Mushroom volumes up, on track for more growth

Mushroom volumes were up in the 2015-16 season, according to the U.S. Department of Agriculture, and they'll likely continue to go up in the 2016-17 season, shippers and industry officials say.

About 946 million pounds of mushrooms were produced in 2015-16, up 2% from last season, according to an annual mushrooms report from the USDA's National Agricultural Statistics Service.

That will likely keep increasing because of increased acreage, said Kevin Donovan, national sales director for Phillips Mushroom Farms, Kennett Square, Pa.

"More buildings are going up," he

said. "Maybe not in a major way, but there is building going on."

Bart Minor, president of the Redwood Shores, Calif.-based Mushroom Council, said domestic production has grown in each of at least the past six years.

In fact, it can't keep up with demand - imports this year are up 20% to help supplement the domestic

crop.

"I can't remember the last time I saw an increase in imports like that," he said. "I don't see this (industry growth) slowing down anytime soon."

Also on the uptick in the coming year, Donovan said, should be prices, thanks to higher inputs for growers.

"There's a huge increase in costs," he said. "Prices have to rise, too."

For one, labor costs are higher, Donovan said. Not only that, labor is also more scarce. At the end of some crops some mushrooms have gone unpicked because of not enough labor, he said.

Lack of workers, in fact, may be the only thing that's preventing domestic production from growing even more than it has, Minor said.

"Some of our growers are reluctant to increase the efficiency on their farms, which they could do, because they're having trouble getting their crops picked now."

In addition to labor, the cost of raw materials also is going up, Donovan said. In particular, the cost of the hay and straw that go into the compost in which mushrooms are grown has increased significantly.

Mushroom values and prices actually declined in 2015-16, according to the USDA report. The value of the 2015-16 crop, at $1.19 billion, was down less than 1% from 2014-15.

The average price for mushrooms in 2015-16, $1.26 per pound, was two cents lower than the season before.

Recent data from the Avondale, Pa.-based American Mushroom Institute, however, shows that dollar sales are up in 2016.

In the 52 weeks ending June 12, total U.S. dollar sales grew 6.6%. Total mushrooms sales grew by over $72 million compared to the prior year, according to IRI/Freshlook Marketing data cited by the group.

Donovan is confident that increased demand for mushrooms will be enough to handle the higher prices expected this season.

"In the past year and a half, we've had very few weeks where we've had an overabundance of mushrooms," he said. "Right now is our slowest time of the year for demand, and we don't have extra."

Efforts by the Mushroom Council to promote "The Blend," its effort to get consumers to mix mushrooms with meat, and other initiatives have paid off, Donovan said.

"They have significantly increased demand."

Specialties, organics on the rise

The USDA report also found that about 346 producers grew mushrooms in the U.S. in 2015-16, 12 fewer than the year before.

Agaricus mushroom volumes in 2015-16 totaled 922 million pounds, 2% more than the season before. Pennsylvania accounted for 64% of total volumes and California 12%.

The agaricus crop was valued at $1.1 billion, down 2% from 2014-15.

About 165 million pounds of portabello, crimini and other brown mushrooms were produced this season, 3% more than last season.

The specialty mushroom category, which includes shiitakes, oysters and other varieties, registered the biggest value gain by percentage in 2015-16.

Specialty sales rose 30% this season to $95 million. The average price, $3.94 per pound was up 40%.

Brown mushrooms and organic mushrooms are among the categories that have experienced growth at Phillips, Donovan said.