Is Mushroom Farming Profitable in the UK? (2023)
Mushroom farming is a relevant source of income in the UK. There are around 200 mushroom farms in England, Wales, and Scotland, and around 300 in Northern Ireland. For this reason, we question if mushroom farming is a profitable business in the United Kingdom.
In the UK, mushroom farming is a lucrative business. A mushroom farm with 10 growing rooms produces 50,000 lbs. of mushrooms per week. In Ireland, growers produce 70,000 tons of mushrooms per year, worth £105 million. A 20 sq.m. growing room produces 70 kg. of oyster mushrooms, generating £525–1,680 weekly.
To see just how profitable mushroom farming in the UK can be, read more below as we set different examples of mushroom farm profits in the UK as well as how to make your mushroom farms more profitable.
Summary
- Mushroom farming is a profitable business in the UK, but it is not considered an easy-money business because it entails intensive labor and hard work to be truly successful.
- In Ireland alone, the yearly mushroom production peaks at 70,000 tons, which sell for £105 million annually.
- Small-scale mushroom growers can gain more profit from mushroom farming when they sell directly to consumers and make sure to produce high-quality, fresh mushrooms.
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Breakdown of Profits from Different Mushroom Farms in the UK
Market sales of mushrooms in the UK reach over £200 million a year. Mushroom farms vary in size, with the majority being small to medium-sized farms with annual revenue of up to £100,000.
Below is a table showing the annual revenue from a small mushroom growing space measuring only 20 square meters:
| ITEM | COMPUTATION |
|---|---|
| Yield from 20 square meters growing room | 70 kg. per week |
| Price range of oyster mushrooms in the market | £7.50 to £24 per kilo |
| Weekly revenue | £525 - £1,680 |
| Annual revenue | £27,300 - £87,360 |
| Total start-up costs | £1,500 to £2,000 |
| Annual net revenue from 20 sq.m. growing room | £25,800 - £85,360 |
A 20-square-meter oyster mushroom growing room can produce 70 kg of mushrooms per week. Oyster mushrooms in the UK are usually priced between £7.50 to £24 per kilogram. If 70 kg of oyster mushrooms are produced in a week, a weekly revenue of £525 - £1,680 can be expected.
If you earn £525 - £1,680 weekly, this can accumulate to up to £27,300 - £87,360 in a year. But since there total start-up cost of mushroom farms run about £1,500 to £2,000, an annual net profit of £25,800 - £85,360 can be expected instead, and this is just for one growing room alone.
In Scotland, a mushroom farm located in Stirlingshire called Mushrooms (Scotland) Ltd is a key supplier of portobello mushrooms in Scotland and in the UK market. Portobello mushrooms sell for about $6 - $8 per pound or approximately £5 - £6 per pound.
Mushrooms (Scotland) Ltd has 10 growing rooms, producing 50,000 lbs. of portobello mushrooms per week. Given these numbers, the profit from farming portobello mushrooms in this mushroom farm is as follows:
| ITEM | COMPUTATION |
|---|---|
| Yield from 10 growing rooms | 50,000 lbs. per week |
| Price range of portobello mushrooms in the market | £5 to £6 per lb. |
| Weekly revenue from 10 growing rooms | £250,000 - £300,000 per week |
In Ireland, a steady production of 70,000 tons of mushrooms, mainly white button mushrooms per year averages a profit of £105 million annually. This constitutes 7% of the total mushroom harvest in Europe. 80% of this harvest is supplied to the UK main market, and 20% is for the Irish market.
The average size of a mushroom farm in Ireland is composed of 12 mushroom-growing units filled with 100 tons of substrate weekly. The average cost of building a single mushroom tunnel is about £175,454.
To construct a farm with 12 mushroom-growing units, an investment of about £1.7 million is needed. This amount will cover the groundworks, tunnel structure, shelving, all operational equipment such as filling machines, emptying equipment, picking trolleys, and canteen and other office facilities.
A separate cost is needed for compost, casing labor, packaging, delivery, etc.
5 Tips to Make More Profit from Mushroom Farming in the UK
Gourmet mushrooms such as shiitake, button, and oyster mushrooms, and medicinal mushrooms like lion’s mane are among the most profitable mushrooms for small-scale producers.
Most small growers focus on growing these two groups of mushrooms for local consumers, and while they are both profitable, they cannot be considered cash crops. They don’t provide quick money, but instead, need intensive labor and hard work.
With all the quick-growing tips to speed up the growth of your mushrooms, it is easy to fill in the high demand for gourmet and medicinal mushrooms in the market. But to be successful in the business, one needs to put on a lot of effort and patience, especially when waiting for your mushrooms to fruit.
Creativity and a good marketing strategy are also needed to be able to sell your mushrooms. Below is a list of some areas that will make your mushroom farm more profitable:
1. Sell your mushrooms directly to consumers
You can do this by selling your mushrooms to local farmers’ markets. They have customers that are interested in high-quality and healthy foods. Some farmers have established their own company stores that offer gourmet items for sale.
If you don’t have time or money to invest in your own stand, make friends with other vendors and offer a commission to get their help in selling your products.
2. Sell your mushrooms to local restaurants
The success of local mushroom growers relies on consistent sales which pay at a good price- which you can find in restaurants. Regular sales and delivery to local restaurants is a powerful tool for success in the mushroom industry.
The only hindrance to this idea is finding your clients and keeping up with the demand. A good tip for finding clients is by cold-calling as many restaurants as you can.
3. Sell your mushrooms to grocery stores
More grocery stores these days have been stocking gourmet mushrooms and most of them buy from out-of-state distributors. If you can provide fresh, healthy, and tasty gourmet mushrooms, then your business is up for a good sale.
However, you will need to have an established business with insurance before selling via grocery stores.
4. Join a food cooperative to sell your mushrooms
Cooperatives exist to help their member sell their products. They have more advantage than a farmer’s market because they are more established and remains open all year round.
5. Sell value-added mushroom food products
These are mushroom-derived products that you can sell to increase their value. You may have mushrooms that are too small to sell or have cosmetic flaws, and they can make up as good ingredients for another mushroom product. Examples of these products are the following:
- Dried mushrooms: This is a good option to hinder mushroom spoilage due to low sales.
- Mushroom sauce: usually derived from shiitake mushrooms; is a favorite of foodies and can be a sole source of income by itself.
- Mushroom croutons: derived also from shiitake mushrooms and can be an alternative for traditional salad croutons and even a casserole ingredient.
- Pickled mushrooms, mushroom jerky, and even growing kits can also be sold to gain more profit from your mushroom crops.
