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Georgia Specialty Mushroom Feasibility Study

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Georgia Specialty Mushroom Feasibility Study Georgia Specialty Mushroom Feasibility Study DOUGLAS C. BACHTEL Professor KAREN TINSLEY Research Coordinator Housing and Demographics Research Center Department of Housing and Consumer Economics and DAVID PORTER Professor, Department of Botany of the University of Georgia June 5, 2002 . Georgia Specialty Mushroom Feasibility Study. Dear Friends, Without the support of Senator Harold J. Ragan of Cairo and Representative Mickey M. Channell of Greensboro this project would not have been possible. We would also like to thank the following people for reviewing an earlier draft of this report: Brenda J. Cude, Professor and Department Head, Housing and Consumer Economics, Stuart Feldman, Director, Office of Academic Affairs, and Peyton Sapp, Public Service Assistant, Greene County Extension, all of The University of Georgia, Don Sims, Economic Development Director, Thomasville-Thomas Portabello Mushrooms County Chamber of Commerce, Tyron Spearman, CEO, The Spearman Agency, and Clint L. Thompson, LMI Consulting. Also, the input received from Andy Paterson, Professor, Department of Crop and Soil Science at the University of Georgia, Bob Johns, President, The Growing Company, and Starr Wright, Vice President, The Growing Company . were instrumental in contributing to the content of this report. Mick Ragsdale, Data Collection Coordinator, and Ellen Walker, editor and graphic designer were vital to the timely completion of this report. Most sincerely, Douglas C. Bachtel Professor Photos courtesy of: David Porter, UGA and The Growing Company (center photo on cover). ii . Georgia Specialty Mushroom Feasibility Study. TABLE OF CONTENTS Page Executive Summary . v I. Introduction . 1 II. Importance of Agriculture in Georgia . 1 III. An Overview of the Commercial Mushroom Market . 2 IV. Specialty Mushroom Imports . 2 V. Trends Influencing The Specialty Mushroom Industry . 3 A. Demographic Trends . 3 B. Other Demographic Trends . 4 C. Additional Trends Influencing Mushroom Consumption . 4 1. Organic Food. 4 2. Food Safety . 4 3. Technological trends. 5 VI. Materials and Resources Required for a Specialty Mushroom Industry in Georgia . 5 A. Strength Weaknesses, Opportunities, & Threats (SWOT) Analysis . 5 B. Community Infrastructure Requirements. 7 C. Growing Medium Requirements and Waste Product Utilization . 7 D. Specialty Mushroom Farming Labor Needs. 8 E. Checklist of what a grower needs to get started . 9 VII. The Need for Cooperatives. 10 VIII. Marketing Orders . 11 IX. Survey of Georgia Consumers . 11 X. Determining Market Demand By Type of Specialty Mushroom. 14 A. Method I . 14 B. Method II . 15 XI. Factors Determining Market Share . 16 A. Oak (shiitake) Mushrooms . 16 B. Oyster Mushrooms . 17 C. "Other" Mushrooms. 17 XII. Technological Developments Required . 18 A. Research. 18 B. Spawn Production. 19 1. Conventional Double Door Autoclave Steam . 19 2. Automated Steam Sterile Fill . 20 3. "Magnetic" Sterile Fill . 20 C. Cultivation . 20 D. Distribution . 20 XIII. Estimated Construction and Start-up Operating Costs. 22 XIV.Additional Economic Impacts . 26 A. Medicinal Uses of Mushrooms. 26 B. Uses for Spent Mushroom Spawn. 27 C. Tourism . 28 XV. State Sponsored Products . 28 XVI.Conclusions . 29 XVII.Recommendations . 29 References . 32 iii . Georgia Specialty Mushroom Feasibility Study. Endnotes . 34 Appendices Appendix A: Elements of the Specialty Mushroom Feasibility Study . 35 Appendix B: Mushroom Internet Sites. 35 Appendix C: Specialty Mushroom Diversity and Substrates for Mushroom Production . 36 Appendix D: Statistical Profile of Tier 1 Counties . 37 Appendix E: Proposed Outline for a Specialty Mushroom Seminar . 44 Appendix F: Cooperatives . 43 Appendix G: Georgia Poll Methods and Procedures . 44 Appendix H: Cross Tab Analysis of Attitudes Toward Specialty Mushrooms by Selected Demographic Characteristics. 45 Appendix I: U.S. Mushroom Companies and Spawn Producers . 50 Appendix J: Portabello Mushroom Market . 52 Appendix K: Advantages/Disadvantages of Growing/Selling Specialty Mushrooms by Type. 53 List of Tables Table 1: Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis . 6 Table 2: Consumer survey question 1 . 11 Table 3: Consumer survey question 2 . 12 Table 4: Consumer survey question 3 . 12 Table 5: Consumer survey question 4 . 13 Table 6: Consumer survey question 5 . 13 Table 7: Consumer survey question 6 . 13 Table 8: Annual Demand in Pounds by Type of Mushrooms . 16 Table 9: Preliminary Recommendations for Spawn Requirements for Sawdust Based Mushroom Growth . 21 Table 10: Estimated Construction and Operating Start-up Costs by type of Mushroom . 23 Table 11: Sample Spreadsheet for Mushroom Cultivation Scale and Projected Income Statement . 24 Table 12: Assorted Farm Set Up Requirements . 25 Table 13: State Sales Tax Revenue from Sale of Final Mushroom Product. 26 iv . Georgia Specialty Mushroom Feasibility Study. Executive Summary his report examines the economic issues surrounding characterized American agriculture since the 1950s. Tthe development of a specialty mushroom based indus- Escaping this perpetual dilemma, however, will require a try in Georgia. A mushroom based industry would not only comprehensive public-private partnership that incorpo- increase job opportunities in rural areas, but consumption rates the research capabilities of The University of Georgia, of the product would also improve the diet and health of the legal authority of the Georgia Department of.
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