You Can Grow Gourmet Mushrooms For Profit!

The recent significant rise in mushroom popularity provides an opportunity to fill the market demand not satisfied by other available product.
During the last 30 years, mushroom production has increased 20-fold. According to Dr. Philip Miles, professor of biology at State University of New York in Buffalo, worldwide production of oyster mushrooms has exploded. In Asian countries, an everyday meal at home may consist of 30 percent mushrooms. I am convinced that the consumer demand for exotic mushrooms in the U.S. also promises a diverse and growing mushroom market in the future, says Dr. Miles.

Consumers are demanding healthy foods and mushrooms deliver!

Fat-free, cholesterol-free, and pesticide-free and with additional medicinal benefits mushrooms are a healthy crop that more and more people are consuming. Food safety is at the forefront of thinking with todays consumer. They want and expect food that is not laden with harmful chemicals. Controlled environment agriculture allows safe, biological control over insects and disease and reduces or eliminates the need for harmful chemicals. Locally grown produce removes the many long distance transportation risks.

Delivering high quality mushrooms to your customer is a major advantage for a small grower.
Currently, consumers are not able to consistently find high quality specialty mushrooms such as oyster and shiitake in local markets. Specialty mushrooms, such as oyster, do not have an especially long shelf life. Long distance shipping is a challenge for large companies producing these mushrooms. In many markets when specialty mushrooms are available, they come from a distance and may be a week or more old when they arrive. Consumers often find that these mushrooms fail to satisfy their need for quality produce even when willing to pay premium prices!

But Ive never grown mushrooms before in my life!

CropKing has a 20 year history of putting over 400 people into business growing high value specialty crops, many whom had no prior experience! We specialize in training people to use their growing systems and back it up with Internet and phone technical support.

CropKing has great technical support!

Tom Histen, CO

Producing Mushrooms is an ecologically sound business.

Mushrooms recycle agriculture waste. Many lowgrade agricultural waste products can be used for mushroom cultivation, including the stalks of agricultural produce, straw, corn cobs, cotton shells, sugar cane, sugar beets, industry waste from cotton mills, and paper factories. Not only do mushrooms provide food, mushroom waste can be recycled into fertilizers and additives that improve tree plantation soil conditions.

We have spent five years and over a quarter of a million dollars in research and development of specialty mushroom growing systems. We have tried many different types of systems and have arrived at a complete system that works for the commercial production of oyster and shiitake mushrooms. You could try to duplicate our efforts, and spend your own money on frustrating failures, or you can use a system works, with the support behind it to make you successful!

Complete system for growing mushrooms starts you growing fast.

The CropKing Mushroom Unit is designed to be put together by someone who has never built a mushroom or greenhouse before. In fact, over 80% of our customers construct their own houses. Many of them sub-contract work like the concrete, heat pump installation, and
1

electrical work. Even the electrical system is simplified with the use of terminal strips. If you can wire a switch and outlet, you can do much of the electrical work yourself! Your complete construction manual is divided into sections, and designed to be easily followed by someone with only basic construction skills.

The right size for your needs.

CropKing offers three system sizes for growing specialty mushrooms one is sure to fit your market and access to capital. The smallest, an intro house, is an 18'x49' system. This house is designed to supplement other income and is great for adding lines of produce to an existing produce business. There are two 30' wide units. The 30'x69' is a smaller version of the 30'x129' system and is designed to be expandable to the full sized 30'x129' house. There is a chart on page 4 that compares the components included in each system.

Quick, positive cash flow.

Mushrooms grow quickly. You can be selling your first flush of oyster mushrooms in 30 days from commissioning your system. This speed of production also enables you to fit your production and mix of mushroom types to dynamically match your markets. If you are looking for financing, or just want to get a good idea of the cash flow of the mushroom business, CropKing offers a business plan service. You fill out a questionnaire about your market conditions, experience and other factors, and we produce a personalized business plan that has been used successfully in the past to receive funding from banks and other sources of funds. The $500 fee for the business plan is also fully deductible from the cost of the unit. Owning your own business enables you to work at your own pace and in a pleasant controlled environment. The cave-like mushroom house remains at a comfortable temperature year round.

What is the basic layout of the system?

