The Commercial Mushroom Farming Guide

how to raise mushrooms commercially

Mushroom cultivation can be a profitable and sustainable business, with the global market reaching over $16 billion in 2020 and an expected increase to over $22 billion by 2028. There are several methods for growing mushrooms commercially, including indoor and outdoor log-based cultivation, indoor substrate-based cultivation, and a hybrid method. The easiest way to obtain spawn to begin production is to purchase an inoculate spawn. The substrate refers to the wood chips, coffee grounds, or straw that creates the conditions for growth. Oyster mushrooms are a common commercial crop grown on straw, while shiitake mushrooms are often grown on logs. Commercial growers must also consider the necessary infrastructure and equipment, such as fruiting chambers, environmental controls, and incubation spaces.

Characteristics Values
Time to set up A few weeks
Ongoing work Minimal
Scale Depends on the spatial restrictions of your property
Business structure LLC, corporation, or other
Profitability Profits can be seen in a few weeks
Spawn Can be created or purchased
Substrate Wood chips, coffee grounds, straw, or supplemented sawdust/fuel pellets
Substrate preparation Shredded, boiled, and packed into plastic bags with spawn
Incubation temperature 78°F or 25°C
Incubation environment No natural light
Fruiting environment High humidity (60%), temperature of about 70°F, and lots of natural light
Mushroom types Shiitake, oyster (pink, blue, yellow, brown), button, portabella, chestnut
Mushroom growth cycle 4-5 months after inoculation
Infrastructure Fruiting chamber, flow hood, sauna steamer, metal trough, growing room, etc.
Shipping Can be expensive
Initial investment £1,500 for a small farm

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The pros and cons of indoor vs outdoor cultivation

Commercial mushroom cultivation can be done indoors or outdoors, and both methods have their own advantages and disadvantages.

Indoor Cultivation

Indoor mushroom cultivation is a great way to have a steady supply of fresh mushrooms all year round. It is relatively easy to care for them, as they are grown in a controlled environment, and you can easily monitor their growth. This method also allows for faster cropping cycles with high yields. Additionally, with indoor cultivation, you have more control over the environment, which means less worry about pests and diseases. However, one of the main challenges of growing mushrooms indoors is maintaining adequate amounts of fresh air, especially for oyster mushrooms. The upfront costs for indoor cultivation can also be higher, as you may need to invest in equipment such as a sterilizer, incubation space, and bagging equipment.

Outdoor Cultivation

Outdoor mushroom cultivation takes advantage of the natural environment, creating ideal conditions for fruiting without the need for climate control. This method is more cost-effective, especially for shiitake mushrooms, as you can use natural logs as a substrate. Outdoor cultivation also provides more space, allowing you to grow larger harvests or multiple types of mushrooms simultaneously. However, one of the main drawbacks is the unpredictability of the outdoors, as environmental concerns like rain, wind, snow, and sleet can impact the mushroom fruiting process. Outdoor cultivation is also typically seasonal, and mushrooms tend to grow at a slower rate compared to indoor cultivation.

Both methods have their own benefits and drawbacks, and the choice between indoor and outdoor cultivation depends on various factors such as the species of mushroom, the climate, and the resources available.

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Choosing a mushroom variety

Choosing the right mushroom variety is a crucial step in the process of mushroom farming. It involves considering factors such as growing conditions, market demand, and profitability. Here are some popular mushroom varieties to consider for commercial cultivation:

Oyster Mushrooms

Oyster mushrooms are a common choice for commercial cultivation due to their fast-growing nature and adaptability to various substrates. They can be grown on straw, making use of straw as a low-nutrient, high-carbon substrate. Oyster mushrooms have a relatively fast crop cycle of about five weeks from inoculation to harvest. They come in different varieties, including pink, blue, yellow, and brown, offering a range of colours to cater to different markets.

Shiitake Mushrooms

Shiitake mushrooms are well-suited for commercial cultivation, especially using the outdoor log-based system. Logs inoculated with shiitake mushrooms can be soaked or "shocked" weekly from May/June to October to induce a flush of mushrooms. This method offers a good yield, with each log producing 4-5 lbs of mushrooms over three seasons. Shiitake mushrooms are also suitable for indoor cultivation on supplemented sawdust blocks, allowing for year-round production and precise environmental controls.

Button Mushrooms, Portabella Mushrooms, and Chestnut Mushrooms

These mushroom varieties are the most commonly commercially grown. However, due to the large-scale button mushroom farms, it is challenging to compete with their pricing. Therefore, while these varieties are popular, it may be difficult to enter the market with them.

When choosing a mushroom variety, it is essential to consider the growing conditions, substrate availability, and market demand. Some mushrooms, like shiitake, thrive on logs, while others, like oyster mushrooms, favour straw substrates. Additionally, certain varieties may be more in demand in your target market, influencing your choice of mushroom type.

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Preparing the substrate

Selecting the Substrate Material

The choice of substrate material depends on the type of mushrooms you want to grow and the cultivation method. For instance, if you choose log-based cultivation, you'll need access to small-diameter hardwood logs suitable for growing shiitake mushrooms. On the other hand, if you opt for straw-based cultivation, you'll need to source straw, which is commonly available in baled compressed 40lb bales or larger sizes for easy storage. Oyster mushrooms grow well on straw as they can utilize it as a low-nutrient, high-carbon substrate.

