Mushroom market remains tight in 2007
Mushroom market remains tight in 2007
U.S. mushroom growers are entering 2007 with a marketing situation not seen in many years as prices offered by processors are reaching last year's fresh-market prices.
Laura Phelps, president of the American Mushroom Institute in Washington, DC, released a report Jan. 8 titled 2007 Mushroom Outlook from the American Mushroom Institute.
The report states that recent cannery-grade prices have risen 120 percent and are hovering near the fresh-market price that Pennsylvania growers averaged last year. Historically, the price per pound paid to growers for mushrooms destined for the processed market has been half or less than that which is paid for fresh-market mushrooms.
"This is quite a turnaround for our growers," Ms. Phelps said. "Processing has been a secondary market for so many years, but a number of factors seem to have come together all at once to create an extremely competitive situation."
Growers and shippers cited various reasons for the upturn in prices, including 20 percent fewer canned imports during the past year. The AMI indicates the domestic processing industry has been waging a battle against low cost canned imports since 1998 with high antidumping duties placed against imports from China, India and Indonesia. China, a major exporter to the United States, has experienced production shortages and is said to be increasing its exports to Russia.
On the domestic front, production decreased during the summer and fall due to weather-related issues, leading to short supplies and increased competition for product. Several farms closed in the United States during 2006, leading to further shortages. In addition, for the past three months imports of fresh mushrooms from Canada have dropped to their lowest level since 2004 and are 25 percent off from last year's shipments.
"This will obviously have an effect on prices for mushrooms headed for the fresh market," Ms. Phelps said. "Fresh mushrooms are a staple in grocery stores and on restaurant menus. Consumers demand them, and growers, through the Mushroom Council, are increasing spending on marketing and promotions by 25 percent this year. So it should be interesting to see how the fresh versus processed battle plays out."
Growers throughout the country are still battling Trichoderma green mold, a disease that has no effect from a food-safety standpoint, but sharply reduces crop yields. While less invasive in winter months, growers face challenges in cold weather to produce a quality substrate in which to grown mushrooms.
"Given the challenges throughout the fall and early winter, growers have not been able to make up the shortfall in production of about 25 million pounds created by the closure of Franklin Mushroom Farms," Ms. Phelps said.
Mushroom production has always been a very labor-intensive activity, with every mushroom picked by hand. The majority of the workforce is Hispanic and some farms have experienced shortages of workers during the holiday season. AMI and its members will continue to push in 2007 for immigration reform that will ensure a reliable, stable and legal workforce.
In 2007, AMI will re-examine its food-safety program developed by Penn State University in conjunction with mushroom growers, packers and shippers. Renewed focus will be on recordkeeping, worker training and education throughout the entire production chain - from receiving raw materials for substrate production to delivery to the consumer.
"Having developed a Good Agricultural Practices program many years ago, we feel like we're ahead of the food safety game," Ms. Phelps said. "But there are always refinements and improvements that can be made. We'll use the resources of Penn State coupled with the food-safety and quality-control experts from farms across the country to review the programs that are currently in place."
The unique nature of mushroom production has several benefits that help ensure the safety of the product, such as being grown indoors in a controlled environment. Everything from access to the growing rooms to air temperature to air flow to watering schedules are constantly monitored. Growers produce their own growing medium, which involves specific raw materials and testing. Most mushroom farms also have their own packing facilities on site, which means that mushrooms do not travel long distances before they are packed for retail or foodservice. Vacuum cooling as soon as the product is packed ensures not only higher quality when it reaches the consumer but a safer product as well.
"Sanitation has always been the top priority on mushroom farms," Ms. Phelps noted. "Food safety is the first reason, but clean growing rooms are the first line of defense against pests and diseases that affect the quality of the mushrooms and yields."
"Charting the Course" is the theme for the 19th North American Mushroom Conference, which will be held Feb. 18-20 in San Diego, CA. Hosted by the American Mushroom Institute and the Canadian Mushroom Growers Association, the conference is the premier meeting event for the mushroom industry worldwide.
"We have an expo with vendors of everything needed for mushroom growing and packing, including equipment, packaging, growing supplies and technical services," Ms. Phelps said. "Our business program includes speakers from around the world discussing topics such as growing techniques and challenges, marketing, and, of course, food safety. Plus there's plenty of time for networking and socializing since the mushroom community is a small and close-knit group."
