New Zealand scientists believe a breakthrough in fermentation could create a new multimillion-dollar export market for shiitake mushroom extracts into China.
Researchers at Massey University’s Riddet Institute and Auckland-based biotech exporter Alpha Group are developing new methods of extracting high-value bioactive compounds from shiitake mushrooms using fermentation, a process that delivers higher yields in weeks rather than the many months required for traditional cultivation.
Fermentation utilises controlled bioreactors to cultivate and concentrate compounds from mushrooms or plants, offering a faster and more efficient method for producing nutraceutical ingredients.
Alpha Group is one of New Zealand’s largest biotech exporters, with Reishi mushroom extracts generating hundreds of millions of dollars in global sales each year.
Extracts from the shiitake mushroom would be used to create a new line of export products for the Chinese market.
The research project extends a 20-year partnership between Alpha Group and the Riddet Institute that has seen over $3 million invested to develop world-first fermentation technology and new export markets for New Zealand.
Significant export opportunity
Professor Yihuai Gao, founder of Alpha Group and a global leader in fungi research, says the export opportunity for a shiitake mushroom range is significant.
He says the company’s proprietary fermentation process enables Alpha Group to extract nutrients with minimal environmental impact.
“The global appetite for functional foods and natural wellness products is growing rapidly, and our shiitake mushroom range positions New Zealand as a credible exporter of high-value, science-backed nutraceuticals that meet this demand.”
“After more than two decades researching bioactive compounds in fungi, we now have the evidence and technology to turn New Zealand’s scientific excellence into a commercial advantage on the world stage.
Professor Gao says by utilising controlled fermentation, they can deliver natural bioactives sustainably, creating products that support both human health and the planet.
“The potential export value of our shiitake range is enormous, and we’re not simply growing mushrooms, we’re developing a biotechnology platform capable of producing consistent, high-purity ingredients at a global scale,” he says.
“Our goal is to position New Zealand as a global centre of excellence for bioactive research and production. Our vision is to integrate science, sustainability and manufacturing capability so that New Zealand becomes synonymous with the next generation of natural health innovation.
“What began with shiitake mushrooms is just the beginning, as this technology opens the door to a range of new, high-value exports derived from our natural environment.”
Opening new doors
Distinguished Professor Paul Moughan, co-founder of the Riddet Institute, says the science could open new doors for growers across multiple crops.
“The Institute has a long track record of extracting nutraceuticals from non-traditional sources such as kiwifruit polysaccharides, macadamia nuts, avocado and even New Zealand ginseng.
“New Zealand wastes significant volumes of kiwifruit, feijoa, and avocado, all of which contain potent bioactives that are underutilised. The new fermentation research is not limited to shiitake mushrooms – the same bioreactor systems could, in principle, be adapted to other crops and food by-products, providing future opportunities to transform horticultural waste into premium nutraceuticals.”
Professor Moughan says this is about helping the horticultural sector shift from volume to value.
“Our role at the institute is to take world-class science and show how it can be adapted to unlock commercial opportunities across multiple crops. The fermentation platform being built now represents a model that can be scaled and transferred to other produce – creating a pipeline of new, evidence-based nutraceuticals.”
