How to Make Money from Oyster Mushroom Cultivation 2025: A Proven Guide.
Are you looking for a profitable and sustainable way to make money from farming? Oyster mushroom cultivation could be the perfect opportunity for you. Known for their mild flavor, delicate texture, and numerous health benefits, oyster mushrooms are in high demand locally, Nationally, and internationally.
The best part? They can be grown quickly and with relatively low investment, making them an ideal crop for beginners and experienced farmers. Whether you have limited space in your backyard or the resources for a larger setup, oyster mushrooms are versatile and adaptable, offering a fantastic entry point into the world of agriculture.
In this guide, we’ll walk you through everything you need to know to turn oyster mushroom cultivation into a profitable business. From understanding the ideal growing conditions to setting up your cultivation space, we’ll cover all the essential steps. Plus, we’ll explore ways to market and sell your mushrooms, so you can generate income while benefiting from the growing demand for fresh, locally grown produce. With the right knowledge and planning, oyster mushroom farming can quickly turn into a rewarding venture, offering both financial success and personal satisfaction. Let’s dive in!
Meaning of oyster mushroom cultivation
Oyster Mushroom Farming refers to the process of growing oyster mushrooms locally or commercially, Oyster Mushroom is a type of edible fungi known for their delicate texture and mild, nutty flavor. This farming method involves cultivating mushrooms in controlled environments where the right conditions, such as temperature, humidity, and proper growing medium (like straw or sawdust), are carefully maintained.
Oyster mushrooms are often considered easier to grow compared to other varieties and can thrive in smaller spaces, making them a great option for both small-scale and large-scale farming. Whether you’re growing them in your backyard or in a commercial setup, oyster mushroom cultivation can be a fun and rewarding way to produce fresh, nutritious mushrooms!
Before you set up your mushroom farm, there are some factors you need to consider to become successful.
Factors to Consider
1. Farm Accessibility: The mushroom farm should be closer to your residence or place so that you can successfully participate in the monitoring and maintenance process.
2. Availability of water on the farm or close to the farm: A mushroom is a plant that needs to be watered to perform well.
3. Easy accessibility to raw materials at competitive price: You must have easy access to materials needed for the production of mushrooms and it should be at an affordable price.
4. Simple access to labor at a more affordable price: if you start up a commercial oyster mushroom cultivation Business, that will require manpower (labor) at an affordable price but if setting up something small, there is not much work that will require a laborer.
5. Availability of power at an affordable price: That is if you’re doing it commercially because you will need the power to dehydrate your mushrooms but in the absence of power you can also consider sun-drying.
6. Pollution: The farm should be free from any pollution such as chemical fumes, gas, and other hazardous chemicals.
7. There should be a provision for sewage disposal: Mostly for the spent Substrate. But the better part of it is that the spent Substrate can be used as feed or as manure for plants.
8. There should be provision for further growth: In the farm because as you go deep into the business, the demand increases and that’s where you start increasing your production quantity and quality.
Economic Importance and Advantage of Mushroom Cultivation
Nutritional value:
Nutritional Composition of Oyster Mushrooms (Per 100g)
Macronutrients:
- Calories: ~33 kcal
- Carbohydrates: ~6.1 g
- Dietary Fiber: ~2.3 g
- Sugars: ~1.1 g
- Protein: ~3.3 g
- Fats: ~0.4 g
- Saturated Fat: ~0.1 g
- Monounsaturated Fat: ~0.06 g
- Polyunsaturated Fat: ~0.15 g
Vitamins:
- Vitamin B1 (Thiamine): ~0.1 mg (9% DV)
- Vitamin B2 (Riboflavin): ~0.3 mg (27% DV)
- Vitamin B3 (Niacin): ~4.9 mg (35% DV)
- Vitamin B5 (Pantothenic Acid): ~1.3 mg (27% DV)
- Vitamin B6: ~0.1 mg (5% DV)
- Vitamin B9 (Folate): ~38 µg (10% DV)
- Vitamin D: ~28 IU (7% DV)
Minerals:
- Calcium: ~3 mg
- Iron: ~1.3 mg (16% DV)
- Magnesium: ~18 mg (5% DV)
- Phosphorus: ~120 mg (12% DV)
- Potassium: ~420 mg (9% DV)
- Sodium: ~15 mg
- Zinc: ~0.8 mg (7% DV)
- Copper: ~0.25 mg (28% DV)
- Selenium: ~2.6 µg (5% DV)
Unique Nutritional Benefits of Oyster Mushrooms
- Low in Calories, High in Fiber: Great for weight management and digestive health.
