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Ohio Shi Itak~ M U S H R 0 0 M S 9 ttension Bulletin 803 MARKETING Ohio Shi itak~ M U S H R 0 0 M S 'Y ....,~c~........ .:> ohio c~perative ~xte~sion Service O__.__.._ _.. The Ohio State University T · H · E OHIO srAlEUNIVERSITY 0 For Sale Publication Photographs Lloyd D. Lemmermann, Publications Photographer Stephen M. Bratkovich, District Specialist, Forestry Constance Jones, Former Program Assistant Ohio Cooperative Extension Service Dlsdaimer Trade names and businesses listed in this publication are intended to provide clarity, but do not constitute an endorsement by The Ohio State University, nor do they imply discrimination against other products or firms. Because of changing laws and regulations, neither the Ohio Cooperative Extension Service nor The Ohio State University assumes liability for information and suggestions contained in this publication. Copyright © The Ohio State University, 1990 All educational programs and activities conducted by the Ohio Cooperative Extension Service are available to all potential clientele on a nondiscriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, sex, age, handicap, or Vietnam· era veteran status. 1190-500-68562 Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Bob D. Moser, Director of the Ohio Cooperative Extension Service, The Ohio State University. 2 M A R K E T I N G hi e M u s H R 0 0 M s Janet Pickford, Former Research Assistant Agricultural Education John D. Rohrer, Associate Professor, Agricultural Education, and Assistant Director Community and Natural Resource Development Ohio Cooperative Extension Service Ed Watkins, Assistant Professor Emeritus Agricultural Economics and Rural Sociology Ohio Cooperative Extension Service Gregory R. Passewitz, Assistant Professor and Leader, Natural Resources and Small Business Community and Natural Resource Development Ohio Cooperative Extension Service Ohio Cooperative Extension Service The Ohio State University Columbus, Ohio January 1990 3 Preface nterest in Shiitake mushroom production has increased among Ohio farmers. Part of this interest has been generated by research and demonstrations conducted by the Ohio Cooperative Extension Service.1 Additional interest has been developed by reports and observations of growers and others about Shiitake production in several states. A reference base is slowly developing on producing Shiitake mushrooms. Meanwhile, more and more producers can relate their valuable experiences in growing these specialized mushrooms. To be successful in the Shiitake mushroom business, growers must plan ahead to find a suitable market for the product. Rarely in marketing does a product appeal to everyone regardless of sex, age, income or special interest. Typically, a product will appeal only to a limited group of people. Successful marketing of Shiitake mushrooms requires producers to identify potential customers and understand wholesale and retail distribution systems. Knowledge of customers, quantities purchased, packaging requirements and the seasonality of use is helpful in planning production and sales. This bulletin examines possible markets in Ohio for Shiitake mushrooms by providing an overview of the fresh-fruit and vegetable industry serving restaurants, hotels, supermarkets and specialty stores. An overview of the U.S. Shiitake industry is included, as well as a brief look at pricing, packaging, promoting and advertising the Shiitake mushroom. In addition, short· and long-term implications of Shiitake mushroom production in Ohio are examined. Chapters of this Extension bulletin condense information from Shi1take Mushrooms, A Descripnon of the U.S. Industry and the Columbus Market (unpublished, The Ohio State University, June 1987>i completed by Janet C. Pickford in partial fulfillment of the undergraduate Honors Program at The Ohio State University. The cooperation of supermarket, wholesaler and specialty store personnel who supplied data and offered suggestions and comments in the preparation of this bulletin is greatly appreciated. In addition, thanks is given to Dr. David E. Hahn, professor of agricultural economics and rural sociology; Dr. Paul R. Thomas, assistant director emeritus, community and natural resource development, Ohio Cooperative Extension Service; and Mr. Stephen M. Bratkovich, district specialist, forestry, Ohio Cooperative Extension Service, all of The Ohio State University, for their suggestions and careful review of the bulletin. Thanks also is given to Kim and Howard Bartram for providing computer-use time. The bulletin is intended to provide Shiitake mushroom growers in Ohio and other states with information on current market distribution systems and the special requirements for the development of the Shiitake mushroom market. The authors hope that growers will review the information and suggestions not as barriers to be overcome, but as an aid in the development of profitable marketing programs. 4 Table of Contents Chapter 1. Summary and Conclusions ...................................................................................................................... 6 Chapter 2. An Overview of the Mushroom Industry ............................................................................................ 7 I. Shiitake Mushrooms ............................................................................. :................................... 8 Chapter 3. Marketing Shiitake Within the Fresh Fruit and Vegetable Industry .............................................. 10 Chapter 4. Price and Profitability of Fresh and Dried Shiitake ............................................................................ 17 Chapter 5. The Ohio Shiitake Mushroom Market Study Findings ...................................................................... 20 I. Fresh Shiitake Distribution in Ohio ...................................................................................... 20 II. Serving the Market Effectively ............................................................................................... 23 III. Summary of the Ohio Shiitake Market ................................................................................. 24 Chapter 6. Future Issues ............................................................................................................................................ 25 References ....................................................................................................................................................................... 26 Appendix A .................................................................................................................................................................... 27 Additional References ................................................................................................................................................... 32 5 Chapter 1 Summary and Conclusions ost Shiitake mushrooms grown in this to 50 percent of all Shiitake mushrooms sold. Some country are sold fresh rather than dried retail organizations also buy directly from growers. M as in Japan. With the present market Most Shiitake is sold at the retail level either prices and current U.S. costs, market­ through grocery stores or in restaurants. Restaurants ing a dried form of domestic Shiitake mushroom in using Shiitake mushrooms usually are referred to as the United States is not practical for Ohio growers. "white-tablecloth" restaurants, downtown hotels and The U.S. Shiitake industry is composed of a few "carriage-trade" restaurants. These restaurants may large producers and many small producers. Production employ a professional chef and offer a special menu figures for Shiitake are unavailable. The best estimate designed for that particular restaurant. Most Oriental is that 880,000 pounds were produced in 1986. In restaurants use imported dried Shiitake products. Ohio's three largest cities-Cleveland, Columbus and Supermarkets selling Shiitake for the "at-home" Cincinnati-wholesale Shiitake sales average 1,600 market are large, high-sales-volume stores located in pounds per week. In 1987, farm price was reportedly above-average income areas. Shiitake mushrooms are stable at $5 per pound to $5.50 per pound nationwide, sold either in consumer size packs or from bulk although local prices varied. A stable price indicates boxes.2 that demand is keeping up with supply. Recent farm prices of Shiitake have ranged from Six to 12 large growers are responsible for the bulk $5 per pound to $7 per pound. As more mushrooms of Shiitake production in Ohio. Where Shiitake grow­ are produced, this stable price could decline to $3.50 ers are few in number in a given geographic area per pound to $5 per pound. Because the market is with limited production, the mushrooms usually are thin, any production increase without a proportional sold directly to individual supermarkets and increase in demand could result in prices falling below restaurants. productions costs. One major class of buyers, produce wholesalers, are Growing, harvesting and maintaining high-quality located at terminal markets or freestanding locations. mushrooms are essential to receiving a good price These buyers are identified with two types of cus­ and competing with out-of-state growers. High-quality tomers. One group of wholesalers sells mostly to Shiitake mushrooms must appear fresh and have no restaurants, hotels and institutions that serve prepared excess
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