Mushroom demand is greatest from January to March, but the start of the year got off to a slippery start as heavy snow disrupted deliveries.
“It was very challenging, but we got everything out,” says Justin Coleman, farm manager of Leckford Estate. “We only missed one delivery when the snow was incredibly heavy and the roads were very slippery. The drivers and distribution teams have done a fantastic job.”
Fortunately, experts are predicting growth for 2010 and producers are hoping that consumers will continue to munch their way through mushrooms.
Stephen Allen, Mushroom Bureau committee member, forecasts the overall mushroom market to grow between two to three per cent in value and to show similar growth in volume. “The mushroom sector is very dynamic and ultra-competitive, with some of the best mushroom companies in the world active in the UK marketplace,” he says. “It is always challenging to work in the mushroom business, but the market has continued to grow in value and remains the third-largest vegetable category.”
Although exotics are still a small part of the overall mushroom market, demand is growing and there have been some recent entrants into the category. “If producers continue to educate consumers about the benefits of exotic mushrooms, there is no reason why the sector won’t continue to grow,” says Allen, adding that some “very exciting” health benefits are just being discovered.
Indeed, Allen says that a scientific study looking at the benefits of the maitake mushroom led to the Daily Express running the headline, ‘‘Mushrooms beat cancer’’, on its front page last November.
But it is not all good news and the recession has already affected certain categories, including the organics sub-sector, which was hit in 2008 and the early stages of 2009.
However, according to Allen, the situation is improving and there are signs that the organic sector is growing once more, although the rate of growth in the sector’s value has slowed substantially.
With a bigger advertising and promotional campaign in place, the Mushroom Bureau is hoping to capture a greater audience and garner higher sales. “Our core audience is 25- to 54-year-olds who have a passion for food and enjoy experimenting,” says Allen. “When we analysed what media they consume, it made good sense to spend around a third of the budget on digital advertising - the rest of the money will be spent on traditional advertising channels.
“We want to really make consumers think twice about mushrooms and include them more often in their shopping baskets.”
Furthermore, mushrooms have a high frequency of purchase, but Allen says there is room for growth, as mushrooms are only bought on average once every 2.8 weeks.
One of the Mushroom Bureau’s highlights last year was in October, when several members collaborated with Asda. Mushrooms were packaged in pink punnets during Breast Cancer Awareness Month and 10 per cent of the retail selling price was donated to breast cancer charity Tickled Pink.
Overall, the sector enjoyed a better 2009 compared to the previous year, with some companies reporting stable volumes and prices.
Greyfriars chairman John Smith says the mushroom situation is not getting any worse in the UK and as long as the currency exchange rate remains stable - which he anticipates it will for the next 12 months - there won’t be any deterioration in future supplies.
However, Smith describes the situation for some Irish and Dutch producers as “parlous”. “It could be that some growers in Ireland this year say ‘that’s it, I’ve had enough’ and will exit the market,” he predicts.
If this happens, Smith forecasts an increased dependency on Poland. “Poland is already the largest producer of mushrooms in Europe and although there are a number of really good producers around already - some backed by the Dutch - more will raise their game,” he adds. “The UK mushroom market is big enough for more Polish companies to enter the fray.”
Greyfriars is appealing the decision made by Harrogate Borough Council, which rejected its plans for a multi-million pound extension to its mushroom farm at Wath, North Yorkshire. The producer is looking at three to five other sites and is considering working with other councils.
But wherever the new farm is built, mushrooms will still be packed at New Mill House near Ripon. “Perversely, this will lead to an increase in traffic through the villages, whereas the proposed on-site farm would have eliminated all such traffic,” Smith tells FPJ.
Meanwhile, in order to stay competitive, several mushroom growers are embarking on a number of new initiatives and some have launched branded alternatives. These brands have been in several sectors and have spanned both national and regional launches, says Allen. “Each time a brand is launched, it just helps reinforce to the consumer that the category is interesting and helps consumers reappraise the mushroom category as one that is relevant to their needs and is innovating to better meet those diverse needs,” Allen adds.
