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MUSHROOM CULTIVATION
                                                            AND MARKETING
  National Sustainable Agriculture Information Service
                                                                    HORTICULTURE PRODUCTION GUIDE
    www.attra.ncat.org
 Abstract: The market for mushrooms continues to grow due to interest in their culinary, nutritional, and health benefits.
 They also show potential for use in waste management. However, as fungi, mushrooms have life cycles very different
 from those of green plants. The choice of species to raise depends both on the growth media available and on market
 considerations. Oyster mushrooms, which grow on many substrates, are easiest for a beginner. Shiitake mushrooms
 already have earned considerable consumer demand. Only two mycorrhizal mushrooms, morels and truffles, have been
 commercially cultivated. Mushroom cultivation offers benefits to market gardens when it is integrated into the existing
 production system. A careful analysis of potential markets must be the first step in deciding whether to raise mushrooms
 to sell. Many information resources are available for further research.

By Alice Beetz and Michael Kustudia
NCAT Program Specialists
July 2004
© NCAT 2004



                      Introduction
   Small-scale mushroom production represents
an opportunity for farmers interested in an ad-
ditional enterprise and is a specialty option for
farmers without much land. This publication
is designed for market gardeners who want to
incorporate mushrooms into their systems and
for those farmers who want to use mushroom
cultivation as a way to extract value from
woodlot thinnings and other “waste” materials.
Mushroom production can play an important
role in managing farm organic wastes when
agricultural and food processing by-products
                                                                          Gray Oyster Mushrooms • Glen Babcock – Garden City Fungi

                                                           Contents
     Introduction ............................................. 1        Further Resources ................................... 15
     Growing Mushrooms ............................. 2                   Conclusion ............................................... 15
     Choosing a Mushroom Species ............. 5                         References ................................................ 16
     Species for Beginners .............................. 6              Appendix .................................................. 17
     Pest Management .................................... 11             Resources .................................................. 18
     Marketing Mushrooms........................... 11                   Spawn and
     Financial Analysis ................................... 14           Equipment Suppliers ............................ 21

ATTRA is the national sustainable agriculture information service operated by the National
Center for Appropriate Technology, through a grant from the Rural Business-Cooperative
Service, U.S. Department of Agriculture. These organizations do not recommend or
endorse products, companies, or individuals. NCAT has offices in Fayetteville, Arkansas
(P.O. Box 3657, Fayetteville, AR 72702), Butte, Montana, and Davis, California.
are used as growing media for edible fungi. The        prepared to face sporadic fruiting, invasions of
spent substrate can then be composted and ap-          “weed” fungi, insect pests, and unreliable market
plied directly back to the soil. This publication      prices.
includes resources for entrepreneurs who wish
to do further research.
                                                           Growing Mushrooms
   Many people are intrigued by mushrooms’ nu-
tritional and medicinal properties, in addition to
their culinary appeal. Mushrooms contain many             Mushroom production is completely different
essential amino acids; white button mushrooms,         from growing green plants. Mushrooms do not
for example, contain more protein than kidney          contain chlorophyll and therefore depend on
beans. Shiitake mushrooms are less nutritious,         other plant material (the “substrate”) for their
but are still a good source of protein.(Royse and      food. The part of the organism that we see and
Schisler, 1980) As a group, mushrooms also             call a mushroom is really just the fruiting body.
contain some unsaturated fatty acids, provide          Unseen is the mycelium—tiny threads that grow
several of the B vitamins, and vitamin D. Some         throughout the substrate and collect nutrients by
even contain significant vitamin C, as well as the      breaking down the organic material. This is the
minerals potassium, phosphorus, calcium, and           main body of the mushroom. Generally, each
magnesium.(Park, 2001)                                 mushroom species prefers a particular growing
                                                       medium, although some species can grow on a
   Asian traditions maintain that some specialty       wide range of materials.
mushrooms provide health benefits. Chinese
doctors use at least 50 species. Two recent books,        If you are considering mushroom production,
Medicinal Mushrooms: An Exploration of Tradition,      become thoroughly familiar with the life cycles
Healing and Culture and Medicinal Mushrooms You        of fungi. A very general description is included
Can Grow, detail existing research on the health       below. A plant pathology textbook is a good
benefits of mushrooms. See the Resources sec-           resource for learning more about these complex
tion at the end of this guide for specifics on these    life cycles.
books and other sources of information.                   Once you are familiar with the various fungi
   Mushroom production is labor- and manage-           life cycles, learn the growth requirements of each
ment-intensive. Specialty mushrooms are not            of the species you are considering. Two basic ref-
a “get rich quick” enterprise. On the contrary,        erences are The Mushroom Cultivator, by Stamets
it takes a considerable amount of knowledge,           and Chilton, and the aforementioned Growing
research, planning, and capital investment to          Gourmet and Medicinal Mushrooms, by Stamets
set up a production system. You must also be           (see Resources).

                                                          Growing mushrooms outdoors as a part of
                                                       a market garden involves little effort after you



    P
                                                       have inoculated the logs or other substrate with
         roducing nutritious food                      the mushroom spawn. Your duties are mainly
         at a profit, while using                      to maintain humidity and monitor for fruiting.
                                                       When mushrooms appear, you add them to your
    materials that would other-                        other garden products and sell them. (See Mush-
    wise be considered “waste,”                        rooms on the Farm and in the Garden, below.)
    constitutes a valuable service                        Most available markets, however, require more
    in the self-sustaining com-                        mushrooms than occasional fruiting provides.
                                                       Indoor production can fill the gaps when outside
    munity we might envision                           fruiting lags. The entire operation can also be
    for the future.                                    conducted inside. However, indoor mushroom
                                                       production demands a much higher level of
                                                       knowledge, continuous monitoring, and timely
                                                       manipulation of environmental conditions.


PAGE 2                                                //MUSHROOM CULTIVATION AND MARKETING
These are the steps in mushroom produc-                                                                              •     Cleaning the facility and beginning again
tion— a cycle that takes about 15 weeks (time                                                                                 (Cooner, 2001)
varies by species) from start to finish.
                                                                                                                           The substrate on which the mushrooms will
•   Choosing a growing medium                                                                                           fruit must be sterilized or pasteurized in order
•   Pasteurizing or sterilizing the medium                                                                              to destroy any fungal and/or bacterial competi-
•   Seeding the beds with spawn (material                                                                               tors. Low-tech substrate preparation methods
    from mature mushrooms grown on sterile                                                                              are described in the books by Paul Stamets and
    media)                                                                                                              by Peter Oei (see Resources).

•   Maintaining optimal temperature, mois-                                                                                 To produce spawn, you inoculate a pasteurized
    ture, and other conditions for mycelium                                                                             medium, usually grain, with the sterile culture of
    growth and the conditions that favor fruit-                                                                         a particular mushroom species. After the culture
    ing (This is the most challenging step.)                                                                            has grown throughout the medium, it is called
•   Harvesting, packaging, and selling the                                                                              spawn. Producing spawn requires exacting
    mushrooms                                                                                                           laboratory procedures. Terri Marie Beauséjour,

                                                                                   Figure 1
     Copyright 1995 by Paul Stamets, <www.fungi.com>. Reprinted with permission.




                                                                                       //MUSHROOM CULTIVATION AND MARKETING                                    PAGE 3
cultivation chair for the Mycological Society of        tion. Evaluate this possibility only after you have
San Francisco, has written an excellent article         mastered the later stages of cultivation.
that can help the beginner who is put off by the
technical aspects of mushroom cultivation. Titled          While the mycelium is growing—and until
“Getting Started with Mushroom Cultivation:             it fully occupies the substrate—the mushroom
The Wisdom of Simplicity,” it is available on the       farmer typically manipulates the growing envi-
Web at <www.mykoweb.com/articles/cultiva-               ronment to favor mycelial growth. The atmo-
tion.html>.                                             spheric conditions are then changed to initiate
                                                        “pinheads,” and then to complete fruiting. For
   Many mushroom suppliers sell several kinds           example, in oyster mushroom production un-
of spawn, and the beginning mushroom farmer             der closely controlled conditions, the grower
should take advantage of this selection in early        lowers the temperature and the CO 2 in the
trials to determine which species grow best on          grow room to initiate fruiting. Each species has
available materials. Eventually, learning to pro-       specific requirements for its stages of develop-
duce spawn might reduce your cost of produc-            ment. The Mushroom Cultivator provides detailed




                      Mushrooms in Permaculture* Design
         *Permaculture is a system of combining perennials, trees, shrubs, and vines to create a “per-
      manent agriculture.” Using an intensive design process, the natural elements of an ecosystem
      are replaced by food-producing relatives, creating an edible landscape.

        Paul Stamets was an early advocate of           waterways, they acted as microfilters of
     integrating a variety of mushrooms into a          fecal coliform bacteria generated by his
     permaculture system.(Stamets, 1994) In his         small herd of cattle. He also planted them
     design, agricultural wastes like cornstalks,       along greywater runoff areas. Stamets be-
     wheat straw, or rice straw can be used as          lieves mushrooms can play a large role in
     growing media for oyster mushrooms. After          mycofiltration.(Stamets, 2000-2001)
     harvest, the spent substrate can be recycled
     as fodder or mulch for garden soils.                  Stamets grows shiitakes, namekos (Pho-
                                                        liota nameko), and Lion’s mane (Hericium
        Shaggy manes (Coprinus comatus), Sta-           erinaceus) mushrooms on inoculated logs
     mets notes, do well on manured soils and           set in a fence row, while other species like
     near compost piles. The King stropharia            maitake (Grifola frondosa), reishi (Ganoderma
     or wine cap mushroom (Stropharia rugoso-           lucidum), and clustered wood-lovers are
     annulata) grows best outdoors and plays a          cultivated on stumps as part of a hardwood
     key role as a recycler of woody debris. Bees,      forest management system. He introduces
     attracted to the sweet mycelium, help pol-         mycorrhizal species such as chanterelles,
     linate the green garden plants. The mush-          King boletes, and others to new areas by
     rooms are good to eat when small. Large,           “satellite planting,” in which seedlings
     mature mushrooms attract fly larvae that            are planted near trees that have a desired
     make excellent fish or poultry food. These          mushroom species growing around them.
     can supplement feed for other on-farm en-          After several years, the seedlings and their
     terprises or be sold to pet stores.                mycorhizal associates are transplanted, cre-
                                                        ating new patches of mushrooms. Morels
      Stamets also uses King stropharia                 are more difficult to propagate, but some
     mushrooms for their ecological benefits.            types can be encouraged through the use
     He found that, when established along              of small burns.




PAGE 4                                                //MUSHROOM CULTIVATION AND MARKETING
information on the requirements for 16                 shade, wind, and humidity conditions. Gardens
species.(Stamets & Chilton, 1983)                      offer ample substrates—organic waste materi-
                                                       als—while plants provide shade and humidity.
  When you can cut the time between harvests,          Plug-inoculated blocks buried among plantings
annual production increases. Short cycles are          work well for oyster and Stropharia rugoso-an-
what large-scale commercial producers aim for,         nulata mushrooms. Beauséjour suggests using
constantly looking for ways to increase efficiency.     a misting sprinkler for mushrooms in gardens.
This is the competition you face if you plan to sell   (Beauséjour, 1999)
your product on the wholesale market.
                                                          Grower and author Ken Litchfield notes that
   Paul Stamets of Fungi Perfecti, an educational      mulching, a standard gardening practice, not
and mushroom supply company (See Resources),           only regulates soil temperature and humidity
has spent most of his life studying the growth and     but also nourishes fungi. He also suggests sur-
cultivation of fungi. His book Growing Gourmet         rounding raised beds with partially buried logs
& Medicinal Mushrooms (see Resources) is an            to create mushroom habitats. Inside the beds,
invaluable resource for anyone considering the         vegetables, flowers, and shrubs offer the requi-
cultivation of any mushroom species. He de-            site shade and humidity for mushroom cultiva-
scribes several alternative methods of producing       tion. In weedy areas, Litchfield suggests putting
mushrooms, including growing them outdoors             down organic material and covering it with wet
on logs, on stumps, and in the garden, as well as      cardboard and wood chips, an ideal substrate for
indoors in bags or on columns.                         fungi.(Litchfield, 2002)
   Peter Oei, in his Manual on Mushroom Cultiva-          These methods of production are not likely to
tion (see Resources), describes in some detail how     yield huge numbers of mushrooms. However,
alternative mushroom production systems have           they can provide an attractive addition to directly
been used successfully in developing countries.        marketed produce.
Many ideas for low-input systems are included.
In practice, it is unlikely that the beginner can
successfully compete in the wholesale market                   Choosing a
against highly capitalized and efficient mush-
room companies. A better choice for the begin-
                                                             Mushroom Species
ner is to develop a niche market for high-quality
fresh mushrooms, then sell them at retail, or to          A mushroom cultivation kit (check with sup-
produce a value-added mushroom product, such           pliers listed below) is a handy way to begin
as a soup mix or sauce.                                to understand the fungal life cycle. Once you
                                                       successfully use the kit, you can begin to learn
Mushrooms on the Farm and                              the steps that precede that final fruiting stage
                                                       of the mushroom life cycle. Purchase spawn
in the Garden                                          that will grow on materials you have available.
                                                       Then design and test a system that duplicates
   Fungi cycle nutrients that nourish new life         the conditions favorable to all stages of growth.
in the soil. Recognizing this essential function,      You can use this experience to learn how to cre-
inventive gardeners integrate mushrooms into           ate sterile cultures and spawn for the species you
farm, garden, and permaculture systems. Mush-          are growing.
rooms can also be grown in lawns, polytunnels,
                                                         Choose the species to grow by thinking
vegetable gardens, and woodlands.(Edwards,
                                                       about:
2000)
                                                       •   What waste materials are readily available
   Terri Marie Beauséjour, a writer for Mushroom           to use as a growth medium?
the Journal, encourages creativity and imagination
                                                       •   What kind of facility or environment is
when planting mushrooms in a garden. Look at
                                                           available?
the “fungamentals,” she writes, the necessities
such as available substrates, microhabitats, sun,



           //MUSHROOM CULTIVATION AND MARKETING                                                PAGE 5
•   How much will the necessary equipment                 Oyster mushrooms can become an inte-
    cost?                                              gral part of a sustainable agriculture system.
•   What level of skill is required to manage          Many types of organic wastes from crop produc-
    the life cycle of the fungus?                      tion or the food processing industry can be used
                                                       to support oyster mushroom production.
•   What is market demand for this species?
                                                          Although there are no books devoted en-
   According to these criteria, oyster (Pleurotus      tirely to oyster mushroom production, Stamets’
species) and shiitake (Lentinus edodes) mushrooms      books provide basic information. Research on
are probably best for most novices, although           using various agricultural and forest wastes as
the maitake (Grifola frondosa) is also a possibil-     substrates is reported in the recently published
ity. The former two are relatively easy to grow,       Mushroom Biology and Mushroom Products, edited
and there is already a market for them, largely        by D.J. Royse.(Royse, 1996) Peter Oei (Oei, 1991)
because commercial producers of white button           documents a number of commercial production
(Agaricus bisporus) mushrooms have been diver-         systems for some strains grown in developing
sifying into specialty mushrooms. If you intend        countries.
to grow mushrooms commercially, shiitake or
oyster mushrooms are your best choices. These             There is an increasing number of Web sites de-
two species are more thoroughly covered in the         voted to oyster mushroom production. Lawrence
following sections.                                    Weingarten describes his production process on
                                                       his Web site, complete with photos at <www.
  A chart in the Appendix lists other common           mycowest.org/cult/i-grow/i-grow-1.htm>.
species and the materials on which they can be
cultivated. Test each species you are considering        Two Canadian Web sites also offer additional
against each of the questions listed above.            advice:
                                                       •   Oyster Mushroom Cultivation
    Species for Beginners                                  www.gov.ns.ca/nsaf/elibrary/archive/
                                                           hort/vegetables/pihve94-03.htm


Oyster mushrooms
    Oyster mushrooms (Pleuro-
tus species) are a good choice
for beginning mushroom
cultivators because they are
easier to grow than many of
the other species, and they
can be grown on a small scale
with a moderate initial invest-
ment. Although commonly
grown on sterile straw from
wheat or rice, they will also
grow on a wide variety of
high-cellulose waste materi-
als. Some of these materials do
not require sterilization, only
pasteurization, which is less
expensive. Another advantage
of growing oyster mushrooms
is that a high percentage of the
substrate converts to fruiting
bodies, increasing the potential
profitability.                                        Flamingo Oyster Mushrooms • Glen Babcock – Garden City Fungi


PAGE 6                                               //MUSHROOM CULTIVATION AND MARKETING
grown on logs, either inside or outside. Inside,
                                                             they can also be grown on compressed sawdust
                                                             logs or in bottles or bags. See the brief description
                                                             of these production systems below. Several excel-
                                                             lent books and Web sites are also listed below in
                                                             Resources (shiitake).

