Technical Note

Advice for prospective

mushroom growers
SAC

ISSN 0142 7695 ISBN 1 85482 612 3 T453

This Technical Note gives only a brief introduction for those contemplating growing mushrooms
commercially. It is not a complete guide to mushroom growing but outlines the major issues
that must be considered before deciding on whether to seek further advice or to stop.

Before becoming involved consider the following questions: breaks down, changing the microclimate and biological
status of the soil surface. These changes contribute to
• How do mushrooms grow? reproductive growth of fungi and must be achieved
artificially for mushroom crop production.
• What is the mushroom industry?
• Why grow mushrooms? Mushroom cultivation requires firstly the manufacture of
composts and secondly management of growing environ-
• What finance is required?
ments.
• What knowledge and training are necessary?
Mushroom compost was traditionally based on horse manure
• What problems may be encountered in growing and
and a mix of other ingredients, particularly straw. Early
marketing?
research showed that to eliminate potentially harmful fungi,
• Where can you go for further information? bacteria and pests material had to be pasteurised. Today,
most growers use compost containing relatively little horse
manure, in a balance with chicken litter, straw and gypsum.
Until you are sure you know the answers that apply to you,
This is processed in a multistage composting procedure.
you should not proceed.
After rough mixing of materials Phase I composting begins.
How mushrooms grow In this phase materials are stacked and watered to soften
the straw and accelerate degradation. Material is stacked
by machine and aerated by turning or forced-air ventilation,
Production of mushrooms in the UK is, almost wholly producing a partially degraded and biologically active
concerned with cultivation of one species of fungus, material. This is transferred to specially designed rooms or
Agaricus bisporus. ‘tunnels’ with sophisticated environment control for Phase
II. The compost is allowed to heat for pasteurisation, usually
In nature, mushrooms appear infrequently. Fungi which can to around 58–60°C for up to twelve hours. Further biological
produce mushrooms do so only when nutritional and processes are controlled at a temperature of 48–53°C for
environmental conditions are right. about seven days allowing the compost to ‘condition’. This
period is one of intense microbial activity and leaves a
Mushrooms sold in supermarkets or from baskets in corner compost with a nut-
shops are only the ‘fruiting body’ of the fungus (A bisporus) ritional and micro-
which produces them. They are not the entire fungus and biological balance
have relied on a network of filamentous strands which ideal for the crop.
colonise compost to extract nutrients. The cultivation of the
fungus in compost and the way in which nutrition and The majority of
growing environments are manipulated to force mushrooms newcomers now
to emerge for harvesting is the key to success. choose to buy in pre-
prepared compost.
To achieve success, growers must harness the natural cycle This avoids the
of compost degradation which provides the given food complexity, pollution
source for the crop. Cultivation of mushrooms maximises potential and cost of
the beneficial organisms found naturally in composts and compost manufacture.
minimises the incursion of other organisms which spoil the
high quality crops that are the growers’ target.

In the autumn, wild mushrooms naturally appear only after Compost production:
falling of leaves and senescence of field herbage provides a probably best avoided for
change in the physical soil environment. Organic material small farms
In the early days of mushroom cultivation the next stage of
‘spawning’ was by transferring compost from an old crop
to a new one. This carried great risk of spreading diseases
and pests to the new crop.

Today A bisporus is introduced to compost as a culture

bought from a small number of highly specialised
biotechnology companies. Most such companies provide
spawn as a fungal culture of A bisporus which has colonised
sterilised grain. This gives an easily handled product readily
broken into granules for distribution in the compost.

Mushrooms produced from the casing layer overlaying

compost. In this example compost has been compressed into
large blocks.

The mushroom industry

There are around 280 commercial mushroom farms in

England, Wales and Scotland. Farm-gate value of sales is
approximately £200 million. Businesses are spread over the
country. In Northern Ireland there are around 300 farms,
from part-time to full-scale operations. Competition from
imports to the UK is severe, particularly from Ireland,
A bisporus growing into compost from commercial spawn Holland, France and Belgium.

Inoculated compost is incubated in insulated buildings Advances in technology mean that it is easier to enter the
equipped with environment control. A modern mushroom industry than was the case up to the early 1980s. This means
farm with insulated houses is generally designed to blend that production and markets can be cyclical with little
in with the surrounding countryside and may not even be prospect of major new opportunity. It is crucial that new
noticed by passers-by. businesses are based on sound market information.

Within the growing environment compost is incubated to There are a few very large farms (several owned by
maximise the rate at which A bisporus colonises the multinational companies) but the majority are small to
compost. medium-sized family businesses. Even the smallest have
an annual turnover of £100,000.
Once the compost has been fully colonised an extra layer,
usually of peat, is added to the surface. This so called ‘casing’
layer mimics the function of an autumn leaf-fall and provides
conditions for transforming A bisporus to reproductive Why grow mushrooms?
growth. With a combination of changes in the cropping
environment as the grower reduces carbon dioxide levels Only you can answer this but be sure you are entering the
and temperature, as would occur naturally in autumn, the industry with a clear objective.
crop changes to reproductive generation of mushrooms.
Typical reasons include the following:

