Production and Marketing of Mushrooms: Global and National Scenario

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1 3 Production and Marketing of Mushrooms: Global and National Scenario G.C. Wakchaure Marketing is getting the right product, to the right people, at the right price, at the right time and in the right way. Marketing of fresh mushrooms all over the world is not very organised except the auction system in Netherlands. Producers make direct efforts to bring the produce to the super markets and wholesale distributor element is mostly missing. However, trade in the processed (canned and dried) is sizeable and organised. A. Global Scenario About the mushroom marketing, Stan Hughes said Mushroom growers have mystified me for years. They put so much effort into growing and so little into selling. For effective and efficient marketing, especially export, it is necessary to understand the global trade vis-à-vis the sources of supply, potential regions of demand and consumption patterns. The global mushroom production as per FAO Statistics was estimated at about 2.18 to 3.41 million tons over period of last ten years ( ). Mushrooms in FAO database have been classified as FAOStat code 0449 and have been defined as those inter alia: Boletus edulis; Agaricus campestris, Morchella spp. and Tuber magatum. Since there was an increase of about 56% world mushroom production in last decades and guesstimates can be put on current production to be around 3.5 million tons. China, USA, Netherlands, Poland, Spain, France, Italy, Ireland, Canada and UK are the leading producers (Table 3.1). Table 3.1. World production of mushrooms (metric tons) Countries China 5,62,194 15,68,523 United States of America 3,66,810 3,59,630 Netherlands 2,40,000 2,40,000 Poland 1,00,000 1,60,000 Spain 81,304 1,40,000 France 1,73,000 1,25,000 Italy 57,646 85,900 Ireland 57,800 75,000 Canada 68,020 73,257 United Kingdom 1,07,359 72,000 Japan 74,782 67,000 15

2 16 Mushrooms : Cultivation, Marketing and Consumption Countries Germany 60,000 55,000 Indonesia 19,000 48,247 India 9,000 48,000 Belgium NA 43,000 Australia 35,485 42,739 Korea 13,181 28,764 Iran 10,000 28,000 Hungary 13,559 21,200 Viet Nam 10,000 18,000 Denmark 8,766 11,000 Thailand 9,000 10,000 Israel 1,260 9,500 South Africa 7,406 9,395 New Zealand 7,500 8,500 Switzerland 7,239 7,440 Other countries Total World Production 21,86,222 34,14,392 Source: Table 50, World mushroom & truffles: Production, ; United Nations, FAO, FAOStat (8/28/2009) The three major mushroom producing countries as FAO data viz., China, USA, and Netherland account for more than 60% of the world production; however share of China itself is 46% which is about half of the world mushroom production (Fig. 3.1). According to current Indian estimates, mushroom production of India is about 1 lakh metric tons, which is about 3% of the world mushroom production. In USA and Europe major contribution towards mushroom production is by white button mushroom. In Asian countries the scenario is different and other species are also cultivated for commercial production. Fig World mushroom production in per cent (countries wise), 2007 Source: Table 50, World mushroom & truffles: Production, ; United Nations, FAO, FAO Stat (8/28/2009) Data by Chinese Association of Edible Fungi possibly includes all these mushrooms. Consequently the mushroom production figures quoted by Chinese are at much higher scale. The gap between FAOStat and Chinese Association of Edible Fungi data is enormous. This does bring out the contribution of other edible mushrooms/ medicinal mushrooms, even if the figures may seem exaggerated (Table 3.2). The mushroom export in China accounts for less than 5% of its total domestic production and about half of it is to Asian Countries.

3 Production and Marketing 17 Table 3.2. Mushroom production in China and in the World (metric tons) Year World China China/World (%) , , ,763 1, ,909 2, ,158 3, , ,250 8, , ,000* 18, Source: Table 1. Mushroom Production in China and World (Chinese Association of Edible Fungi), Mushroom Economics in China, Mushroom Business Information Centre- Mushroom Business (1/5/2010); *Qi Tan and Hui Cao Considering that 95% of mushroom production in China is consumed locally, the consumption per capita is likely to be over 10 kg/person/year. This is drastically higher than in US and many European countries where it is around 3 kg/person/year. In India the consumption is miserably low. Considering that we produce over 1 lakh tons and export about 60-70% of it, our per capita consumption is around g/person/year. World mushroom prodcution (FAOStat) is continously increasing from 0.30 to 3.41 million tons over period of about last 50 years from 1961 to 2010 (Fig. 3.2). Also the export and import trend lines shows that the mushroom export/import has continously increased in last 40 years, but marginally upto 1985 and beyond it there is tremendous increase in mushroom export/ import upto 2010 (Fig. 3.3). Poland, Netherland, Ireland, China, Belgium, Lithuania, Canda and USA are the majar mushroom exporting countries while countries like UK, Germany, France, Fig General trend of world mushroom production (million tons) Source: Table 50, World mushroom & truffles: Production, ; United Nations, FAO, FAO Stat (8/28/2009) Fig World mushroom export and import (million tons) Source: Table 51a-World mushrooms and truffles: Export volume, , Table 54a-World mushrooms and truffles: Import volume, , United Nations, Food and Agriculture Organization, FAOStat (08/31/2009) Fig Major leading exporters of mushrooms Source: Table 51a-World mushrooms and truffles: Export volume, , United Nations, Food and Agriculture Organization, FAOStat (08/31/2009)

