Irish mushroom growers must protect their share of the British retail market by launching a promotional drive, a new report says.
It claims unrelenting pressure for price cuts from retailers and the incursion of cheaper Dutch and Polish mushrooms into Irish market share make action vital. The strategic review of horticulture in the Republic was written by McIver Consulting for Bord Bia, the Irish Food Agency.
"It has been 10 years since any serious promotional activity was carried out in the UK," said Michael Slawski, horticulture marketing expert at Bord Bia. "Any campaign would need EU match funding and be valued in the millions. We couldn't do it without support from other mushroom suppliers in the UK."
Irish exports still account for a third of mushroom consumption in the UK, although that proportion is falling in the face of threats from growers in Poland and the Netherlands.
The Dutch, whose growing costs are estimated to be 10-15% lower than their Irish counterparts - mainly because of cheaper compost - now have a 25% share of the UK market, according to Slawski.
And the Poles' increasing UK presence, the report claims, is a result of rapidly expanding production.
Overall, the consultants found Irish horticulture was performing well, with output in 2005 worth more than €400m (£270m) - an increase of €58m (£39m) in four years.
However, they warn "the unrelenting pressure" from retailers for price cuts when input costs are rising has forced some growers to quit. Their report says: "The sector needs a strong voice that can represent it as an equal to retailers."
The report also urges Bord Bia to act on the opportunities offered through organic production and points out that Irish growers are far behind European counterparts.
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