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The methods described Cantharellus above are used for Shiitake Cantharellus cultivation where a supply of hardwoods (preferably Oak) are available. Outdoor and indoor cultivation make Shiitake the second most cultivated species after the White Button mushroom in terms of quantity of mushrooms produced. Outdoor cultivation is dependable, with a 90% success rate. A top-quality product is produced from this method, which, if not sold fresh, can be dried to top grade dried mushrooms. The same technique can be used for Wood-ear, Nameko, Kuritake, Tremella, Maitake, and Reishi. Variations in log management include partially burying the logs in the ground in the bush or under artificial shade and having the mushrooms pop up from the ground. This is done for Nameko and Reishi.

Depending on your location and availability of logs outdoor cultivation can be the method requiring the least investment for startup. If a woodlot is available as a growing area, no artificial shade is required. If you can cut your own logs a major cost is eliminated. Typical startup costs for an outdoor Shiitake mushroom operation in Southern Ontario for a person who has the woodlot but must purchase Oak logs are as follows:

logs at approximately CDN$ 150.00 per bush cord plus delivery translates to approximately $ 2.00 – $3.00 per log
spawn at $ 1.00 to $ 3.00 per log, depending on inoculation rate
drills and drill bits can add $ .50 – $ 1.00 per log
labor costs for inoculation will be approximately $ 1.00 per log
The total is approximately $ 5.00 to $7.00 per inoculated log
The lifespan of a log (with a single inoculation) averages 5 years. The rule of thumb is 1 year for each 1″ diameter. With proper management the mushroom production can be at least ½ kg. (1 lb) per log per year. If you use shaded polyhouses and “force” the logs you can get up to 4 lbs. per log per year but for a shorter lifespan. In total you can expect approx. 3 kgs. or 6 – 8 lbs. from each log.