After tough year, mushroom growers have positive outlook for 2023

Mushroom growers are hopeful that 2023 will turn out better than the 2022 season, which was plagued by high costs and tight supplies of inputs. Avondale, Pa.-based To-Jo Mushrooms Inc. was happy with how the holiday season played out this year, says Kevin Delaney, vice president of sales and marketing. “We ended up having consistent supply through the holiday season,” he said.
Mushroom growers are hopeful that 2023 will turn out better than the 2022 season, which was plagued by high costs and tight supplies of inputs. Avondale, Pa.-based To-Jo Mushrooms Inc. was happy with how the holiday season played out this year, says Kevin Delaney, vice president of sales and marketing. “We ended up having consistent supply through the holiday season,” he said.
(Photo courtesy of To-Jo Mushrooms)

Following a challenging year in 2022, U.S. mushroom growers seemed optimistic that they will see a more promising 2023.

USDA released figures in August showing mushroom sales of $1.02 billion for the 2021-22 crop, down 4% from the previous season. Volume was 702 million pounds, down 7% from year-ago figures. Average price per pound was $1.45, up 5 cents from the previous year.

Sean Steller, director of business development for Kennett Square, Pa.-based Phillips Mushroom Farms, said Phillips continued to see supply chain challenges in 2022 for “everything from compost input to peat moss, which is an integral part of the growing process.” Even packaging materials were hard to come by at times, he said.

And finding a consistent labor pool in the Kennett Square area, where many mushroom producers are based, continues to be a struggle.

“There’s just not a ton of people available for all the labor across the area,” Steller said, as mushroom farms and other industries compete for a limited labor pool.

A package of mushrooms, sealed in clear wrap.
Mushrooms are a great budget booster during inflationary times, says Jose Cambon, CEO at Highline Mushrooms, Leamington, Ontario. Packaged mushrooms in particular have gained popularity during the COVID-19 pandemic. (Photo courtesy of Highline Mushrooms)

Supply chain interruptions were more prevalent in 2022 than they were during the height of the COVID-19 pandemic in 2020, said Michael Richmond, vice president of sales for South Mill Champs, Kennett Square.

“All input items have been greatly impacted for composting, which has been a major challenge for production and yield in the industry,” he said.

Wheat straw quality and consistency were at an all-time low because of a shortage of labor in the straw bailing process, he added. But Richmond was optimistic about the coming months.

“Indications are that January through June will be drastically improved for compost quality and mushroom yields,” he said.

Avondale, Pa.-based To-Jo Mushrooms was very happy with how the holiday season played out this year, said Kevin Delaney, vice president of sales and marketing. He said the holidays are the most challenging time of year for growers since demand is high and yields are often less than optimal.

“Our growing teams did a great job on planning for those gaps, and we ended up having consistent supply through the holiday season,” he said.

Foodservice sales are nearly back to prepandemic levels for To-Jo Mushrooms, Delaney added.

“We are expecting great yields during the first two quarters, so we will be looking to continue the momentum of growing the categories for our partners,” he said.

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Mushrooms remain a Top 10 seller in fresh vegetables and are an important contributor to the success of the produce department, said Anne-Marie Roerink, principal and founder of 210 Analytics, a San Antonio-based market research firm.

Though white button mushrooms still are the biggest seller, crimini (brown) mushrooms have been gaining share for more than 10 years, Roerink said. While specialty varieties such as shiitake, maitake and lion’s mane still are a small share of the total business, that share has been growing as more consumers experiment with different types of fresh mushrooms, she said.

Packaged mushrooms also gained popularity as retailers reduced their bulk displays during the early part of the pandemic, and some have chosen not to bring them back, she said.

Rising concerns with inflation have led growers to offer money-saving meal solutions, such as family value packs and kits, added Jose Cambon, CEO at Highline Mushrooms, Leamington, Ontario.

“Mushrooms are a great option, as inflation is below that of total fresh vegetables, making them are a great budget booster,” he said.

Phillips Mushroom Farms is seeing incremental improvement month over month, Steller said. There were some growing issues industrywide during the summer, but he was optimistic about the future.

“Right now, everything is looking much better for the winter crops,” he said in late December.

Highline’s Cambon said organic mushroom sales volume in the U.S. has been growing steadily.

“Trends show a growing demand for plant-based options,” Steller said, “and post-pandemic consumers are looking for nutritious and sustainable options that are good for the body and planet.”

 

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