The mushroom industry is in a strong position as the category has very low price elasticity relative to other categories and, despite the past quarter seeing an increase in retail prices of mushrooms in the UK, there has not been any decline in market volume demand.

Steven Allen, Mushroom Bureau committee member, told FPJ: “Nearly two-thirds of all mushrooms sold in the UK are imported from the euro zone and following the sharp drop in the value of sterling compared to the euro, retail prices had to increase.”

In the last 12 months, the market has reached £331 million, up eight per cent year on year in value terms.

Allen said: “The quality of mushrooms supplied in the first quarter has been very good. Some retailers and suppliers have been innovating with some new sliced mushroom and exotic products. The mushroom industry continues to show its customer focus and that it is willing to change and adapt to new customer trends and to meet customer needs.”

The deteriorating economic environment has meant that sales of value mushrooms have grown considerably in the first quarter of 2009. The Mushroom Bureau is happy with this performance as it shows that the category can withstand relatively strong price inflation.

The mushroom market traditionally declines slightly in the summer months, but a number of promotions are planned to exploit the barbecue opportunity, said Allen. “We have been pleased that the Met Office has predicted a ‘barbecue summer’, so we think the future is bright,” he added.

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