- Rich in Antioxidants: Contains ergothioneine and β-glucans, which support immunity.
- Good Source of Plant-Based Protein: Suitable for vegetarians and vegans.
- Boosts Heart Health: Contains compounds that help lower cholesterol levels.
- Supports Brain Function: B vitamins contribute to cognitive health and nerve function
Health benefits
Mushrooms are low in calories and nutritionally loaded with many health-boosting vitamins, minerals, and antioxidants that have long been recognized as an important part of any diet. Mushrooms exposed to ultraviolet rays of the Sun are a good source of vitamin D, an important component of blood and immune system booster.
Mushrooms are also an excellent source of zinc, selenium, copper, thiamin, potassium, and vitamin B6. Mushrooms also help to lessen the risk of developing serious health conditions such as Alzheimer’s, heart disease, Cancer, high blood pressure, anemia, arthritis, and diabetes.
Use in Medicines
Because of its very low-fat content, it is Very good food for hypertension patients. Several alkaloids and extracts obtained from the mushroom act as medicines for curing several ailments. It is also reported that the continuous use of mushrooms is Very effective and reduces the HIV population to recover from AIDS syndrome and it also aids in liver protection.
New food production
Oyster mushroom cultivation encourages the development of new food products and gives a chance of employment for the people involved in the new industry in the production of canned mushrooms, mushroom soup powder, papads, noodles, pickles, etc.
Increase in Foreign revenue
The potential for export of new food products of mushroom is high in demand and mushroom growers can’t meet the demand as they can’t produce in higher quantities to meet the demand. Countries like Kenya are producing mushrooms in higher quality but they couldn’t meet the demand as the demand is greater than the supply. Large quantities of mushrooms are needed by countries like the USA and other European countries to get foreign exchange.
In addition, great demand for papads is noticed in other countries even in Nigeria, where restaurants, hotels, and other food production industries need mushrooms. That is why you cannot even meet the demand of your country, let alone exporting to other countries.
Additional income
Mushroom Farming is a means of making additional income as you go on your normal daily job because it doesn’t need much of your time and attention to grow.
Recycling of Farm residues
The spent waste of substrate is used as a very good manure enriched with nutrients. In addition, the mushroom spawn can successfully use the decomposition coir pitch as enriched manure. The straw substrate after harvesting mushrooms can be used as nutritive cattle feed.
Materials needed for Oyster Mushroom Cultivation
You don’t need any special tool to grow edible mushrooms, sometimes you may have what you need around your house or garden.
1 . Oyster Mushroom Spores or Spawn: The primary source for growing mushrooms. You can choose between spore syringes or ready-to-plant spawn.
2 Growing Substrate: This is the material where the mushrooms will grow. Common options include:
- Straw (usually wheat or rice)
- Sawdust
- Wood chips
- Coffee grounds
- Paper or cardboard (for small-scale setups)
3 . Plastic Bags or Containers: Used to hold the substrate and mushrooms while they grow. You can use plastic bags with small holes or perforated plastic containers to allow for airflow.
4. Water Spray Bottle or Sprayer: To maintain the proper humidity level by misting the mushrooms regularly.
5. Hydrometer and Thermometer: For monitoring the humidity and temperature, which should be maintained at specific levels for optimal growth.
6. Growing Space (like a growing room or shed): A clean, dark place with good airflow and temperature control, ideally between 55-75°F (13-24°C).
7. Sterilizing Equipment: Items like a pressure cooker or large pots are used to sterilize the substrate to prevent contamination from other fungi or bacteria.
8. Gloves and Masks: To maintain cleanliness and prevent contamination while handling spawn and substrate.
9. Shredders or Scissors: To chop or shred straw, cardboard, or other substrates before inoculating them with spawn.
10. Shelf or Racks for Storing Bags/Containers: To organize and store your growing bags or containers in an efficient way as the mushrooms mature.
11. Harvesting Tools: Sharp knives or scissors for carefully cutting the mature mushrooms from their growing substrate.
12. Lighting (optional): While mushrooms don’t require direct sunlight, some indirect light can help stimulate growth in certain conditions.
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Oyster Mushroom Farm Setup
The mushroom farm should provide suitable climatic conditions. It is possible to adapt existing structures such as an empty room, tunnels, bunkers, caves, chicken houses, garages, basements, constructed mini-greenhouses, and rented houses or halls. Some successful mushroom cultivation operations take place in these places, you don’t need to build a factory or rent a big space.
