"Demand for sustainably cultivated and harvested mushrooms and wild mushrooms is definitely rising," begins Rik Spronk of Spronk Champignons. Every week, this Dutch company markets 150,000 kg of cultivated - white and chestnut - mushrooms and Shiitake, oyster, and portobello mushrooms grown by the Independent Mushroom Growers Association (VOC NL). "Consumers are increasingly culinary conscious and know that oyster or shiitake mushrooms taste better than white ones." That said, Rik expects white mushrooms to remain the mushroom market's mainstay. "But when people want to prepare a particular dish, other mushrooms are more interesting," he explains.
That means growers are switching from standard mushroom production to, say, oyster or other mushroom varieties, says Rik. An issue here, though, is that to cultivate, for instance, oyster mushrooms, you must convert your mushroom farm. And that involves costs, which play a major role in market development, he notes.
Price increase
The sector faces considerable cost price increases, and in early 2023, it has to implement steep price increases. That led to the Netherlands losing some of its market share, Rik admits. "Cost prices skyrocketed, and it was - and still is - challenging for growers to get good prices. The market must be willing to pay those." After an initial rise in day market prices, those stabilized, and, in early September, even fell for some products.
That has resulted in minimal mushroom market growth, Rik explains. "I feel that the present market is stuck because of the considerable, but necessary, price increase at the beginning of this year, and I don't see sales increasing," he says. Fortunately, the mushroom season has still to get truly going. "The season runs until Easter, and we hope things will change in the coming months." Though, the initial signs are not promising. "Supply is usually limited in August, but not this year. Nevertheless, many customers are familiar with our flexibility, attention to detail, central location in the middle of the Netherlands, and extensive packaging options," says Sponk.
Export position
The price situation affects Dutch mushroom exports, too. Poland is the Netherlands' main mushroom production competitor. "We shouldn't underestimate that country's influence. They can still - unfortunately - produce for much cheaper." But where Polish mushrooms are cheaper, Rik notes that Dutch companies are more reliable and flexible. "Dutch companies can talk to the customer today and deliver the mushrooms tomorrow. Arranging Polish mushrooms takes two to four days," Rik continues, adding that could benefit Dutch mushrooms. "The short-term, day trade buyers are sometimes willing to pay a little more."
Rik, however, sees that local cultivation is increasing in countries like France and Germany. A preference for local products is driving that. Plus, locally grown mushrooms are offered cheaper on the day market than those grown in the Netherlands despite being more expensive to produce. "In time, exports should begin to decline as local products are chosen more and more," he reckons, though he doubts Dutch mushroom exports will disappear. "A country like, for example, France, simply isn't self-sufficient, mushroom-wise, and, thus, depends on imports. We're fighting hard for exports, though, because we want to remain as broadly oriented as possible in Europe."
Fewer growers
That does not detract from Spronk Champignons' view that more of the mushroom volumes grown in the Netherlands will eventually remain in that country. That comes down to declining supply. The trader also anticipates that the number of Dutch growers will keep shrinking. "That's partly due to cost and partly the aging of the current generation of mushroom growers," Rik notes, adding that in some cases, the younger generation is eager to take over the business. In other cases, the high workload - growers are on-site seven days a week to supervise cultivation - hinders passing on the company.
Another factor regarding succession is future prospects, and Rik says technical solutions are being developed to save costs. These could include harvesting robots or different cultivation methods. "These must first prove themselves in practice and cannot be applied in existing nurseries." That, thus, requires investment, and it is there that sees challenges for the sector. "If the sector is to keep existing, growers may have to rebuild to save costs on the harvest side as well. Given the sector's history, investors are less open to that at this point," he knows.
The VOC NL can, however, support growers when it comes to costs, Rik reveals. "We can contribute to, say, helping growers control costs." That includes measures in the areas of cultivation, cost pooling, CMO subsidies on investments, certifications, or cultivation advice. They, for instance, offer reimbursement for dead steaming - heating compost after cultivation to kill off all pests and diseases. "The growers' association wants to optimize conditions for growers," concludes Rik. (MW)
Rik Spronk
Spronk Trading Holland
4158 EN DEIL
Tel: +31 (0)345 68 16 68
[email protected]
[email protected]