What is the mood within the Irish mushroom sector at present?
Codd Mushrooms sell the vast majority of their product on the Irish market. The Irish mushroom industry in general relies on the UK market. The volatile exchange rate and Brexit is the biggest concern for the industry at present. Furthermore, there are a number of mushroom growers/packers who are anxious to expand their market share in the UK, and retail chains are using this to reduce prices. On the whole, 2016 will prove to be a difficult year for the industry.
What are the big challenges for your industry at present?
With wage rates set to increase year-on-year and the cost of inputs rising also, the biggest challenge that mushroom producers have, is to keep their cost of production under control. Getting people to work in the industry is also proving difficult as the economy improves and it is easier to find employment. It is inevitable that there will be casualties in the industry as the mushroom prices currently paid to some growers are below the cost of production.
What is Codd Mushrooms’ greatest competitive advantage?
Our biggest advantage is our market share, scale and location. We are currently in the planning stages of building a new £4.5m production facility in the UK by 2017.
What is biggest threat to your sector right now?
The biggest threats to the UK market place, which is predominately supplied by Irish mushroom producers, are cheaper imports from Poland and Holland. There are also some UK consumers who will always choose UK origin product over Irish product. This leaves Ireland with a significant disadvantage over mushrooms produced in the UK.
What is the biggest weakness in your sector and what needs to change?
With phase III compost (more mature compost) in short supply, mushroom producers who want to expand their facilities and reduce production costs are finding it difficult. The cost of phase III compost in Ireland is significantly higher than in mainland Europe. Until more competition comes into the Irish compost market, this situation is unlikely to change.
What do you see as the future of your sector?
In my opinion, the Irish mushroom sector will need to develop its production units both in scale and technology to keep costs under control. While there are about 70 producers currently, this number will inevitably reduce. The remaining growers will be large producers, and some will have direct supply contracts into retailers.
Codd Mushrooms has been nominated under the industry category for the EY Entrepreneur of the year 2016 award. What would it mean to win?
Codd Mushrooms were surprised and honoured to be chosen as one of the finalists for EY Entrepreneur of the year awards. It has given the team great recognition for all the hard work put in over the last 28 years. For any company to win this prestigious award it would raise their profile on an international stage.
Read more
20 minutes with... Pat Ryan, Liffey Mills
What is the mood within the Irish mushroom sector at present?
Codd Mushrooms sell the vast majority of their product on the Irish market. The Irish mushroom industry in general relies on the UK market. The volatile exchange rate and Brexit is the biggest concern for the industry at present. Furthermore, there are a number of mushroom growers/packers who are anxious to expand their market share in the UK, and retail chains are using this to reduce prices. On the whole, 2016 will prove to be a difficult year for the industry.
What are the big challenges for your industry at present?
With wage rates set to increase year-on-year and the cost of inputs rising also, the biggest challenge that mushroom producers have, is to keep their cost of production under control. Getting people to work in the industry is also proving difficult as the economy improves and it is easier to find employment. It is inevitable that there will be casualties in the industry as the mushroom prices currently paid to some growers are below the cost of production.
What is Codd Mushrooms’ greatest competitive advantage?
Our biggest advantage is our market share, scale and location. We are currently in the planning stages of building a new £4.5m production facility in the UK by 2017.
What is biggest threat to your sector right now?
The biggest threats to the UK market place, which is predominately supplied by Irish mushroom producers, are cheaper imports from Poland and Holland. There are also some UK consumers who will always choose UK origin product over Irish product. This leaves Ireland with a significant disadvantage over mushrooms produced in the UK.
What is the biggest weakness in your sector and what needs to change?
With phase III compost (more mature compost) in short supply, mushroom producers who want to expand their facilities and reduce production costs are finding it difficult. The cost of phase III compost in Ireland is significantly higher than in mainland Europe. Until more competition comes into the Irish compost market, this situation is unlikely to change.
What do you see as the future of your sector?
In my opinion, the Irish mushroom sector will need to develop its production units both in scale and technology to keep costs under control. While there are about 70 producers currently, this number will inevitably reduce. The remaining growers will be large producers, and some will have direct supply contracts into retailers.
Codd Mushrooms has been nominated under the industry category for the EY Entrepreneur of the year 2016 award. What would it mean to win?
Codd Mushrooms were surprised and honoured to be chosen as one of the finalists for EY Entrepreneur of the year awards. It has given the team great recognition for all the hard work put in over the last 28 years. For any company to win this prestigious award it would raise their profile on an international stage.
Read more
20 minutes with... Pat Ryan, Liffey Mills
SHARING OPTIONS