                                                                             Log Production
                                                                Hardwood logs approximately 4” to 6” in di-
                                                             ameter and of an easily handled length (common-
                                                             ly four feet) are cut during a tree’s dormant sea-
                                                             son. Oaks, sweetgum, cottonwood, beech, birch,
                                                             willow, and other non-aromatic hardwoods are
                                                             appropriate species. The denser woods produce
                                                             for up to twice as long as the softer ones. Smaller
                                                             diameter logs produce more quickly than larger
Golden Oyster Mushrooms • Glen Babcock – Garden City Fungi   ones, but for a shorter time.
•   Growing Shiitake & Oyster Mushrooms on
                                                                Handle the logs carefully to avoid soil contact
    Hardwood Logs
                                                             and damage to the bark. This will help prevent
    www.fallsbrookcentre.ca/webmain/pro-
                                                             contamination by competing fungi. Inoculate the
    grams/Forest/Pamphlet.htm
                                                             logs with spawn from a strain suitable to your
   The MushWorld Web site, <www.mushworld.                   production system. There is a wide variety of
com/home>, contains excellent technical infor-               spawn from which to choose and several inocu-
mation about growing oyster mushrooms. The                   lation methods.
site requires registration, but it is free.
                                                                After inoculation, the spawn develops a
   Oyster mushroom cultivation has one signifi-               thread-like network—the mycelium—growing
cant drawback: some people are allergic to the               throughout the log. During this time, you must
spores. In these cases, air-cleaning equipment or            protect the logs from dehydration by the sun
respirators are necessary in order to safely work            and wind. Spray or mist the logs to maintain
in the production facility.                                  the humidity necessary to keep the mycelium
                                                             alive and growing. When the mycelium has
   The consumer market for oyster mushrooms                  fully occupied the logs and the temperature and
is being developed by the larger mushroom                    humidity are right for fruiting, the mycelium will
companies as they diversify their operations.                initiate tiny “pinheads” at the surface of the log.
However, because of the short shelf life of many             The pinheads grow into mushrooms in the next
oyster mushroom varieties, this species may of-              couple of days.
fer a special advantage to the local grower who
markets directly and can consistently deliver a                 To stimulate fruiting, some growers soak the
fresh, high-quality product.                                 logs in water tanks and/or “shock” them by
                                                             physical impact or chilling. Others leave the logs
                                                             in the growing environment and harvest when
Shiitake mushrooms                                           they naturally fruit.
   Shiitakes (Lentinus edodes) are well suited as               Be alert for signs that fruiting is beginning. The
a low-input alternative enterprise because they,             best grades of shiitakes have caps that still have
like oyster mushrooms, can be grown on a small               a slight curl at the edge. Harvest often if you
scale with a moderate initial investment. Shiitake           want to earn the best price for your mushrooms.
cultivation has been thoroughly investigated, and            In addition, if you want to deliver a premium
a commercial market already exists in most areas             product, you must pay attention to post-harvest
of the United States. Shiitake mushrooms are                 storage, packaging, and shipping.



            //MUSHROOM CULTIVATION AND MARKETING                                                      PAGE 7
Many shiitakes are raised or-
ganically. Although it is easier
to produce shiitakes organically
than some of the other mush-
rooms, “weed” fungi, as well as
pests such as slugs and flies, can
reduce fruiting and quality. The
producer must monitor, quickly
identify, and control these pests
or lose some of the crop.

   Federal law now controls the
use of the word “organic” in
marketing. In order to label a
product organic, producers must
be certified by an accredited
third party and document their
production and handling prac-
tices. For further information, call
and request the ATTRA publica-
tion Organic Farm Certification &
the National Organic Program, or           Shiitake mushrooms fruiting on sawdust • Glen Babcock - Garden City Fungi
see it at our Web site, <www.attra.
ncat.org>.                                                However, innovative producers have used
                                                       concrete mixers to blend supplemental ingredi-
              Growing Shiitakes                        ents and made pasteurized substrate in barrels.
                 on Sawdust                            Fungi Perfecti sells pressure sterilizers for $200
                                                       to $1,000, but warns that they are not designed
   Today, most shiitakes and many other mush-
                                                       for commercial production.
room species are raised on a sterilized sawdust
substrate. Although this method allows a much             Using hydrogen peroxide instead of conven-
faster fruiting cycle and a high level of return       tional pasteurization is a relatively recent in-
(110% or more of initial dry weight), it also de-      novation. A manual on this method and more
mands a greater capital investment and more            information is available at <www.mycomasters.
skillful management than log production. In            com/>.
order to achieve fruiting as quickly as possible,
you need a building in which you can control the          Growing mushrooms on sawdust requires at-
temperature and moisture. The building must be         tention to detail—especially careful monitoring
easy to keep clean, and sanitary procedures must       and timely processing of the blocks, bottles, or
be strictly followed to avoid contamination.           bags. Several of the books listed below, including
                                                       Stamets (1993) and Przybylowicz and Donoghue
   The chamber and the steam processor to pas-         (1990), offer more details about this production
teurize or sterilize the sawdust can represent a       method.
significant initial investment. For example, Crop
King sells a small mushroom production system,                             Shiitake Prices
including an inoculation table and bagging sta-
tion, for about $5,000. The company’s complete            The price for shiitake mushrooms fluctuates
growing system—including equipment, struc-             throughout the season. Prices are highest in the
tural components, and technical support—can            winter when supply is low, and lowest in sum-
come to more than $41,000. Recovering these            mer when production peaks. Except in very mild
costs is a challenge for a beginner—especially at      climates, the only logs that fruit in winter are
current mushroom prices.                               those maintained indoors. Using strains selected
                                                       to fruit at cooler temperatures can lengthen the



PAGE 8                                               //MUSHROOM CULTIVATION AND MARKETING
harvest season and allow producers to capture
the higher prices. See the marketing section
                                                      Other Mushroom Species
below for ways to counteract the natural price
cycle.                                                      Mushroom Species with Limited
                                                               Commercial Production
       Sources of Further Information
                                                         Some species of mushrooms are not yet
                on Shiitakes                          commercially cultivated. Many of these are
   Several states, including Pennsylvania, Cali-      mycorrhizal types; that is, they grow only in
fornia, and Oregon, support university research       conjunction with the roots of a higher plant.
on shiitakes and may have Extension special-          Matsutakes and chanterelles are typical examples
ists who can provide information to growers in        of such mushrooms.
their states. Others have Extension publications
                                                         Mycorrhizal mushrooms are the hardest to
with information specific to their areas. Some
                                                      grow commercially, because the needs of both the
of these resources are available on-line at Web
                                                      fungus and the host plant must be met in order
sites listed in the Resources section. An excel-
                                                      to produce a commercial crop. Also, the host
lent example is the site maintained by the Ohio
                                                      plant typically must reach a certain physiological
State University.
                                                      maturity before the fungus will fruit. When the
   In states without this Extension support, one of   host is a tree, this maturation may be measured in
the best ways to learn about production is to share   decades. Nevertheless, highly prized morels and
information with other growers. There are sev-        truffles are mycorrhizal, and they are both now
eral local grower organizations, many of which        being grown commercially in the United States.
publish newsletters. Ask your state Extension
                                                        Morels
horticultural specialist about local organizations,
or you can contact the North American Myco-              Commercial production of morels on anything
logical Association or the American Mushroom          but a small-scale, seasonal basis is currently
Institute (see Resources). There are also several     not a practical option. Morels are being grown
books specifically about shiitake production. See      year-round, using a patented process, at only
Resources (shiitake) for more information.            one production facility in North America (in
                                                      Alabama). The patent and facility are owned
                                                      by Terry Farms and represent the only success-
                                                      ful commercial process for fruiting these highly
                                                      valued mushrooms out of season.

                                                         It is, however, possible to establish a morel
                                                      patch by using a morel starter kit. If you are suc-
                               Morel Mushrooms        cessful, these mushrooms will fruit in the spring
                                                      at the same time as wild morels. Morel prices
                                                      are, understandably, at their lowest during this
                                                      natural fruiting season. Adding them to a farm-
                                                      ers’ market stand would certainly attract morel-
                                                      loving customers. You can also dry the product
                                                      for year-round sales if you can grow commercial
                                                      quantities in your patch.
                  lipart.com




                                                         Tom Volk’s Web site, <http://botit.botany.
            www.c




                                                      wisc.edu/toms_fungi/morel.html>, has particu-
                                                      larly good information about morel mushroom
                                                      production.

                                                        Truffles
                                                        Growers generally begin truffle production by


           //MUSHROOM CULTIVATION AND MARKETING                                               PAGE 9
dipping tree seedlings in a mycorrhizal slurry             tory and folklore, cooking and recipes, how to
before planting. After several years, under favor-         establish and manage a plantation, climatic and
able growing conditions for both the tree and the          soil requirements, and cultivation and harvest-
fungus, truffles form underground fruiting bod-             ing.
ies that roughly resemble potatoes. These range
from the size of a pea to that of a fist and give              Studies have revealed a lot about the condi-
off a distinctive odor. Since these “mushrooms”            tions necessary to bring truffles to early fruit-
don’t completely emerge from the ground, they              ing and then to significant production levels.
have traditionally been sniffed out by pigs or             However, because of the crop’s extremely high
trained dogs.                                              value and because each success has required an
                                                           investment of considerable time, it is understand-
   The requirements for growing the black Perig-           able that some of this information is considered
ord truffle, Tuber melanosporum Vitt., include              proprietary. Even when fruiting begins, growers
choosing an appropriate host plant (usually oak            themselves may not be able to accurately identify
or hazelnut), inoculating its roots with the spawn,        what contributed most to the truffles’ growth.
and planting it. Frank Garland planted his first
inoculated trees in 1980 and harvested the first              Each new truffle enterprise is an experi-
black truffles grown in the U.S. on October 23,             ment based on what has already been reported.
1993. He has written a production guide based on           Check this Web site maintained by a group
his experience.(Garland, 1996) Garland also has a          of scientists investigating truffle cultivation:
consulting business and sells inoculated trees.            <www.truffle.org/tuber_directory/>.

   One Oregon tree farmer in prime white truffle               Consider combining the production of truf-
country found a low-fuss method of cultivation.            fles with the sale of nuts from the host trees,
The white truffle, Tuber gibbosum, is a mycorrhi-           growing annual or perennial crops between the
zal species associated with Douglas fir and other           trees, or grazing ruminants among them—sheep
conifers. This farmer uses a backpack sprayer              have been credited with increasing the French
to apply a slurry made of truffles and spores at            wild-harvested crop yield.(Ludmer-Gliebe, 1997)
the roots of conifers. The inoculated areas have           These or other agroforestry options could provide
produced between 300 to 1000 pounds per acre               additional sources of income during early, non-
per year, significantly more than the unsprayed             fruiting years and in the seasons when truffles
areas.(Arnold, 1996)                                       do not produce.

   The truffle industry has developed rapidly                 Other Mycorrhizal Species
in Australia and New Zealand. New Zealand’s
                                                              Mushroom researchers continue to inves-
efforts, as reported by Dr. Ian Hall, were be-
                                                           tigate the cultivation of other species for the
gun in 1987, with harvest recorded on June 29,
1993, just months before Garland found his first
truffles in North Carolina. (See <www.fungifest.
com/articlep1021.html>.) Australian researchers
also report success in their cultivation efforts,
summarized in several articles available on the
Web. The articles are found by searching the
following main pages for “truffle” or “Tuber
melanosporum”:
•   www.crop.cri.nz
•   www.rirdc.gov.au/reports
                                                                         www.clipart.com




  The Black Truffle (Hall et al., 1994) is out of print,
but it was converted to CD ROM format in 2001                                              Chanterelle Mushrooms
and is available for NZ$49.95 through the Inter-
net at <www.crop. cri.nz/psp/products/truffle.
htm>. Chapters cover the symbiotic partner-
ship between truffles and their host plants, his-

PAGE 10                                                   //MUSHROOM CULTIVATION AND MARKETING
commercial market. A loosely organized group          ing the mushroom house ventilation system will
of international scientists meets intermittently to   keep adult flies out. Double doors and positive
share their research. The Web site maintained for     atmospheric pressure within the structure also
this scientific endeavor is <www.mykopat.slu.          prevent flies from entering. Since adult fungus
se/mycorrhiza/edible/home.phtml>.                     flies are drawn to standing pools of water on
                                                      benches, walks, or floors, places where water
   Until commercial production systems are de-        can collect should be eliminated. Biocontrol is
veloped, mushrooms such as chanterelles and           another option for several mushroom pests, the
matsutake (pine) mushrooms will continue to           sciarid fly among them. A predatory nematode
be collected from the wild for sale to the spe-       attacks this fly in its larval form. Therefore, this
cialty mushroom market. The harvest of wild           nematode can be added to the composting sub-
mushrooms is strictly regulated in some states.       strate to prevent infestation.
Check with your state department of agriculture
regarding laws that apply. You would be wise             For a better understanding of IPM, see the
to carry liability insurance and to be absolutely     ATTRA publication Biointensive Integrated Pest
certain of the identity of mushrooms you sell.        Management. It describes IPM methodology
Mistakes can be fatal to the consumer. Finally,       and provides extensive resources for further
the forest environment that supports the growth       research.
of wild mushrooms is a fragile one. Learn how
to conduct your foraging business in a way that          Each mushroom species in a specific envi-
protects future harvests.                             ronment has a different pest complex. Because
                                                      specialty mushroom production in this country
   Mushroom the Journal (see Resources) provides      is still very new, many pests have not received
excellent information on wild mushrooms. There        research attention. Most pests you are likely to
are also many local mycological societies that        encounter, however, have probably already been
schedule “forays”—trips to known mushroom             studied. In any case, you will probably have to
habitats—where the inexperienced forager can          design your own pest management system. Stay
learn about various species and how to identify       alert for any evidence of damage to the fruiting
them.                                                 mushrooms and act quickly to identify its cause.
                                                      Use whatever information you can find, along
       Pest Management                                with your own creativity, to devise ways to pro-
                                                      tect your crop.

