Teagasc Census Shows Consolidation in Mushroom Production

Issued 1 August 2002

Over 400 Irish growers produced 68,000 tonnes of mushrooms in 2001 with a farmgate value of €130m, according to the Teagasc Census of Mushroom Production.

The census shows that while mushroom production continues to increase, the number of mushroom units has declined from 576 in 1997 to 465 in 2001. A significant number of smaller growers have ceased production or have leased their units to other growers. Also, a considerable number of committed growers have erected new production facilities and a number of new growers have entered the industry in recent years.

Compiled by Teagasc mushroom advisers, Gerry Walsh, Peter Leonard and Tom Kellegher, the census shows that the country's 465 mushroom units are operated by 409 growers, with total employment of over 4,400 full-time equivalents. Monaghan is the largest producer, with 122 units, followed by Cavan, with 58 units. Roscommon has 38 units while Mayo and Tipperary have 36 and 33, respectively.

Significant production is also taking place in Donegal, Wexford, Kildare, Longford and Galway. While mushrooms are now produced in every county, Clare, Cork, Laois, Kilkenny, Limerick and Waterford all have less than five production units.

The census also shows a trend towards new production systems called 'Dutch Shelf Farms, where the compost is placed in steel shelves rather than in bags or blocks. This enables mechanical handling thus significantly reducing labour requirements. A total of 20 'Dutch Shelf Farms' were established by the end of last year.

Capital costs in switching to the new system are in excess of €100,000 and, according to Gerry Walsh of Teagasc, growers need a minimum of five mushroom tunnels before considering this investment.

Gerry Walsh said that growers need to be selling a minimum of 4,500 kgs (10,000 lb) of mushrooms a week in order to be viable and be in a position to withstand economic and market shocks. Five years ago, a weekly output of 2,250 kgs was a viable level of production.

He said one of the more significant market features in recent years was the emergence of Polish mushrooms on the EU market. Polish labour costs are around one-third those in Ireland, which gives them a significant marketing advantage.

"Poland is now a major supplier of mushrooms to the German market. This has led to Dutch exporters switching back to the British market, leading to pressure for Irish exports. The fact that Irish mushrooms have developed a high reputation in the major British supermarkets gives us a strong advantage in the current difficult marketing environment," said Gerry Walsh.

The detailed county figures for mushroom producers are available in our Summer 2002 Mushroom Newsletter