The UK mushroom sector has seen it all in the last few years - retail price pressure, growing competition from overseas, bankruptcies and consolidation. Although the sector remains in a state of flux, with some growers enjoying better fortunes than others, a number of sources believe there is hope on the horizon.
“There has been consistent feedback from members of the Mushroom Bureau stating that the surplus of mushrooms which has affected the market over the past five years is no longer there,” says Andrew Middlebrook, chairman of the Mushroom Bureau.
Stronger demand from the processed sector has helped to take the pressure off the fresh market, say sources. According to Middlebrook, 55 per cent of mushrooms sold globally are processed. Dutch suppliers now have the largest share of the world processing market, followed by China.
“Chinese mushroom production has fallen substantially in recent months, and so processed mushrooms are becoming more costly,” says John Smith, managing director of Greyfriars. “Prices have increased significantly.”
According to Middlebrook, last summer presented significant challenges for mushroom growers and marketers. “Whilst sustained peaks of hot weather in June and July caused a sharp downturn in demand to the lowest level in three years, the cooler weather in the latter part of August led to unseasonably strong demand, which coincided with poorer crops across the UK, Ireland and the European mainland, where both yield and quality had been adversely affected by the heat,” he explains.
This resulted in significant shortages, with mushroom prices on the open market reaching in excess of £3 per kilo. This shortage was exacerbated by growers continuing to leave the industry.
“Supply and demand continued to remain out of balance for what was a much longer period than had been experienced in recent years,” Middlebrook tells FPJ.
Once again, albeit for different climatic reasons, this year’s summer is already proving challenging for suppliers. “Inclement weather in June has seen increased demand, similar to many other vegetables,” Middlebrook says. “This demand is great news for a product that typically is in surplus in June, but is highlighting the inherent shortage of fresh mushrooms in the marketplace. Markets have reported prices of up to £2.20 per kilo on peak trading days, unheard of at this time of year.”
Middlebrook says it is difficult to see what will change in the short to medium term to alter the underlying supply and demand balance. In addition, competition for fresh mushrooms is likely to increase further due to an overall shortage in the European marketplace.
As well as weather, growers are also keeping a close eye on mushroom prices. According to Greyfriars, a 250g pack of mushrooms cost 99p at the beginning of 2000. Prices have fluctuated over the last seven years and have fallen as low as 52p, although they are currently stable at around 60p. “During that time, volumes didn’t change to any large extent, but supermarkets are now recognising prices need to rise by a reasonable amount,” Smith tells FPJ.
Smith does, however, feel that the tide is turning for mushroom growers. He says: “UK producers are getting marginally higher prices and these are very welcome. However, they still need to rise a lot further as cost pressures such as labour, energy costs, raw materials etc increase.”
If growers receive more money, Smith is confident this will give them the opportunity to reinvest in their operations. “It’s not the fault of growers, but investment has been pitiful in recent years and if they have more funds, this will give them the chance to create state-of-the-art farms that are close to depots and help them get on their feet,” he adds.
Greyfriars envisages opportunities for exotics and organics, although given the small volumes produced in the UK in relation to white button production, neither will be a “panacea for growers woes”.
“Nevertheless, there is an interest in organic production and it’s growing,” Smith says. He also makes the point that as there are so few chemicals used in mushroom production, they are practically organic anyway.
Smith says there could be a resurgence of parts of the UK mushroom industry so long as prices continue rising. However, he is not optimistic about the Irish situation. “Logistical problems and the higher cost of labour in Ireland is weighing heavily on the viability of the mushroom industry there,” he says.
Greyfriars was one of the first UK growers to invest in Polish mushroom production with Okéchamp, and Smith, who recently returned from a trip there, believes rapid development and expansion in the country’s mushroom industry is continuing.
As more producers switch from Phase 2 to Phase 3 compost, this will result in greater volumes. “We will see some increases this year, but probably more next year,” Smith predicts.
However, Smith stresses that there have been changes in Poland in recent years and this could affect the deal. “A lot of people have left Poland and the availability of labour is becoming increasingly troublesome,” he says.
Other factors are also at play. Higher transport costs could become more of an issue, while there is also growing interest in Polish mushrooms from eastern Europe, most notably Russia.
Higher processed mushroom demand, coupled with the exit of a number of European producers from the industry, has resulted in a more competitive market for fresh mushrooms, says Middlebrook. “This is likely to continue for the foreseeable future,” he adds.
The Mushroom Bureau has been hard at work trying to increase mushroom sales. Established in 1993, the bureau is responsible for the generic publicity of all fresh, cultivated mushrooms sold in Britain.
