Enhancing Community Based Economic Value through Local Material Utilization within the Value Chain of Hed Cone Noi (Coprinopsis cinerea) Mushroom Cultivation in Chiang Mai Province

Abstract

Background and Objectives: Hed-cone noi (Coprinopsis cinerea) is a saprophytic, edible mushroom widely distributed in Thailand’s tropical forest, particularly in the dry evergreen forests, mixed deciduous forest, and deciduous dipterocarp forest where leaf litter accumulates on the soil surface and termite mounds are present. The species also proliferates on moist piles of organic residues such as rice straw, legume residues, and sugarcane bagasse in high humidity, particularly after Thailand’s rainy season. Hed-cone-noi is well established in cultivation, with strong prominence in Chiang Mai Province. As a biological resource Hed-cone-noi links natural ecosystem functions with local based production systems. Its capacity to utilize locally available organic materials enables integration into smallholder farming and valorization of agricultural waste. By prioritizing locally sourced substrates, the research aims to minimize external inputs across the value chain, thereby enhancing household incomes and promoting sustainable resource management in local Thai communities.    The objectives aimed to investigate the utilization of local raw materials in the cultivation process of Hed-cone noi and to strengthen the community-based enterprise development. Then, knowledge can promote grassroot economic development and enhance income generation throughout the value chain in the target areas of Chiang Mai Province. All data collection was done during March 2024 to February 2025.

Methodology: This study employed a mixed-methods research design, integrating both qualitative and quantitative approaches, across three target areas in Chiang Mai Province, Thailand: the northern zone of Mae Taeng District, the eastern zone of Doi Saket District, and the southern zone of Saraphi District. The population samples involved two groups. The first group consisted of three local enterprise leaders (Local enterprises: LEs), each selected based on specific criteria: (i) leadership of a community enterprise, (ii) logistics suitable for Hed-cone-noi collection and distribution of, and (iii) possessing at least three years of experience in mushroom cultivation or related agribusiness experience. The second group included members of the three community enterprises (total n = 38). Using purposive sampling for sample population selecting, 12 members (four per site) participated in qualitative data collection in total, 15 participants (3 LEs and 12 members). Qualitative data were obtained through focus group discussions and analyzed through direct content analysis based on SWOT analysis. Then, the strengthens (S), weaknesses (W), opportunities (O), and threats (T) of community-based cultivation enterprises were received. Quantitative data were gathered over 12 months using structured recording forms to capture the value of raw materials used in fresh mushroom production. Data analysis employed descriptive statistics, including summation and ratio analysis, to compare the proportion of locally sourced materials with external input sourcing. A model learning and mentoring hub of the sustainable agriculture community enterprise in Ban Sop Faek, Mae Faek Mai Subdistrict, San Sai District facilitated knowledge transfer, appropriate technologies, and integrated production processes from inoculation and spawn production of substrate preparation and distribution to participating smallholders. The intervention aimed to transfer production techniques and technologies to emerging community-based entrepreneurs, thereby increasing local monetary circulation, reducing external inputs, and self-reliant agricultural development in Thailand.

Main Results: The findings indicate that the establishment of three new community-based mushroom enterprises in Mae Ho Phra Subdistrict (Mae Taeng District), Samran Rat Subdistrict (Doi Saket District), and Nong Faek Subdistrict (Saraphi District), Chiang Mai Province, strengthened the Hed-cone-noi value chain by aligning supply with rising local demand and linking smallholder farmers to consumer markets and distribution networks. This enhanced value addition and monetary circulation at the grassroots level. Production capacity per enterprise was standardized: 38 inoculum bottles, 945 bottles of spawn, and 17,000 substrate blocks, which were subsequently distributed to a total of 750 cultivating households. The development of these enterprises resulted in a substantial increase in the utilization of locally sourced production inputs, with an annual value of 2,147,499.30 Thai Baht, compared to 1,042,091.95 Thai Baht for externally sourced inputs. This corresponds to a local to external input ratio of 67:33, highlighting the significant role of local resources in supporting fresh mushroom production systems. Spatial variation in local economies affected input sourcing regions with predominantly agricultural livelihoods relied more on local materials, while areas transitioning toward tourism-oriented economies depended more on external inputs. These patterns highlight the influence of socio-economic context on resource use strategies and the potential of localized production systems to bolster community resilience.

Conclusion: Strengthening newly established community-based enterprises that serve as critical nodes within agricultural value chains by primarily utilizing locally sourced materials from the community for the production process of Hed Cone Noi mushrooms can stimulate grassroots economic development. While both local and external inputs are mobilized, increasing the share of locally sourced resources materially enhances local monetary circulation and economic resilience. Contextual factors, especially land-use patterns and shifts in economic structure, meaningfully influence material availability and production costs. In regions shifting toward tourism or non-agricultural sectors, greater reliance on external inputs may diminish local value retention. Fostering localized enterprise networks and robust local input supply systems to boost material retention and economic multipliers. Expanding technology transfer in production and post-harvest management, improving market access, and strengthening inventory management and logistics. Scaling the community-based enterprises model to the regions by adapting to local resource endowments and socio-economic contexts, with ongoing monitoring of input sourcing, yield, and household income impacts.