The Straw Mushroom Model: A Circular Economy Solution

Did you know that you can grow mushrooms from rice straw?

At the Tan Binh Cooperative in Thanh Binh district, Dong Thap province, farmers have embraced an innovative solution to transform leftover rice straw into a valuable resource. Through a straw mushroom cultivation model, agricultural byproducts from harvesting sustainable rice are collected, processed, and repurposed. This approach not only offers an efficient straw management solution but also contributes to circular economic practices in agriculture. After harvesting mushrooms, the remaining straw residue is converted into organic fertilizer, enriching local farming with natural nutrients.

This initiative is part of the "Developing a Sustainable Rice Value Chain for Smallholder Farmers in Dong Thap Province" programme by Rikolto, implemented in partnership with the Dong Thap Provincial Sub-Department of Rural Development. It highlights how sustainable innovation creates economic opportunities for smallholder farmers while promoting eco-friendly agriculture.

Harvesting more than rice: Unlocking value from every straw    

Straw management remains a significant challenge in rice production, especially under the Sustainable Rice Platform (SRP) standard, which emphasizes reducing greenhouse gas emissions. When left in fields, rice straw is often burned, releasing large amounts of carbon dioxide (CO₂) and methane (CH₄) - potent greenhouse gases contributing to climate change.

At Tan Binh Cooperative, the straw mushroom cultivation model turns this environmental challenge into an economic opportunity. Rice straw is removed, bundled, and repurposed as a substrate to grow high-quality mushrooms. This practice eliminates harmful emissions from straw burning while generating economic value from agricultural waste. Over a 45-day cycle, the model demonstrated its effectiveness by transforming 500 bales (approximately 10 tons) of rice straw into 700 kilograms of mushrooms, yielding a profit of 7.4 million VND (€284). Additionally, reprocessing the leftover straw into organic fertilizer generated an additional 4 million VND (€154), further enhancing the model’s profitability.

Overcoming challenges with resilient inputs

Beyond its financial success, the model also demonstrated resilience during challenging weather conditions. Outdoor cultivation areas faced challenges such as heavy rain and low temperatures, which hindered the growth of baby mushrooms. However, the use of SRP straw, sourced from sustainable rice farming with minimal chemical use, helped. Thanks to its clean and high-quality input, the mushrooms’ growth rate remained stable despite the adverse conditions. Cooperative members then enhanced monitoring and added protective straw layers to shield the baby mushrooms.

The model's success has inspired wider adoption among Tan Binh Cooperative members, with 5-7 households now cultivating straw mushrooms at home. They integrate this activity with fruit gardens to diversify their income streams and increase profitability. Tan Binh Cooperative provides technical training and market access, ensuring that sustainable straw management benefits both the environment and local livelihoods.

Looking ahead, Rikolto and its partners aim to scale the model across 20 Tan Binh Cooperative’s members, promoting sustainable agricultural production and circular economy practices throughout the region. This innovative approach transforms waste into wealth, demonstrating how eco-friendly solutions can create lasting value for rural communities.