Work

From Grow Room to Market: A Techno-Economic Feasibility Assessment of Family-Operated Small-Scale Cordyceps militaris Production

Year: 2026

Type: article

Abstract: Cordyceps militaris is a high-value medicinal mushroom with growing demand in functional-food and nutraceutical markets, yet practical frameworks for small-scale, family-operated cultivation remain limited. This study presents an integrated technical and economic feasibility analysis of small-scale Cordyceps production under two scenarios: a one-room setup (Scenario 1) and a two-room configuration with a shared processing area and staggered scheduling (Scenario 2). Both use consistent biological, operational, and market assumptions with no hired labor, and the analysis covers capital expenditure (CapEx), operating costs (OpEx), profitability, payback, and break-even thresholds, complemented by sensitivity analysis of parameters such as biological efficiency and contamination rates. Both scenarios were technically and financially viable. Scenario 1 achieved a net present value (NPV) of $1761, an internal rate of return (IRR) of 10%, a 4.7-year discounted payback, and a 133% five-year return on investment (ROI); Scenario 2 attained an NPV of $85,437, a 66% IRR, a 1.6-year payback, and a 366% ROI. Because gross margins were consistent across scales, the expansion’s advantage stemmed from more efficient CapEx amortization rather than improved unit profitability. Cordyceps cultivation emerges as a viable family-operated, small-scale enterprise that can diversify family income, generate supplementary or primary earnings, and support urban and rural livelihoods.

Source: Processes

DOI: 10.3390/pr14121983