Although the Chinese production volume of King Oyster mushrooms is huge, they are rarely seen in overseas markets due to the high costs of production as well as extensive inspections and quarantine regulations. Beixian Agricultural Science and Technology Co., Ltd. is a company specialized in the production, packaging, and sales of King Oyster mushrooms. Xu Zhonghua, a spokesperson for the company, recently talked about their products and their ambitions for the export market.
Manager Xu first introduced the growing conditions of King Oyster mushrooms. "The King Oyster mushroom production in China takes place on an industrial scale and continues all year round. The optimum temperature, light, water, and air conditions are manually created and not affected by weather conditions or other outside influences. The mushrooms can grow all year round, but they require climate control to cool the room down or heat the room up, according to the mushrooms' needs, which costs a lot of energy. By comparison, mushroom grow bags are far more efficient. Mushroom grow bags contain soybean meal, corn flour, wheat bran, corn cobs, and sawdust. Mushroom grow bags are similar to soil that already contains seeds. They provide the right conditions that stimulate the growth of mushrooms."
Beixian Agricultural Science and Technology has more than 10 years of experience growing mushrooms. "The quality of King Oyster mushroom grow bags is decisive for the production volume. That is the key to profit in this industry. We produce about 70,000 mushroom grow bags per day. Every bag can produce a mushroom cluster that weighs up to 500g. Mushroom grow bags require about 40 days to mature and 18 more for the mushroom to grow out."
Overseas markets primarily consume champignon mushrooms, and the consumption volume of King Oyster mushrooms is relatively small. "The main reason is that champignon mushrooms require straw, which is easy to buy, while King Oyster mushrooms require wood shavings, which is in shorter supply and therefore more difficult to purchase. Another reason is that the level of automated technology is relatively low in the King Oyster mushroom industry, so the process is labor intensive. Overseas markets do not have an advantage when it comes to the cost price of manual labor. That is another reason why the production volume of King Oyster mushrooms is small in overseas markets," said manager Xu.
Manager Xu also made a calculation of the cost and retail price of King Oyster mushrooms. "The factory price of one mushroom grow bag is roughly 2.5 yuan [0.39 USD]. The average retail price of King Oyster mushrooms in the domestic market is 6 yuan [0.94 USD] per kg. In German supermarkets King Oyster mushrooms cost around 25 euro [28.21 USD] per kg, or roughly 200 yuan [31.37 USD]. Now imagine that the wholesale price of King Oyster mushrooms in Germany is around 8 euro [9.03 USD] per kg, or roughly 60 yuan [9.41 USD] per kg. Well, that is much higher than the 6 yuan in the domestic market. Even if you add export fees and higher management fees, the profit margin is still quite good."
"However, the export of King Oyster mushrooms is limited by their shelf life as well as quarantine and inspection regulations. That makes King Oyster mushroom export a struggle. We have many years of experience with the cultivation of mushroom grow bags and the production of King Oyster mushrooms. And we can see the market potential of overseas markets. That is why we are considering expansion into overseas markets. We hope to split the 40 days of cultivation in China and the 18 days of mushroom growth abroad," explained manager Xu. "In that way we can take advantage of the lower cost price of production in China, but grow the actual mushroom overseas so that the shelf life is optimal and retail is convenient," said manager Xu.
"We hope to find an overseas factory with experience in mushroom production and an interest in our proposal. We are looking for strategic partners with an understanding of the mushroom growing process, and the right resources for mushroom production such as an available site with climate-controlled rooms and packaging facilities. We can provide the mushroom grow bags and the necessary technology. Together we can perfect the production process."
For more information:
Xu Zhonghua - Manager
Beixian Agricultural Science and Technology Co., Ltd.
Tel.: +86 15935700098
E-mail: xzh0002@163.com