Strong competition from Poland on mushroom market

Strong competition from Poland on mushroom market

At the beginning of the 21st century the production of mushrooms in the Netherlands decreased. The low point was reached in 2006. The decrease in production especially in 2006 was the result of a smaller area and quality problems with the compost because of green mould. Production increased again during subsequent years. A strong increase in area in 2008, a shortening of the production cycle and improvement of quality of the compost caused the increase in production. The increase in area in 2008 was preceded by a decrease in area during a large number of previous years.

 

In 2009 the area was 22% smaller than in 2001. There is a change in production from harvesting by machine to harvesting by hand. This product is to be sold in the fresh market, whilst those harvested by machine will be used in the processing industry. 

Export is very important for the sector. About 90% of the fresh export is sold in the United Kingdom, Germany and France. During the last five years export decreased because of lower consumption, stronger competition from Poland and the decrease in the rate of exchange of the British pound. Sales in Europe normally go via supermarket channels, for which large volumes and constant quality are of importance. Poland is at the moment an important competitor of the Netherlands, because of the low rate of exchange of the Polish zloti. Poland of course has a structured competition advantage because of relatively low labour costs. The production in Poland is hampered by less modern production facilities and because large quantities of good and constant quality compost are not always available.  

Prices of mushrooms were good during 2006 and 2007. The following years showed low prices, which were mainly the result of increased production, a stronger competition from Poland and a smaller export to the United Kingdom. Some recovery of the market could happen during the next few years as a result of an increase in the rate of exchange of the British pound and the Polish zloti. Development of new products containing mushrooms, development of markets, marketing and durability are important elements giving a positive impulse to sales.