Wheat crisis could push up mushroom prices

Mushroom prices could increase by up to 20 per cent as a result of the global wheat crisis.

Production setbacks in the EU, Canada and most importantly the Black Sea region, have significantly altered the global wheat production outlook.

And it is thought the knock-on effect on wheat straw used in mushroom production could have serious implications for UK mushroom growers.

Rabobank has downgraded 2010-11 global wheat production by 30 million tonnes and is now forecasting global production to reach 644.2mt, down 34.6mt year on year.

One source believes straw prices are likely to settle at around £100 a tonne, 150 per cent above recent average prices.

Industry observers suggest that availability of wheat straw over the next 12 months could be down 35 per cent on an average year. The main reason is the recent drought conditions which have prevailed in key cereal crop areas. It is reported that prices for mushroom compost could consequently rise by as much as 30 per cent in the coming months, potentially meaning UK mushroom growers would need price rises of around eight to 10 per cent just to stand still in viability terms.

One insider said: “UK mushroom growers could be seeking price increases of up to 20 per cent in the coming months in order to remain viable.

“Given the already competitive position of Poland due to the quality of what is produced in that country and their relatively low cost of picking, it is anticipated that country is poised to take advantage of the impending economic crisis in the UK mushroom industry.”

The source added: “It is known that short straw is particularly difficult to convert into high yielding mushroom compost. In dense compost, it is difficult to foster the level of microbial respiration and activity which is needed to facilitate straw breakdown and nutritional optimisation.”

Tunnel Tech general manager Tim Harker said: “There’s been a rapid hike in straw prices. Straw has a number of industrial uses such as biofuel in power stations so competition for straw is likely to be high.”