PermaFungi Belgium

This interview details PermaFungi, an indoor farming company based in Belgium. The interview is with Stijn Roovers, COO and Co-Founder of PermaFungi.

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What is the origin story of PermaFungi?

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The origin story of PermaFungi started when the two young founders of PermaFungi met. They traveled to Thailand and there they noticed a coffee factory was using the waste streams from coffee production as a substrate for cultivating shiitake mushrooms.

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This innovative approach involved using organic waste streams that would otherwise be discarded or given to animals as feed. This realization inspired them to explore similar possibilities within the urban environment of Brussels.

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In Brussels, they discovered abundant waste streams, particularly from the coffee industry. Belgians consume an average of nearly five kilograms of dry coffee per year person, resulting in a substantial amount of coffee waste. Ideally, this waste could be used as a compost ingredient.

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However, the unfortunate reality is that more than 85% of coffee waste is thrown away with domestic waste and ends up being incinerated. This has a direct connection to increased CO2 and other greenhouse gas emissions.

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What are some of the biggest challenges facing PermaFungi in the future? 

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The hardest challenge was finding the right balance between paying salaries at the end of the month and staying loyal to the concept. We did not want to participate in the economic logic of growing bigger to have a lower price, as it would not make us any different from other large companies.

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We want to stay true to the idea of valorizing local organic waste streams and the quality of the end product. Since 5 years we are experementing with our own used substrate (champost) in order to create circular and organic mycelium materials that are able to replace fossil fuel based materials on the insulation and packaging market. It's crucial to have the capacity to scale up in order to meet the demands of major players in the market.

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Currently, our main challenge is successfully implementing the scale-up process for myco materials. This is a significant endeavor as it marks the first major expansion of PermaFungi. We have acquired an additional production site and are taking various other steps to support this growth. The key to achieving this is establishing an organizational structure that aligns with and upholds our participative management approach, which has always been a core principle of PermaFungi.

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We are utilizing deep democracy and sociocracy tools to achieve our goals. This includes implementing operational scale-up, recruiting efforts, and improving our commercial strategies. Our focus is on preparing for the future, and this presents our biggest challenge.

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We are actively engaged in the field of research and development (R&D). Although we have been involved in this sector for five years now, there is still a significant amount of R&D work ahead of us. We are exploring various new demands and domains that were previously overlooked, particularly in relation to the production of the myco materials.

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What is unique about PermaFungi compared to competitors?

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The mushroom part it's unique. We have remained loyal to our idealistic concept of valuing coffee waste and incorporating negative externalities into our product. Every mushroom purchased from us has a positive impact because it is cultivated using coffee waste that would have otherwise been burned. This is just one aspect that distinguishes us.

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Another aspect that makes us unique is the freshness of our product. In Belgium, more than half of the mushrooms are produced in Poland. This means that they have to be transported for three to four days, which can damage their quality. Our mushrooms, on the other hand, are harvested in the morning and on sale in the shops in the afternoon. This ensures that our mushrooms are always fresh and of the highest quality. This circular approach distinguishes us from our competitors.

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Our business is founded on the circular ID of waste valorization, and we are looking at other waste streams in and around Brussels to produce mycelium materials. This would make us 100% circular in a new dimension in a new sector, which is materials isolation and packaging materials with 100% organic products.

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How do you measure the impact of your company so far? (Revenue, Employees, Customer Quantity, Production Volume) etc? 

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There are certain indicators that help us understand and measure the impact. For example, when we valorize one kilogram of coffee waste, it prevents approximately one kilogram of CO2 from being emitted. This connection serves as a valuable metric for measuring our impact. Additionally, the positive effects extend beyond just the nominal employees; they also contribute to the overall social impact.

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What sets us apart is our collaboration with the public service resposable for employment solution from Brussels, who are responsible for integrating individuals who have long-term unemployment and lack education and training opportunities. These individuals can undergo training with us, and we provide them with support throughout the process.

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So they have a better chance of finding employment in the job market. Currently, we are only six people, but within one or two years, we expect to grow to 20 to 30 employees. The amount of production is also important because the more we produce, the more waste we can valorize effectively. This is a significant factor to consider. We have also conducted a life cycle analysis to gain insights into our operations during this transition. It is crucial to prioritize the well-being of our employees during this period of change.

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It is never easy, as many employees are attached to our current way of working, while we need to make several changes. Therefore, we are dedicating considerable attention to preparing for the future.

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What have you learned that you wish you knew when you joined the company? 

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I believe it's about the scale of our operations. We strongly favored lean development, which means we avoided taking too many risks and gradually expanded. We relied partially on government aid to maintain this lean approach. In hindsight, it would have been more logical to aim for a faster scale-up from our initial size of 100 square meters to the current 1200 square meters. This would have resulted in fewer intermediate steps or obstacles. This is just one aspect that could have been beneficial.

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It is evident that relying solely on the sale of mushrooms is not a strong business model. We have identified three key domains: EAT, GROW, LEARN. The "EAT" aspect entails mushroom production, while "GROW" includes the production of growth kits and similar products. On the other hand, "LEARN" involves raising awareness through visits, training sessions, and other educational activities.

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Consequently, we are constantly seeking new and innovative methods to expand our product range. This pursuit has led us to explore the utilization of mycelium materials.

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How can people connect with you or learn more about PermaFungi?

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Visit our website at https://www.permafungi.be/en/ and people can send us an email to info@permafungi.be We are happy to answer any request.

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Our Social Profiles: LinkedIn, Instagram and Facebook.

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