Pressure on mushroom industry

By Eric Donald

The total farm gate value of mushrooms in the Republic of Ireland is estimated at €137.6 million, while a further €44.3 million is generated in farm gate sales in Northern Ireland.

It's the most important horticultural enterprise on the island, accounting for a third of the total farm gate value of the sector, both north and south.

However, increased competition in the UK market over recent years, particularly from Dutch producers has severely impacted on all involved in the industry here. The financial accounts for the main companies involved in the sector clearly demonstrate the difficulties being encountered.

It's impact on growers can also be measured by the numbers getting out of production.

Since 1998 the number of producers has dropped by 30%.

There are now around 335 producers in the republic and a further 226 producers in Northern Ireland.

These growers produce an estimated 90,000 tonnes of mushroom annually, with 80% of these destined for export to the UK market.

This increased competition in the UK is unlikely to go away, as it was sparked by the opening up of eastern Europe.

Producers from countries like Poland began to push the Dutch product out of mainstream European markets like Germany, forcing them to increasingly focus on the UK market.

With Holland being the largest European producer with an estimated 250,000 tonnes per annum, this severely squeezed the Irish producers.

Other issues facing the sector in Ireland, include the increasing cost of labour with a new minimum higher wage.

Also the increased use of more productive phase 3 compost among our competitors.