Shortage solutions in the mushroom sector

Labor shortages across the board — in the fields and in offices — are even tougher for agriculture sectors that don’t qualify for H-2A labor because their crop allows for year-round production, such as commercial mushrooms, which grow indoors.

But as is the case in most sectors, mushroom professionals are fielding much more stress with shortages in raw materials and freight, causing skyrocketing prices when the item or service can be found.

To handle labor shortages, First Generation Farms, Toughkenamon, Pa., increased wages and offers bonuses, said Sonya Beltran, director of operations.

To deal with raw material shortages and higher prices, First Generation will have to pass at least a little bit of the cost on along the supply chain.

“We have no choice but to continue to pay the increase in price of raw materials, and in result did increase our prices slightly,” Beltran said.

Sean Steller, director of business development at Phillips Mushroom Farms, Kennett Square, Pa., said Phillips is storing more inventory onsite than it did before the COVID-19 pandemic.

“We are also working closely with our trusted suppliers to manage shortages created by supply chain and labor market challenges,” he said.

Ostrom Mushroom Farms, Sunnyside, Wash., is doing everything it can too, said Fletcher Street, director of marketing and sales.

Ostrom is considering auto-harvesting its third flush or break of mushrooms and using teenage workers.

“The labor shortage is seriously impacting our yields at this point,” Street said. “Peat moss is a big problem. We are trying different peat suppliers. However, there are many farms in the same position, and alternate supply streams are not abundant.”

Growing bigger mushrooms could help, said Chris Alonzo, president and owner of Pietro Industries, Kennett Square.

“Retailers need to work in harmony with growers and packers to be able to meet the increasing demand for mushrooms,” he said.

Alonzo said he can find the raw materials, but the costs are 10% to 22% more.

“We are raising wages significantly, but the growing operations have not seen any price increases to offset the rising costs. Growers are always the last to see any increases to cover their increased costs to do business,” Alonzo said.

To find or retain workers, Pietro is also trying to accommodate workers with modified schedules to accommodate their family needs.

“We need people to get back to work. This will not fix the problem, but it will help,” he said. “The mushrooms industry was short 10% on labor before COVID, but now they are short 20%. Farms are planting less crops, and costs are rising fast.