Banken Champignons has enjoyed a positive response to its Mushroom Secrets range. The new packs were introduced in February 2009 and over the last 10 months, the firm has been busy improving the products and making them even more convenient and cheaper. “We are also busy branding Mushroom Secrets and are expanding with new lines in order to make speciality mushrooms more popular and attractive,” says Bas Toonen, the company’s marketing and new business development manager. “The brand will not only involve new product lines, but will also be a complete concept with in-store sales support, new website www.mushroomsecrets.com and seasonal newsletters that are sent directly to customers and clients.”
Fresh Shiitake Soup and Fresh Oyster Mushroom Wok Dish packs were the first lines to be introduced and, last autumn, a limited edition line of speciality mushrooms was unveiled. This line focuses on mushrooms that are available in season and future Mushroom Secrets packs will concentrate on health and sustainability.
Banken Champignons is currently in talks with UK retailers and is confident that this new way of presenting mushrooms can bring “emotional value” and subsequently attractive margins for retailers.
Banken Champignons has recently invested in new packaging and quality systems and gained Nature’s Choice and Field to Fork accreditations in the last 12 months.
Offering high-quality deliveries has to be the priority for the entire mushroom sector, says Toonen. He adds that Banken Champignons has its own transportation, which gives it complete control over the conditions that mushrooms are kept in during delivery.
Furthermore, Toonen says one of the firm’s key selling points is its broad assortment of mushrooms and its ability to offer custom-made packaging requirements for its customers. “We deliver more than 30 varieties of fresh cultivated and wild mushrooms within Europe,” he adds. “We are able to enrich the fresh mushroom category within the UK with our product know-how, concept developments and culinary and customer support.”
Waitrose’s Leckford Estate has also been busy and the producer switched from phase 2 to phase 3 compost in April 2009. According to Coleman, it was a very successful move. “Production rose from 1,600 tonnes of conventional white mushrooms to 2,000t last year and there may be a marginal increase in 2010,” he says.
The Hampshire-based farm also enjoyed a very good response to its large packs of mushrooms, which are sold under Waitrose’s Cook’s Ingredients range. “This was the first time we have experimented with a big family pack and it was a good situation as consumers were buying these packs, but sales of other pre-packed mushrooms did not suffer or tail off,” Coleman tells FPJ.
The Essential Waitrose range has also boosted demand and helped to drag lacklustre mushroom sales over the summer out of the doldrums. “The Essential Waitrose range had a very big impact on sales and demand was very strong for the last four months of the year,” explains Coleman. “We have seen a big rise in sales year on year, although that has not been consistent with the whole sector.”
Although only a third of mushrooms available are produced in the UK, Allen says that local sourcing is a real consumer trend. “Without doubt, those UK mushroom producers that have been able to adapt to this trend have benefited,” he adds.
Bristol Fruit Sales is active in Cornwall and sales director David Foster says the group works closely with local growers. “In these competitive times, there is a need to be transparent in business,” he says. “We have to sustain local industries and work as a partnership with growers.”
Foster says that there is bigger public awareness of how products are grown and consumers are being taught this at a very young age. The carbon footprint issue is also at the top of the agenda. “Obviously, we need to have a choice of products, but the carbon footprint of these products is very important too,” Foster says.
This year is likely to see a continued focus on the euro and sterling exchange rate. “With the UK producing around only one third of UK mushroom supply, the UK is dependent on imports from Ireland and continental Europe and this is something that we see continuing into the long term,” says Allen.
“It’s harder for European exporters to ship to the UK at the moment and shipments are being affected,” says Toonen. “Hopefully, the situation will be less challenging in 2010.”
In terms of packaging, Sharp Interpak (Sharpak) is launching its carbon Low (c-LOW) punnet for mushrooms, when it will target UK retailers and European mushroom growers.
“c-LOW is a breakthrough in innovation and materials technology and is the lowest carbon footprint punnet available,” says sales director Tony Manners. “It has a 23 per cent lower carbon footprint than standard PP, a substantial natural mineral filler content and is very tactile and soft to the touch.”
Manners says that developing new designs and materials that give the lowest carbon footprint have been Sharpak’s most noticeable initiatives in the mushroom sector in the last few years. “The protection of the environment is a company-wide objective and we strive to eliminate any damaging effects in our product design, in our choice of material, in our manufacture and in the distribution of our products to our customers,” he adds.
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