The system is divided into three separate environmental areas, the inoculation room, spawn room(s), and the grow room. Both 30' units include a walk-in cooler, which is located on the exterior of the unit (accessible from the inside of the unit). The inoculation room is where the growing media (straw or cottonseed hulls), are treated and inoculated with the mushroom spawn, and bagged. This room holds the pasteurization chamber and the steam generator and

Basic system layouts: 30x129 unit (shown at top); 30x69 unit (lower left); 18x49 unit (lower right).

other control equipment. Once riod. The 18x49' grow room holds 216 this process is complete, the double hung bags, 30x69' unit holds grow bags are moved into a 960 bags, and the 30' x 129' unit holds spawn room where the myce1920 bags. This yields a total projected lium begins to grow. The speannual production of over 50 tons of cific temperature and humidity mushrooms from a 30x129' unit! parameters are required in the We have produced as high as 16 spawn rooms to facilitate the pounds per bag, as have other growers, growth of the mycelium and the but of course grower yields may be colonization of the grow bags higher or lower, depending on the are controlled by a heat pump. management abilities of the grower. 30 Gable End showing Cooler Once the grow bags are One pound of mushrooms per one colonized, they are moved in to the grow room to compound of media is an industry benchmark. plete their cycle. Temperature and humidity levels are quite different in the grow room, designed to cause the What kind of wholesale prices mushrooms to pin, and then to flush allowing up to should I expect to receive? four harvests from the bags before they are removed and You should look for wholesale prices of at least $2.50 replaced with fresh grow bags. A high pressure, atomiza pound. That is what the low quality, shipped in product ing fog system is used to maintain the optimum humidity is currently bringing in the Cleveland market. It may be in the grow room. higher, or lower, depending on your area. We have received as high as $4.00 to $5.00 a pound, How is the growing media selling to wholesalers. Other growers have received as pasteurized? high as $6.00 to $7.00 a pound, when selling direct to The heart of the mushroom system is the pasteurizarestaurants and grocery stores. Wholesale prices can tion chamber. The media that the mushrooms grow on vary from area to area and according to the marketing must be pasteurized to kill off the bacteria and other skills of each grower. fungus spores that You can check USDA market prices by accessing naturally occur and their web site at www.ams.usda.gov/fv/mncs/ will cause problems termveg.htm and choosing your area for current wholein the system. The sale prices. system uses aerated steam at 160 deg. F What is the cost of production? to achieve this proCost of production varies between approximately cess. The aerated $1.70 and $2.70 a pound, depending on the size of your steam evenly heats unit. This includes fuel the media resulting in and electricity, all 35 cu.ft. Pasteurization Chamber uniform kill rates and growing and packaging good wetting of the media. There are two different supplies, labor, maintechamber sizes. The 18' unit uses a small fixed chamber nance, basic expenses that requires more labor to move the media. Both of the for vehicle, office 30' units use a larger mobile chamber on caster wheels expense, insurance, as that includes a three-way manual hydraulic system for well as interest on the tipping and lifting the chamber. This unique, CropKing loan (assuming 90% designed system takes much of the back breaking labor financing). This doesnt out of a mushroom system. include the cost of Double hung Mushroom Bags land. Additional marWhat is the production capacity keting labor may be required, depending on the size of of the unit? the unit, and the method of selling your produce. Of course, operating expenses will vary depending on The production capacity of the system is based on the area and all of the figures are subject to change. You having six, 60-day crop cycles per year. Each grow should have a business plan prepared to help you deterbag filled with 11.25 lbs of dry matter should produce at mine your actual costs of production. least 8 pounds of oyster mushrooms in a sixty day pe3

FEATURES COMPARISON
18x24' Straw Chopping and Storage Building Gas Powered Straw Chopper Designed for Expansion 9 cu. ft. Fixed, Manual Pasteurazation Chamber 35 cu. ft. Hydraulic, Tipping Pasteurazation Chamber 5 kW Electric Steam Generator 20 kW Electric Steam Generator Grow Room Capacity, Double Hung Bags Spawn Room Capacity, Double Hung Bags 8x8' Walk-in Cooler High Pressure Fog Humidification System Fine Mist Humidifiers Phone and Email Technical Support provided by CropKing Phone and Email Technical Support provided by CropKing, with Access to Outside Consultants

18' x 49'
No No No Yes Yes 216 36 No Yes Yes

30' x 69'
Yes Yes Yes Yes Yes 960 240 Yes Yes Yes

30' x 129'
Yes Yes No Yes Yes 1920 480 Yes Yes Yes

How often will I harvest?

