Silo Wellness Inc. (SILFF)

[Jose Chavez]

Mushroom Cultivation: A services industry versus product industry

Silo Wellness began legally harvesting mushrooms in Jamaica in 2019 and cultivating shortly thereafter. "We came to Jamaica to cultivate mushrooms out of necessity and then saw the writing on the wall regarding commoditization," explained Arnold. "We then taught a local family how to cultivate mushrooms and began partnering with other locals as they entered the space.

"I have heard a lot of entrepreneurs talking about their plans to be mushroom growers under Oregon law, which is concerning given how quickly this market may commoditize. The room you are in right now can almost grow enough mushrooms to dose an entire Oregon county. Five grams of dried biomass is often way too much for some people in a session and you can stack boxes or grow bags vertically. This will commoditize much faster than what it took for cannabis. That's a race to the bottom. You need a small room or outbuilding to grow enough mushrooms for an operation. Growing mushrooms is not the land grab issue like growing cannabis. You will not be seeing early-cannabis-like business valuations based on grow space square footage. This is about locations for the services, the team to safely conduct them, and the brand and marketing to attract clients."