Treating the Substrate

Before using the substrate, it needs to be prepared appropriately. If you're using straw, chop it into short pieces and place them in a large stockpot. Boil the straw for about 30 minutes, then remove it from the water and allow it to cool. This process sterilizes the straw and prepares it for inoculation. For other substrates, such as wood chips or coffee grounds, you may need to follow different treatment methods, such as shredding or pasteurization, to create the optimal conditions for mushroom growth.

Packing the Substrate

Once the substrate material is prepared, it's time to pack it into containers or bags. For straw substrates, pack about three inches of straw into a plastic bag. If you're using logs, you'll need to drill holes or inoculate the logs with spawn. The spawn is the mushroom mycelium, which will colonize the substrate and initiate mushroom growth. You can purchase spawn specifically designed for the type of mushrooms you want to grow.

Spawn Inoculation

Inoculation is the process of introducing the spawn into the substrate. For straw substrates, sprinkle a layer of spawn on top of the packed straw. Repeat this process, layering spawn and substrate until the container is almost full. For log-based cultivation, you can inject the spawn directly into the holes drilled into the logs. Make sure to follow the specific instructions for the type of spawn and substrate you are using.

Incubation

After inoculation, the substrate needs to be incubated at a controlled temperature, typically around 78°F or 25°C. Place the bags or containers in a dark, controlled environment, such as a shelving unit, where no natural light can impact the growing process. This stage is crucial for the spawn to establish itself within the substrate before the fruiting phase.

By carefully following these steps for preparing the substrate, you'll create the optimal conditions for mushroom growth in your commercial cultivation venture. Remember that the specific steps and considerations may vary depending on the type of mushrooms you're growing and your chosen cultivation method.

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Incubation and spawn production

The substrate, which can be wood chips, coffee grounds, or straw, provides the ideal conditions for mushroom growth. If you choose straw, it should be chopped into short pieces and boiled for about 30 minutes. After cooling, pack about three inches of straw into a plastic bag, sprinkle spawn on top, and repeat the process until the bag is almost full. Seal the bag, poking a few holes to allow airflow. Place the bags in a dark, controlled environment, maintaining a temperature of 78°F or 25°C. Cover any windows or cracks to prevent contamination, and use darkroom lighting when necessary.

For log-based cultivation, you can purchase ready-to-fruit logs or source your own logs, which should be soaked or "shocked" weekly to stimulate growth. This method is less costly but more labour-intensive and slow-growing. It is important to note that log-based cultivation is typically seasonal, as forced fruiting is challenging for most mushrooms except shiitake.

Oyster mushrooms are a popular choice for straw-based cultivation due to their fast-growing mycelium. This method offers a relatively short crop cycle of about five weeks from inoculation to harvest. However, fruiting must occur indoors to prevent bug larvae infestation.

Sawdust-based cultivation allows for a wider variety of mushrooms and year-round growth. It requires significant capital investment, including equipment for blending, storage, sterilisation, bagging, and incubation. Sawdust blocks are typically used once and require ample space for disposal or composting.

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Harvesting and selling your mushrooms

Harvesting Techniques:

When it comes to harvesting your mushrooms, timing is crucial. For oyster mushrooms, you'll want to harvest just before the caps uncurl fully. This ensures you get the best yield and quality. For other mushroom varieties, research the optimal harvest time to maximise your output.

Drying and Storing:

After harvesting, it's essential to dry and store your mushrooms properly to preserve them for sale. Consider investing in a dehydrator or using other drying methods to extend the shelf life of your product.

Sales Channels:

You can sell your mushrooms through various channels, including farmers' markets, local grocery stores, and online platforms. Building relationships with local chefs and restaurants can also be a great way to secure regular sales.

Marketing and Branding:

Creating a brand for your mushroom business can help you stand out in the market. Develop a unique name and logo, and consider designing labels or packaging that showcases your brand. You can also write blog posts about mushroom recipes and health benefits to attract customers and establish yourself as an expert.

E-commerce:

If you're selling directly to consumers, ensure you have a user-friendly website with a secure e-commerce platform. Make it easy for customers to contact you and place orders through multiple channels, including online forms, phone, and email.

Pricing:

Research the market to determine competitive pricing for your mushrooms. Consider the costs of production and the value your product offers, such as organic or specialty mushrooms, to set a price that is profitable and attractive to customers.

Remember, commercial mushroom growing can be a competitive and profitable business, but success depends on your dedication and ability to adapt. Stay dedicated, adaptable, and responsive to your customers' needs, and your mushroom-growing business will thrive.

Frequently asked questions

Growing mushrooms outdoors is a low-cost way to enter the commercial cultivation of mushrooms, especially if you have access to small-diameter hardwood logs. However, it is a very labour-intensive and slow-growing method.

Growing mushrooms indoors requires more planning, technical experience, and investment. However, it allows for precise environmental controls and year-round production.

The easiest way to obtain spawn is to purchase an inoculate spawn that you can use immediately.

Growing oyster mushrooms on straw is a fast method of mushroom cultivation, with a crop cycle of five weeks from inoculation to harvest.

Ensure your website has a secure, easy-to-use e-commerce platform. Make it easy for customers to contact you and place orders, whether through online forms, phone, or email.

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