4 18 Mushrooms : Cultivation, Marketing and Consumption Netherland, Belgium, Russian Federation and Japan import the mushroom from above said exporting countries (Fig. 3.4). World processed (canned and dried) mushroom export is continuously increasing from to million tons over the period of last four decades ( ) as compared to the fresh mushroom export (0.014 to million tons) but fluctuations in export is higher in case of the processed mushroom (Fig. 3.5). In USA, five decades ago, 75% of the mushroom consumption was in the form of canned mushroom. Today, canned mushroom contributes only 15% of total mushroom consumption. As can be seen in Fig. 3.6, the consumption of canned mushroom is static and that of fresh mushroom has increased continuously. This clearly shows that consumer s interest is shifting towards fresh mushroom consumption. Fig World processed (canned and dried) and fresh mushroom export Source: Table 52a-World mushrooms: Canned export volume, , Table 53a-World mushrooms: Dried export volume, , Table 51a-World mushrooms and truffles: Export volume, , United Nations, Food and Agriculture Organization, FAOStat (08/31/2009) Fig Fresh and processed Agaricus mushroom sale in US Source: Table 6-Agaricus mushrooms: Production by type of sale, 1965/ /09; USDA, National Agricultural Statistics Service, Mushrooms Largest importer of preserved mushrooms (canned) is Germany with about 1,05,186 tons in 2007 (FAO) followed by Russian Federation (69,726 metric tons), USA (67,058 metric tons) and Japan (32,757 metric tons). Most of these supplies are made by China (4,05,112 metric tons), Netherland (1,15,349 metric tons), Spain (20,623 metric tons), France (18,496 metric tons) and Indonesia (18,392 metric tons). China is the largest producer and consumer of mushrooms in the world (15,68,523 metric tons production + 17,732 metric tons imports) followed by USA (3, 59,630 metric tons production + 68,123 metric tons imports) and Netherland (2,40,000 metric tons production + 7,884 metric tons imports) respectively. Trade of mushrooms in European Union is significant and is reflected in Table 3.3. The European Union mushroom production is about 27% of the world production (2007, FAO). Netherlands is the largest producer and consumer, Poland is largest exporter, UK largest importer, France and Spain are also the larger producers as well as consumers. From outside, China is largest exporter of processed mushroom. Per capita consumption is very high (about 3.5 kg) in these countries (Table 3.4). Highest per capita consumption of mushroom is in Netherland (11.62 kg) followed by Ireland (6.10 kg) and Belgium (4.46 kg). Per capita consumption of mushroom in India has increased from 25 g to 40 g in last 10 years ( ). However as per Indian estimates per capita consumption in India

5 Production and Marketing 19 Table 3.3. Mushroom trade in European Union (2007) County Production Export Import Consumption (metric tons) (metric tons) (metric tons) (metric tons) UK 72, ,552 1,71,168 Belgium 43,000 36,918 33,876 39,958 Netherlands 2,40,000 83,592 34,161 1,90,569 Germany 55,000 4,553 54,168 1,04,615 Italy 85,900 3,135 9,835 92,600 France 1,25,000 3,013 37,158 1,59,145 Spain 1,40, ,688 1,40,840 Poland 1,60,000 1,47,817 1,213 13,396 Source: Table 50-World mushroom and truffles: Production, , Table 51a-World mushrooms and truffles: Export volume, , Table 54a-World mushrooms and truffles: Import volume, , United Nations, Food and Agriculture Organization, FAOStat (08/31/2009). Table 3.4. Per capita consumption of mushrooms (kg) Country Total Fresh Canned Total European Union UK Belgium Netherlands Germany Italy France Spain Denmark Ireland Poland USA Canada Japan China India Source: 2007 World population data sheet, Population Reference Bureau, 1975 Connecticut Ave., NW, Washington, DC-20009, USA; Table 50-World mushroom and truffles: Production, , Table 51a-World mushrooms and truffles: Export volume, ,Table 52a- World mushroom: Canned export volume, , Table 54a-World mushrooms and truffles: Import volume, , Table 55a-World canned mushroom import volume, , United Nations, Food and Agriculture Organization, FAOStat (08/31/2009). is about 90 g, which very less compared to other countries including USA (1.49 kg) and China (1.16 kg). It is clear from the above that European Union and USA are the biggest markets and Poland and China are the biggest competitors, for mushrooms from India.

