Phillips’ Warwick, MD, expansion to be completed in March
Phillips’ Warwick, MD, expansion to be completed in March
Phillips Mushroom Farms produces conventional and organic mushrooms at its headquarters facility in Kennett Square, PA, as well as its new facility in Warwick, MD.
Kevin Donovan, national sales manager for the company, told The Produce News that the first expansion of the Warwick facility is scheduled for completion in March this year.
“The expansion will enable us to produce an additional two hundred thousand pounds per week,” said Donovan. “Of this total production, about 30 percent will be dedicated to organic mushrooms.”
Phillips Mushroom Farms has produced certified organic mushrooms for over ten years. Of the approximate eight different varieties it produces, whites and baby bellas, followed by portobellos, continue to be the strongest in sales. Its organic line also includes shiitake, pom pom, royal trumpet, beech and maitake mushrooms.
Donovan explained that overall, organic demand has intensified considerably over the past several years.
“As the availability of organic mushrooms increases, so does the ability for promotions,” he said. “Trends like ‘The Blend’ and other promotional initiatives put in place by The Mushroom Council are also helping to spur sales. Mushrooms are highly nutritious, and when they are used to replace a portion of the protein in a recipe the result is better flavor, higher nutrition and less fat.”
He also pointed out that while there still is a premium for organic mushrooms, consumers continue to become more educated about the benefits of eating organically and seek out more organic options in the food products they buy.
“Some time ago retailers had an organic section in their produce departments because they felt they had to represent the category,” explained Donovan. “Today they have to have organic options because consumers are demanding them.”
Phillips Mushroom Farms services all categories of users including independent, small chain and large chain retailers, wholesalers, distributors, foodservice operators and industrial operations. Its distribution range is strongest in the eastern half of the United States.
Despite the growing demand for mushrooms, producers continue to face challenges.
“The cost of growing medium such as hay and straw is a major issue today,” said Donovan.
“Because producers of these items are getting higher prices for seed and grain crops, such as soy, they’ve switched their crops over,” he said. “This means there is less available, and we have to bring medium in from areas further away. Besides rising costs due to supply and demand, transport costs also drive prices higher.”