Laura Phelps, president of the American Mushroom Institute in Washington, DC, released a report Jan. 8 titled 2007 Mushroom Outlook from the American Mushroom Institute.
The report states that recent cannery-grade prices have risen 120 percent and are hovering near the fresh-market price that Pennsylvania growers averaged last year. Historically, the price per pound paid to growers for mushrooms destined for the processed market has been half or less than that which is paid for fresh-market mushrooms.
"This is quite a turnaround for our growers," Ms. Phelps said. "Processing has been a secondary market for so many years, but a number of factors seem to have come together all at once to create an extremely competitive situation."
Growers and shippers cited various reasons for the upturn in prices, including 20 percent fewer canned imports during the past year. The AMI indicates the domestic processing industry has been waging a battle against low cost canned imports since 1998 with high antidumping duties placed against imports from China, India and Indonesia. China, a major exporter to the United States, has experienced production shortages and is said to be increasing its exports to Russia.
On the domestic front, production decreased during the summer and fall due to weather-related issues, leading to short supplies and increased competition for product. Several farms closed in the United States during 2006, leading to further shortages. In addition, for the past three months imports of fresh mushrooms from Canada have dropped to their lowest level since 2004 and are 25 percent off from last year's shipments.
"This will obviously have an effect on prices for mushrooms headed for the fresh market," Ms. Phelps said. "Fresh mushrooms are a staple in grocery stores and on restaurant menus. Consumers demand them, and growers, through the Mushroom Council, are increasing spending on marketing and promotions by 25 percent this year. So it should be interesting to see how the fresh versus processed battle plays out."
Growers throughout the country are still battling Trichoderma green mold, a disease that has no effect from a food-safety standpoint, but sharply reduces crop yields. While less invasive in winter months, growers face challenges in cold weather to produce a quality substrate in which to grown mushrooms.
"Given the challenges throughout the fall and early winter, growers have not been able to make up the shortfall in production of about 25 million pounds created by the closure of Franklin Mushroom Farms," Ms. Phelps said.
Mushroom production has always been a very labor-intensive activity, with every mushroom picked by hand. The majority of the workforce is Hispanic and some farms have experienced shortages of workers during the holiday season. AMI and its members will continue to push in 2007 for immigration reform that will ensure a reliable, stable and legal workforce.
In 2007, AMI will re-examine its food-safety program developed by Penn State University in conjunction with mushroom growers, packers and shippers. Renewed focus will be on recordkeeping, worker training and education throughout the entire production chain - from receiving raw materials for substrate production to delivery to the consumer.
"Having developed a Good Agricultural Practices program many years ago, we feel like we're ahead of the food safety game," Ms. Phelps said. "But there are always refinements and improvements that can be made. We'll use the resources of Penn State coupled with the food-safety and quality-control experts from farms across the country to review the programs that are currently in place."
The unique nature of mushroom production has several benefits that help ensure the safety of the product, such as being grown indoors in a controlled environment. Everything from access to the growing rooms to air temperature to air flow to watering schedules are constantly monitored. Growers produce their own growing medium, which involves specific raw materials and testing. Most mushroom farms also have their own packing facilities on site, which means that mushrooms do not travel long distances before they are packed for retail or foodservice. Vacuum cooling as soon as the product is packed ensures not only higher quality when it reaches the consumer but a safer product as well.
"Sanitation has always been the top priority on mushroom farms," Ms. Phelps noted. "Food safety is the first reason, but clean growing rooms are the first line of defense against pests and diseases that affect the quality of the mushrooms and yields."
"Charting the Course" is the theme for the 19th North American Mushroom Conference, which will be held Feb. 18-20 in San Diego, CA. Hosted by the American Mushroom Institute and the Canadian Mushroom Growers Association, the conference is the premier meeting event for the mushroom industry worldwide.
"We have an expo with vendors of everything needed for mushroom growing and packing, including equipment, packaging, growing supplies and technical services," Ms. Phelps said. "Our business program includes speakers from around the world discussing topics such as growing techniques and challenges, marketing, and, of course, food safety. Plus there's plenty of time for networking and socializing since the mushroom community is a small and close-knit group."