Harvesting is usually done every day in a mushroom house. This is because the mushrooms throughout the grow room are ripening constantly, and harvesting them at their peak is a goal of growers. By doing so on a daily basis, the work is spread out evenly throughout the week, and actually can be done in a fairly short period of time.

Can I convert an existing building using CropKings technology and equipment?

It is possible, but most likely will not save you much money, and may actually cost you money in the long term. The design of most agricultural buildings will not accommodate the large hanging load of the mushroom bags, and generally lack the insulation needed for the mushroom structure. If you decide that you wish to convert existing structures for mushroom production, there will be a significant up-front consulting fee for this service. If you are still interested, please let us know and we will discuss the cost with you.

What is my best marketing approach?

We believe the mushroom grower will do best by marketing direct to grocery stores or restaurants, and always preferably to the end-user, rather than going through wholesalers or brokers. Of course, it really depends on where you are located and how big of a market region you are working in. Developing a delivery route to high quality restaurants and upscale grocery stores may be the best avenue for receiving the highest wholesale prices. These buyers respond well to higher quality product, as well as better and more personal service and they dont mind paying a premium price.
Straw Storage Building

What is the startup cost?

The following pages (5-8) outline the components and prices of all three production units.

What is my next step?

Feel free to contact us with any questions that you have regarding the system. You can contact Gregg Short at (800) 321-5656 or email short@cropking.com. Many people like to come see our facility and that can be arranged on an individual basis. If your are interested in some of our other growing systems we would recommend that you attend one of our free half-day orientations. We also have a free video ($4.95 S/H) that shows the workings of a specialty mushroom facility, and books about mushroom production (see back page). Finally, consider purchasing a business plan. Remember that the cost is fully deductible from the cost of a unit!
4

COMPONENTS SHEET

CropKing Mushroom Production Unit

18 X 49 Freestanding Unit
1) Mushroom Production Facility, Structure and Double Entrance Door
Frame (heavy duty truss style, designed for poly/ insulation covering), with galvanized structural steel tubing, 3' O.C. arch spacing, web truss bracing, ground stakes, purlins, wind braces, support posts, connectors, end wall brackets, hardware and blueprints. Includes one single insulated entrance/exit door, and an interior door into grow room. Roll-up partition wall for spawn room. Also included is the mushroom bag support system. Grow room humidification system: Two fine-mist atomizing humidifiers Environmental control system: Includes pre-wired electrical panel including interior panel box, relay box, breakers, relays, duplex receptacle, all mounted on a painted plywood board and ready to wire to terminal strips. Environmental controls for unit (with separate controls for grow room). (Note: Wire and conduit from service to panel and from panel to equipment is not included and must be purchased locally.)

2) Covering and Insulation System

Structure is covered with two layers, white, UV treated polyethylene (4 year warranty). Aluminum extrusions for poly attachment are also included. One layer of 6" and one layer of 3.5" poly encapsulated fiberglass insulation is included to be placed between two poly covers. Single layer white vinyl and batten tape is provided for interior wall partitions. Wall partitions are to be made of locally purchased treated lumber. (End walls are to be covered and insulated with locally purchased materials.)

4) Steam Pasteurization Chamber and Steam Generator

Includes 9 cu. ft. fixed aerated steam chamber, with built-in inoculation table and bagging station. Chamber is made of stainless steel and has a perforated floor for down-flow aerated steam. Also includes 5kW electric steam generator, HEPA filter and enclosure, hose, quick disconnects, regenerative blower, pressure switch, water feeder, and site gauge.

3) Environmental Control Equipment

Heating system: Includes gas unit heater, power vented, propeller type, natural gas or LP. (Heater flu pipe to be purchased locally.) Air circulation equipment: Includes one fiberglass 30" flush mount fan, two 12" Flush mount fans, two pvc inlet shutters, two air exchange fans, one 20" air mixing fan Spawn room cooling system: Includes an air conditioner unit.
Cross section views showing double hung grow bags

5) Miscellaneous Equipment and Supplies

Hose and manifold for irrigation of grow bags, long stem thermometer; nylon rope for hanging grow bags and for making shiitake harnesses.

