Techno-economic feasibility of small-scale mushroom cultivation in rural areas

Abstract:

Mushroom cultivation in rural Thailand has evolved from a niche activity into a credible livelihood option over the past two decades, yet rigorous techno-economic feasibility data at the small-scale (100-500 kg substrate/week) level remains scattered. This research assessed the technical performance and financial viability of three mushroom species oyster (Pleurotus ostreatus), button (Agaricus bisporus) and milky (Calocybe indica) under rural conditions in the northern Thailand highlands between May 2022 and April 2024. A purpose-built 30 m² shed with bamboo racks was set up, and ten production cycles were tracked for each species on wheat-straw and paddy-straw substrates. Biological yield peaked at 13.1 kg/100 kg substrate for oyster, 10.4 for button and 9.3 for milky, with biological efficiency ranging from 56% to 78%. Fixed investment was THB 46,200, variable cost per cycle THB 1,800, and the benefit-cost ratio over five years averaged 2.31 across the three species. Payback stood at 2.5 years. Sensitivity analysis showed that a 10% drop in selling price would still keep the NPV positive by THB 10,200. Findings indicate that small-scale mushroom cultivation is both technically feasible and financially attractive for rural households in temperate and sub-tropical pockets.