzek Rd.Peshtigo, WI 54157800-792-6220

Fungi PerfectiP.O. Box 7634Olympia, WA 98507260-426-9292http://www.fungi.com/culture.html

http://www.atcc.org/

http://www.keil.ukans.edu/~fungi/

http://muse.bio.cornel.edu/~fungi/fdirect



http://muse.bio.cornel.edu/~fungi/fdirect

http://www.keil.ukans.edu/~fungi/

http://www.atcc.org/




L.F. Lambert Spawn Co.1507 Valley Rd.Coatesville, PA 19320610-384-5031

Long Ridge Farms406 Tom Cook Rd.Sugar Grove, NC 28679

828-297-4373

MushroompeopleP.O. Box 220560 Farm Rd.Summertown, TN 38483931-964-2200http://www.thefarm.org/mushroom/mpframe.html

Northwest Mycological Consultants702 NW 4th St.Corvallis, OR 97330

541-753-8198

Sylvan Spawn LaboratoryWest Hills Industrial ParkKittanning, PA 16201724-543-2242

J.B. Swayne Spawn Co.P.O. Box 618Kennett Square, PA 19348610-444-0888

Western Biologicals, LTD.P.O. Box 283Aldergrove, BC VOX 1AO

CANADA604-856-3339

By Alice E. Beetz and Lane GreerNCAT Agriculture Specialists

September 1999

The electronic version of Mushroom Cultivation

and Marketing is located at:

http://www.attra.org/attra-pub/mushroom.html

The ATTRA Project is operated by the National Center for Appropriate Technology under a grant from the

Rural Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend

or endorse products, companies, or individuals. ATTRA is located in the Ozark Mountains at the University of

Arkansas in Fayetteville at P.O. Box 3657, Fayetteville, AR 72702. ATTRA staff members prefer to receive

requests for information about sustainable agriculture via the toll-free number 800-346-9140.

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