6) Grower Tech Service Program

Includes one day CropKing Grower Training Class, Growers Manual, Installation Prints and Construction Manual, On-going Technical Assistance for one year.

18 Grow Room and Spawn Area

30 Grow Room

COMPONENTS SHEET

CropKing Mushroom Production Unit

30 Freestanding Units
1) Mushroom Production Facility, Structure and Double Entrance Door
Frame (heavy duty truss style, designed for poly/ insulation covering), with galvanized structural steel tubing, 3' O.C. arch spacing, web truss bracing, ground stakes, purlins, wind braces, support posts, connectors, end wall brackets, hardware and blueprints. Includes two insulated entrance/exit doors (front entry is a double door), and interior doors for both spawn room and grow room. Also included is the mushroom bag support system. breakers, relays, duplex receptacle, all mounted on a painted plywood board and ready to wire to terminal strips. Environmental controls for unit (with separate controls for grow room). Alarm system: Includes phone dialer alarm system to provide dial up alarm for power outage or temperature limit. (Note: Wire and conduit from service to panel and from panel to equipment is not included and must be purchased locally.)

2) Covering and Insulation System

Structure is covered with two layers, white, UV treated polyethylene (4 year warranty). Aluminum extrusions for poly attachment are also included. One layer of 6" and one layer of 3.5" poly encapsulated fiberglass insulation (R 32) is included to be placed between two poly covers. Single layer white vinyl and batten tape is provided for interior wall partitions. Wall partitions are to be made of locally purchased treated lumber. (End walls are to be covered and insulated with locally purchased materials.)

4) Straw Processing Room and Equipment

ShelterKing structure, 18' x 24', for storage and shredding of straw. Includes steel structure, hardware, single layer vinyl covering, and sliding entrance door. Straw shredder/chopper with gas powered engine.

5) Steam Pasteurization Chamber and Steam Generator

Includes aerated steam chamber, mounted on wheels, with built-in inoculation table and bagging station. Chamber is made of stainless steel and includes tipping hydraulic system and all related hardware. Also includes electric steam generator, HEPA filter and enclosure, hose, quick disconnects, regenerative blower, pressure gauge, steam traps, pressure switch, water feeder, and site gauge.

3) Environmental Control Equipment

Heating system: Includes gas unit heaters (two), power vented, propeller type, natural gas or LP. (Heater flu pipe to be purchased locally.) Air circulation equipment: Includes two fiberglass flush mount fans for 69' unit and three for 129' unit, one pvc inlet shutter, two air exchange fans for 69' unit and four for 129' unit, one polyethylene air mixing fan, speed control, multi-vent poly tube, support cable, and hardware. Spawn room cooling system: Includes one air conditioner/heat pumps per each spawn room. Grow room humidification system: Includes high pressure fog system, filters, stainless steel tubing, atomization nozzles, and check valves; pressurization/filtration pump, control module, compression fittings, solid state control panel and suspension hardware, temperature and humidity sensors with cable, manual isolation valves, flexible hoses, drain valves, and installation hardware. Environmental control system: Includes pre-wired electrical panel including interior panel box, relay box,

6) Walk In Cooler
8' X 8' walk in cooler, panelized, insulated cooler with compressor and condenser unit, including four walls and ceiling. No floor included. Unit to be set on concrete pad on exterior of unit.

7) Miscellaneous Equipment and Supplies

Mushroom Bag handling cart, hoses and manifold for irrigation of grow bags, long stem thermometers; nylon rope for hanging grow bags and for making shiitake harnesses.

8) Grower Tech Service Program

Includes two day Grower Training Workshop, Growers Manual, Installation Prints and Construction Manual, On-going Technical Assistance for one year from CropKing and outside consultants.

