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Suizhou. a city in Hubei province, is the largest mushroom production and export base in central south China. The town of San Ligang there enjoys a nickname called "Town of shiitake mushroom in China". Mushroom have been the tertiary industry following grain and live pig, mainly planting two kinds of wood-rotting fungi like shiitake mushroom and auricular, accompanied by Grass fungus. Due to wood-rotting fungi greatly depended on trees, the consumption of oak is excessive, nearly exhausted. In recent years, more trees, particularly Fungus Forest,are encouraged to be planted to satisfy mushroom production locally by the government in Suizhou. However, with oak resources in Suizhou limited, it cannot be assured how large scale of mushroom production the current oak can sustain.This paper sets up a correlative model on supply and demand of oak in Suizhou. In this model, the maximum amount of supply is defined on a reasonable annual yield of oak here with a requisite of sustainable development, and that of demand is on the consumption of wood-rotting fungi on oak here in 2010. By comparing deficit between supply and demand, it comes out the mushroom production scale, at which the current oak can sustain, that is, shiitake mushroom and auricular production scale, and the economic benefit from producing them while the ecological benefit from oak resources is also evaluated by questionnaire, which can help decide which approach to resource optimized utilizing.The result demonstrates that the annual supply of oak in Suizhou is 129,160.67 cubic meters while the annual demand of that is 326,923.08 cubic meters. It is evident that the supply can not satisfy the demand in Suizhou. If all the oak are supplied by locally produced wood-rotting fungi, the most reasonable scale is 77,500,000 bags for cultivating lentinus edodes in plastic bag by oak allowance a whole year, when for producing auricular it is 2,130,000; the economic benefit from producing shiitake mushroom is RMB744.000,000, that of auricular is RMB155,000,000 and the ecological benefit from oak is RMB300,000,000. So it can reduce the consumption of oak in Suizhou by adjusting production scale, introducing and outputting new technology without inputting oak from other places. Another approach to satisfy mushroom industry development is to bring in oak resources from outside with local supply of it.
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