Mushroom sector rebounds from Brexit bodyblow

The next few months will be critical for mushroom growers dependent on the UK, reports

THE horticulture sector in Ireland has changed dramatically over the past few decades, in tandem with the emergence of large multiple retail chains.

The mushroom industry expanded rapidly in the 1990s with almost 600 mushroom growers in the country by 1996.

Then followed a period of rationalisation, particularly over the last decade, with grower numbers reduced by 90pc.

Mushrooms were one of the success story of the horticulture sector, with good farm gate prices being achieved.

Then came the result of the Brexit referendum in 2016 which sent shockwaves around the globe.

Almost overnight, sterling became a volatile currency.

The mushroom industry was one of the first casualties of Brexit and in the two years since the vote, it has reshaped and restructured to not only survive Brexit, but to take advantage of the business opportunities that it potentially offers.

Currently, 80pc of mushrooms grown in Ireland are sold in the UK to the retail multiples via a variety of marketing agents, some farms export 100pc of their product to the UK.

The majority of sales go to the retailers who are purchasing large volumes.

This highlights a key risk for mushroom growers here as it is not feasible to sell similar volumes to customers in foodservice or wholesalers.

Some mushroom growers have invested significantly on the back of increased sales to the UK so the coming months will be crucial as Irish farmers look for effective trading solutions post-Brexit.

Advantage

Ireland’s close proximity to the UK is an advantage and with regard to mushrooms there is a deficit of supply from growers in the UK.

Approximately 80pc of Irish mushroom growers are part of a Producer Organisation (PO), allowing them to achieve greater bargaining power in the market- place as they are part of a large supply base.

However, there is growing competition from other producers, such as Poland, where labour costs are significantly lower than in Ireland.

Mushrooms have a shelf life of seven days and the high quality of mushrooms grown in Ireland, and the excellent supply chain makes the UK and Ireland natural trading partners, regardless of whether we get a hard or soft Brexit.