                                                         Use all the resources you can find—in libraries,
   Integrated pest management (IPM) is a least-
                                                      at bookstores, or on the Web. Local Extension
toxic approach for managing any pest. IPM views
                                                      agents or state Extension specialists can help
pests as a natural part of the farm environment.
                                                      identify pests and, possibly, determine economic
The integrated management of a pest is accom-
                                                      thresholds. They can also help you find biologi-
plished by altering the environment to the disad-
                                                      cal controls, if cultural and mechanical methods
vantage of that pest. In order to accomplish this,
                                                      fail.
you have to be able to identify what pests are ac-
tive, how many there are, and how many it takes
to hurt your profits. If you know the life cycle of      Marketing Mushrooms
each problem organism, you can take measures to
make it hard or impossible for it to complete its
life cycle. You may be able to encourage natural         Marketing is the most important consideration
enemies that will keep the population below the       of all. If you can’t sell your mushrooms at a price
economically damaging threshold.                      that ensures a reasonable profit margin, you don’t
                                                      want to invest in this enterprise. Spend some
  Here are some examples of non-chemical              time—and even some money—educating your-
methods used to control typical pests in the pro-     self about marketing your potential product.
duction of white button mushrooms. Mushroom
flies, a common pest among many cultivated               This section provides a broad overview of
mushrooms, are attracted to the smell of decaying     market trends, some ideas about how to research
vegetation such as mushroom substrates. Screen-       potential markets, references to useful resources,

           //MUSHROOM CULTIVATION AND MARKETING                                               PAGE 11
suggestions about marketing channels, and
advice on financial analysis.                             The Mushroom Business
   Market research and evaluation is perhaps            Stella K. Naegely writes in the American
the most challenging part of developing a new        Vegetable Grower that the key to the mushroom
enterprise. Luckily, there are many helpful          business is to have established buyers and be
sources. A good place to start is ATTRA’s Mar-       capable of consistent production. New grow-
keting and Business series, particularly Direct      ers might encounter an uphill educational
Marketing and Evaluating a Rural Enterprise.         experience for two or three years. Launching
These publications detail the market evalua-         a commercial mushroom operation can cost
tion process and include extensive resource          between $50,000 and $250,000, depending on
lists. Other relevant ATTRA publications cover       whether a grower starts with an appropriate
market gardening, value-added products,              building. For that reason, it is prudent to start
and agri-tourism. You can find the market-            small. Naegely offered the following business
ing publications on the ATTRA Web site at            tips for people contemplating commercial
<http://attra.ncat.org/marketing.html>, or           production.(Naegely, 2000)
call 800-346-9140 to have them sent to you.
                                                     •   Make the market drive your production.
   The many Web sites listed in Resources                Talk to potential buyers about volume
(below) will help you find information to fur-            and prices.
ther your market research. Another resource,         •   Explore various marketing options:
as you analyze the potential for a mushroom              brokers, distributors, farmers’ markets,
business, is your local Small Business Admin-            restaurants, grocery stores, food service
istration office. Not only do they have helpful           operations, and co-ops.
publications, they also provide some one-on-
one assistance.                                      •   Consider reselling other growers’ mush-
                                                         rooms to offer more variety and larger
                                                         volume.
Market Demand                                        •   Talk to other producers and perhaps a
                                                         consultant about production systems.
   Some 260 U.S. growers produced more than
844 million pounds of mushrooms in 2002-03,          •   Consider buying used equipment to
with a farm gate value of $889 million. (Certi-          reduce initial capital investment.
fied organic mushrooms accounted for only             •   Strike a balance between undercapital-
1 percent of all sales, although 12 percent of           izing and a heavy debt load.
growers were certified organic.). The vast bulk
of sales were of the Agaricus species, which
includes white button mushrooms, portobellas,
and criminis. The latter two are a brown strain       Market Research
of Agaricus bisporus, whose cultivation is man-
aged for extra large (portobella) and very small        The goals of market assessment are to project
(crimini) fruiting bodies. (Current statistics are    the sales volume and gross income of a new
found at <http://usda.mannlib.cornell.edu/re-         enterprise, to analyze its potential profitability
ports/nassr/other/zmu-bb/>.)                          and cash flow, and to gather information about
                                                      potential buyers and competitors (to help de-
   Large, well-established companies produce          velop a market strategy).
virtually all Agaricus mushrooms; most are
located in Pennsylvania and California. Their            Many specialty mushrooms can be cultivated,
production houses are full of mushrooms in            but the market, though growing, is still limited.
every stage of development. Mushrooms raised          If you are thinking about starting a commercial
in these systems can be sold profitably on the         mushroom enterprise, begin at the end: to whom
wholesale market. It is very difficult for a begin-    will you sell them? You cannot make money in
ning grower to compete with these companies at        any business if you don’t have buyers for your
wholesale prices.                                     product. Learn who buys mushrooms, what


PAGE 12                                              //MUSHROOM CULTIVATION AND MARKETING
kinds they want, and where they shop. You            •   Wholesale as fresh produce (on contract or
must thoroughly investigate the demand for each          by the batch)
mushroom species or product— as well as the
available marketing outlets— before committing                      Direct marketing
large amounts of capital to the enterprise.
                                                        If you can sell your mushrooms or mushroom
   Check the local situation on your own. Some       products directly to an end user, you will natu-
common methods for conducting initial research       rally receive a better price than if you sell to a
include observation of buyers, surveys of stores,    wholesaler. Direct marketing of mushrooms at
personal interviews with growers, and test mar-      local farmers’ markets, to restaurants, or in su-
keting (once you have an experimental product).      permarkets is possible in many locations. When
Another function of market research is to evaluate   competing in local markets, excellent service,
the competition. This will help you determine        top quality, and consistent supply, rather than
what market already exists and identify any          the lowest price, might win the sale, particularly
niches you could fill. To find out more about your     with gourmet chefs. Some chefs specialize in
competitors, use their products. Talk to them.       locally grown foods and may be interested for
You may be surprised how much information            that reason. Others are willing to pay for fresh,
they will share.                                     premium produce. In any case, establishing a
                                                     relationship with the buyer and reliably deliver-
                                                     ing a quality product are essential for this type
Market Channels                                      of marketing.
  Explore as many marketing strategies as ap-           Local grocery stores are another potential
peal to you. Below are some possibilities.           buyer of fresh mushrooms. However, an Arkan-
•   Market the fresh or dried product directly       sas grower found that local grocery chains were
    to your customers (at farmers’ markets, to       interested in her shiitake mushrooms only if she
    gourmet chefs, over the Internet, through        could assure them of a year-round supply. She
    mail-order offerings)                            decided that she had to add indoor production
                                                     in order to meet this requirement. Natural foods
•   Add value to the mushroom by creating            stores are a market that may be more tolerant of
    processed products (mushroom sauces,             seasonal supply. Any chef or grocer will require
    dried entrée mixes, teas, extracts)              assurances of both quality and regular supply
                                                     before switching from established wholesale
Shiitake mushrooms harvested from sawdust
Glen Babcock – Garden City Fungi                     sources.

                                                                          Although the wholesaler
                                                                       with an established account
                                                                       creates stiff competition, the
                                                                       small, efficient producer might
                                                                       still have an advantage in
                                                                       some niche markets. For in-
                                                                       stance, shiitakes grown on
                                                                       logs are generally of higher
                                                                       quality and have a longer shelf
                                                                       life than shiitakes grown on
                                                                       sawdust substrates (the most
                                                                       common mass-production
                                                                       method). Log-grown shiitakes
                                                                       earn prices from three to eight
                                                                       times higher than those grown
                                                                       on sawdust substrates.(Anon.,
                                                                       2003) Find the buyer to whom




            //MUSHROOM CULTIVATION AND MARKETING                                            PAGE 13
quality matters, and you will have found a market         The Persimmon Hill Berry Farm in Missouri
for your product.                                     (see References) offers an example of how a small
                                                      entrepreneur can create and market a value-
   Locally-grown oyster mushrooms have an             added mushroom product. Persimmon Hill de-
advantage because oysters have a very limited         veloped a recipe for a shiitake mushroom sauce
shelf life and are too fragile to ship easily. The    and invested in a commercial kitchen to produce
grower with direct, local sales can supply a          it. The farm buys from local growers who, since
fresher product that arrives in better condition.     the mushrooms are not for the fresh market, can
                                                      freeze them until they have enough to make a
              Wholesale markets                       delivery to the processing kitchen worthwhile.
  Selling fresh mushrooms to a wholesaler will        During warm weather, when production peaks,
mean a lower price than if you market directly.       they can likewise freeze the shiitakes until Per-
However, for growers who choose not to involve        simmon Hill needs them. These growers receive
themselves in direct sales, there are established     a better price than they would if they were selling
wholesale markets for mushrooms. Wholesalers          at the lower, peak-season prices, and Persimmon
advertise in produce industry periodicals like The    Hill is ensured a steady supply for its sauce.
Packer. Your local librarian or an Internet search    Persimmon Hill sells its products on the Internet
can help you locate other such magazines.             and through direct sales on the farm. (See <www.
                                                      branson.com/persimmonhill/>.)
   Mr. Paul Goland of Hardscrabble Enterprises
maintains that there is a steady and growing mar-        Drying shiitakes and other mushrooms is
ket for quality dried shiitakes, even though the      another way to add value and avoid the low
wholesale market has been depressed by Chinese        prices of the peak season. For more on drying
imports. His buyers—natural foods stores and          technologies, see the ATTRA publication Options
co-ops—do not buy the Chinese products. He            for Food Dehydration. (After drying, mushrooms
buys several grades of dried shiitakes from grow-     should be held at 0° F. for four days to kill any
ers who ship directly to West Virginia. Contact       surviving pest eggs.)
Paul Goland (see References) to learn whether
he has a current demand for your product.                  Financial Analysis
   Small-scale commercial production of white
button mushrooms and other Agaricus varieties            As a part of your market research, you need
such as portobellas and criminis is not recom-        to do a financial analysis of the potential enter-
mended for the beginner, except on a small scale      prise. Develop an enterprise budget with as
for direct marketing. A significant capital outlay     much detail as you can provide. As with many
and a high level of management skills are re-         farm enterprises, mushroom production is of-
quired to begin production, and at current prices,    ten only marginally profitable when labor and
recovery of the initial investment might not be       management costs are taken into consideration.
possible. The market is extremely competitive.        An example of an enterprise budget for shiitake
More information about the button mushroom
business is available from The American Mush-
room Institute (see Resources).

Adding Value to Fresh
Mushrooms
                                                          O     nly by developing a
                                                                market niche for a high-
                                                          quality fresh product or by
   Adding value to fresh mushrooms usually
                                                          producing a mushroom-based
means either developing a processed product,              food item can a small-scale
such as a sauce, or drying surplus mushrooms for          beginner hope to compete.
sale in the off-season, when prices are higher. A
value-added product can be sold either directly
to the consumer or to wholesalers.


PAGE 14                                              //MUSHROOM CULTIVATION AND MARKETING
If you are adding mushroom production to
   Case Study: Marketing Key                            an integrated farming system, financial analysis
                                                        is more difficult. Making a clear profit might
    for Small-Scale Growers                             not be as important as making use of off-season
     In the Ozarks of Missouri, Nicola MacPher-         labor or the small logs from woodlot thinning to
  son and her husband, Daniel Hellmuth, have            create a saleable product from what otherwise
  grown shiitakes on three acres for nine years.        would have been waste.
  The couple grow them the traditional way on
  oak logs, and they market them under the la-
  bel Ozark Forest Mushrooms, which carries a
                                                               Further Resources
  USDA organic seal. To sell their mushrooms,
  however, they’ve relied on a variety of nontra-          Two periodicals that include mushroom cul-
  ditional marketing approaches. “To promote            tivation information are The Mushroom Growers’
  sales, you must be prepared to promote your           Newsletter and, to a lesser degree, Mushroom the
  product tirelessly,” MacPherson says. Their           Journal. Subscription information is included,
  principal markets are up-scale restaurants, ca-       along with citations for several key books, in the
  tering companies, and gift catalogs. Customers        Resources section below. Web sites devoted to
  who demand organic produce, such as CSA               mushrooms and their cultivation are increasing
  (Community Supported Agriculture) subscrib-           every year. A selected list of mushroom Web
  ers, also provide a reliable market.                  sites is included below.

     MacPherson urges beginners to start mod-              Some state or local mycological societies
  estly, learn the process thoroughly, and de-          have groups interested in mushroom cultiva-
  velop a small, reliable customer base—say, a          tion. To locate chapters in your area, contact
  half-dozen regular customers—as a foundation.         the North American Mycological Association
  (She offered free samples to help establish a lo-     (see Resources).
  cal market.) She cautions new growers not to
  create a market demand that they cannot meet.
  Selling to supermarkets, for instance, can be
                                                                     Conclusion
  fraught with problems, including the challenge
  of ensuring product freshness and the recurring          Commercial cultivation of mushrooms is not
  need for educating new produce department             for everyone. It requires someone who is famil-
  employees.(Anon., 1998)                               iar with fungi life cycles and willing to commit
                                                        time and money to research, designing a system,
                                                        and developing a business. The mushroom
                                                        cultivator must be able to carry out operations
log production is available at <www.ext.vt.edu/
                                                        on time, be attentive to details, and be vigilant
pubs/vegetables/438-898/shiitakemushrooms.
                                                        about pest invasions. In most cases, marketing
pdf>.
                                                        requires excellent public relations skills.
   Using this format or a generic enterprise bud-
                                                           Nevertheless, there is potential for an innova-
get from Extension offices or off the Internet, fill it
                                                        tor who can use an existing facility, obtain a low-
in with as many actual calculations and estimates
                                                        cost substrate, and produce a reliable supply of
of costs as you can. If you are considering sev-
                                                        a high quality product. As part of a whole-farm
eral mushroom species, do a financial analysis of
                                                        system, mushrooms can augment productivity
each one separately. Try to anticipate every cost
                                                        at any scale. Producing a nutritious food at a
so that you can construct an accurate financial
                                                        profit, while using materials that would other-
picture. Include an educational and/or market-
                                                        wise be considered “waste,” constitutes a valu-
ing component in your budget, allowing for free
                                                        able service in the self-sustaining community we
samples or flyers with information and recipes,
                                                        might envision for the future. It is a challenge
especially if you are developing a new product
                                                        some will find worth taking.
or will be doing direct marketing.



