Mushroom cultivation in Ukraine is becoming an increasingly popular direction in agribusiness. According to statistics, 236 thousand tons of champignons were produced in 2021, which is 16% more than in 2017. This business attracts entrepreneurs with its profitability, which can reach 80-100%, and the possibility to start the business with relatively small investments.
In this article, we will examine the features and technologies of cultivating the most popular mushrooms in Ukraine – white mushrooms, champignons and oyster mushrooms. We will provide information about the necessary conditions, equipment, substrates, and also analyze the business component of this venture: costs, sales channels and potential profit.
White Mushroom Cultivation in Ukraine
The white mushroom, or porcini, is one of the most valuable and delicious. Its cultivation has its own features, as it exists in symbiosis with trees and requires forest conditions.
White Mushroom Cultivation Technology
Porcini mushrooms reproduce by spores or with the help of mycelium. The technology of white mushroom cultivation in laboratory conditions involves the use of mother cultures, which are sown on sterile nutrient medium with agar-agar and oak bark decoction. After 20-30 days of incubation, the mycelium is transplanted into a substrate based on grain crops (wheat, rye, millet) and cultivated for another 14-30 days at a temperature of 18-22°C.
The obtained grain mycelium is used for planting in soil in spring or autumn. The seeding rate is 100-200 g/m². Before sowing, the mycelium is mixed with peat or compost for better distribution in the soil.
The mycelium is planted in furrows or holes 5-10 cm deep at a distance of 20-30 cm between rows. After planting, the soil is mulched with sawdust, straw or chaff to retain moisture. During the growing season, the plantation is watered, maintaining substrate moisture at 60-70%. In hot periods, watering is carried out daily, in cool periods – 2-3 times per week.
To stimulate mycelium growth, fertilization with organic or mineral fertilizers is carried out in spring and autumn. Bird droppings, humus, compost, as well as complex fertilizers for mushrooms with microelements have proven effective. The application rate is 50-100 g/m².
The porcini harvest appears 2-3 years after mycelium planting. Fruiting bodies are harvested selectively as they ripen, carefully twisting them out of the soil. Depending on weather conditions, the harvest is collected 2-3 times per week for 1.5-2 months. The yield of white mushroom plantations is 50-200 kg per hectare.
To extend fruiting for the following year, the plantation is covered with a layer of leaves or needles 10-20 cm thick in autumn. In spring, the covering is removed, the soil is loosened and fertilizers are applied. This way, the porcini plantation can fruit for up to 10 years.
Conditions and Necessary Equipment for White Mushroom Cultivation
White mushrooms are demanding regarding growing conditions:
- They prefer warm and humid nights, short-term rains.
- They do not tolerate sharp temperature fluctuations.
- They grow on drained loamy and sandy loam soils, avoiding swamps and peat bogs.
- In poor harvest years, they appear mainly in illuminated areas.
Mushroom cultivation technology does not require equipment – only tools. The main task is to maintain substrate moisture at 40% throughout the entire fruiting period.
WEAGRO is a modern digital solution for farmers who seek to efficiently equip their production with necessary equipment/tools for soil cultivation and irrigation without unnecessary bureaucracy and currency risks. The platform creates favorable conditions both for producers who can obtain everything necessary for mushroom business here and now, and for suppliers who expand their customer base.
Champignon Cultivation in Ukraine
Champignons, or button mushrooms, are the most popular type in the world, accounting for over 75% of all cultivated mushrooms. In Ukraine, demand is also consistently high due to their popularity in the food service sector and retail trade.
Champignon Cultivation Technology
Main stages of champignon mushroom cultivation technology:
- Substrate (compost) preparation by mixing and fermenting plant residues, manure, gypsum, water.
- Compost pasteurization to destroy competitive microorganisms – heating to 60°C for 6-8 hours.
- Substrate inoculation with champignon mycelium and incubation for 14-20 days at 22-26°C.
