Georgia Specialty Mushroom Feasibility Report

 

• Executive Summary
• Materials and Resources Required
• Recommendations
• Download Entire Report (PDF, 589k)

Recommendations

• The structure of Georgia's mushroom industry should be technologically innovative and utilize economies of scale associated with increased production. Small "Mom and Pop" type operations should not be pursued because they have limited chance of success and profitability due to higher production costs and inefficiencies, and limited access to larger and lucrative markets.
  
  
• Due to the economic benefits of value added products, efforts should be undertaken to examine the merits of value added mushroom based products. This includes fast food products, meals ready to eat, pharmaceuticals, and the use of alternative substrate materials for spawn production.
  
  
• The potential for e-commerce should also be investigated. Mushroom products, made available similar to the fruit in Harry and David's Fruit of the Month Club, have enormous economic potential. The viability of merchandising mushroom thru e-commerce should be examined with a pilot study utilizing an Internet server such as Yahoo.com. "Yahoo! Store" is a feature of this particular server that allows merchandisers to create an online storefront and includes tracking and sales tools which enable producers to evaluate a business venture.
  
  
• A fundamental step in the creation of this new industry is the stable supply of superior quality, economically priced mushroom spawn. Due to rapidly changing technologies, and the potential for growth in the mushroom industry, a Georgia spawn production facility should be built. This facility also should be developed in incremental stages to allow for future growth and expansion. This facility must be state-of-the-art and include on-site research capabilities for alternative substrate development and spawn production technology. By significantly reducing the cost of spawn, while maintaining integrity, Georgia can produce and sell spawn to a world wide market.
  
  
• An agricultural commodity requires a research component dedicated to strain improvement and development, preservation and quality control. In addition to basic strain selection and breeding, mushroom genomic research has been initiated at The University of Georgia, where genomic level investigation on other agricultural crops and on medically important fungi is currently being carried out. Ongoing and continued collaboration with The University of Georgia and other research institutions is therefore needed.
  
  
• Additional research regarding alternative substrate development for Portabello mushrooms, one of the best selling in the U.S., is needed to produce this economically successful agricultural product in Georgia. Portabellos are technically not specialty mushrooms; rather they are a brown variety of Agaricus. Typically, they are grown on a pasteurized manure/straw substrate, but recent research suggests that they can be grown on a sawdust/grain substrate like other specialty mushroom species. Since the Portabello is a highly lucrative crop, additional research needs to be conducted to maximize its economic potential.
  
  
• An opportunity exists for the state of Georgia to become involved with and profit from the production and sale of essential products for the mushroom industry. These products include the containers for growers to package and transport their product, sanitized coveralls, gloves, and shoecovers for workers, and communication and computer monitoring devises to allow interaction between university researchers, consultants, and individual growers. These products can be produced in bulk quantities to achieve cost efficiencies and resold to growers at a fair price while still producing a profit for the state. The profits can be used to fund the commodity commission, create training programs, develop marketing activities, and conduct research.
  
  
• Create a Mushroom Commodity Commission operated and controlled by growers. The commission would tightly control production to avoid problems of oversupply which could depress prices and reduce profits. The commission would be funded through the sale of products required by growers. In addition, the commission also should be involved with the marketing, distribution, and production of value added mushroom related products.
  
  
• Due to the relative newness of specialty mushrooms, a series of comprehensive training programs should be developed and initiated. Production training facilities for growers, (laborers and management), distributors, wholesalers, retailers, University researchers, extension agents, chefs, and consumers should be created. The production of educational videos could enhance the success of these training programs. Efforts to incorporate innovative and sound mushroom farming practices and techniques into the current management curriculum of the state's Vocational Technical Colleges and higher educational institutions should be investigated.
  
  
• Efforts to cooperate and network with the poultry, forest and horticulture industry could yield new partnerships and uses for agricultural waste products. In addition, working with various commodity commissions, like the grain and soybean commissions, could provide new uses for Georgia agricultural products for spawn production.
  
  
• Hold a series of state-wide educational meetings to publicize the results of the feasibility study and provide information about opportunities in the mushroom industry. These meetings should be held in various locations around the state using the facilities of institutions of higher education and vocational technical colleges.
  
  
• One of the most popular mushrooms in Georgia and in the U.S. is the Oak mushroom (Shiitake). This product should be renamed to avoid any adverse connotations or misconceptions which may occur due to its name. The new name should be registered and would become the trademark used to create an identifiable, Georgia produced product that would create brand loyalty. Possible names include "Georgia Oak Mushroom" or "Georgia Red Oak Mushroom".
  
  
• The potential use of mushrooms in bio-medical research has been shown to have considerable merit. Therefore, producing mushrooms for bio-medical research at laboratories for medical research should be explored at The University of Georgia and other educational institutions.
  
  
• The following mushroom farm construction and production levels are recommended for the establishment of an effective specialty mushroom industry in Georgia. Two to 10 oak (Shiitake) mushroom farms (depending on scale) producing approximately 2 million pounds annually. One or two dedicated Oyster mushroom farms producing a total of 200,000 pounds annually. One farm each for Snow Crab, Frondosa, Enoki, and Velvet Ear mushrooms producing a combined 330,000 pounds annually. It is also recommended that spawn making be divided into a single master spawn facility and several satellite production spawn facilities. This will reduce the possibility of contamination in the master spawn facility and create a more efficient distribution network to farmers.
  
  
• Future research is needed to investigate ways of improving the shelf life and packaging of specialty mushrooms to increase shipping distances. This would allow Georgia mushrooms producers to reach more and distant markets and ultimately would help to reduce costs to the consumer.
  
  
• Mushroom growing, spawn research, and value added production facilities should be strategically located across the state to maximize the economic impact of those facilities. Locating these facilities, where feasible, in Tier 1 economically depressed rural areas should be given serious consideration.
  
  
• Substrate research and development activities represent an important ongoing component of the present and future growth of the mushroom industry. Determining efficient uses of alternative substrates can improve production and enhance collaboration with other agricultural and forestry units seeking to manage waste materials. Efforts which improve and lower the cost of spawn benefit the entire industry including consumers. Substrate research and development also plays a role in economic development as the mushroom industry continues to grow and expand. Supplying spawn to not only Georgia but U.S. growers could become a lucrative enterprise. In addition, mushroom substrate is an agricultural waste product and its expanded uses creates a valuable commodity out of previously discarded products. Finally, building and maintaining substrate research facilities could also generate job opportunities particularly in rural areas.

© 2002. Department of Housing and Consumer Economics, College of Family and Consumer Sciences, University of Georgia. All rights reserved.
Contact: Douglas C. Bachtel, Professor. Original website by Carole Wheeler - Shabba Classic.