The industrialized cultivation of Flammulina velutipes adopts modern industrial facilities, artificially simulates the ecological environment conditions of Flammulina velutipes, and implements mechanization of production, intelligent control of production environment, annual production of fresh mushrooms and standardization of product quality. Its essence is to equip agriculture with modern industrial achievements, transform agriculture with modern science and technology, organize agriculture with modern management science and manage agriculture with modern market concept.

In 1960s, Flammulina velutipes was cultivated in plastic bottles equipped with air conditioning equipment and automation devices in Japan, which constituted a complete system and realized the industrialized cultivation of Flammulina velutipes. From the 1980s to 1994, China has explored a set of factory production and cultivation techniques in line with the national tradition of China.

The production workshop adopts a closed workshop. At present, the most widely used workshop is the color steel plate workshop with heat preservation. There is no need for industrial waste, livestock farms, garbage dumps and other pollution sources around; Production water meets the drinking water standard of urban residents.

According to the production layout, it is generally divided into five areas: the first area is sterile area, including cooling room and inoculation room, which is the cleanest area in the factory; The second area is the breeding area, which has strict requirements on cleanliness; The third area is the area of grasping, fruit and packaging, which has high requirements for the overall environment; The fourth area is the operation (loading and sterilization) area, which has no special requirements for the environment; The fifth area is the raw material dump and waste treatment area, which is an area with more dust and miscellaneous bacteria. According to the daily production and different varieties, the area of each area is reasonably allocated, and different management requirements and personnel flow requirements are formulated for each area.

The most important thing is the adjustment of mushroom house, which requires good ventilation settings, heat preservation and cooling equipment, moisturizing and humidity reduction equipment, dimming equipment and so on. The roof and surrounding walls of the mushroom house should be flat and solid, and the ground should be kept warm, leaving no gaps except ventilation, which is convenient for cleaning and disinfection.

The mushroom room is required to be relatively independent, and the cold storage should be arranged in the middle aisle, and the door should be opened in the aisle, so that the aisle will form a buffer room to reduce the temperature when the outside world exchanges air with the mushroom room. The middle passage is generally more than 2 meters for passage. Reasonable arrangement according to production scale and management technology. Mushroom rooms are generally within 60 square meters.