Bureau membership covers a broad range of companies growing or sourcing fresh mushrooms for the UK market, and is funded voluntarily by its members.
This year’s promotional campaign has involved updating the Mushroom Bureau website, www.mushroom-uk.com, to give it a more contemporary look in order to attract a broader, more mainstream audience.
One of the bureau’s biggest challenges is to increase consumer awareness about the versatility of mushrooms and boost sales, particularly in the summer months, when demand traditionally tails off.
To counteract the seasonal fall in demand, the bureau has produced a consumer healthy eating booklet, which is aimed at a younger audience, to encourage mushroom sales over the summer months.
The 20-page booklet, entitled Mushrooms - The Magic Ingredient for Summer , is being offered free to consumers who call a telephone hotline number and features a wide range of easy-to-follow picnic and barbecue recipes, as well as ideas for healthy snacks and lunchboxes and easy summer entertaining.
Meanwhile, Holland is another major supplier of mushrooms to the UK. The Greenery sells approximately 300 tonnes of mushrooms each week to the UK, and its clients include several retailers, catering suppliers and wholesale markets.
Around 80 mushroom producers supply The Greenery and, while the firm acknowledges there is competition to sell to the UK, it believes it has the upper hand.
“We work a lot on contract prices and we’re a good, reliable supplier to the UK. When we say we’ll deliver within a certain period, we make sure we honour our commitments,” says The Greenery’s Quentin Kros.
The company has seen strong demand from the UK over the last five to six years. “White and flat mushrooms account for the vast majority of sales, but exotics are becoming more popular as UK consumers like to experiment,” Kros says.
Indeed, The Greenery believes that over the next few years, exotics will become increasingly important in the retail market. “Large volumes are available, prices have fallen and shelf life is very good,” Kros says.
“We’re offering new varieties of mushrooms all of the time, including our yellow and pink oyster mushrooms. These are entirely natural and organic.”
The firm is currently working on promoting its exotic mushrooms in new packaging and will include easy-to-prepare recipes in mixed packs.
Fellow Dutch firm Banken Champignons has exported mushrooms to the UK for over 13 years and serves the retail, processing and foodservice industry. Established in the 1950s, the company claims to be the third-largest mushroom wholesaler in Europe.
“As well as white button and chestnut mushrooms, we sell speciality mushrooms originating from every corner of the world and are therefore able to provide customers all year round,” says Bas Toonen of Banken Champignons.
The company anticipates higher global market prices for mushrooms in the short term, as it predicts there will be smaller volumes available this year. Toonen says: “These problems originate from problems with compost and the result is a shortage on the mushroom market. We do not foresee that the compost problems will be resolved before September/October and even then, it is very unclear what the situation will be.”
Recently, Banken Champignons has embarked on a more consumer-focused marketing strategy. It has developed the concept “Excellence in Mushrooms”, which is being aimed at the retail and foodservice industry. With the new strategy, the firm hopes to raise consumer awareness about the possibilities of cooking with mushrooms.
Banken Champignons has recently introduced several fresh convenience products in Europe, including filled mushrooms and Portobello. In addition, by providing more information on the packaging of newly introduced speciality mushrooms, Banken Champignons claims sales have risen.
PACKAGING LEADER LIFTS THE LID
Sharpak Yate (Sharpak) claims to be the leading UK manufacturer and supplier of mushroom packaging, with a whopping 80 per cent market share in pre-packed mushrooms.
“Sharpak Yate’s Rotary Thermoforming Process (RTF) is suited to punnet supply due to its material flexibility and high output capability,” says the company’s Tony Manners, adding that the firm’s punnets are supplied throughout the UK and mainland Europe.
The company’s mushroom packaging range includes Elements, which improves transport crate utilisation by up to 12.5 per cent. “Other benefits include improved warehouse holding and decreased handling,” Manners explains. “Elements is available in 250g and 500g and can be flow-wrapped, over-wrapped and sleeved, thereby suiting a range of packing formats.”
Furthermore, Sharpak has developed D-Blend as part of its programme to reduce the environmental impact of packaging. D-Blend is degradable in up to five years (dependent on pack size) and maintains pack functionality.
The manufacturer has also developed a rangeof mushroom punnets to allow the use of top-sealing machinery. The top-seal punnets reduce the lidding raw material requirement, as less is needed for top seal compared to traditional methods such as overwrapping.
Sharpak has set up a UK distribution network via CMP and is expanding into Poland.
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