- Application of casing soil on compost colonized by mycelium.
- Harvest fruiting in 3-4 waves with 7-10 day intervals. Champignon harvesting by hand or with combines.
Champignons are kept in closed premises or greenhouses on shelves (Dutch champignon cultivation technology) or in bags and containers (intensive method).
Conditions and Necessary Equipment for Champignon Cultivation
Key conditions for successful champignon cultivation:
- air temperature 14-18°C during fruiting stage;
- humidity 80-85% throughout the entire cycle;
- ventilation and air circulation to remove CO2;
- LED or fluorescent lighting 8-12 hours per day.
Minimum equipment set for champignon cultivation:
- shelves, bags or containers for substrate;
- irrigation system, drip irrigation or misting system;
- humidity, temperature, CO2 level sensors;
- cold storage chamber for harvested crop;
- sorting table, scales, packaging equipment;
- compost pasteurization chamber with volume of 5-50 m³;
- pasteurization steam generator with capacity of 100-500 kg steam/hour;
- chambers with controlled microclimate with area of 100-1000 m²;
- ventilation and air conditioning system with capacity of 5000-50,000 m³/hour;
- chamber heating system (water, steam, electric);
- boiler house or power plant for heating and pasteurization;
- freezing chambers for finished product storage with volume of 5-50 m³;
- automated microclimate control system with computer and software;
- quality control laboratory for mycelium and substrate.
According to champignon cultivation technology, the total area of a complex with capacity of 10 tons/month is 0.5-1 hectare. It includes a production building with chambers and auxiliary premises: storage facilities for compost and materials, utility rooms for personnel, boiler house, water treatment, sewage treatment facilities.
Read also: Farm Enterprise: What It Is, Types, How to Name and Register
Oyster Mushroom Cultivation in Ukraine
Oyster mushroom is another promising type. Its popularity is explained by its undemanding conditions, rapid fruiting and good taste properties.
Oyster Mushroom Cultivation Technology
Oyster mushroom cultivation involves choosing between extensive and intensive methods:
- Extensive method requires treating stumps or trunks of deciduous species with mycelium followed by harvesting in natural conditions for 3-4 years. This method is low-productive.
- With the intensive method of common oyster mushroom cultivation, straw substrate in bags or blocks is used, mycelium is grown under controlled conditions and harvest is obtained in 1.5-2 months.
Intensive oyster mushroom cultivation technology consists of the following stages:
- Preparation and pasteurization of substrate (straw).
- Inoculation of the base with mycelium in bags or blocks.
- Mycelium incubation for 2-3 weeks at 22-24°C.
- Fruiting initiation by lowering temperature to 12-16°C.
- Harvest collection for 30-40 days in 3-4 waves.
Total cycle duration is 40-60 days. 5-6 iterations can be conducted per year. In industrial conditions, cycles are conducted continuously with 14-20 day intervals between new block placements in the chamber.
Used substrate can be utilized for biogas production, as organic fertilizer or for vermicomposting. Premises and equipment are thoroughly washed and disinfected after each cycle.
Conditions and Necessary Equipment for Oyster Mushroom Cultivation
Technical conditions for oyster mushroom cultivation are less demanding than for champignons:
- optimal fruiting temperature – 12-18°C;
- air humidity – 80-85%, during incubation – up to 60-65%;
- requires regular ventilation, diffused light illumination.
Warehouses, basements, greenhouses, vegetable storage facilities are suitable for mushroom cultivation in Ukraine. Necessary equipment:
- substrate pasteurization chambers with volume up to 1 m³;
- shelves, shelving or boxes for block placement;
- humidifiers, air heaters;
- exhaust fans, lighting.
When working with oyster mushrooms, special attention is paid to preventing contamination of substrate and premises by competitive mold fungi and bacteria. Therefore, all operations with the base and mycelium are conducted under sterile conditions using clean protective clothing, masks, gloves. Premises/equipment are regularly washed and disinfected.
