Market Update

Market Snapshot*

In Philadelphia, 5-pound cartons of Pennsylvania-grown cremini mushrooms were selling for $8,
5-pound cartons of oyster mushrooms were $17.50 and 5-pound cartons of portabellas were $9.

In Los Angeles, 5-pound cartons of California-grown shiitake mushrooms were selling for $22.50,
5-pound cartons of large portabellas were $10-11 and 5-pound cartons of oyster mushrooms were $12.50-15.

*Prices from the USDA's Agricultural Marketing Service Fruit & Vegetable Market News, Aug. 1.

The Shipping Scene

Standard, whitecap mushrooms are by far the best-selling item in the mushroom category, accounting for about 80% of sales, according to the Mushroom Council, San Jose, Calif.

But shippers say movement is starting to show up in the "exotics" category as consumers learn about more mushroom varieties.

Much of the growth in the exotics category is in the restaurant segment and is especially pronounced on the East Coast, where more of a European influence exists, said Brian Urata, mushroom salesman at the Banana Co., Los Angeles. Wild varieties that can't be cultivated also are carving out a niche. They include varieties like chanterelle, morel, poricini and lobster mushrooms, he said.

Although some might be concerned about the safety aspects of consuming wild mushrooms, Urata said chefs and buyers experienced with the product can readily recognize the edible varieties. Urata would like to see more consumers trying mushrooms because they contain nutrients like potassium and niacin.

Packaged mushrooms now feature the Best Life logo from the "Best Life Diet," a book written by Bob Greene and popularized by Oprah Winfrey on her TV show.

Fred Recchiuti, general manager at Basciani Mushroom Farms, Avondale, Pa., said the mushroom market has been shaken up during the past two years as a result of situations in China.

Last year, demand spiked in Russia, so Chinese canned mushrooms were exported to that country, leaving less product for the U.S. That, in turn, meant demand for canned U.S. product went up, which affected supplies of fresh market mushrooms.

This year, food safety issues in China were affecting the market, though Recchiuti said fresh market prices remained below optimum levels for growers.

Mushrooms remain a special-occasion item for most consumers, but the industry is trying to change that perception and encourage consumption year-round, he said.

The region around Kennett Square, Pa., is home to many mushroom grower-shippers because the area has some of the most fertile land in America, he said, and the location was within a day's buggy ride of big cities like New York and Philadelphia when the industry was first established there.

Brown, shiitake and oyster mushrooms are some of the varieties that have taken off recently as consumers seek out something different, said Edward Leo, chairman and chief executive officer at Country Fresh Mushroom Co., Avondale, Pa.

Although the growth may be in exotic varieties, Leo said white mushrooms may enjoy a growth spurt themselves if recent health claims stand up under scrutiny.

Per capita mushroom consumption has remained fairly consistent at about 4 pounds for the past several years, according to Produce Marketing Association statistics.

Mushrooms are grown indoors year-round under tightly controlled conditions. Production typically falls off a bit during the summer because mushrooms are more difficult to grow at that time of year, and demand typically is lighter, Leo said.

An exception might be the portabella variety, which is becoming a favorite grilling item during the summer, said Bart Minor, president of the Mushroom Council.

Much of the category growth has been in that variety, especially the baby bella and sliced baby bella, which have shown double-digit growth. In fact, "sliced is where it's at," he said. Sliced mushrooms now account for almost half of total sales.

Food safety also is a concern in the industry.

"Food safety is an issue," Minor said. "It is one that the mushroom industry is as concerned about as anyone, and we're taking steps to do even more in that area than we already do."

Category sales have been strong this year, second only to the record pace of 2004, even as retail prices rise, he said. Key to continued success of the category will be getting out the word about the nutrition benefits of mushrooms, sharing creative usage suggestions and maintaining the cold chain to ensure longer shelf life, Minor said.

(By Tom Burfield, Western correspondent for The Packer. The Packer and Red Book Credit Services are part of food360º, a division of Vance Publishing Corp., Lincolnshire, Ill.)

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