The Expensive World of Forest-Grown Shiitake Mushrooms

Sugimoto Shiitake's forest-grown white flower shiitake, priced at $400 per kilo, faces cultivation challenges but taps into the global market for growth.

### The Rare and Expensive Japanese White Flower Shiitake Mushroom
* 🍄  Sugimoto Shiitake harvests **140,000 pounds of forest-grown shiitake mushrooms annually**, with the rarest variety being the **white flower shiitake**.
* 💸  White flower shiitakes are sold for at least **$400 per kilo**, but less than **1% of the processed mushrooms** receive this **top-tier designation**.
* 🇯🇵  The demand for shiitake mushrooms in Japan, where they have been a staple, is decreasing, prompting Japanese companies like Sugimoto to **turn to the global market to future-proof their businesses**.
* 🌳  Forest-grown shiitakes, particularly the white flower variety, are more challenging and unpredictable to produce than indoor-grown mushrooms, leading to a **higher price tag**.
* 🌍  Despite the declining demand in Japan, the global appetite for mushrooms, including shiitakes, is steadily growing, driven by their **perceived health benefits**.
* 🌟 " According to the Mushroom Council, over the past decade in the US, there's been a **more than 100% increase in specialty mushroom sales**, primarily driven by **shiitake**.
* ✈️  Companies like Sugimoto are increasingly tapping into international markets to sustain their businesses, as seen with Third Kingdom, a mushroom-centric restaurant in New York City, which **flies in white flower shiitakes from Japan to feature as specials**.

Narrator: This 70-year-old
company hauls in 140,000 pounds of forest-grown shiitake a year. It starts here, in the forests of the Japanese
prefecture of Miyazaki. Farmers use a 1,000-year-old technique to grow the rarest of
them all: white flower. Sugimoto Shiitake sells these premium caps for at least $400 per kilo, but the company says less than 1% of the mushrooms it processes are given that top-tier designation. Forest-grown shiitakes are
getting harder to cultivate, and the conditions needed to produce the white flower
variety are so specific that even a few drops
of rain can ruin them. On top of that, the appetite
for all kinds of shiitakes is decreasing in Japan, where they've historically been a staple. That's why Sugimoto and
other Japanese companies are increasingly turning
to a global market to future-proof their businesses.

So, what makes these forest-grown mushrooms so expensive? And can this rare Japanese shiitake make a comeback? Narrator: This process is known as inoculation. And at this stage, there's no telling which sprouts will become white flower shiitake. Narrator: That's how long it takes for the fungus to spread throughout the log and start sprouting harvestable caps. Each log produces mushrooms for about six years. Narrator: This species of tree is not only plentiful, but apparently delicious. Narrator: Forest-grown mushrooms are at the top of the shiitake hierarchy. They are more difficult and unpredictable to produce than indoor-grown, which leads to their heftier price tag. Even in the US, the price of forest-grown shiitakes can reach $40 per kilo, while the price of indoor-grown, greenhouse shiitakes is only half of that.

Narrator: Then there are the
two main types of shiitake based on their shape. Narrator: The top-tier version of donko is called hana donko, or white flower. That's the one that fetches
that $400-per-kilo price tag. Narrator: The difference
between a regular donko and a white flower shiitake
comes down to the cap. All donko mushrooms will
have distinct cracks, but the pattern on a white
flower is more dispersed, like this. But to grow any shiitake this way, conditions have to be perfect. Narrator: And white flower caps can't be directly rained on at all. When water gets into those
cracks on the surface, it discolors the mushrooms
and decreases their value. Narrator: When they're ready, workers like Naoko Kai
harvest each one by hand. Traditionally, logs are left
unprotected in the forest.

but growers like Kai Fusao started growing mushrooms in an outdoor structure. He calls an artificial log yard to gain some control over his environment. Narrator: Even with this limited control, the recent unpredictable climate is affecting how much he can harvest. In 2010, Kai Fusao left his life in Osaka to join his father on this shiitake mushroom farm. Narrator: But a combination of his parents aging and an increasingly unpredictable climate caused the farm's productivity to shrink again. Narrator: A smaller yield means fewer white flower shiitakes, which only make up about 8% of Fusao's harvest. Narrator: White flower, regular donko, and koshin mushrooms are harvested all at once, loaded up in crates or bags, and taken to Sugimoto's processing facility to be sorted, dried, and packaged. Narrator: Drying shiitakes this way actually amplifies their umami flavor.

