OPTIMISTS ONLY NEED APPLY

RTÉ's Ear To The Ground programme on September 18th carried an eight-minute report on the health status of the Irish mushroom industry. The prognosis was bleakish to say the least.

Grower Pauric Hennelly from Galway gave the darkest prognosis, saying that growers who looked carefully at their costs had to conclude that the business was going down the tubes.

"The Irish mushroom industry is on a downer, fast and hard.... Growers have to conclude they are on the way out."

He was speaking as a voice of experience, having built his unit up through tough times, only to find things getting eventually tougher. Currently he is running his unit at 50% capacity as the only way to survive.

An Bord Glas man Michael Neary voiced more neutral comments about rationalisations – product costs up, currency differentials pushing margins down and competition increasing from the continent and amongst retailers.


Grower Michael Dee from Knock in Co. Mayo gave a very eloquent account of the business situation. Even with a new Dutch system in place and getting 300% more mushrooms from the tunnels than with the older system his final analysis was that the grower has been let down by Irish marketing companies and is being squeezed to the limit. "The grower is always at the bottom of the list."

Exporting for Connaught Mushrooms John Whittle gave a combative interview about margins being squeezed on all sides, with a call for Irish exporters to show a united front like their Dutch counterparts.

He also made the point that the big multiples always maintain or improve their margins and with the auction system that they now use the bidding is always in a downward direction.

John explained that there is no loyalty out there now for the marketing men – that a 14 year good relationship with one customer counted for nought when the price was no longer right they were "given the gate!"

But he refused to be downbeat saying that the Irish industry has a good product and a good tradition.
His parting comment:
"Mushrooms have been grown since the time of Caesar and that will continue."

Good to hear that there is some stubborn optimism out there in some quarters.