All you need is just space where the colonized bag is exposed to fresh air, humidity, and a little light which causes the mushrooms to ‘fruit’.
I’ve built a few different fruiting room designs over the years, but our most recent one is the cheapest and simplest, built inside an uncompleted building where I have to net the window and the door to prevent pest and rodent infestation.
There are many ways of constructing the mushroom farm, but first, you need to ask yourself how many mushrooms you’re aiming to grow, how you build your fruiting room, and what options you have available to you. There are lots of unused spaces out there, and often you can get them for low rent or even free.
Decide on your design
After identifying a suitable location for your mini mushroom farm, it’s time to visualize its layout and bring your concept to life. Your farm’s design will largely depend on factors like available space and budget. There are countless ways to set up your growing area, but I’ll provide some examples to give you a clearer picture of what’s possible.
Shelves: since you’re growing your mushroom using a plastic bag, shelves are a better option as it will allow it to be positioned properly and there will be enough space for flushing.
Ropes: using ropes to hand the bags is also a better option and it is economical because it will save you the stress of constructing shaves and buying planks and sticks.
You can also use hanging rails instead, like the image below if you’re growing Oyster mushrooms in bigger column bags.
Floor: you can also keep your substrate on the floor for them to fruit but is not advisable to do so because of pest attacks and diseases.
As a guide though, if you optimized everything well, you’d be able to grow up to the quantity of mushrooms you need.
Oyster mushroom farming is without a doubt the easiest mushrooms to grow and I think that growing them on sawdust or straw pellets is the easiest substrate option.
For online training on Oyster Mushroom Cultivation contact 02farms on WhatsApp.
How to Grow Oyster Mushroom
Oyster Mushrooms are grown where the climate condition is not good for button mushrooms and King oyster mushrooms. It is the simplest to grow and most delicious to eat. Being very low in fat content it is usually suggested for people with obesity to eat and also for patients suffering from diabetes and blood pressure.
Oyster Mushrooms can grow at moderate temperatures that range from 20-30⁰C and humidity of 55 – 70% for 6 – 8 months in a year. It can also be cultivated in the dry season by providing the extra humidity needed for it to fruit. In the hill area the best growing season is March and April to September and October while in the lower region, it is from September or October to March or April.
The process of Oyster Mushroom Cultivation can be divided into four steps.
- Preparation of Spawn
- Substrate preparation
- Spawning of substrate
- Crop management.
Preparation of Spawn for Oyster Mushroom Cultivation
Preparation of Spawn is a process where mushroom hyphae ( mycelium) are introduced to a well-sterilized medium which could be grain, plugs, or straw, for it to be colonized properly before using it to inoculate your compost. Spawn is mostly done in a laboratory where you have the equipment to ensure 80- 90% success rate. But mushroom farmers mostly buy their spawn from a Truth vendor to prevent time wastage and complications.
Substrate preparation for Oyster Mushroom Cultivation
There are so many processes involved in the preparation of substrate which include:
Composing: It involves the homogeneous mixing of various components of organic and inorganic materials such as paddy straw, horse manure, gypsum, and other materials for the preparation of a substrate.
Materials needed for preparation are:
- Sawdust + wood chippings( not necessary) or Paddy straw.
- Supplements such as Rice bran, wheat bran, or crushed corn cobs.
- Gypsum Agricultural Some people also know it as quick lime or Chinese chulk.
Mixing proportion for sawdust substrate.
- 83% sawdust + wood chipping ( not necessary)
- 15% supplement
- 2% Gypsum Agricultural
Once all the materials above are measured in proportion, this is the stage where the composting materials are homogeneously mixed and wet as they are stacked. Water is spread into the compost while mixing till it is properly wetted.
Note: you must not add too much water to the compost to prevent it from being sticky.
But if there is too much water, you have to spread it for it to dry off some water.
After that is done, the compost should be kept for 2 to 3 days, which will enable the heat generated in the compost to kill some of the microbes, and gypsum will normalize the compost PH.
Using Straw pellet as substrate
Straw pellets such as paddy straw, wheat straw, rice straw, Sugarcane straw, and grass are also used for the formulations of substrate materials for our mushroom cultivation.
Procedure
Using Straw pellets for substrate formulation doesn’t necessarily require supplementation. This process begins by taking the required quantity of your straw pellet and pasteurizing it to kill bacterial-like and weed seeds and remove the ammonia. The compost is kept in a special room to have a pasteurization period of 2 to 8 hours depending on the method of pasteurization you want to use.
