Recipient Organization
HAWTHORNE MUSHROOMS, INC.
9030 S. 825 E
MONTGOMERY,IN 47558
Performing Department
(N/A)
Non Technical Summary
The growth, marketing, and sales of specialty mushrooms represent new opportunities for farmers struggling following the collapse of livestock markets in that late 1990s and early 2000s. Continued success in the domestic cultivation of mushrooms depends on the ability of growers to reach their markets, forecast demand, and ensure distribution of their product in a manner that enables both profitability and competitiveness with international producers. In Phase I, Hawthorne Mushrooms, Inc. proposes a plan that will advance the marketing methods of mushroom growers, increase and stabilize distribution channels, and better enable growers to forecast demand for specialty mushrooms based on seasonal factors and changing tastes.
Animal Health Component
50%
Research Effort Categories
Basic
(N/A)
Applied
50%
Developmental
50%
Goals / Objectives
Hawthorne has demonstrated the viability of growing specialty mushrooms for small- and medium-sized farms. Hawthorne looks to establish higher operating efficiency levels as well as testing methods of planned marketing in distribution by increasing the technological infrastructure of its operation. Hawthorne looks to establish the marketability of additional items for sale such as individually packaged mushroom boxes and synthetic substrate logs to would-be mushroom growers around the nation. Objectives: 1. Establish a web presence capable of collecting orders and automating processes of distribution to complete those orders. Currently orders for mushrooms are handled manually. There are no electronic marketing devices for new customers seeking specialty mushrooms. Hawthorne looks to establish a template that will enable sales of mushrooms through its own site and be available for re-sale to other operations to create web presence and enhance sales, distribution and
marketing through the Web. 2. Establish demand for synthetic substrate logs for growing mushrooms. Hawthorne produces on average between 5,000 and 6,000 pounds of specialty mushrooms a week. These mushrooms are cultivated from synthetically-created substrate logs. These logs consist of a formula of sawdust, grain meals and additional added minerals and substances that provide nutrients for the growth of mushrooms. Holes are drilled into the logs and mushroom spawn is injected into them. Creation of these logs is equipment and labor intensive. The creation and inoculation requires sterilization equipment and a clean room environment for material output of mushroom crops. Many farms around the nation that might be interested in growing specialty mushrooms and have the facilities significant to grow them might be precluded from entering the business because their budgets preclude them from purchasing the proper equipment for creating or sterilizing the substrate on which the mushrooms
will grow. Hawthorne plans to investigate appropriate channels of demand from both the agricultural and educational sectors to determine the levels of interest in purchasing synthetic substrate logs for growing specialty mushrooms. 3. Establish demand for prepackaged mushrooms with local/regional grocers as well as the demand for fresh mushrooms through local/regional restaurateurs. Local/regional retailers and restaurateurs are purchasing mushrooms weekly if not daily. Hawthorne looks to reach local markets through survey and determine the level of interest in buying locally grown oyster mushrooms. 4. Establish a software system that demonstrates consumer demand based on recent/seasonal sales and is able to forecast future demand trends based on historical data. Perhaps the most beneficial element is the ability to enable smaller farms to successfully forecast demand for their cash crops based on recent sales and seasonal trends. A scan for products as described here yielded no
results for the type of solution needed by Hawthorne. Upon successful testing Hawthorne seeks to make this application publicly available to farms looking for better ways to track their sales and predict future demand.
Project Methods
1. Creating a web presence in a re-sellable template format: Working with Adam Bowling of abra\data Hawthorne looks to create an alpha test version of a web template that other operations might use to establish a Web site. The impetus behind the creation of this template is to enable farmers to reach new customer channels that are unavailable or difficult to reach. Adam Bowling will design the initial template on a replication-friendly platform suitable for Microsoft hosting platforms. The initial template design will be developed in ASP.NET in VB.NET programming language. The template will feature client-side AJAX functionality. The end product of Phase I will enable users who have no experience in writing HTML or programming to enter information into forms that can be published on the Web. 2. Establish demand for synthetic substrate logs for growing mushrooms: In order to establish the demand for substrate logs Hawthorne will design a survey instrument in
collaboration with Adam Bowling of abra\data on the Web. That instrument will be published on the Web and ask targeted agricultural and educational audiences if they are interested in possible opportunities for growing mushrooms synthetically and whether they would be interested in purchasing logs for growing mushrooms from Hawthorne. Responses will be collected in a SQL database created by abra\data and reports of the survey results will be available to Hawthorne principals. To reach the appropriate targeted audiences Hawthorne plans to interact with local and regional educational groups as well as agricultural advocacy groups including local and regional co-ops and extension agencies. 3. Exploring and Testing Direct Selling to Retailers and Restaurants: Task 3 will involve the investigation and purchase of sample packing materials. Currently Hawthorne Mushroom Farms sends mushroom crops to customers, most of whom are wholesalers, in bulk bins. Our customers then pack the mushrooms
and send them to retail outlets, including grocers and restaurants. We believe that by testing our local markets and establishing demand among local outlets we may improve our margins relative to the price we receive by selling our product to wholesalers. If market testing in Task 3 proves that local markets have sufficient demand for direct selling of our products then a Phase II proposal will include expansion of our internal packing facilities and implementation of packing operations to meet those local demands. 4. Establish a software system that demonstrates consumer demand based on recent/seasonal sales and is able to forecast future demand trends based on historical data. Again, involving abra\data, Hawthorne will collaborate with Adam Bowling in developing a system in ASP.NET/VB.NET that features a user-friendly front that tracks recent orders, considers the season and helps forecast future trends based on this data. Upon creation of the interface Hawthorne will study the
trends to determine that the system forecasts are reliable. In Phase II Hawthorne will look to further hone this system and package it for re-sale to other operations to improve their efficiencies in selling and marketing cash crops.