MUSHROOM PRODUCTION SYSTEM PRICING

Price Summary 4-05
Description Item No. 18' X 49' Item No. 30' X 69' 30' X 129'

Mushroom Growing Package 1) Mushroom Production Facility, Structure and Doors 2) Covering and Insulation System 3) Environmental Control Equipment Heating system Spawn room cooling system Grow room humidification system Environmental control system Alarm system (not included on 18x49) Straw Processing Room and Equipment Steam Pasteurization Chamber and Steam Generator Walk In Cooler Miscellaneous Equipment and Supplies Grower Tech Service Program* 100 Bag Starter Supplies

1-3

13,435.00

1-3

30,075.00

44,741.00

n/a

6,800.00

6,800.00

4 5 6 7

6,126.00 n/a 193.00 1,500.00 340.00 __________

5 6 7 8 9

18,416.00 6,362.00 736.00 2,500.00 340.00 __________ $ 65,230.00

18,416.00 6,362.00 949.00 2,500.00 340.00 __________ $ 80,108.00

Total of above items

$ 21,594.00

* The Tech Service price is applicable only with purchase of complete system as shown above. When a mushroom growing system is purchased for an existing structure, the technical service package will be priced according to the needs of the project.

Ordering Information
Additional items not provided by CropKing are necessary to complete the package. Blueprints are made available once a deposit and order has been received. This pricing is subject to the standard Terms & Conditions of Sale that will be made a part of a Sales Contract should a purchase take place Allow four to six weeks for shipment of a complete package. The framework and materials necessary to begin construction may be shipped sooner if desired. All items are FOB Seville, Ohio, or manufacturer. One half deposit required with order, and remaining one half due prior to shipment. Specifications and prices are subject to change without notice. A backup generator should be considered if in a rural area or if power failures are possible.
7

MUSHROOM PRODUCTION SYSTEM ADDITIONAL COSTS (Locally Purchased Items)

The following are only estimates and may vary depending on each situation. 18' X 49' Freight cost for structure and equipment ....................................... Lumber, Hardware, Insulation, Misc. Building supplies .............. Concrete for Posts and Slab; Slab pouring labor .......................... Moisture proof lighting .................................................................... Labor Cost for Construction (Erection, Electric, Plumbing and Heating) ............................... Miscellaneous ................................................................................... Site preparation ................................................................................ Gas and Heater Hookup .................................................................. Water Hookup, Hot Water Heater, Sink and Plumbing ................ Electric Hookup and Materials ....................................................... Packing Table, Picking Cart, Scale ................................................. Used Residential Style Refrigerator ............................................... TOTAL ADDITIONAL COSTS ..................................................... n/a 1,500.00 4,075.00 200.00 3,814.00 750.00 750.00 542.00 550.00 600.00 300.00 150.00 __________ 13,231.00 __________ PACKAGE PRICE FROM CROPKING ........................................ 21,594.00 __________ INSTALLED COST GRAND TOTAL ........................................ $ 34,825.00 30' X 69' n/a 2,500.00 5,055.00 600.00 6,840.00 1,000.00 1,000.00 542.00 600.00 600.00 300.00 __________ 19,037.00 __________ 65,230.00 __________ $ 84,267.00 30' X 129' n/a 3,000.00 10,110.00 1,400.00 10,440.00 2,000.00 1,500.00 542.00 600.00 600.00 300.00 __________ 30,492.00 __________ 80,108.00 __________ $ 110,600.00

MUSHROOM BOOKS
GROWING GOURMET AND MEDICINAL MUSHROOMS
by Paul Stamets Comprehensive manual of mushroom cultivation filled with readable, useful information on how to grow diverse and delicious mushrooms for pleasure or profit.
GROWING GOURMET AND MEDICINAL MUSHROOMS BOO0090, $45.00

CropKing offers a wide range of controlled environment agriculture growing systems, supplies and services! Hydroponic Food Production Organic Growing Program Mushroom Production Fish Farming Grower Training Technical Support

MUSHROOM CULTIVATION,
3rd Edition
by Peter Oei Provides essential information on the worlds most cultivated species of mushrooms: from cultivation, to managing, to post-harvest handling and marketing. This edition has been updated to include modern high-tech developments in cultivation and management.
MUSHROOM CULTIVATION BOO0088, $69.00

5050 Greenwich Rd., Seville, OH 44273-9413 phone 800-321-5656, 330-769-2002 fax 330-769-2616

www.cropking.com
email: mushrooms@cropking.com
405