There are two types of pasteurization methods which are:
Cold Water Pasteurization: To do this method, soak your substrate in a bath of gypsum Agricultural-treated cold water for 24 hours. This increases the pH of the water, killing contaminants in the process.
Hot water Pasteurization: One way to pasteurize the substrate is simply to submerge it in boiling water for at least one or two hours. For most operations, we have found that hot water pasteurization is sufficient to grow mushrooms with minimal risk of contamination.

Bagging of your substrate Materials
Commercial oyster mushroom cultivators use bags as part of their mushroom-growing operations. These are Plastic bags that have the thickness to withstand the heat of sterilization. Depending on the substrate or growing medium you use, you can utilize bags to cultivate a wide range of mushrooms.
Bagging is the price of putting your formulated compost into plastic bags for it to be sterilized easily and bagging also helps in the process of inoculation or colonization.
Sterilization of your Oyster Mushroom Substrate
this involves exposing the substrate to temperatures higher than 250⁰F or 121⁰C and also involves placing the substrate under pressure. Sterilization is done to completely terminate or kill all contaminants that might be in the substrate, both living and currently dormant.
Simply boiling a substrate doesn’t get it hot enough to completely sterilize. For full sterilization, a pressure cooker or similar piece of equipment is needed.
Spawning/Inoculation of Oyster Mushroom Substrate
Spawning of the substrate includes the following steps.
Inoculation: This is the process of adding the mushroom spawn or spore to the prepared substrate or medium for growth. Before this is done, you may need to sterilize your hands or put on sterilized gloves and also sterilized materials ( trowel or spoon) you’re going to use in inoculating the substrate to prevent contamination.
There are two methods of inoculation of Substrate
Dry inoculation: Dry inoculation uses grain spawn or plug spawn to introduce mycelium to the substrate materials. Grain spawn is mostly used when your inoculation is a supplemented substrate. Growers usually use grain spawns for inoculation.
Wet or liquid inoculation: Liquid uses liquid mycelium growing in a nutrient-rich sterile solution to inoculate a substrate.
Mushroom cultivators generally use liquid culture to inoculate grains to make Spawn.
Incubation of Substrate for Oyster Mushroom Cultivation
It is the period where the spawn that you introduce grows and spreads out across the substrate in preparation for the final stage. The condition needed for the incubation is simple, even at home. You can use any warm (20 – 24⁰C) space in your house, like a cupboard or any other room that is not occupied.
Once the bag is completely white ( fully colonized), it is time to start fruiting.
Fruiting Initiation
After all your efforts, it’s time to reap the fruit of your labour. Mushrooms grow in the wild in response to changes in their environment. Once the substrate is fully colonized the mycelium is soon going to run out of food so it will now be the right time to allow the mushrooms to grow.
After moving your mushroom substrate to your mini greenhouse you have to provide the following optimal conditions for it to develop:
Light
Sun direct sunlight is not a good idea, some indirect or shaded light is needed for the fruiting bodies to form properly.
Flushing
Perforation should be made in the bags at about 5 cm hole to signal the mycelium that there is a space to grow out from.
Humidity
Humidity is necessary for the growth of mushrooms. The introduction of artificial humility is necessary by spraying with water using a spray bottle 2 to 3 times a day to increase the humidity or using humidifiers when considering large-scale production.
Temperature
This is specific to each strain, but generally (except king oyster mushroom) most oyster mushroom strains are not too fussy but the ideal range is 10 – 30⁰C (50 – 85⁰F) which is required for fruiting.
Note: After making all the necessary conditions, within 7 days you should start seeing tiny mushroom pins forming out of the perforated holes.
Oyster Mushroom Care
there are diverse means of taking care of your mushrooms which include:
Mushroom care on the farm:
1. From this point until fully developed, spray the substrate with water twice a day( where there is no humidifier) to encourage growth and allow for some light, but never direct full sun but you can use artificial light instead.
2. Net the farm doors, windows, and other places that allow ventilation to prevent pests, rodents, and other insects that might feed on the mushroom.
3. Always keep the farm clean, and tidy and make sure it is free from any form of chemicals or fumes.
4. If there are any competitive molds or diseases found on any substance, make sure you remove that substrate because the disease spreads to other substrate bags.
5. While harvesting use a sharp clean knife to cut it off the substrate or you can use your hands to harvest it by pulling it to yourself, but make sure your hand is clean and don’t allow any matured mushroom to remain on the surface of the substrate till it decays because it might cause disease infection on the substrate.
