A solid macroeconomic environment has sown the seeds of increasing development of the mushroom industry in Chile. The agaricus has already been incorporated into the diet of the Chilean people, changing from being an exclusive product at the beginning of the 90's into a product within the reach of any pocket. Exotic mushrooms are expected to follow the same path - as the first encouraging steps have already been taken.

Cultivation of mushrooms began in Chile in 1957, exclusively growing agaricus bisporus. No more than five growers were operating at the beginning of the 90's, with a basically inconsistent yield hampered by technical and infrastructural limitations. Production amounted to around 400 tons annually - a consumption per capita of just 30 grams a year. In spite of the technological deficiencies, reflected in yields that failed to reach 15 kg/m2 on average during the year, the industry survived thanks to prices per kilo above 10 U.S. dollars. 

North American influence

In 1991 a new enterprise, Nature’s Farm, began operating in Chile and brought about changes to the existing mushroom industry.

With North American funding and with the plan of exporting the majority of the mushrooms as a processed product to the United States, the original idea was to use 600 tons of compost per week, aspiring to an annual production of 2,000 tons. Backed up by heavy investment and with a technological level far superior to that currently existing in the country, it forced local companies to attempt to equal its productivity.

From that moment on, the evolution of the industry can be summarized as follows:

- The development of technology continued and consequently the yields;

- A greater concentration of production by fewer growers;

- An increase in mushroom consumption on local level encouraged by falling prices.

A new event altered the face of the industry again in 1998. Seven North American companies, including growers and processing plants, lodged an accusation of dumping against Chile (Nature’s Farm), China, India and Indonesia. The acceptance of these cases by the North American authorities, meant exports had to be suspended to the United States. After several years of changes, including new ownership, this company, under a new name: “Inversiones Bosque del Mauco S.A.” is nowadays the most important in Chile, with production exported as processed mushrooms to Mexico, Colombia, Venezuela, Brazil, Argentina and the Caribbean and serving the local fresh market and eventually Argentina. 

Current scenario and projections

The macroeconomic conditions apparent in Chile over the last few years have facilitated positive growth in the mushroom industry. The present-day situation of the Chilean economy can be summarized as follows:

- An annual growth rate of 3.5% on average over the past 8 years (5.5% in 2004 and a projection of 6.5% for 2005);

- A high level of foreign investment;

- A competitive economy. According to the World Economic Forum's latest report, Chile occupies the 22nd position in the index of worldwide competitiveness;

- An open economy. Valid treaties for free trade with the European Union, USA, Canada, South Korea, Mexico, etcetera and treaties in a negotiation phase with India, Japan and China.

These aspects add up to continued improvement of the general standard of living of the Chilean people, who are all potential mushroom consumers. 

The local market is also influential in the industry’s present-day situation. The retail industry (supermarkets) is showing rapid, strong development in the country. The current index is 1 for every 22,000 inhabitants, but this is growing with retail premises exceeding 10,000 m2 and investments of more than 20 million U.S. dollars per location. Supermarket outlets represent the highest volume of mushrooms sold (+/- 80%). Mushrooms are presented on the supermarket shelves in 200-gram trays covered by stretch film. The rest of production is absorbed by hotels and restaurants. 

The actual scenario for agaricus (including Portobello production) is shown as follows :

- Annual production of 4,000 tons, 80% of which is sold fresh. This means consumption per capita of fresh mushrooms is approximately 200 grams a year, constituting the highest amount in South America.

- Import of processed produce from China and Spain is maintained.

- The current product price (producer) is 2.0 U.S. dollars per kilo. Consumers pay 3.4 U.S. dollars per kilo (including 19% tax).

- The increase in consumption recently shows an 8% yearly growth.

- Just two companies supply 90% of the market. 

Projections of the industry:

- Continued rise in consumption, which for the current year, with improvements being implemented in distribution chains, is expected to show a 15% increase. In the long-term, a doubling of present-day consumption levels is expected for the second decade of 2000.

- A gradual price reduction no greater than 5% would be approaching levels where cost limitations could be found.

Technology

There are no environmental restrictions in place in Chile concerning emissions caused by composting. For this reason composting takes place outdoors. The principal grower uses the tray system; there are no phase 2 tunnels. Each crop covers 1000 m2 of cultivation area and uses 95 kilos of compost per m2. Supplements are not used at any stage. An automatic line is used to the spawn the trays, which measure approximately 2.3 m2 each. Spawn is sea-freighted in from the United States. Turf from Canada or Patagonia is used as casing soil. Climate control systems are used. Tunnels are expected to be used in the short term, and bunkers for phase 1. 

The second largest grower operates with bunkers for phase 1 and tunnels for phase 2. This grower also imports spawn from the United States and casing material from the Netherlands. These two plants have an annual average yield of approximately 26 kg/m2.

Exotic mushrooms

Nowadays shiitake and oyster mushrooms are also available (Ostreatus, Pulmonarius, Salmoneo-Stramineus and Citrinopileatus).

Any permanent form of cultivation is quite recent. After some failed attempts, this started in 1997, and there is now some relative continuity in production. Only two growers are dedicated to these mushrooms, contributing between 30 and 45 tons of oyster and 12 to 18 tons of shiitake a year.

A pasteurisation tunnel, normally at 62 degrees Celsius for 2 hours, is used for the oyster's substrate, basically chopped wheat straw with 65% humidity before pasteurisation. For shiitake production, substrate with 63% humidity is sterilized at 121 degrees Celsius. Sawdust and hardwood shavings form the basis of the substrate.

The industry does not yet demand high performance, so climate control is not used in the cultivation of these mushrooms. As with the agaricus in the beginning, the high prices achieved compensate for the low yields. At present, for a kilo of shiitake, growers receive 10 U.S. dollars, while a kilo of oyster mushrooms achieves prices 4.5 dollars. 

It is easy to predict that the same productive and pricing evolution will occur as with agaricus. In fact, shiitake has experienced a fall in price since its appearance on the market of nearly 30 U.S. dollars (only 100 kilos sold in the first year) to the present-day 10 dollars per kilo (prices for the grower, current consumer price 17 dollars, including 19% tax).

At production level, investments in more extensive and advanced equipment will become necessary, especially regarding environmental control (T, CO2, humidity). This will allow better yields to be obtained, which at present are around 150 grams per kilo of substrate for oyster mushrooms and around 200 grams for shiitakes.

Spawn

Historically, in South America, the only sure way of obtaining mycelium of reliable and permanent quality on a large-scale commercial level, was to import it from the United States or Europe. The major growers, with rapid production turnover, are the only ones who are able to import entire container loads by sea. Smaller growers and exotic growers are very limited in their options, they can import by air, but this is a very costly method. In addition, varieties like the pleurotus are very susceptible to deterioration during the journey, which may take several weeks.

A laboratory exclusively devoted to mycelium production started operating in Chile at the end of 2003: Laboratory Demycel Ltd. Using knowledge and technology acquired in Belgium from Mycelia Bvba, that also exclusively supplies the mother cultures, this company aims to  deliver a reliable product throughout the South American region at a reasonable cost, principally thanks to lower transport costs.