            //MUSHROOM CULTIVATION AND MARKETING                                               PAGE 15
Park, Kwnag-ho. 2001. Nutritional Value of a
              References                           Variety of Mushrooms. <www.MushWorld.
                                                   com/sub_en.html>. January. 5 p.
Anon. 1998. Grower’s business is ‘mushroom-
ing.’ Small Farm Digest. Winter. p. 3.             Litchfield, Ken. 2002. In your yard: More than
                                                   grass, shrubs and trees. Mushroom the Jour-
                                                   nal. Summer. p. 20–23.
Anon. 2003. Small Farms Research News.
Spring. p. 3.
                                                   Ludmer-Gliebe, Susan. 1997. Sheep are essen-
                                                   tial to French truffle production. November.
Arnold, Ralph. 1996. Grow fungi without
                                                   p. 4–5.
the sterile trappings? Mushroom the Journal.
Summer. p. 35.
                                                   Naegely, Stella K. 2000. Is there money in
                                                   mushrooms? American Vegetable Grower.
Beauséjour, Terri Marie. 1999. Mushrooms in
                                                   February. p. 40–43.
the garden. Mushroom the Journal. Fall.
p. 17–19.
                                                   Oei, Peter. 1991. Manual on Mushroom Culti-
                                                   vation. TOOL Foundation, Amsterdam.
Cooner, Deanna. 2001. Mushroom farming.
                                                   p. 49–50. (A new edition of this book is now
AgVentures. June-July p. 14–15.
                                                   available; see Resources.)
Edwards, Richard. 2000. The missing link?
                                                   Persimmon Hill Berry Farm
Mushrooms in permaculture. Permaculture
                                                   RR 1, Box 220
Magazine. No. 25. p. 37–39.
                                                   Lampe, MO 65681
                                                   417-779-5443
Garland, Franklin. 1996. Truffle Cultivation in
North America. Garland Gourmet Mushrooms
                                                   Royse, D.J. (ed.). 1996. Mushroom Biology and
and Truffles, Inc., Hillsborough, NC. 41 p.
                                                   Mushroom Products: Proceedings of the Sec-
   Available for $15 from:                         ond International Conference, University Park,
   Garland Gourmet Mushrooms and                   PA, June 9-12, 1996. Penn State, State Park, PA.
   Truffles, Inc.                                   581 p.
   3020 Ode Turner Rd.
   Hillsborough, NC 27278                          Royse, Daniel J., and Lee C. Schisler. 1980.
   919-732-3041                                    Interdisciplinary Science Reviews. Vol. 5, No.
   919-732-6037 FAX                                4. p. 324–331.
   truffleman@mindspring.com

Green, Judy. 1988. Doing your own market re-       Stamets, Paul. 2000–2001. A novel approach to
search. Farming Alternatives. Cornell Univer-      farm waste management. Mushroom the Jour-
sity Resource Sheet #6. November. 6 p.             nal. Winter. p. 22. Or see at <http://www.
                                                   fungi.com/mycotech/ farmwaste.html>.
Hall, Ian R., G. Brown, and J. Byars. 1994. The
Black Truffle. Rural Industries Research and        Stamets, Paul. 1994. Permaculture with a
Development Corporation. New Zealand.              mycological twist. The Permaculture Activist.
107 p.                                             May. p. 8–10.

Hardscrabble Enterprises, Inc.                     Stamets, Paul, and Jeff Chilton. 1983. The
P.O. Box 1124 (or 617 N. Main St.)                 Mushroom Cultivator. Agarikon Press, Oym-
Franklin, WV 26807                                 pia, WA. 415 p.
304-358-2921
hardscrabble@mountain.net
Contact: Paul Goland


PAGE 16                                           //MUSHROOM CULTIVATION AND MARKETING
Appendix
                            Mushroom Cultivation Media
       Growing Medium                            Mushroom Species
                               Straw (Volvariella)       Oyster (Pleurotus)
Rice Straw
                               Common (Agaricus)
                               Oyster (Pleurotus)        Common (Agaricus)
Wheat straw
                               Stropharia                Straw (Volvariella)
Coffee pulp                    Oyster (Pleurotus)        Shiitake (Lentinus)
                               Shiitake (Lentinus)        Oyster (Pleurotus)
                               Ear (Auricularis)          Ganoderma (Reishi)
Sawdust
                               Maitake (Grifola frondosa) Winter (Flammulina)
                               Lion’s Head or Pom Pom (Hericium)
Sawdust-straw                  Oyster (Pleurotus)        Stropharia
Cotton waste
                               Oyster (Pleurotus)        Straw (Volvariella)
from textile industry
Cotton seed hulls              Oyster (Pleurotus)        Shiitake (Lentinus)
                               Nameko (Pholiota)         Shiitake (Lentinus)
Logs
                               White jelly (Tremella)
                               Nameko (Pholiota)         Ear (Auricularis)
Sawdust-rice bran              Shaggy Mane (Coprinus)    Winter (Flammulina)
                               Shiitake (Lentinus)
Corncobs                       Oyster (Pleurotus)        Shiitake (Lentinus)
Paper                          Oyster (Pleurotus)        Stropharia

Horse manure
                               Common (Agaricus)
(fresh or composted)

Crushed bagasse and
molasses wastes from           Oyster (Pleurotus)
sugar industry

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         Lion’s Head or Pom Pom (Hericium)


       //MUSHROOM CULTIVATION AND MARKETING                                     PAGE 17
Stamets, Paul. 1993. Growing Gourmet and
              Resources                              Medicinal Mushrooms. Ten Speed Press.
                                                     Berkeley, CA. 592 p.
                                                        Companion volume to The Mushroom Culti-
Periodicals                                             vator. This third edition updates cultural and
                                                        growing techniques, adds growing information
The Mushroom Growers’ Newsletter is a monthly           on new varieties, and discusses strain selection
newsletter that contains cultivation information        for cultivation.
and current prices of mushrooms at San Fran-
                                                        Available for $44.95 from Fungi Perfecti
cisco and New York markets.
                                                        (See address above.)
   Available for $35/year from:
   The Mushroom Growers’ Newsletter                  Oei, Peter. 2003. Manual on Mushroom Culti-
   P.O. Box 5065                                     vation: Techniques, Species and Opportunities
   Klamath Falls, OR 97601                           for Commercial Application in Developing
   www.mushroomcompany.com/                          Countries. TOOL Publications, Amsterdam,
                                                     The Netherlands. 274 p.
Mushroom the Journal is a quarterly publication
                                                        First published in 1991, and now completely
that primarily contains information on forag-
                                                        updated, this guide offers information on grow-
ing, with limited information on cultivation.
                                                        ing 12 species of mushrooms, with a particular
   Available for $19/year from:                         emphasis on growing in developing countries.
   Leon Shernoff                                        The manual includes 71 drawings, 93 photo
   1511 E. 54th St.                                     illustrations.
   Chicago, IL 60615
                                                        Available for $53.50 plus $8 for shipping
   www.mushroomthejournal.com/index.
                                                        from:
   html
                                                        Western Biologicals, Ltd.
                                                        P.O. Box 283
Bibliography                                            Aldergrove, BC V4W2T8
                                                        Canada
The National Agricultural Library (NAL) has             604-856-3339 (telephone or FAX)
published several Quick Bibliographies (QBs),           western@iprism.com or westernb@shaw.ca
results of database searches on a given topic.
QBs have been published for both shiitake and           Also available to developing countries from
oyster mushrooms. They can be downloaded                C-Point Publishers in the Netherlands. For
from the NAL Web site.                                  ordering information, contact Ine Klerkx,
   www.nal.usda.gov/afsic/afspub.htm                    <ine.klerkx@cpoint.nl>.

                                                     Hadeler, Hajo. 1995. Medicinal Mushrooms
Books                                                You Can Grow. The Cariaga Publishing House.
                                                     196 p.
Stamets, Paul, and J.S. Chilton. 1983. The              Excellent guide to wood-loving mushroom cul-
Mushroom Cultivator. Agarikon Press, Olym-              tivation, from plugging old stumps to enriched
pia, WA. 415 p.                                         sawdust culture in sterile bags. Covers medici-
   Includes growing parameters for 16 species and       nal species well. Well written and illustrated;
   covers every aspect of mushroom cultivation.         index.
   Available for $29.95 from:                           Out of print, but some are still available
   Fungi Perfecti                                       from amazon.com
   P.O. Box 7634
   Olympia, WA 98507                                 Hobbs, Christopher, and Michael Miovic (ed.).
   800-780-9126 (toll-free) or 260-426-9292          1995. Medicinal Mushrooms: An Exploration
                                                     of Tradition, Healing and Culture. Third



PAGE 18                                             //MUSHROOM CULTIVATION AND MARKETING
Edition. Botanical Press, Santa Cruz, CA.            How to Grow Mushrooms
252 p.                                               www.gov.ns.ca/nsaf/elibrary/archive/hort/
                                                     organic/990015.htm
   Mushroom toxicity, use in traditional medicine
   and in the human diet are supported by clinical      From the Nova Scotia Department of Agricul-
   studies and explorations of cultural influences       ture and Fisheries, this Web page offers a good
   in this technical coverage. More than 100 spe-       overview of growing mushrooms in compost.
   cies of edible fungi are documented.
   Widely available for $18.95.                      The Mushroom Council: Six Steps to Mush-
                                                     room Farming
                                                     www.mushroomcouncil.org/production/six-
Associations                                         steps.htm

The North American Mycological Association              From the Pennsylvania State University
(NAMA) publishes a bi-monthly newsletter,               Agriculture Extension Service, this page de-
The Mycophile, and publishes an annual direc-           scribes step by step phase I composting, phase
tory that provides names and addresses of all           II composting, spawning, casing, pinning, and
NAMA members and every mycology associa-                cropping.
tion in North America. NAMA focuses more
on finding and identifying wild mushrooms             Permaculture with a Mycological Twist: The
than commercial cultivation.                         Stametsian Model for a Synergistic Mycosphere
                                                     www.fungi.com/mycotech/permaculture.html
   Annual membership is $35. Contact:
   NAMA                                                 This article carried on the Fungi Perfecti Web
   336 Lenox Ave.                                       site describes permaculture applications for
   Oakland, CA 94610-4675                               mushrooms. (See the sidebar.)
   www.namyco.org/
                                                     Mush-World
The American Mushroom Institute is a source          www.mushworld.com/home/
of information on the mushroom industry. It
serves mainly large, highly capitalized com-            “Total mushroom information” is the banner
mercial producers.                                      claim here. This excellent resource features
                                                        sections on cultivation, pests and disease, and
   AMI Washington DC Office                              medicinal mushrooms, as well as the monthly
   One Massachusetts Avenue, N.W.                       webzine Mushworld. Requires free registration
   Suite 800                                            for access. Highly recommended.
   Washington, D.C. 20001
   202-842-4344                                      Penn State Mushroom Spawn Laboratory
   ami@mwmlaw.com                                    MushroomSpawn.cas.psu.edu/
   www.americanmushroom.org
                                                        A comprehensive Web site with resources on
   AMI Avondale Office                                   mushroom science and cultivation.
   1284 Gap Newport Pike
   Suite 2                                           Gourmet Mushrooms
   Avondale, PA 19311                                www.arrowweb.com/MUSHROOM/
   610-268-7483                                         Source of mushroom kits and mushroom nutra-
   MushroomNews@kennett.net                             ceuticals; extensive bibliography on the me-
                                                        dicinal value of mushrooms (<www.gmush-
Web sites                                               rooms.com/Healthref.html>).

  [Note that addresses may change. A search of       Fungal Jungal: Western Montana Mycological
the Web should provide current locations.]           Society
                                                     www.fungaljungal.org



          //MUSHROOM CULTIVATION AND MARKETING                                               PAGE 19
A good example of a regional mycological                  Excellent reference for inland producers
   society Web site filled with diverse resources,
                                                             Available for $17.50 postage paid from
   including information on morels, fire ecology,
                                                             Field & Forest Products, Inc.
   a western mushroom photo guide, and recipe
                                                             (See Suppliers.)
   lists.
                                                         Przybylowicz, Paul, and John Donoghue. 1990.
The Mushroom Council                                     Shiitake Growers Handbook. Kendall/Hunt
www.mushroomcouncil.org/                                 Publishing Co., Dubuque, IA. 217 p.
   Home of the mushroom industry’s marketing                 Book covers a wide range of topics, from log
   council, this site contains useful information            cultivation to sawdust cultivation. Information
   about consumer buying trends and providing                includes both scientific material and practical
   for food service needs, as well as nutritional            advice. Emphasis is on presenting as much
   and production information; focuses mainly on             information as possible rather than selectively
   Agaricus spp. with no specialty mushroom dif-             choosing the best or most advanced methods.
   ferentiation.
                                                             Widely available for $25.

                                                         Jones, Kenneth. 1995. Shiitake: The Healing
Resources (shiitake)                                     Mushroom. Healing Arts Press, Rochester, VT.
                                                         128 p.
            Bibliography: shiitake                       www.parkstpress.com/titles/shiita.htm
Rafats, Jerry. 1996. Shiitake: Cultivated Mush-              This book describes the nutritional benefits and
room. Quick Bibliography Series B:90-4. Na-                  traditional uses in Chinese medicine for shiitake
tional Agricultural Library, Beltsville, MD.                 mushrooms. Chapters cover shiitakes used in
                                                             folk medicine for controlling cholesterol, cancer
   A bibliography of articles on shiitake mush-              prevention, treating viruses and chronic fatigue
   rooms. Though somewhat dated (published in                syndrome.
   1996), this collection still contains valuable
   information for shiitake producers. It’s available        Widely available for $9.95.
   on-line at <www.nal.usda.gov/afsic/AF-
   SIC_pubs/qb9613.htm>.                                                Web sites: shiitake
                                                         The Ohio State University Extension Office
                Books: shiitake                          features a series of on-line fact sheets that detail
                                                         shiitake cultivation.
Harris, Bob. 1994. Growing Shiitake Com-
mercially. 2nd Ed. Science Tech Publishers,              •   Shiitake Mushroom Production: Introduc-
Madison, WI. 72 p.                                           tion and Sources of Information and
   Large-scale cultivation of shiitake mushrooms             Supplies
   using traditional oak logs. Based on many                 http://ohioline.osu.edu/for-fact/0039.html
   years’ work, including material from recent
   visits to Japan. Some of the most modern and          •   Shiitake Mushroom Production: Obtaining
   cost-effective methods are presented with photo-          Spawn, Obtaining and Preparing Logs, and
   graphs and drawings.                                      Inoculation
   Available from Mushroompeople (See Sup-                   http://ohioline.osu.edu/for-fact/0040.html
   pliers).
                                                         •   Shiitake Mushroom Production: Logs and
Kozak, M.E., and J. Krawcyzk. 1993. Growing                  Laying Yards
Shiitake Mushrooms in a Continental Climate.                 http://ohioline.osu.edu/for-fact/0041.html
2nd Ed. Field & Forest Products, Peshtigo, WI.
114 p.
                                                         •   Shiitake Mushroom Production: Fruiting,
   Describes step-by-step year-round shiitake                Harvesting and Crop Storage
   cultivation, from log inoculation to fruiting.            http://ohioline.osu.edu/for-fact/0042.html