Harvesting of Oyster Mushrooms
Once the edge of the cap of the oyster mushrooms starts to flatten out or turn upwards, it’s time to harvest before they begin dropping lots of spores. This is difficult to judge the first time around, but you will soon get a feel for it.
Packaging/ Preservation
Freshly harvested mushrooms can be kept for up to 14 hours before they start to wither and decay. The mushrooms must be clean and dry, and not kept in close containers or plastic bags. Properly clean mushrooms could be kept in the fridge for it to be preserved for up to a week or more. Use a paper bag or kitchen paper bag instead of a wet mushroom and the temperature should be between 0⁰C – 5⁰C(32 – 41⁰F).
Drying is another means of preserving oyster mushrooms. Completely dried Oyster Mushrooms can last up to 7 months if properly packaged in an airtight container.
Bottling is another way of preserving mushrooms, the advantage of this method is that the mushrooms retain much of their flavor and can be eaten immediately.
Oyster Mushroom Marketing
Marketing mushrooms is not that difficult, as there are many places and methods on how to start marketing your mushrooms locally, nationally, and internationally. Here are the different ways on how to market your mushrooms:
1. You can sell your mushroom locally in the local markets that are close to you.
2. You can also visit vendors that specialize in marketing vegetables and other farm produce to market your produce.
3. Packaging your production properly and advertising it online is a Very good way of marketing your mushroom.
4. Package products can be sold in Supermarket stores and online stores.
5. Exporting your product to a foreign country for foreign exchange is another way of marketing your product profitably.
Other ways to make money with Oyster Mushroom Cultivation
1. Mushroom growing kits: it’s a fantastic way to help people cultivate their fresh mushrooms right at home. By creating and selling these kits, you’re not only sharing the joy of mushroom growing but also offering a fun and rewarding experience for beginners and enthusiasts alike! you can also refer to the here to know how it works.
2. Source of extra income: They make unique gifts & can help spread the word about your business too.
3. Workshops, tours & courses: once you’ve mastered the growing process, you can run courses and short workshops teaching people what you do and why mushrooms are fantastic!
4. Set up a food or festival in your street: Its stall brings your mushrooms to life at a local food market or festival! Cook them up in creative, mouthwatering ways that add extra flavor and value. Whether grilled, sautéed, or turned into delicious mushroom-based dishes, your stall is sure to be a hit with mushroom lovers of all kinds!
Oyster Mushroom Cultivation Frequently Ask Questions
1. How long do oyster mushrooms take to grow? Oyster mushrooms take about 3 to 6 weeks to grow from inoculation to harvest, with mycelium colonization taking around 2-3 weeks and the fruiting process maturing in 7-10 days under ideal conditions.
2. Where do oyster mushrooms grow best? Oyster mushrooms grow best in cool, humid environments with temperatures between 55°F and 75°F (13°C to 24°C) and high humidity (85-90%). They thrive in places like basements, sheds, or temperature-controlled rooms with indirect light.
3. How much do oyster mushrooms yield? Oyster mushrooms can yield 6-10 times the weight of the spawn used. For small-scale growers, a single growing bag may produce 1-2 pounds of mushrooms, with multiple harvests possible over a few months.
4. Which oyster mushrooms are easiest to grow? The Pearl Oyster Mushroom (Pleurotus ostreatus) is the easiest to grow, being adaptable to various substrates and environmental conditions. It has a short growth cycle and is a great choice for beginners.
5. What is the life cycle of oyster mushrooms? The oyster mushroom life cycle includes inoculation (2-3 weeks), colonization (1-2 weeks), fruiting (7-10 days), and harvesting. After the first harvest, additional flushes can occur until the substrate is exhausted.
Conclusion
Oyster mushroom cultivation offers an exciting and profitable opportunity, whether you’re looking to start a small side business or dive into full-scale farming. With relatively low startup costs, quick harvest times, and growing consumer demand for fresh, locally-grown produce, you can turn this simple farming method into a steady income stream. By choosing the right substrates, creating the perfect growing environment, and marketing your mushrooms effectively, you can build a successful venture that’s both rewarding and sustainable. So, roll up your sleeves, get your hands in the soil, and start growing- with a little care and patience, you’ll soon be reaping the rewards of your Oyster mushroom farming journey!
Do you find this article helpful? or there are certain parts you want us to improve on, please kindly leave a comment below. I’d love to hear from you!