The most complex stage in oyster mushroom production is the preparation of seed grain mycelium. It is obtained under laboratory conditions from pure culture on sterile substrate (millet, barley, rye). To prevent plant degeneration, oyster mushroom mycelium is periodically renewed from mother culture or purchased from specialized companies.
Business Plan for Mushroom Cultivation
Mushroom cultivation as a business requires preliminary development of a detailed plan. It will help evaluate initial investments, operational costs, potential profits and project payback periods.
What to Consider when Developing a Mushroom Cultivation Business Plan
Main points of a mushroom cultivation business plan:
- Selection of species and technology.
- Search and arrangement of premises.
- Purchase of equipment and consumable materials.
- Hiring and training personnel.
- Establishing product sales channels.
- Calculation of cost price, selling price, profitability.
- Risk assessment and ways to minimize them.
When selecting a culture, market demand, selling prices, technology complexity, equipment investments should be considered. There are no universal recommendations – in each region and for each producer, one or another type may be more effective.
Main expense items when organizing mushroom cultivation business:
- rent or purchase of premises, repair and renovation;
- equipment for substrate preparation, chambers, product storage;
- materials – compost, casing soil, mycelium, fertilizers, water, electricity, packaging;
- personnel wages – technologists, workers, managers;
- logistics – raw material procurement, product delivery;
- marketing and advertising;
- certification, permits, licenses;
- taxes and other mandatory payments.
Investment size significantly depends on production scale. The minimum profitable capacity of a champignon cultivation complex is 5 tons per month, requiring approximately $200,000 in startup investments. Meanwhile, a small farm producing 500 kg of oyster mushrooms per month would need $20,000-30,000.
An important element of industrial mushroom cultivation success is personnel. Besides recruiting experienced specialists, it is necessary to organize a system of continuous training and skill development for workers directly during production. Detailed instructions and regulations for each operation are developed, training sessions and masterclasses with expert involvement are conducted.
Read also: Product profitability: what it is and how to calculate the indicator
How much Money is Needed to Start a Mushroom Business
Initial investments in mushroom business depend on production scale:
- To produce 1 ton of champignons per month, at least 450,000 UAH is needed. Half of the costs are chamber equipment.
- An oyster mushroom cultivation business plan (50-100 kg/day) requires 200,000-300,000 UAH. Most costs are premises arrangement.
- Establishing a porcini plantation on 0.5 hectares requires up to 100,000 UAH in investments. Main items in the champignon cultivation business plan are costs for mycelium, substrates, planting material.
General items at the production launch stage:
- project development, technological documentation, permit obtaining – 5-10% of cost;
- land or premises rent or purchase – 10-20%;
- construction and installation work, utility connections – 20-30%;
- equipment purchase – 40-60%;
- raw materials, materials, packaging purchase – 10-20%;
- working capital formation – 10-20%.
Champignon cultivation as a business requires monthly operational costs (at 10 ton volume):
- Wages with accruals – 70,000-100,000 UAH.
- Raw materials and materials – 150,000-200,000 UAH.
- Electricity, water, fuel – 50,000-70,000 UAH.
- Premises rent – 20,000-30,000 UAH.
- Logistics, marketing, other expenses – 10,000-20,000 UAH.
Overall, organizing a champignon cultivation complex with capacity of 10 tons/month requires investments of at least 5 million UAH. Meanwhile, a farm producing 3 tons of oyster mushrooms/month will cost up to 1 million UAH.
Harvest Collection and Storage
The harvest is best collected by hand, carefully twisting out the fruiting bodies. Mechanical damage reduces commercial appearance and storage life.
- White mushrooms are harvested from August to October, as soon as “harvests” appear. They are sorted by quality, dried or pickled.
- Champignons produce 3-4 fruiting waves with 10-day intervals. The harvest must be collected completely before the stem darkens. They are stored in the refrigerator for 5-7 days.