Dehydration breaks down the
cell walls of the mushroom, releasing and concentrating the compounds responsible for their taste. All that flavor remains even
after they're rehydrated. Narrator: After the drying process, workers like Eri Iihoshi
will hand-sort the shiitakes by color, shape, and size. This is where she'll be able to separate the white flower
from the rest of the donko. Narrator: White flower
mushrooms must be flawless, and Sugimoto is picky
about the other types of shiitake the company processes, too. Sorters will filter out any mushrooms that have aesthetic flaws. Narrator: These mushrooms will
be used in other products, like the company's shiitake powder. It's used by chefs all over the world as a natural umami booster. Narrator: Even though
demand is slowing in Japan, the global appetite for
mushrooms is steadily growing.

and shiitakes in
particular are sought after for their perceived health benefits. So Sugimoto has been increasingly tapping into international markets. Narrator: According to
the Mushroom Council, over the past decade in the US, there's been a more than 100% increase in specialty mushroom sales,
primarily driven by shiitake. They're so versatile. They're just so amazing, and
you can do so much with them. Narrator: Ravi Derossi is the
co-owner of Third Kingdom, a mushroom-centric
restaurant in New York City. Most of its mushrooms are sourced locally, but white flower calls
for special circumstances. Ravi: We get it flown in from Japan, and when they have them,
they'll ship us a few. We'll run it as a special. We'll invite just some of
our special regular customers and let them know what we're doing. Narrator: Regular donko
also shows up on the menu.

from time to time. Executive chef Juan Pajarito
dreams up the dishes, like this one, prepared
steak-and-onion style. Narrator: While donko
shiitakes are in season, he'll reach for them over thin koshin ones when he wants an amplified experience. Narrator: So leaning in to
the international market is key for companies like Sugimoto.

How Japan's Priciest Shiitake Mushrooms Fuel The $740 Million Global Shiitake Industry

What you want to know about business. 

Visit our homepage for the top stories of the day: https://www.businessinsider.com 
Business Insider on Facebook: https://www.facebook.com/businessinsider
Business Insider on Instagram: https://www.instagram.com/insiderbusiness
Business Insider on Twitter: https://www.twitter.com/businessinsider
Business Insider on Snapchat: https://www.snapchat.com/discover/Business_Insider/5319643143
Business Insider on TikTok: https://www.tiktok.com/@businessinsider

If you have a permissions or licensing request, please connect with our partners at PARS International who will be able to provide you with an accurate quote for the overall usage rights that you’re interested in. A representative from PARS will contact you shortly after filling out this request form: https://www.parsintl.com/publications/insider/


Business Insider

The Expensive and Rare Forest-Grown Shiitake Business

Sugimoto Shiitake, a 70-year-old company in Miyazaki, Japan, uses a 1,000-year-old technique to grow the rare white flower shiitake, selling them for at least $400 per kilo.

Forest-grown shiitakes, especially the white flower variety, are challenging to cultivate and vulnerable to specific conditions, leading to their high cost.

The global market is becoming increasingly important for Japanese shiitake companies due to a decreasing appetite for shiitakes in Japan, aiming to future-proof their businesses.

Growing and Harvesting White Flower Shiitake Mushrooms

White flower shiitake mushrooms are the top-tier version of donko, with a high price tag of $400 per kilo.

The difference in their cap pattern and the need for perfect growing conditions contribute to their high value.

Growers like Kai Fusao are facing challenges due to the unpredictable climate, impacting their harvest and productivity.

The Process and Demand for Shiitake Mushrooms

Dehydration concentrates the flavor of shiitake mushrooms, which remains even after rehydration.

Sugimoto, a company in Japan, hand-sorts the mushrooms for quality and processes them into products like shiitake powder.

The global demand for shiitake mushrooms is increasing, driven by their perceived health benefits and versatility in cooking.

The Impact of Seasonal Shiitakes on International Markets

Executive chef Juan Pajarito creates steak-and-onion dish using seasonal donko shiitakes for an amplified experience.

Sugimoto and other companies prioritize the international market for their products.

Seasonal variations in shiitake mushrooms have a significant impact on the choices made by chefs and the strategies of food companies.