6 20 Mushrooms : Cultivation, Marketing and Consumption B. National Scenario There is no denying the fact that production of mushrooms, especially of the white button mushroom, in India has gone up in the last few years (Fig. 3.7) but it has also exacerbated its marketing problems. There have been frequent reports of gluts in north Indian States during the winter months forcing the distress sale of the mushrooms. It should be borne in mind that efforts to increase the production without solving its marketing problems, would be counter-productive. The marketing of fresh mushrooms would determine the future of mushroom industry in India. The appropriate production based on the information prescribed by State Department of Agriculture/Horticulture or as reported in websites of commercial units are as given in Table 3.5. Table 3.5. Present state-wise mushroom production in India (tons) (2010) Sr. No. State Button Oyster Milky Other Total Mushroom production 1. Andhra Pradesh 2, , Arunachal Pradesh Assam Bihar Chattisgarh Goa Gujarat Haryana 7, , Himachal Pradesh 5, , J&K Jharkhand Karnataka Kerala Maharashtra 2, , Madhya Pradesh Manipur Meghalaya Mizoram Nagaland Orissa ,000 5, Punjab 58,000 2, , Rajasthan Sikkim Tamil Nadu 4,000 2, , Tripura Uttarakhand 8, , Uttar Pradesh 7, , West Bengal Union Territories 1. A&N Islands Chandigarh Dadar & Nagar Haveli Daman & Diu Delhi 3, , Lakshadweep Puducherry Total 1,00,683 6, ,313 1,13,315 Source: RMCU, DMR, Solan, 2010

7 Production and Marketing 21 Despite the changing currents, there is not yet much market for the processed foods and basically fresh vegetables and fruits are preferred in this country. Fresh mushrooms have very short shelf-life, cannot be transported to long distances without refrigerated transport facility and are sold in localised markets in and around production areas. The cultivation of white button mushrooms throughout the year under controlled condition is restricted to few commercial units and 30-40% of the production is being done under natural conditions during the winters. All the problems of marketing is experienced in 2-3 winter months (Dec-Feb) when more than 75% of the annual production comes in market for sale in limited duration and market area. Farmers face the consequences of over-saturated market and are forced to sell their produce at highly unremunerative prices. Private processors, rather than coming for rescue, get tempted to avail of the situation for their benefit. Marketing of mushrooms in India is not yet organised. It is the simple system of producers selling directly to retailer or even to consumer, which has its own limitations. Unlike the other countries where 10% of the total cost is earmarked for marketing, we have not given marketing sufficient thought and investment. Per capita consumption of mushrooms in India is less than 50 g as against over a kg in various countries. There has not been Fig Mushroom production and productivity in India any serious effort to promote the product, to strengthen and expand the market in order to increase its consumption. Mushroom is a novel food item for this country and what to ask of its flavour, texture, nutritive value, many are not aware of what is mushroom and whether vegetarian or non-vegetarian item? In the coming years, there is going to be good demand for processed and fast foods. Mushrooms may be canned to meet the demand in the off-season and in the nonproducing areas. Product diversification should also be tried. Regarding the problems of sale/export of canned mushrooms, serious thought has to be given to bring down the cost of production of mushrooms and its processing in order to compete in the international market. There is not much problem in the sale of fresh Pleurotus due to very low production but there have been problems in selling dried Dhingri particularly its export where middlemen take lion s share. Generally, the export orders are too big to be met by a single grower. Plerutous growers may form a cooperative where they may pool their product and trade. APIDA and other Central as well as State agencies would be too willing to help them once they are assured of sufficient consignment for export, for 2-3 years. Some of the suggestions to solve the marketing problems of mushrooms especially of white button mushrooms in India are given below:

8 22 Mushrooms : Cultivation, Marketing and Consumption 1. Expand the market area and strengthen the demand: a. Popularize mushrooms using ICT as delicacy with nutritive and medicinal value, on mass media like Doordarshan, also ads. and posters. b. Break consumer resistance by creating awareness in new areas. Demonstration of recipes and free samples in new areas. Free recipe booklet. 2. Form cooperatives for sale: a. Create cold storage facility b. Create refrigerated transport facility c. Create processing facility d. Create distributor function for big cities. 3. Decrease the cost of production and bring down the sale price to boost the demand. 4. Good prepacks for eye appeal. 5. Train retailers about handling, storage, food value and recipes. 6. Approach supermarkets, chain vegetable stores, mother dairy retail counters for retail sale. 7. States should fix minimum support price. 8. Public sector marketing, processing and export organisations should come forward. 9. Assured supply throughout the year at a reasonable constant price is key to good marketing. Efforts should be made to diversify and cultivate different mushrooms throughout the year along with cultivating some of the important mushroom during off-season under controlled condition. 10. In a limited area, say a village or a cooperative, the crops should be time-scheduled to get a daily reasonably uniform production to avoid glut on a day, this is required to meet the commensurate demand. One cannot ask consumer to purchase more because all have got a peak flush during a week. The marketing system has to viewed as a value chain where all components are taken care of. The increased production should get translated into economic gain for mushroom producers. This is possible only when marketing is organised and demand is ensured. Considering that awareness about consumption and health benefits of numbers of mushrooms available for cultivation is limited, their demand is also less. Hence, multipronged strategy is required that means needs to Expand market, Increase demand, Organise marketing and Form cooperatives. Further Readings 1. and Qi Tan and Hui Cao. (2010). New Development of the Mushroom Industry in China Institute of Edible Fungi, Shanghai Academy of Agricultural Sciences, Shanghai , P. R. China.

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