PAGE 20                                                 //MUSHROOM CULTIVATION AND MARKETING
•   Shiitake Mushroom Production: Economic                Garden City Fungi
    Considerations                                        P.O. Box 1591
    http://ohioline.osu.edu/for-fact/0043.html            Missoula, MT 59806
                                                          406-626-5757
                                                          www.gardencityfungi.com
Growing Shiitake Mushrooms
http://osuextra.com/pdfs/F-5029web.pdf                    Gourmet Mushroom Products
    From the Oklahoma Cooperative Extension Ser-          P. O. Box 515 IP
    vice, this factsheet offers an overview of shiitake   Graton, CA 95444
    cultivation suitable to hardwood forests of east      707-829-7301
    and central Oklahoma.                                 707-823-9091 FAX
                                                          www.gmushrooms.com/pots/

    Spawn and Equipment                                   Hardscrabble Enterprises, Inc.
                                                          P.O. Box 1124 (or 617 N. Main St.)
         Suppliers                                        Franklin, WV 26807
                                                          304-358-2921
                                                          hardscrabble@mountain.net
[This list is not comprehensive and does not
                                                          Contact: Paul Goland
imply endorsement of these companies.]
                                                          L.F. Lambert Spawn Co.
    Amycel Spawn                                          1507 Valley Rd.
    P.O. Box 560                                          Coatesville, PA 19320
    Avondale, PA 19311                                    610-384-5031
    800-795-1657 or 800-995-4269 (toll-free)
    www.amycel.com                                        Long Ridge Farms
                                                          406 Tom Cook Rd.
    Choice Edibles                                        Sugar Grove, NC 28679
    584 Riverside Park Road                               828-297-4373
    Carlotta, CA 95528
    707-768-3135                                          Mushroompeople
    www.choiceedibles.com                                 P.O. Box 220
                                                          560 Farm Rd.
    CropKing                                              Summertown, TN 38483
    5050 Greenwich Road                                   931-964-2200
    Seville, OH 44273-9413                                www.thefarm.org/mushroom/mpframe.
    330-769-2002                                          html
    330-769-2616 FAX
    www.cropking.com/mushroom.shtml                       Myco Supply
                                                          P.O. Box 16194
    Field & Forest Products                               Pittsburgh, PA 16237
    N3296 Kozuzek Rd.                                     800-888 0811 (toll-free)
    Peshtigo, WI 54157                                    www.MycoSupply.com/
    800-792-6220 (toll-free)
    www.fieldforest.net                                    Northwest Mycological Consultants
                                                          702 NW 4th St.
    Fungi Perfecti                                        Corvallis, OR 97330
    P.O. Box 7634                                         541-753-8198
    Olympia, WA 98507                                     NMC@nwmycol.com
    260-426-9292
    www.fungi.com                                         Sylvan Spawn Laboratory
                                                          West Hills Industrial Park


            //MUSHROOM CULTIVATION AND MARKETING                                               PAGE 21
Kittanning, PA 16201
   800-323-4857 (toll-free) or 724-543-2242

   J.B. Swayne Spawn Co.
   P.O. Box 618
   Kennett Square, PA 19348
   610-444-0888

   UNICORN Imp. & Mfg. Corp.
   113 Highway 24
   Commerce, Texas 75429 USA
   800-888-0811 (toll-free)
   UNICORNbag@aol.com
   www.unicornbags.com

   Western Biologicals, LTD.
   P.O. Box 283
   Aldergrove, BC V4W2T8
   CANADA
   604-856-3339
   westernb@shaw.ca



By Alice Beetz and Michael Kustudia
NCAT Agriculture Specialists
July 2004
© NCAT 2004
IP 087
Slot 75
Version 042705




PAGE 22                                       //MUSHROOM CULTIVATION AND MARKETING
//MUSHROOM CULTIVATION AND MARKETING   PAGE 23
The electronic versions of Mushroom Cultivation and
          Marketing are located at:
          HTML
          http://www.attra.org/attra-pub/mushroom.html
          PDF
          http://www.attra.org/attra-pub/PDF/mushroom.pdf

          IP 087
          Slot 75
          Version 042905




PAGE 24                             //MUSHROOM CULTIVATION AND MARKETING

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Mushroom Cultivation and Marketing

