- Innovate UK support: New Innovators Fund
Case study: Scaling Welsh mushroom production to meet growing demand
Fungi Foods, based at Tyn yr Onnen Farm in Gwynedd, is developing new ways to scale mushroom production while supporting the long-term sustainability of UK growers. With support from Innovate UK, the business is addressing a key challenge facing the sector: how to meet increasing demand from supermarkets and food brands without losing the flexibility and resilience of smaller-scale production.
Demand for UK-grown mushrooms has grown steadily in recent years, driven by changing diets and a shift towards plant-based and low-impact foods. However, traditional mushroom production methods can be labour intensive, particularly at the blockmaking stage, limiting the ability of growers to scale efficiently and consistently. This creates a barrier for producers seeking to supply larger customers while maintaining quality and reliability.
Fungi Foods' Innovate UK-supported project focuses on developing automated, scalable blockmaking processes that can significantly improve production efficiency. By modernising this critical stage of mushroom cultivation, the project aims to increase output while reducing manual handling and production bottlenecks. The approach is designed to be adaptable, supporting both larger commercial supply and smaller growers who want to grow their businesses sustainably.
The innovation is rooted firmly in practical farming experience. Based at Tyn yr Onnen Farm, the team is testing solutions in a real-world setting, ensuring that new processes are workable, robust and suited to the needs of growers. This hands-on approach helps bridge the gap between innovation and everyday agricultural practice, making it easier for the sector to adopt new technologies.
Beyond individual farm benefits, the project contributes to strengthening the UK mushroom supply chain as a whole. Increasing domestic production capacity helps reduce reliance on imports, improves food security and supports rural economies. By creating scalable solutions that remain accessible to independent growers, the project also supports diversity within the sector.
Fungi Foods' work has already attracted wider attention, including featuring on the BBC programme Chris Cooks Cymru, highlighting the growing interest in Welsh-grown produce and innovative farming approaches. With Innovate UK support, the project demonstrates how targeted innovation can help future-proof food production while retaining strong local roots.
Project facts
- Business: Fungi Foods, Tyn yr Onnen Farm
- Location: Gwynedd
- Innovate UK support: New Innovators Fund
- Focus: Automated and scalable mushroom blockmaking
- Key benefit: Increased production efficiency and reduced labour intensity
- Wider impact: Stronger UK-grown mushroom supply and reduced reliance on imports
