Fungi Farm, located in the Ternopil region, Ukraine, has been one of the leaders in the Ukrainian mushroom cultivation market for over 20 years. Founded in 2005 by Yaroslav Salovskyi, this family business has become a significant player in Ukraine’s mushroom industry. Today, almost all family members work at the company: Yaroslav himself, his sons Yevhen and Volodymyr. The company’s chief technologist is Yaroslav Salovskyi’s wife, Nadiya Salovska, who is responsible for quality control and the implementation of new technologies in production. In our conversation with Yevhen Salovskyi, the company’s financial director, we discussed the main challenges and opportunities facing the business during the war.

How is the business coping with the war?

According to Yevhen, the challenges for the company are significant. Military actions have impacted operational stability, particularly due to power outages. In the Ternopil region, the electricity situation has become more stable, but outages still occur. “This affects not only production but also consumption, as supermarkets—which are important partners for the company—cannot function efficiently without electricity,” Yevhen explains.

What is the current state of mushroom sales?

Demand for products depends on the season. After the New Year holidays, sales traditionally decline as people try to save money. However, during the festive period, demand was high, especially from processing companies, which remain stable buyers of mushrooms. “This is partly due to the needs of the army,” he adds. Mushroom prices fluctuate significantly: last year, the average price was over 100 UAH per kilogram (2.2 euro incl VAT), reaching 150 UAH (3.4 euro incl VAT) during the holidays.

What is the situation with raw materials?

Raw materials are also a critical factor. The price of Phase III compost has risen to 8,000 UAH (230 euro incl VAT) per ton, while casing soil costs between 1,400 and 1,850 UAH (34-44 euro incl VAT) per ton. “There are no problems with the supply of casing soil, as the supply is growing and the quality meets our requirements,” says Yevhen. The company’s primary supplier is Sphagnum Group, which provides high-quality products. However, the choice of compost suppliers in Ukraine is limited, and the company works exclusively with Phase III compost, which ensures stability, reduces diseases, and contributes to higher yields.

How are you addressing the labor shortage?

“The labor situation is challenging,” Yevhen admits. “The lack of men, who traditionally make up a significant part of the workforce in this industry, forces us to invest in improving conditions for employees.” The company offers competitive wages, exceeding 100 UAH (2.4 euro) per hour, as well as transportation and comfortable working conditions, which help maintain competitiveness.

What else should we know about your company?

Fungi Farm cultivates up to 130 tons of mushrooms per month on two farms and ranks among the top three producers in Ukraine. “I believe that for any business, it is essential to carry social responsibility alongside its main activities. In this regard, we have achieved a lot. Of course, our primary focus is on helping the army, and we provide assistance both through funds and directly. Recently, we purchased an electronic warfare device. We also support pediatric oncology, participate in the rehabilitation of soldiers, help translate books into Ukrainian, and are involved in creating a library in Kharkiv. There are many exciting projects, and I must emphasize how important it is for us to have this opportunity,” Yevhen says. The company’s products are sold in supermarkets, markets, and for processing. Special attention is given to packaging under its own brand and the development of social media. “Recently, we started installing solar panels, which help reduce dependence on traditional energy sources,” he adds.

How do you collaborate with UMDIS?

The company actively collaborates with industry experts. One key partner is UMDIS consultant Iurie Boichuc. “Thanks to his recommendations, we are improving production processes, increasing yields, and enhancing product quality. The cooperation format includes both on-site work and remote consultations,” Yevhen notes.

Fungi Farm remains an example of a successful family business that continues to grow even in challenging times. Continuous innovation, high-quality standards, and a focus on customer needs allow the company to maintain its leadership position in the market.

Facebook: https://www.facebook.com/Fungi.farm.UA
Website: https://fungifarm.com.ua/