- Oyster mushrooms are harvested every 7-10 days for 1-2 months. They are cooled to 2°C and stored for up to 5 days.
To extend shelf life, the product is preserved: drying is carried out with hot air at 40-50°C to 10-12% moisture, freezing at -18 to -25°C, pickling in salt and vinegar solution with spices.
Before sale, the harvested crop is inspected, sorted by size and quality, weighed and packaged. Packaging can vary depending on the sales channel:
- packaging in trays of 250-500 g, wrapped in food film – for sale in supermarkets;
- bulk in cardboard or wooden boxes of 3-5 kg – for wholesale buyers;
- in vacuum packages of 1-3 kg – for retail store sales;
- in large bags or containers of 10-20 kg – for processing enterprises.
During packaging and storage, it is important to comply with sanitary and hygienic requirements, control air temperature and humidity, prevent mechanical damage. Mushrooms are a perishable product, so delays in sales can lead to significant losses.
Mushroom Sales
Sales channels depend on production volumes:
- small batches are sold locally, in stores and restaurants;
- sales to retail chains require establishing product packaging and wrapping;
- cooperation with other producers allows forming large commodity batches for export;
- processing into dried, frozen and canned products increases storage periods and added value.
To increase sales and enter new markets, it is necessary to engage in marketing and product promotion:
- create your own brand, logo, corporate style;
- launch a website or online store;
- participate in exhibitions, fairs, festivals;
- conduct tastings and product presentations among potential clients;
- place advertising on social networks, media, outdoor media;
- develop export direction, seek foreign partners.
Selling price depends on type, season, quality, packaging. Average wholesale price of champignons in Ukraine is 45-60 UAH/kg, oyster mushrooms – 35-50 UAH/kg. Retail prices are 20-50% higher. White mushroom prices are significantly higher and can reach 1,000 UAH/kg, but their production cost is also many times greater.
Mushroom Cultivation Profitability
Greenhouse mushroom cultivation has high profitability – 40-100%. The highest is for champignons – up to 100%, for oyster mushrooms it is about 50%, for white mushrooms – 30-40%.
Investment payback period is:
- champignons – 6-8 months from the start of sales;
- oyster mushrooms – 12-18 months, depending on scale;
- white mushrooms – 3-4 years due to the long cycle.
Many factors affect business profitability:
- prices of raw materials and materials, especially compost and mycelium;
- seasonal price fluctuations for finished products;
- energy intensity of production, electricity and fuel tariffs;
- availability of permanent sales channels, large clients;
- competition from imported products, large producers;
- investments in assortment expansion, processing;
- government support, preferential taxation.
To ensure stable profitability, mushroom producers must work on reducing cost price, increasing yield, developing new sales markets. Product line diversification, transition to organic production, agrotourism development are additional opportunities for increasing business profitability.
Conclusion
Mushroom cultivation is a promising and highly profitable direction of agribusiness in Ukraine. Demand for this product is steadily growing, and opportunities for production increase exist in many regions.
The most popular mushrooms for industrial cultivation in Ukraine are button mushrooms, oyster mushrooms, and porcini mushrooms. Each variety has its own characteristics, but common success factors include a competent business plan, adherence to technology, microclimate control, and established sales channels.
Modern capabilities allow for automation and scaling of production. Implementation of microclimate control systems, drip irrigation, and mechanized harvesting increases yield and reduces labor costs.
Therefore, cultivation can become a profitable venture for both experienced farmers and beginners. This business does not require large areas or significant capital investment at startup, and with proper organization, it can generate stable income for many years.
WEAGRO is an innovative financial solution that organically complements the promising and highly profitable direction of mushroom agribusiness in Ukraine, providing the opportunity to quickly obtain necessary equipment and materials with deferred payment and without excessive bureaucracy. The platform creates an efficient ecosystem for all market participants: producers can scale their business without significant initial capital investments, while suppliers increase sales and expand their customer base.