• To provide full-time occupation and primary source of

income.
• As a part-time occupation and secondary income.
• To utilise existing facilities such as buildings or cold stores
not currently in use.
• To maximise labour efficiency in a complementary
business.
• To utilise more fully existing marketing and distribution
system.
• For life-style change, perhaps to ‘get back to nature’
A modern farm blends with its environment. growing a crop with strong natural rhythms.
There are a wide range of openings for disease-causing
fungi, bacteria and viruses to enter the cropping cycle. Many If you are seeking a primary income, or to integrate your
of the most damaging diseases are related to species that A growing or marketing business, there are good precedents
bisporus needs to complete its life cycle and so may never for you to follow. If, however, you only wish to utilise
be eliminated. Constant effort is needed to ensure crops existing buildings or provide a ‘life-style’ change, good
remain healthy. advice would certainly be to look at more enjoyable ways
of losing money!
Economic feasibility Knowledge and training

Capital requirement Even if an economic appraisal of a proposed mushroom

enterprise looks good, there are other issues about which
Mushroom production requires considerable capital outlay. you will need to satisfy yourself. You must plan to gain
This is usually site-specific and so generalisations knowledge and skill to grow high quality, disease-free and
concerning investment costs are not likely to be helpful. pest-free mushrooms in quantities large enough to be
You will have to consider whether to convert radically economically viable. Your business plan must take into
existing buildings from other uses or develop a greenfield account the relatively low output, and therefore income, you
site. will achieve as you learn.

There is then the question of the production system to be

adopted. The choice may be of three or four systems but Problems
with a multiplicity of ways of approaching each. Some
involve very high capital sums indeed, especially where Which production system will you choose? Some require
there is a desire to produce compost in-house. The entry high investment, others less, but you must exceed a break-
level of investment to produce compost is around £250k even yield to be profitable.
depending on final requirements. Most advisers will
discourage this for small and medium-sized farms. Only Pests and diseases can be devastating and their control in
where a major farm development is envisaged should mushrooms is a constant cost which is involved and
compost production be contemplated. complicated. Growers cannot depend on chemical pesticides
as the crop is extremely sensitive.
Some production methods involve movement of a great deal
of compost which needs further expenditure. If money has A start-up programme and training is essential before
to be borrowed, interest is another cost that the business any new production unit will achieve economic yields.
must stand, and for new businesses interest rates will be
much higher than minimum lending rates. Market outlets must be assured before beginning. These
require a continuous supply which involves accurate crop
Variable costs programming. Having grown a crop, it needs to be harvested
‘seven days a week’ - and harvesting is one of the highest
Buying ready-spawned (Phase II) compost bypasses costs.
expensive capital investment in machinery and buildings
necessary for the skilled Phase I and Phase II composting In some areas there can be difficulties with public authorities,
processes. Bought-in compost can then be grown on in bags, especially where the composting process takes place on the
on shelves or as compressed blocks. Some growers buy in farm. Compliance with environmental legislation may be
fully prepared compost which is ready for casing. So called difficult, particularly in relation to odour, and is essential.
‘Phase III’ compost is more expensive but can yield Compliance with pesticide legislation is mandatory and
particularly well, increasing cash flow and retained income. training may be necessary, depending on your level of
However, it will also require a higher level of working knowledge.
capital. The choice of system will ultimately reflect
availability of capital, facilities and site restrictions and can At the end of cropping you will have significant quantities
be decided only in the course of a detailed financial analysis. of spent compost to dispose of away from the farm. Sale of
spent compost may provide a useful addition to income but
is dependent on local markets.

45

40

35

30

25

20

15
Mushrooms grown using bought-in bags of compost
10
In all cases some working capital will be needed to grow
the mushrooms. It is often assumed that ‘family’ (unpaid) 5
labour can carry out some of the production and harvesting
operations. While this may be true on a small scale, the 0
crop is relatively labour intensive and additional labour will Labour Marketing Compost Others
almost certainly be required. and packing

Figure 1. Approximate variable costs of production (purchasing

Phase II compost)
Marketing • Up-to-date recommendations for pest and disease
problems

There is room only for top-quality mushrooms. A new • Environmental management and pollution control advice
producer may firstly rely on wholesale markets. Initially, • Help in many other areas relevant to mushroom
due to lack of continuity, variable quality and low volume, production
marketing to supermarkets and high quality direct outlets
cannot be contemplated.
Mushroom growing is widely regarded as one of the most
Slowly, as reputations are established, some product may science-based branches of agriculture and horticulture. It is
go to some of the higher-value, local outlets or be bulked a large, sophisticated, competitive and capital-intensive
with other growers’ produce to meet the stringent demands industry. It is also a satisfying and rewarding opportunity
of supermarkets. Never underestimate the time that must for those with the commitment to get it right!
be devoted to developing and servicing market outlets.
Dr Robin Szmidt
Horticultural Services Manager
Where can you go for help? SAC
Horticultural Advisory Service
Auchincruive
SAC has specialist mushroom advisers who can answer any
Ayr
questions you may have after reading this Technical Note.
KA6 5HW
Advisers have detailed knowledge of the latest research and
Tel: 01292 525388
experimental work. They constantly advise commercial
Fax: 01292 525389
mushroom growers. Whoever you choose to provide advice
Email: [email protected]
they must be competent to work in this highly specialised
industry. You should only seek crop-related advice from a
Mushroom Growers’ Association
BASIS/FACTS qualified adviser.
2 St Paul’s Street
Stamford
Through SAC you can purchase:
Lincolnshire
PE9 2BE
• Specialist financial advice for your proposals
Tel: 01780 766888
• Advice on buildings and environment control Fax: 01780 766558
• Crop advice, both on-site and by telephone SAC acknowledge preceding leaflets and would like to thank HRI
Wellesbourne, Warwickshire, UK for their cooperation.

Robin Szmidt

© SAC 1997. West Mains Road, Edinburgh, EH9 3JG

SAC receives financial support from the Scottish Office Agriculture, Environment and Fisheries Department