  • 1. MUSHROOM CULTIVATION AND MARKETING National Sustainable Agriculture Information Service HORTICULTURE PRODUCTION GUIDE www.attra.ncat.org Abstract: The market for mushrooms continues to grow due to interest in their culinary, nutritional, and health benefits. They also show potential for use in waste management. However, as fungi, mushrooms have life cycles very different from those of green plants. The choice of species to raise depends both on the growth media available and on market considerations. Oyster mushrooms, which grow on many substrates, are easiest for a beginner. Shiitake mushrooms already have earned considerable consumer demand. Only two mycorrhizal mushrooms, morels and truffles, have been commercially cultivated. Mushroom cultivation offers benefits to market gardens when it is integrated into the existing production system. A careful analysis of potential markets must be the first step in deciding whether to raise mushrooms to sell. Many information resources are available for further research. By Alice Beetz and Michael Kustudia NCAT Program Specialists July 2004 © NCAT 2004 Introduction Small-scale mushroom production represents an opportunity for farmers interested in an ad- ditional enterprise and is a specialty option for farmers without much land. This publication is designed for market gardeners who want to incorporate mushrooms into their systems and for those farmers who want to use mushroom cultivation as a way to extract value from woodlot thinnings and other “waste” materials. Mushroom production can play an important role in managing farm organic wastes when agricultural and food processing by-products Gray Oyster Mushrooms • Glen Babcock – Garden City Fungi Contents Introduction ............................................. 1 Further Resources ................................... 15 Growing Mushrooms ............................. 2 Conclusion ............................................... 15 Choosing a Mushroom Species ............. 5 References ................................................ 16 Species for Beginners .............................. 6 Appendix .................................................. 17 Pest Management .................................... 11 Resources .................................................. 18 Marketing Mushrooms........................... 11 Spawn and Financial Analysis ................................... 14 Equipment Suppliers ............................ 21 ATTRA is the national sustainable agriculture information service operated by the National Center for Appropriate Technology, through a grant from the Rural Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend or endorse products, companies, or individuals. NCAT has offices in Fayetteville, Arkansas (P.O. Box 3657, Fayetteville, AR 72702), Butte, Montana, and Davis, California.
  • 2. are used as growing media for edible fungi. The prepared to face sporadic fruiting, invasions of spent substrate can then be composted and ap- “weed” fungi, insect pests, and unreliable market plied directly back to the soil. This publication prices. includes resources for entrepreneurs who wish to do further research. Growing Mushrooms Many people are intrigued by mushrooms’ nu- tritional and medicinal properties, in addition to their culinary appeal. Mushrooms contain many Mushroom production is completely different essential amino acids; white button mushrooms, from growing green plants. Mushrooms do not for example, contain more protein than kidney contain chlorophyll and therefore depend on beans. Shiitake mushrooms are less nutritious, other plant material (the “substrate”) for their but are still a good source of protein.(Royse and food. The part of the organism that we see and Schisler, 1980) As a group, mushrooms also call a mushroom is really just the fruiting body. contain some unsaturated fatty acids, provide Unseen is the mycelium—tiny threads that grow several of the B vitamins, and vitamin D. Some throughout the substrate and collect nutrients by even contain significant vitamin C, as well as the breaking down the organic material. This is the minerals potassium, phosphorus, calcium, and main body of the mushroom. Generally, each magnesium.(Park, 2001) mushroom species prefers a particular growing medium, although some species can grow on a Asian traditions maintain that some specialty wide range of materials. mushrooms provide health benefits. Chinese doctors use at least 50 species. Two recent books, If you are considering mushroom production, Medicinal Mushrooms: An Exploration of Tradition, become thoroughly familiar with the life cycles Healing and Culture and Medicinal Mushrooms You of fungi. A very general description is included Can Grow, detail existing research on the health below. A plant pathology textbook is a good benefits of mushrooms. See the Resources sec- resource for learning more about these complex tion at the end of this guide for specifics on these life cycles. books and other sources of information. Once you are familiar with the various fungi Mushroom production is labor- and manage- life cycles, learn the growth requirements of each ment-intensive. Specialty mushrooms are not of the species you are considering. Two basic ref- a “get rich quick” enterprise. On the contrary, erences are The Mushroom Cultivator, by Stamets it takes a considerable amount of knowledge, and Chilton, and the aforementioned Growing research, planning, and capital investment to Gourmet and Medicinal Mushrooms, by Stamets set up a production system. You must also be (see Resources). Growing mushrooms outdoors as a part of a market garden involves little effort after you P have inoculated the logs or other substrate with roducing nutritious food the mushroom spawn. Your duties are mainly at a profit, while using to maintain humidity and monitor for fruiting. When mushrooms appear, you add them to your materials that would other- other garden products and sell them. (See Mush- wise be considered “waste,” rooms on the Farm and in the Garden, below.) constitutes a valuable service Most available markets, however, require more in the self-sustaining com- mushrooms than occasional fruiting provides. Indoor production can fill the gaps when outside munity we might envision fruiting lags. The entire operation can also be for the future. conducted inside. However, indoor mushroom production demands a much higher level of knowledge, continuous monitoring, and timely manipulation of environmental conditions. PAGE 2 //MUSHROOM CULTIVATION AND MARKETING
  • 3. These are the steps in mushroom produc- • Cleaning the facility and beginning again tion— a cycle that takes about 15 weeks (time (Cooner, 2001) varies by species) from start to finish. The substrate on which the mushrooms will • Choosing a growing medium fruit must be sterilized or pasteurized in order • Pasteurizing or sterilizing the medium to destroy any fungal and/or bacterial competi- • Seeding the beds with spawn (material tors. Low-tech substrate preparation methods from mature mushrooms grown on sterile are described in the books by Paul Stamets and media) by Peter Oei (see Resources). • Maintaining optimal temperature, mois- To produce spawn, you inoculate a pasteurized ture, and other conditions for mycelium medium, usually grain, with the sterile culture of growth and the conditions that favor fruit- a particular mushroom species. After the culture ing (This is the most challenging step.) has grown throughout the medium, it is called • Harvesting, packaging, and selling the spawn. Producing spawn requires exacting mushrooms laboratory procedures. Terri Marie Beauséjour, Figure 1 Copyright 1995 by Paul Stamets, <www.fungi.com>. Reprinted with permission. //MUSHROOM CULTIVATION AND MARKETING PAGE 3
  • 4. cultivation chair for the Mycological Society of tion. Evaluate this possibility only after you have San Francisco, has written an excellent article mastered the later stages of cultivation. that can help the beginner who is put off by the technical aspects of mushroom cultivation. Titled While the mycelium is growing—and until “Getting Started with Mushroom Cultivation: it fully occupies the substrate—the mushroom The Wisdom of Simplicity,” it is available on the farmer typically manipulates the growing envi- Web at <www.mykoweb.com/articles/cultiva- ronment to favor mycelial growth. The atmo- tion.html>. spheric conditions are then changed to initiate “pinheads,” and then to complete fruiting. For Many mushroom suppliers sell several kinds example, in oyster mushroom production un- of spawn, and the beginning mushroom farmer der closely controlled conditions, the grower should take advantage of this selection in early lowers the temperature and the CO 2 in the trials to determine which species grow best on grow room to initiate fruiting. Each species has available materials. Eventually, learning to pro- specific requirements for its stages of develop- duce spawn might reduce your cost of produc- ment. The Mushroom Cultivator provides detailed Mushrooms in Permaculture* Design *Permaculture is a system of combining perennials, trees, shrubs, and vines to create a “per- manent agriculture.” Using an intensive design process, the natural elements of an ecosystem are replaced by food-producing relatives, creating an edible landscape. Paul Stamets was an early advocate of waterways, they acted as microfilters of integrating a variety of mushrooms into a fecal coliform bacteria generated by his permaculture system.(Stamets, 1994) In his small herd of cattle. He also planted them design, agricultural wastes like cornstalks, along greywater runoff areas. Stamets be- wheat straw, or rice straw can be used as lieves mushrooms can play a large role in growing media for oyster mushrooms. After mycofiltration.(Stamets, 2000-2001) harvest, the spent substrate can be recycled as fodder or mulch for garden soils. Stamets grows shiitakes, namekos (Pho- liota nameko), and Lion’s mane (Hericium Shaggy manes (Coprinus comatus), Sta- erinaceus) mushrooms on inoculated logs mets notes, do well on manured soils and set in a fence row, while other species like near compost piles. The King stropharia maitake (Grifola frondosa), reishi (Ganoderma or wine cap mushroom (Stropharia rugoso- lucidum), and clustered wood-lovers are annulata) grows best outdoors and plays a cultivated on stumps as part of a hardwood key role as a recycler of woody debris. Bees, forest management system. He introduces attracted to the sweet mycelium, help pol- mycorrhizal species such as chanterelles, linate the green garden plants. The mush- King boletes, and others to new areas by rooms are good to eat when small. Large, “satellite planting,” in which seedlings mature mushrooms attract fly larvae that are planted near trees that have a desired make excellent fish or poultry food. These mushroom species growing around them. can supplement feed for other on-farm en- After several years, the seedlings and their terprises or be sold to pet stores. mycorhizal associates are transplanted, cre- ating new patches of mushrooms. Morels Stamets also uses King stropharia are more difficult to propagate, but some mushrooms for their ecological benefits. types can be encouraged through the use He found that, when established along of small burns. PAGE 4 //MUSHROOM CULTIVATION AND MARKETING
  • 5. information on the requirements for 16 shade, wind, and humidity conditions. Gardens species.(Stamets & Chilton, 1983) offer ample substrates—organic waste materi- als—while plants provide shade and humidity. When you can cut the time between harvests, Plug-inoculated blocks buried among plantings annual production increases. Short cycles are work well for oyster and Stropharia rugoso-an- what large-scale commercial producers aim for, nulata mushrooms. Beauséjour suggests using constantly looking for ways to increase efficiency. a misting sprinkler for mushrooms in gardens. This is the competition you face if you plan to sell (Beauséjour, 1999) your product on the wholesale market. Grower and author Ken Litchfield notes that Paul Stamets of Fungi Perfecti, an educational mulching, a standard gardening practice, not and mushroom supply company (See Resources), only regulates soil temperature and humidity has spent most of his life studying the growth and but also nourishes fungi. He also suggests sur- cultivation of fungi. His book Growing Gourmet rounding raised beds with partially buried logs & Medicinal Mushrooms (see Resources) is an to create mushroom habitats. Inside the beds, invaluable resource for anyone considering the vegetables, flowers, and shrubs offer the requi- cultivation of any mushroom species. He de- site shade and humidity for mushroom cultiva- scribes several alternative methods of producing tion. In weedy areas, Litchfield suggests putting mushrooms, including growing them outdoors down organic material and covering it with wet on logs, on stumps, and in the garden, as well as cardboard and wood chips, an ideal substrate for indoors in bags or on columns. fungi.(Litchfield, 2002) Peter Oei, in his Manual on Mushroom Cultiva- These methods of production are not likely to tion (see Resources), describes in some detail how yield huge numbers of mushrooms. However, alternative mushroom production systems have they can provide an attractive addition to directly been used successfully in developing countries. marketed produce. Many ideas for low-input systems are included. In practice, it is unlikely that the beginner can successfully compete in the wholesale market Choosing a against highly capitalized and efficient mush- room companies. A better choice for the begin- Mushroom Species ner is to develop a niche market for high-quality fresh mushrooms, then sell them at retail, or to A mushroom cultivation kit (check with sup- produce a value-added mushroom product, such pliers listed below) is a handy way to begin as a soup mix or sauce. to understand the fungal life cycle. Once you successfully use the kit, you can begin to learn Mushrooms on the Farm and the steps that precede that final fruiting stage of the mushroom life cycle. Purchase spawn in the Garden that will grow on materials you have available. Then design and test a system that duplicates Fungi cycle nutrients that nourish new life the conditions favorable to all stages of growth. in the soil. Recognizing this essential function, You can use this experience to learn how to cre- inventive gardeners integrate mushrooms into ate sterile cultures and spawn for the species you farm, garden, and permaculture systems. Mush- are growing. rooms can also be grown in lawns, polytunnels, Choose the species to grow by thinking vegetable gardens, and woodlands.(Edwards, about: 2000) • What waste materials are readily available Terri Marie Beauséjour, a writer for Mushroom to use as a growth medium? the Journal, encourages creativity and imagination • What kind of facility or environment is when planting mushrooms in a garden. Look at available? the “fungamentals,” she writes, the necessities such as available substrates, microhabitats, sun, //MUSHROOM CULTIVATION AND MARKETING PAGE 5
  • 6. How much will the necessary equipment Oyster mushrooms can become an inte- cost? gral part of a sustainable agriculture system. • What level of skill is required to manage Many types of organic wastes from crop produc- the life cycle of the fungus? tion or the food processing industry can be used to support oyster mushroom production. • What is market demand for this species? Although there are no books devoted en- According to these criteria, oyster (Pleurotus tirely to oyster mushroom production, Stamets’ species) and shiitake (Lentinus edodes) mushrooms books provide basic information. Research on are probably best for most novices, although using various agricultural and forest wastes as the maitake (Grifola frondosa) is also a possibil- substrates is reported in the recently published ity. The former two are relatively easy to grow, Mushroom Biology and Mushroom Products, edited and there is already a market for them, largely by D.J. Royse.(Royse, 1996) Peter Oei (Oei, 1991) because commercial producers of white button documents a number of commercial production (Agaricus bisporus) mushrooms have been diver- systems for some strains grown in developing sifying into specialty mushrooms. If you intend countries. to grow mushrooms commercially, shiitake or oyster mushrooms are your best choices. These There is an increasing number of Web sites de- two species are more thoroughly covered in the voted to oyster mushroom production. Lawrence following sections. Weingarten describes his production process on his Web site, complete with photos at <www. A chart in the Appendix lists other common mycowest.org/cult/i-grow/i-grow-1.htm>. species and the materials on which they can be cultivated. Test each species you are considering Two Canadian Web sites also offer additional against each of the questions listed above. advice: • Oyster Mushroom Cultivation Species for Beginners www.gov.ns.ca/nsaf/elibrary/archive/ hort/vegetables/pihve94-03.htm Oyster mushrooms Oyster mushrooms (Pleuro- tus species) are a good choice for beginning mushroom cultivators because they are easier to grow than many of the other species, and they can be grown on a small scale with a moderate initial invest- ment. Although commonly grown on sterile straw from wheat or rice, they will also grow on a wide variety of high-cellulose waste materi- als. Some of these materials do not require sterilization, only pasteurization, which is less expensive. Another advantage of growing oyster mushrooms is that a high percentage of the substrate converts to fruiting bodies, increasing the potential profitability. Flamingo Oyster Mushrooms • Glen Babcock – Garden City Fungi PAGE 6 //MUSHROOM CULTIVATION AND MARKETING
  • 7. grown on logs, either inside or outside. Inside, they can also be grown on compressed sawdust logs or in bottles or bags. See the brief description of these production systems below. Several excel- lent books and Web sites are also listed below in Resources (shiitake). Log Production Hardwood logs approximately 4” to 6” in di- ameter and of an easily handled length (common- ly four feet) are cut during a tree’s dormant sea- son. Oaks, sweetgum, cottonwood, beech, birch, willow, and other non-aromatic hardwoods are appropriate species. The denser woods produce for up to twice as long as the softer ones. Smaller diameter logs produce more quickly than larger Golden Oyster Mushrooms • Glen Babcock – Garden City Fungi ones, but for a shorter time. • Growing Shiitake & Oyster Mushrooms on Handle the logs carefully to avoid soil contact Hardwood Logs and damage to the bark. This will help prevent www.fallsbrookcentre.ca/webmain/pro- contamination by competing fungi. Inoculate the grams/Forest/Pamphlet.htm logs with spawn from a strain suitable to your The MushWorld Web site, <www.mushworld. production system. There is a wide variety of com/home>, contains excellent technical infor- spawn from which to choose and several inocu- mation about growing oyster mushrooms. The lation methods. site requires registration, but it is free. After inoculation, the spawn develops a Oyster mushroom cultivation has one signifi- thread-like network—the mycelium—growing cant drawback: some people are allergic to the throughout the log. During this time, you must spores. In these cases, air-cleaning equipment or protect the logs from dehydration by the sun respirators are necessary in order to safely work and wind. Spray or mist the logs to maintain in the production facility. the humidity necessary to keep the mycelium alive and growing. When the mycelium has The consumer market for oyster mushrooms fully occupied the logs and the temperature and is being developed by the larger mushroom humidity are right for fruiting, the mycelium will companies as they diversify their operations. initiate tiny “pinheads” at the surface of the log. However, because of the short shelf life of many The pinheads grow into mushrooms in the next oyster mushroom varieties, this species may of- couple of days. fer a special advantage to the local grower who markets directly and can consistently deliver a To stimulate fruiting, some growers soak the fresh, high-quality product. logs in water tanks and/or “shock” them by physical impact or chilling. Others leave the logs in the growing environment and harvest when Shiitake mushrooms they naturally fruit. Shiitakes (Lentinus edodes) are well suited as Be alert for signs that fruiting is beginning. The a low-input alternative enterprise because they, best grades of shiitakes have caps that still have like oyster mushrooms, can be grown on a small a slight curl at the edge. Harvest often if you scale with a moderate initial investment. Shiitake want to earn the best price for your mushrooms. cultivation has been thoroughly investigated, and In addition, if you want to deliver a premium a commercial market already exists in most areas product, you must pay attention to post-harvest of the United States. Shiitake mushrooms are storage, packaging, and shipping. //MUSHROOM CULTIVATION AND MARKETING PAGE 7
