Costs of Production

The cost of harvesting mushrooms is estimated at about 20 to 25 percent of total production costs (Wuest, Hordness). This proportion is low relative to many other agricultural crops.

About 30 percent of the U.S. sales volume is sold for processing. Most processed mushrooms are canned in tins or glass jars. Very little mushroom drying is done in the United States.

There are about a dozen processing plants that can mushrooms. The largest mushroom processor is Giorgio Foods in Temple, Pennsylvania (Berks County). There is one canner of mushrooms in Michigan, one in Ohio, and several in Pennsylvania and New Jersey (Phelps). Giorgio Foods obtains its mushrooms from its own farms as well as through contracts with farms in Berks County. These farms contract their total mushroom crop at a fixed price set by the processor. Almost all of California's mushrooms are sold to the fresh market. (Wuest, Phelps)

  • sell to wholesalers who establish a price, which changes daily
  • own an interest in a wholesale operation and sell to the fresh market or to processors as a residual market (the most popular method in Pennsylvania)
  • sell to commission agents, and obtain the market price less a commission
  • sell to food-service buyers who sell to restaurants and specialty shops
  • sell directly to large retail grocery chains and terminal markets (the most popular method in California)

Mushrooms are shipped by refrigerated truck or by air. Use of air transport, such as Federal Express, is more common for specialty mushrooms than the button variety. While mushrooms are marketed regionally, it is not uncommon for mushrooms to be shipped all over the country. Friends report Pennsylvania-grown mushrooms from as far as Panama! The trend of labeling produce origin helps illustrate this at Whole Foods, where most locations visited had mushrooms from PA and CA, with some local/regional presence.

Specialty mushroom growers who produce on a seasonal basis sell their mushrooms to different markets than those who grow year round. Seasonal growers sell to farmers' markets and other seasonal markets. Year round specialty mushroom growers market their mushrooms similarly to the agaricus growers.