Mushrooms

 

Mushroom industry statistics from 2004

Summary

Similar to other vegetable industries, mushrooms are a small industry within the region with a gross value of production of approximately $1.4 million. There are two mushroom farms in the region, one in Benalla, and one in Kergunyah (Indigo Shire).

North East Region

1996 – 97 AG Census

2000 – 01 AG Census

2004 AAVAF Survey Results

Gross value of production

$436,301

$401,905

$1,360,000

Production volume (kg)

104,000

91,812

166,000

Total area of production (ha)

0.50

0.42

0.66

Contribution to Victorian GVP of commodity

0.7%

0.7%

Contribution to Australian GVP of commodity

0.3%

0.2%

Estimated number of farms

1

1.18

2

Source: ABS Agricultural Census 1997 and 2001, AAVAF Survey 2004

Mushroom industry overview

Mushrooms are grown in air-conditioned coolrooms, with no particular advantages or disadvantages for location in the AlpValleys.

The mushroom industry has been identified as one of the three fastest crop growing industries established in Australia since the 1950’s. Domestic production expanded at an average annual rate of 10% per annum between the 1970’s and the 1990’s.

The Australian industry overall is still growing, with 3 – 5% growth rates predicted over the next four years (Source: State of the Mushroom Industry: AMGA 2004). However, supply is being dominated by large producers (eg. Chiquita) who have been buying out smaller growers throughout Australia.

Detail

Comments

Product description

 Fresh mushrooms

Main season

Not seasonal

Industry associations

Australian Mushroom Growers Association

Domestic market information

Mushrooms sell for approximately $17.00 per 4 kilogram box, or $14,250 per tonne, and are sold through intermediaries such as agents and wholesalers

Export market information

Interviewees stated a small percentage of their mushrooms were exported to Asia

Source: AAVAF Survey 2004

Projected mushroom industry growth

Source

Indicator

Comments

(ABS) AG Census and survey data

Growth in production volume 1997 to 2001

Mushroom production decreased by 11.7% during this period based on ABS Survey data. However, producers contacted directly indicated slow but steady growth in production.

Surveys

Current profitability

Survey responses varied between high and low levels of profitability.

5 year business plans

No change reported.

5 year business outlook

Stated as satisfactory.

Business planning / budgeting

Was not undertaken by those surveyed.

Age of producers

Were in the age brackets 40 to 49 and 60 plus years.

Capital expenditure 2002-03 financial year

Was very high at between $100,000 and $375,000, representing an average of 80% of gross income.

Mushroom industry labour requirements

Detail

Large scale mushroom growers make use of full time, part time and particularly casual labour. Up to 20 casual employees may be required for large scale operations, and from between 1-8 full and part time staff. Smaller operations have a small casual labour requirement if at all.

Areas of indirect employment

Suppliers, transport providers, buyers - agents and wholesalers.

Labour market issues

Labour costs represent approximately 25% of gross income of those surveyed. Respondents stated there was a lack of suitable labour for their operations.

Mushroom industry marketing activities

Detail

Comments

Marketing undertaken

Little marketing required to be undertaken by growers individually. The Australian Mushroom Growers Association represents growers by preparing brochures.

Value adding activities

Some growers undertake prepackaging of mushrooms for the domestic market on premises.

Labels and brands

Kergunyah Mushrooms, Benalla Mushrooms

Mushroom industry strategic advantages and opportunities

  • Close access and good relationships with fresh distributors in Wodonga, Wangaratta and Benalla
  • Established growers with well-established markets

Mushroom industry strategic disadvantages and impediments to growth

  • Labour availability
  • Over production that leads to a flooding of the market and lower price received by mushroom growers
  • Access to key markets and competing against large industry players
 
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