  • 8. Many shiitakes are raised or- ganically. Although it is easier to produce shiitakes organically than some of the other mush- rooms, “weed” fungi, as well as pests such as slugs and flies, can reduce fruiting and quality. The producer must monitor, quickly identify, and control these pests or lose some of the crop. Federal law now controls the use of the word “organic” in marketing. In order to label a product organic, producers must be certified by an accredited third party and document their production and handling prac- tices. For further information, call and request the ATTRA publica- tion Organic Farm Certification & the National Organic Program, or Shiitake mushrooms fruiting on sawdust • Glen Babcock - Garden City Fungi see it at our Web site, <www.attra. ncat.org>. However, innovative producers have used concrete mixers to blend supplemental ingredi- Growing Shiitakes ents and made pasteurized substrate in barrels. on Sawdust Fungi Perfecti sells pressure sterilizers for $200 to $1,000, but warns that they are not designed Today, most shiitakes and many other mush- for commercial production. room species are raised on a sterilized sawdust substrate. Although this method allows a much Using hydrogen peroxide instead of conven- faster fruiting cycle and a high level of return tional pasteurization is a relatively recent in- (110% or more of initial dry weight), it also de- novation. A manual on this method and more mands a greater capital investment and more information is available at <www.mycomasters. skillful management than log production. In com/>. order to achieve fruiting as quickly as possible, you need a building in which you can control the Growing mushrooms on sawdust requires at- temperature and moisture. The building must be tention to detail—especially careful monitoring easy to keep clean, and sanitary procedures must and timely processing of the blocks, bottles, or be strictly followed to avoid contamination. bags. Several of the books listed below, including Stamets (1993) and Przybylowicz and Donoghue The chamber and the steam processor to pas- (1990), offer more details about this production teurize or sterilize the sawdust can represent a method. significant initial investment. For example, Crop King sells a small mushroom production system, Shiitake Prices including an inoculation table and bagging sta- tion, for about $5,000. The company’s complete The price for shiitake mushrooms fluctuates growing system—including equipment, struc- throughout the season. Prices are highest in the tural components, and technical support—can winter when supply is low, and lowest in sum- come to more than $41,000. Recovering these mer when production peaks. Except in very mild costs is a challenge for a beginner—especially at climates, the only logs that fruit in winter are current mushroom prices. those maintained indoors. Using strains selected to fruit at cooler temperatures can lengthen the PAGE 8 //MUSHROOM CULTIVATION AND MARKETING
  • 9. harvest season and allow producers to capture the higher prices. See the marketing section Other Mushroom Species below for ways to counteract the natural price cycle. Mushroom Species with Limited Commercial Production Sources of Further Information Some species of mushrooms are not yet on Shiitakes commercially cultivated. Many of these are Several states, including Pennsylvania, Cali- mycorrhizal types; that is, they grow only in fornia, and Oregon, support university research conjunction with the roots of a higher plant. on shiitakes and may have Extension special- Matsutakes and chanterelles are typical examples ists who can provide information to growers in of such mushrooms. their states. Others have Extension publications Mycorrhizal mushrooms are the hardest to with information specific to their areas. Some grow commercially, because the needs of both the of these resources are available on-line at Web fungus and the host plant must be met in order sites listed in the Resources section. An excel- to produce a commercial crop. Also, the host lent example is the site maintained by the Ohio plant typically must reach a certain physiological State University. maturity before the fungus will fruit. When the In states without this Extension support, one of host is a tree, this maturation may be measured in the best ways to learn about production is to share decades. Nevertheless, highly prized morels and information with other growers. There are sev- truffles are mycorrhizal, and they are both now eral local grower organizations, many of which being grown commercially in the United States. publish newsletters. Ask your state Extension Morels horticultural specialist about local organizations, or you can contact the North American Myco- Commercial production of morels on anything logical Association or the American Mushroom but a small-scale, seasonal basis is currently Institute (see Resources). There are also several not a practical option. Morels are being grown books specifically about shiitake production. See year-round, using a patented process, at only Resources (shiitake) for more information. one production facility in North America (in Alabama). The patent and facility are owned by Terry Farms and represent the only success- ful commercial process for fruiting these highly valued mushrooms out of season. It is, however, possible to establish a morel patch by using a morel starter kit. If you are suc- Morel Mushrooms cessful, these mushrooms will fruit in the spring at the same time as wild morels. Morel prices are, understandably, at their lowest during this natural fruiting season. Adding them to a farm- ers’ market stand would certainly attract morel- loving customers. You can also dry the product for year-round sales if you can grow commercial quantities in your patch. lipart.com Tom Volk’s Web site, <http://botit.botany. www.c wisc.edu/toms_fungi/morel.html>, has particu- larly good information about morel mushroom production. Truffles Growers generally begin truffle production by //MUSHROOM CULTIVATION AND MARKETING PAGE 9
  • 10. dipping tree seedlings in a mycorrhizal slurry tory and folklore, cooking and recipes, how to before planting. After several years, under favor- establish and manage a plantation, climatic and able growing conditions for both the tree and the soil requirements, and cultivation and harvest- fungus, truffles form underground fruiting bod- ing. ies that roughly resemble potatoes. These range from the size of a pea to that of a fist and give Studies have revealed a lot about the condi- off a distinctive odor. Since these “mushrooms” tions necessary to bring truffles to early fruit- don’t completely emerge from the ground, they ing and then to significant production levels. have traditionally been sniffed out by pigs or However, because of the crop’s extremely high trained dogs. value and because each success has required an investment of considerable time, it is understand- The requirements for growing the black Perig- able that some of this information is considered ord truffle, Tuber melanosporum Vitt., include proprietary. Even when fruiting begins, growers choosing an appropriate host plant (usually oak themselves may not be able to accurately identify or hazelnut), inoculating its roots with the spawn, what contributed most to the truffles’ growth. and planting it. Frank Garland planted his first inoculated trees in 1980 and harvested the first Each new truffle enterprise is an experi- black truffles grown in the U.S. on October 23, ment based on what has already been reported. 1993. He has written a production guide based on Check this Web site maintained by a group his experience.(Garland, 1996) Garland also has a of scientists investigating truffle cultivation: consulting business and sells inoculated trees. <www.truffle.org/tuber_directory/>. One Oregon tree farmer in prime white truffle Consider combining the production of truf- country found a low-fuss method of cultivation. fles with the sale of nuts from the host trees, The white truffle, Tuber gibbosum, is a mycorrhi- growing annual or perennial crops between the zal species associated with Douglas fir and other trees, or grazing ruminants among them—sheep conifers. This farmer uses a backpack sprayer have been credited with increasing the French to apply a slurry made of truffles and spores at wild-harvested crop yield.(Ludmer-Gliebe, 1997) the roots of conifers. The inoculated areas have These or other agroforestry options could provide produced between 300 to 1000 pounds per acre additional sources of income during early, non- per year, significantly more than the unsprayed fruiting years and in the seasons when truffles areas.(Arnold, 1996) do not produce. The truffle industry has developed rapidly Other Mycorrhizal Species in Australia and New Zealand. New Zealand’s Mushroom researchers continue to inves- efforts, as reported by Dr. Ian Hall, were be- tigate the cultivation of other species for the gun in 1987, with harvest recorded on June 29, 1993, just months before Garland found his first truffles in North Carolina. (See <www.fungifest. com/articlep1021.html>.) Australian researchers also report success in their cultivation efforts, summarized in several articles available on the Web. The articles are found by searching the following main pages for “truffle” or “Tuber melanosporum”: • www.crop.cri.nz • www.rirdc.gov.au/reports www.clipart.com The Black Truffle (Hall et al., 1994) is out of print, but it was converted to CD ROM format in 2001 Chanterelle Mushrooms and is available for NZ$49.95 through the Inter- net at <www.crop. cri.nz/psp/products/truffle. htm>. Chapters cover the symbiotic partner- ship between truffles and their host plants, his- PAGE 10 //MUSHROOM CULTIVATION AND MARKETING
  • 11. commercial market. A loosely organized group ing the mushroom house ventilation system will of international scientists meets intermittently to keep adult flies out. Double doors and positive share their research. The Web site maintained for atmospheric pressure within the structure also this scientific endeavor is <www.mykopat.slu. prevent flies from entering. Since adult fungus se/mycorrhiza/edible/home.phtml>. flies are drawn to standing pools of water on benches, walks, or floors, places where water Until commercial production systems are de- can collect should be eliminated. Biocontrol is veloped, mushrooms such as chanterelles and another option for several mushroom pests, the matsutake (pine) mushrooms will continue to sciarid fly among them. A predatory nematode be collected from the wild for sale to the spe- attacks this fly in its larval form. Therefore, this cialty mushroom market. The harvest of wild nematode can be added to the composting sub- mushrooms is strictly regulated in some states. strate to prevent infestation. Check with your state department of agriculture regarding laws that apply. You would be wise For a better understanding of IPM, see the to carry liability insurance and to be absolutely ATTRA publication Biointensive Integrated Pest certain of the identity of mushrooms you sell. Management. It describes IPM methodology Mistakes can be fatal to the consumer. Finally, and provides extensive resources for further the forest environment that supports the growth research. of wild mushrooms is a fragile one. Learn how to conduct your foraging business in a way that Each mushroom species in a specific envi- protects future harvests. ronment has a different pest complex. Because specialty mushroom production in this country Mushroom the Journal (see Resources) provides is still very new, many pests have not received excellent information on wild mushrooms. There research attention. Most pests you are likely to are also many local mycological societies that encounter, however, have probably already been schedule “forays”—trips to known mushroom studied. In any case, you will probably have to habitats—where the inexperienced forager can design your own pest management system. Stay learn about various species and how to identify alert for any evidence of damage to the fruiting them. mushrooms and act quickly to identify its cause. Use whatever information you can find, along Pest Management with your own creativity, to devise ways to pro- tect your crop. Use all the resources you can find—in libraries, Integrated pest management (IPM) is a least- at bookstores, or on the Web. Local Extension toxic approach for managing any pest. IPM views agents or state Extension specialists can help pests as a natural part of the farm environment. identify pests and, possibly, determine economic The integrated management of a pest is accom- thresholds. They can also help you find biologi- plished by altering the environment to the disad- cal controls, if cultural and mechanical methods vantage of that pest. In order to accomplish this, fail. you have to be able to identify what pests are ac- tive, how many there are, and how many it takes to hurt your profits. If you know the life cycle of Marketing Mushrooms each problem organism, you can take measures to make it hard or impossible for it to complete its life cycle. You may be able to encourage natural Marketing is the most important consideration enemies that will keep the population below the of all. If you can’t sell your mushrooms at a price economically damaging threshold. that ensures a reasonable profit margin, you don’t want to invest in this enterprise. Spend some Here are some examples of non-chemical time—and even some money—educating your- methods used to control typical pests in the pro- self about marketing your potential product. duction of white button mushrooms. Mushroom flies, a common pest among many cultivated This section provides a broad overview of mushrooms, are attracted to the smell of decaying market trends, some ideas about how to research vegetation such as mushroom substrates. Screen- potential markets, references to useful resources, //MUSHROOM CULTIVATION AND MARKETING PAGE 11
  • 12. suggestions about marketing channels, and advice on financial analysis. The Mushroom Business Market research and evaluation is perhaps Stella K. Naegely writes in the American the most challenging part of developing a new Vegetable Grower that the key to the mushroom enterprise. Luckily, there are many helpful business is to have established buyers and be sources. A good place to start is ATTRA’s Mar- capable of consistent production. New grow- keting and Business series, particularly Direct ers might encounter an uphill educational Marketing and Evaluating a Rural Enterprise. experience for two or three years. Launching These publications detail the market evalua- a commercial mushroom operation can cost tion process and include extensive resource between $50,000 and $250,000, depending on lists. Other relevant ATTRA publications cover whether a grower starts with an appropriate market gardening, value-added products, building. For that reason, it is prudent to start and agri-tourism. You can find the market- small. Naegely offered the following business ing publications on the ATTRA Web site at tips for people contemplating commercial <http://attra.ncat.org/marketing.html>, or production.(Naegely, 2000) call 800-346-9140 to have them sent to you. • Make the market drive your production. The many Web sites listed in Resources Talk to potential buyers about volume (below) will help you find information to fur- and prices. ther your market research. Another resource, • Explore various marketing options: as you analyze the potential for a mushroom brokers, distributors, farmers’ markets, business, is your local Small Business Admin- restaurants, grocery stores, food service istration office. Not only do they have helpful operations, and co-ops. publications, they also provide some one-on- one assistance. • Consider reselling other growers’ mush- rooms to offer more variety and larger volume. Market Demand • Talk to other producers and perhaps a consultant about production systems. Some 260 U.S. growers produced more than 844 million pounds of mushrooms in 2002-03, • Consider buying used equipment to with a farm gate value of $889 million. (Certi- reduce initial capital investment. fied organic mushrooms accounted for only • Strike a balance between undercapital- 1 percent of all sales, although 12 percent of izing and a heavy debt load. growers were certified organic.). The vast bulk of sales were of the Agaricus species, which includes white button mushrooms, portobellas, and criminis. The latter two are a brown strain Market Research of Agaricus bisporus, whose cultivation is man- aged for extra large (portobella) and very small The goals of market assessment are to project (crimini) fruiting bodies. (Current statistics are the sales volume and gross income of a new found at <http://usda.mannlib.cornell.edu/re- enterprise, to analyze its potential profitability ports/nassr/other/zmu-bb/>.) and cash flow, and to gather information about potential buyers and competitors (to help de- Large, well-established companies produce velop a market strategy). virtually all Agaricus mushrooms; most are located in Pennsylvania and California. Their Many specialty mushrooms can be cultivated, production houses are full of mushrooms in but the market, though growing, is still limited. every stage of development. Mushrooms raised If you are thinking about starting a commercial in these systems can be sold profitably on the mushroom enterprise, begin at the end: to whom wholesale market. It is very difficult for a begin- will you sell them? You cannot make money in ning grower to compete with these companies at any business if you don’t have buyers for your wholesale prices. product. Learn who buys mushrooms, what PAGE 12 //MUSHROOM CULTIVATION AND MARKETING
  • 13. kinds they want, and where they shop. You • Wholesale as fresh produce (on contract or must thoroughly investigate the demand for each by the batch) mushroom species or product— as well as the available marketing outlets— before committing Direct marketing large amounts of capital to the enterprise. If you can sell your mushrooms or mushroom Check the local situation on your own. Some products directly to an end user, you will natu- common methods for conducting initial research rally receive a better price than if you sell to a include observation of buyers, surveys of stores, wholesaler. Direct marketing of mushrooms at personal interviews with growers, and test mar- local farmers’ markets, to restaurants, or in su- keting (once you have an experimental product). permarkets is possible in many locations. When Another function of market research is to evaluate competing in local markets, excellent service, the competition. This will help you determine top quality, and consistent supply, rather than what market already exists and identify any the lowest price, might win the sale, particularly niches you could fill. To find out more about your with gourmet chefs. Some chefs specialize in competitors, use their products. Talk to them. locally grown foods and may be interested for You may be surprised how much information that reason. Others are willing to pay for fresh, they will share. premium produce. In any case, establishing a relationship with the buyer and reliably deliver- ing a quality product are essential for this type Market Channels of marketing. Explore as many marketing strategies as ap- Local grocery stores are another potential peal to you. Below are some possibilities. buyer of fresh mushrooms. However, an Arkan- • Market the fresh or dried product directly sas grower found that local grocery chains were to your customers (at farmers’ markets, to interested in her shiitake mushrooms only if she gourmet chefs, over the Internet, through could assure them of a year-round supply. She mail-order offerings) decided that she had to add indoor production in order to meet this requirement. Natural foods • Add value to the mushroom by creating stores are a market that may be more tolerant of processed products (mushroom sauces, seasonal supply. Any chef or grocer will require dried entrée mixes, teas, extracts) assurances of both quality and regular supply before switching from established wholesale Shiitake mushrooms harvested from sawdust Glen Babcock – Garden City Fungi sources. Although the wholesaler with an established account creates stiff competition, the small, efficient producer might still have an advantage in some niche markets. For in- stance, shiitakes grown on logs are generally of higher quality and have a longer shelf life than shiitakes grown on sawdust substrates (the most common mass-production method). Log-grown shiitakes earn prices from three to eight times higher than those grown on sawdust substrates.(Anon., 2003) Find the buyer to whom //MUSHROOM CULTIVATION AND MARKETING PAGE 13
  • 14. quality matters, and you will have found a market The Persimmon Hill Berry Farm in Missouri for your product. (see References) offers an example of how a small entrepreneur can create and market a value- Locally-grown oyster mushrooms have an added mushroom product. Persimmon Hill de- advantage because oysters have a very limited veloped a recipe for a shiitake mushroom sauce shelf life and are too fragile to ship easily. The and invested in a commercial kitchen to produce grower with direct, local sales can supply a it. The farm buys from local growers who, since fresher product that arrives in better condition. the mushrooms are not for the fresh market, can freeze them until they have enough to make a Wholesale markets delivery to the processing kitchen worthwhile. Selling fresh mushrooms to a wholesaler will During warm weather, when production peaks, mean a lower price than if you market directly. they can likewise freeze the shiitakes until Per- However, for growers who choose not to involve simmon Hill needs them. These growers receive themselves in direct sales, there are established a better price than they would if they were selling wholesale markets for mushrooms. Wholesalers at the lower, peak-season prices, and Persimmon advertise in produce industry periodicals like The Hill is ensured a steady supply for its sauce. Packer. Your local librarian or an Internet search Persimmon Hill sells its products on the Internet can help you locate other such magazines. and through direct sales on the farm. (See <www. branson.com/persimmonhill/>.) Mr. Paul Goland of Hardscrabble Enterprises maintains that there is a steady and growing mar- Drying shiitakes and other mushrooms is ket for quality dried shiitakes, even though the another way to add value and avoid the low wholesale market has been depressed by Chinese prices of the peak season. For more on drying imports. His buyers—natural foods stores and technologies, see the ATTRA publication Options co-ops—do not buy the Chinese products. He for Food Dehydration. (After drying, mushrooms buys several grades of dried shiitakes from grow- should be held at 0° F. for four days to kill any ers who ship directly to West Virginia. Contact surviving pest eggs.) Paul Goland (see References) to learn whether he has a current demand for your product. Financial Analysis Small-scale commercial production of white button mushrooms and other Agaricus varieties As a part of your market research, you need such as portobellas and criminis is not recom- to do a financial analysis of the potential enter- mended for the beginner, except on a small scale prise. Develop an enterprise budget with as for direct marketing. A significant capital outlay much detail as you can provide. As with many and a high level of management skills are re- farm enterprises, mushroom production is of- quired to begin production, and at current prices, ten only marginally profitable when labor and recovery of the initial investment might not be management costs are taken into consideration. possible. The market is extremely competitive. An example of an enterprise budget for shiitake More information about the button mushroom business is available from The American Mush- room Institute (see Resources). Adding Value to Fresh Mushrooms O nly by developing a market niche for a high- quality fresh product or by Adding value to fresh mushrooms usually producing a mushroom-based means either developing a processed product, food item can a small-scale such as a sauce, or drying surplus mushrooms for beginner hope to compete. sale in the off-season, when prices are higher. A value-added product can be sold either directly to the consumer or to wholesalers. PAGE 14 //MUSHROOM CULTIVATION AND MARKETING
  • 15. If you are adding mushroom production to Case Study: Marketing Key an integrated farming system, financial analysis is more difficult. Making a clear profit might for Small-Scale Growers not be as important as making use of off-season In the Ozarks of Missouri, Nicola MacPher- labor or the small logs from woodlot thinning to son and her husband, Daniel Hellmuth, have create a saleable product from what otherwise grown shiitakes on three acres for nine years. would have been waste. The couple grow them the traditional way on oak logs, and they market them under the la- bel Ozark Forest Mushrooms, which carries a Further Resources USDA organic seal. To sell their mushrooms, however, they’ve relied on a variety of nontra- Two periodicals that include mushroom cul- ditional marketing approaches. “To promote tivation information are The Mushroom Growers’ sales, you must be prepared to promote your Newsletter and, to a lesser degree, Mushroom the product tirelessly,” MacPherson says. Their Journal. Subscription information is included, principal markets are up-scale restaurants, ca- along with citations for several key books, in the tering companies, and gift catalogs. Customers Resources section below. Web sites devoted to who demand organic produce, such as CSA mushrooms and their cultivation are increasing (Community Supported Agriculture) subscrib- every year. A selected list of mushroom Web ers, also provide a reliable market. sites is included below. MacPherson urges beginners to start mod- Some state or local mycological societies estly, learn the process thoroughly, and de- have groups interested in mushroom cultiva- velop a small, reliable customer base—say, a tion. To locate chapters in your area, contact half-dozen regular customers—as a foundation. the North American Mycological Association (She offered free samples to help establish a lo- (see Resources). cal market.) She cautions new growers not to create a market demand that they cannot meet. Selling to supermarkets, for instance, can be Conclusion fraught with problems, including the challenge of ensuring product freshness and the recurring Commercial cultivation of mushrooms is not need for educating new produce department for everyone. It requires someone who is famil- employees.(Anon., 1998) iar with fungi life cycles and willing to commit time and money to research, designing a system, and developing a business. The mushroom cultivator must be able to carry out operations log production is available at <www.ext.vt.edu/ on time, be attentive to details, and be vigilant pubs/vegetables/438-898/shiitakemushrooms. about pest invasions. In most cases, marketing pdf>. requires excellent public relations skills. Using this format or a generic enterprise bud- Nevertheless, there is potential for an innova- get from Extension offices or off the Internet, fill it tor who can use an existing facility, obtain a low- in with as many actual calculations and estimates cost substrate, and produce a reliable supply of of costs as you can. If you are considering sev- a high quality product. As part of a whole-farm eral mushroom species, do a financial analysis of system, mushrooms can augment productivity each one separately. Try to anticipate every cost at any scale. Producing a nutritious food at a so that you can construct an accurate financial profit, while using materials that would other- picture. Include an educational and/or market- wise be considered “waste,” constitutes a valu- ing component in your budget, allowing for free able service in the self-sustaining community we samples or flyers with information and recipes, might envision for the future. It is a challenge especially if you are developing a new product some will find worth taking. or will be doing direct marketing. //MUSHROOM CULTIVATION AND MARKETING PAGE 15
  • 16. Park, Kwnag-ho. 2001. Nutritional Value of a References Variety of Mushrooms. <www.MushWorld. com/sub_en.html>. January. 5 p. Anon. 1998. Grower’s business is ‘mushroom- ing.’ Small Farm Digest. Winter. p. 3. Litchfield, Ken. 2002. In your yard: More than grass, shrubs and trees. Mushroom the Jour- nal. Summer. p. 20–23. Anon. 2003. Small Farms Research News. Spring. p. 3. Ludmer-Gliebe, Susan. 1997. Sheep are essen- tial to French truffle production. November. Arnold, Ralph. 1996. Grow fungi without p. 4–5. the sterile trappings? Mushroom the Journal. Summer. p. 35. Naegely, Stella K. 2000. Is there money in mushrooms? American Vegetable Grower. Beauséjour, Terri Marie. 1999. Mushrooms in February. p. 40–43. the garden. Mushroom the Journal. Fall. p. 17–19. Oei, Peter. 1991. Manual on Mushroom Culti- vation. TOOL Foundation, Amsterdam. Cooner, Deanna. 2001. Mushroom farming. p. 49–50. (A new edition of this book is now AgVentures. June-July p. 14–15. available; see Resources.) Edwards, Richard. 2000. The missing link? Persimmon Hill Berry Farm Mushrooms in permaculture. Permaculture RR 1, Box 220 Magazine. No. 25. p. 37–39. Lampe, MO 65681 417-779-5443 Garland, Franklin. 1996. Truffle Cultivation in North America. Garland Gourmet Mushrooms Royse, D.J. (ed.). 1996. Mushroom Biology and and Truffles, Inc., Hillsborough, NC. 41 p. Mushroom Products: Proceedings of the Sec- Available for $15 from: ond International Conference, University Park, Garland Gourmet Mushrooms and PA, June 9-12, 1996. Penn State, State Park, PA. Truffles, Inc. 581 p. 3020 Ode Turner Rd. Hillsborough, NC 27278 Royse, Daniel J., and Lee C. Schisler. 1980. 919-732-3041 Interdisciplinary Science Reviews. Vol. 5, No. 919-732-6037 FAX 4. p. 324–331. truffleman@mindspring.com Green, Judy. 1988. Doing your own market re- Stamets, Paul. 2000–2001. A novel approach to search. Farming Alternatives. Cornell Univer- farm waste management. Mushroom the Jour- sity Resource Sheet #6. November. 6 p. nal. Winter. p. 22. Or see at <http://www. fungi.com/mycotech/ farmwaste.html>. Hall, Ian R., G. Brown, and J. Byars. 1994. The Black Truffle. Rural Industries Research and Stamets, Paul. 1994. Permaculture with a Development Corporation. New Zealand. mycological twist. The Permaculture Activist. 107 p. May. p. 8–10. Hardscrabble Enterprises, Inc. Stamets, Paul, and Jeff Chilton. 1983. The P.O. Box 1124 (or 617 N. Main St.) Mushroom Cultivator. Agarikon Press, Oym- Franklin, WV 26807 pia, WA. 415 p. 304-358-2921 hardscrabble@mountain.net Contact: Paul Goland PAGE 16 //MUSHROOM CULTIVATION AND MARKETING
  • 17. Appendix Mushroom Cultivation Media Growing Medium Mushroom Species Straw (Volvariella) Oyster (Pleurotus) Rice Straw Common (Agaricus) Oyster (Pleurotus) Common (Agaricus) Wheat straw Stropharia Straw (Volvariella) Coffee pulp Oyster (Pleurotus) Shiitake (Lentinus) Shiitake (Lentinus) Oyster (Pleurotus) Ear (Auricularis) Ganoderma (Reishi) Sawdust Maitake (Grifola frondosa) Winter (Flammulina) Lion’s Head or Pom Pom (Hericium) Sawdust-straw Oyster (Pleurotus) Stropharia Cotton waste Oyster (Pleurotus) Straw (Volvariella) from textile industry Cotton seed hulls Oyster (Pleurotus) Shiitake (Lentinus) Nameko (Pholiota) Shiitake (Lentinus) Logs White jelly (Tremella) Nameko (Pholiota) Ear (Auricularis) Sawdust-rice bran Shaggy Mane (Coprinus) Winter (Flammulina) Shiitake (Lentinus) Corncobs Oyster (Pleurotus) Shiitake (Lentinus) Paper Oyster (Pleurotus) Stropharia Horse manure Common (Agaricus) (fresh or composted) Crushed bagasse and molasses wastes from Oyster (Pleurotus) sugar industry 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 Lion’s Head or Pom Pom (Hericium) //MUSHROOM CULTIVATION AND MARKETING PAGE 17
  • 18. Stamets, Paul. 1993. Growing Gourmet and Resources Medicinal Mushrooms. Ten Speed Press. Berkeley, CA. 592 p. Companion volume to The Mushroom Culti- Periodicals vator. This third edition updates cultural and growing techniques, adds growing information The Mushroom Growers’ Newsletter is a monthly on new varieties, and discusses strain selection newsletter that contains cultivation information for cultivation. and current prices of mushrooms at San Fran- Available for $44.95 from Fungi Perfecti cisco and New York markets. (See address above.) Available for $35/year from: The Mushroom Growers’ Newsletter Oei, Peter. 2003. Manual on Mushroom Culti- P.O. Box 5065 vation: Techniques, Species and Opportunities Klamath Falls, OR 97601 for Commercial Application in Developing www.mushroomcompany.com/ Countries. TOOL Publications, Amsterdam, The Netherlands. 274 p. Mushroom the Journal is a quarterly publication First published in 1991, and now completely that primarily contains information on forag- updated, this guide offers information on grow- ing, with limited information on cultivation. ing 12 species of mushrooms, with a particular Available for $19/year from: emphasis on growing in developing countries. Leon Shernoff The manual includes 71 drawings, 93 photo 1511 E. 54th St. illustrations. Chicago, IL 60615 Available for $53.50 plus $8 for shipping www.mushroomthejournal.com/index. from: html Western Biologicals, Ltd. P.O. Box 283 Bibliography Aldergrove, BC V4W2T8 Canada The National Agricultural Library (NAL) has 604-856-3339 (telephone or FAX) published several Quick Bibliographies (QBs), western@iprism.com or westernb@shaw.ca results of database searches on a given topic. QBs have been published for both shiitake and Also available to developing countries from oyster mushrooms. They can be downloaded C-Point Publishers in the Netherlands. For from the NAL Web site. ordering information, contact Ine Klerkx, www.nal.usda.gov/afsic/afspub.htm <ine.klerkx@cpoint.nl>. Hadeler, Hajo. 1995. Medicinal Mushrooms Books You Can Grow. The Cariaga Publishing House. 196 p. Stamets, Paul, and J.S. Chilton. 1983. The Excellent guide to wood-loving mushroom cul- Mushroom Cultivator. Agarikon Press, Olym- tivation, from plugging old stumps to enriched pia, WA. 415 p. sawdust culture in sterile bags. Covers medici- Includes growing parameters for 16 species and nal species well. Well written and illustrated; covers every aspect of mushroom cultivation. index. Available for $29.95 from: Out of print, but some are still available Fungi Perfecti from amazon.com P.O. Box 7634 Olympia, WA 98507 Hobbs, Christopher, and Michael Miovic (ed.). 800-780-9126 (toll-free) or 260-426-9292 1995. Medicinal Mushrooms: An Exploration of Tradition, Healing and Culture. Third PAGE 18 //MUSHROOM CULTIVATION AND MARKETING
  • 19. Edition. Botanical Press, Santa Cruz, CA. How to Grow Mushrooms 252 p. www.gov.ns.ca/nsaf/elibrary/archive/hort/ organic/990015.htm Mushroom toxicity, use in traditional medicine and in the human diet are supported by clinical From the Nova Scotia Department of Agricul- studies and explorations of cultural influences ture and Fisheries, this Web page offers a good in this technical coverage. More than 100 spe- overview of growing mushrooms in compost. cies of edible fungi are documented. Widely available for $18.95. The Mushroom Council: Six Steps to Mush- room Farming www.mushroomcouncil.org/production/six- Associations steps.htm The North American Mycological Association From the Pennsylvania State University (NAMA) publishes a bi-monthly newsletter, Agriculture Extension Service, this page de- The Mycophile, and publishes an annual direc- scribes step by step phase I composting, phase tory that provides names and addresses of all II composting, spawning, casing, pinning, and NAMA members and every mycology associa- cropping. tion in North America. NAMA focuses more on finding and identifying wild mushrooms Permaculture with a Mycological Twist: The than commercial cultivation. Stametsian Model for a Synergistic Mycosphere www.fungi.com/mycotech/permaculture.html Annual membership is $35. Contact: NAMA This article carried on the Fungi Perfecti Web 336 Lenox Ave. site describes permaculture applications for Oakland, CA 94610-4675 mushrooms. (See the sidebar.) www.namyco.org/ Mush-World The American Mushroom Institute is a source www.mushworld.com/home/ of information on the mushroom industry. It serves mainly large, highly capitalized com- “Total mushroom information” is the banner mercial producers. claim here. This excellent resource features sections on cultivation, pests and disease, and AMI Washington DC Office medicinal mushrooms, as well as the monthly One Massachusetts Avenue, N.W. webzine Mushworld. Requires free registration Suite 800 for access. Highly recommended. Washington, D.C. 20001 202-842-4344 Penn State Mushroom Spawn Laboratory ami@mwmlaw.com MushroomSpawn.cas.psu.edu/ www.americanmushroom.org A comprehensive Web site with resources on AMI Avondale Office mushroom science and cultivation. 1284 Gap Newport Pike Suite 2 Gourmet Mushrooms Avondale, PA 19311 www.arrowweb.com/MUSHROOM/ 610-268-7483 Source of mushroom kits and mushroom nutra- MushroomNews@kennett.net ceuticals; extensive bibliography on the me- dicinal value of mushrooms (<www.gmush- Web sites rooms.com/Healthref.html>). [Note that addresses may change. A search of Fungal Jungal: Western Montana Mycological the Web should provide current locations.] Society www.fungaljungal.org //MUSHROOM CULTIVATION AND MARKETING PAGE 19
  • 20. A good example of a regional mycological Excellent reference for inland producers society Web site filled with diverse resources, Available for $17.50 postage paid from including information on morels, fire ecology, Field & Forest Products, Inc. a western mushroom photo guide, and recipe (See Suppliers.) lists. Przybylowicz, Paul, and John Donoghue. 1990. The Mushroom Council Shiitake Growers Handbook. Kendall/Hunt www.mushroomcouncil.org/ Publishing Co., Dubuque, IA. 217 p. Home of the mushroom industry’s marketing Book covers a wide range of topics, from log council, this site contains useful information cultivation to sawdust cultivation. Information about consumer buying trends and providing includes both scientific material and practical for food service needs, as well as nutritional advice. Emphasis is on presenting as much and production information; focuses mainly on information as possible rather than selectively Agaricus spp. with no specialty mushroom dif- choosing the best or most advanced methods. ferentiation. Widely available for $25. Jones, Kenneth. 1995. Shiitake: The Healing Resources (shiitake) Mushroom. Healing Arts Press, Rochester, VT. 128 p. Bibliography: shiitake www.parkstpress.com/titles/shiita.htm Rafats, Jerry. 1996. Shiitake: Cultivated Mush- This book describes the nutritional benefits and room. Quick Bibliography Series B:90-4. Na- traditional uses in Chinese medicine for shiitake tional Agricultural Library, Beltsville, MD. mushrooms. Chapters cover shiitakes used in folk medicine for controlling cholesterol, cancer A bibliography of articles on shiitake mush- prevention, treating viruses and chronic fatigue rooms. Though somewhat dated (published in syndrome. 1996), this collection still contains valuable information for shiitake producers. It’s available Widely available for $9.95. on-line at <www.nal.usda.gov/afsic/AF- SIC_pubs/qb9613.htm>. Web sites: shiitake The Ohio State University Extension Office Books: shiitake features a series of on-line fact sheets that detail shiitake cultivation. Harris, Bob. 1994. Growing Shiitake Com- mercially. 2nd Ed. Science Tech Publishers, • Shiitake Mushroom Production: Introduc- Madison, WI. 72 p. tion and Sources of Information and Large-scale cultivation of shiitake mushrooms Supplies using traditional oak logs. Based on many http://ohioline.osu.edu/for-fact/0039.html years’ work, including material from recent visits to Japan. Some of the most modern and • Shiitake Mushroom Production: Obtaining cost-effective methods are presented with photo- Spawn, Obtaining and Preparing Logs, and graphs and drawings. Inoculation Available from Mushroompeople (See Sup- http://ohioline.osu.edu/for-fact/0040.html pliers). • Shiitake Mushroom Production: Logs and Kozak, M.E., and J. Krawcyzk. 1993. Growing Laying Yards Shiitake Mushrooms in a Continental Climate. http://ohioline.osu.edu/for-fact/0041.html 2nd Ed. Field & Forest Products, Peshtigo, WI. 114 p. • Shiitake Mushroom Production: Fruiting, Describes step-by-step year-round shiitake Harvesting and Crop Storage cultivation, from log inoculation to fruiting. http://ohioline.osu.edu/for-fact/0042.html PAGE 20 //MUSHROOM CULTIVATION AND MARKETING
  • 21. Shiitake Mushroom Production: Economic Garden City Fungi Considerations P.O. Box 1591 http://ohioline.osu.edu/for-fact/0043.html Missoula, MT 59806 406-626-5757 www.gardencityfungi.com Growing Shiitake Mushrooms http://osuextra.com/pdfs/F-5029web.pdf Gourmet Mushroom Products From the Oklahoma Cooperative Extension Ser- P. O. Box 515 IP vice, this factsheet offers an overview of shiitake Graton, CA 95444 cultivation suitable to hardwood forests of east 707-829-7301 and central Oklahoma. 707-823-9091 FAX www.gmushrooms.com/pots/ Spawn and Equipment Hardscrabble Enterprises, Inc. P.O. Box 1124 (or 617 N. Main St.) Suppliers Franklin, WV 26807 304-358-2921 hardscrabble@mountain.net [This list is not comprehensive and does not Contact: Paul Goland imply endorsement of these companies.] L.F. Lambert Spawn Co. Amycel Spawn 1507 Valley Rd. P.O. Box 560 Coatesville, PA 19320 Avondale, PA 19311 610-384-5031 800-795-1657 or 800-995-4269 (toll-free) www.amycel.com Long Ridge Farms 406 Tom Cook Rd. Choice Edibles Sugar Grove, NC 28679 584 Riverside Park Road 828-297-4373 Carlotta, CA 95528 707-768-3135 Mushroompeople www.choiceedibles.com P.O. Box 220 560 Farm Rd. CropKing Summertown, TN 38483 5050 Greenwich Road 931-964-2200 Seville, OH 44273-9413 www.thefarm.org/mushroom/mpframe. 330-769-2002 html 330-769-2616 FAX www.cropking.com/mushroom.shtml Myco Supply P.O. Box 16194 Field & Forest Products Pittsburgh, PA 16237 N3296 Kozuzek Rd. 800-888 0811 (toll-free) Peshtigo, WI 54157 www.MycoSupply.com/ 800-792-6220 (toll-free) www.fieldforest.net Northwest Mycological Consultants 702 NW 4th St. Fungi Perfecti Corvallis, OR 97330 P.O. Box 7634 541-753-8198 Olympia, WA 98507 NMC@nwmycol.com 260-426-9292 www.fungi.com Sylvan Spawn Laboratory West Hills Industrial Park //MUSHROOM CULTIVATION AND MARKETING PAGE 21
  • 22. Kittanning, PA 16201 800-323-4857 (toll-free) or 724-543-2242 J.B. Swayne Spawn Co. P.O. Box 618 Kennett Square, PA 19348 610-444-0888 UNICORN Imp. & Mfg. Corp. 113 Highway 24 Commerce, Texas 75429 USA 800-888-0811 (toll-free) UNICORNbag@aol.com www.unicornbags.com Western Biologicals, LTD. P.O. Box 283 Aldergrove, BC V4W2T8 CANADA 604-856-3339 westernb@shaw.ca By Alice Beetz and Michael Kustudia NCAT Agriculture Specialists July 2004 © NCAT 2004 IP 087 Slot 75 Version 042705 PAGE 22 //MUSHROOM CULTIVATION AND MARKETING
  • 23. //MUSHROOM CULTIVATION AND MARKETING PAGE 23
  • 24. The electronic versions of Mushroom Cultivation and Marketing are located at: HTML http://www.attra.org/attra-pub/mushroom.html PDF http://www.attra.org/attra-pub/PDF/mushroom.pdf IP 087 Slot 75 Version 042905 PAGE 24 //MUSHROOM CULTIVATION AND MARKETING