With a farm-gate value of €158.6 million, the mushroom industry is the largest horticultural sector in Ireland, accounting for 50% of the country’s total horticultural exports. Around 68,000 tons of mushrooms are produced annually, with 85% of this production exported to the UK, making the sector highly dependent on the British market.
According to a recent report by Teagasc (Teagasc Advisory – Mushroom E-Bulletin 2, April 2025), Ireland’s mushroom industry is facing a series of challenges, including falling demand and rising production costs.
One of the most pressing issues is the decline in mushroom sales in the Irish and UK market, which has been a persistent problem since the end of February. This slowdown in demand has placed considerable strain on growers, who traditionally scale back production during the summer months when sales are typically lower. However, the situation this year required much earlier and more drastic measures to prevent overproduction. Growers have been forced to implement cutbacks ranging from 20% to 30% in production, a significant reduction aimed at aligning supply with the sluggish demand in the market.
To avoid producing more mushrooms than could be sold, growers were forced to make tough decisions early in the year. These included terminating third flushes, reducing compost fills, and pinning crops lighter to reduce overall volume. Despite these efforts, the market conditions remained challenging. Packhouses and growers refrigeration units quickly became overcrowded, and the slow pace of sales meant that, eventually, a significant volume of mushrooms had to be discarded on farms or discarded in packhouses.
The impact of these difficulties is not just financial but operational, with growers facing difficult choices about how to manage production, reduce waste, and keep their businesses viable during an extended period of low sales. The sector is at a critical point, and many are hoping for improvements in the market as we move into the second half of the year.
At the beginning of April, the British pound (GBP) experienced a notable decline against major currencies, including the euro. This depreciation was primarily driven by heightened market uncertainty following the United States’ imposition of broad import tariffs, which raised concerns about global economic growth and trade relations. This had a knock-on effect on the Irish mushroom industry, as approximately 85% of the mushrooms produced in Ireland are exported to the UK on a daily basis. For Irish growers who are paid in pounds for their exports, the weakening of the British pound meant they received less in euros when converted. Consequently, the income from sales to the UK became less profitable, further squeezing the financial stability of growers who rely heavily on this market.
As reported in the Teagasc Horticulture Crop Input Prices 2025 report, the cost of inputs for mushroom crops has increased by 7.7% over the past year. This rise is attributed to inflation in key areas such as labour, mushroom substrate, and energy. Weak demand, coupled with escalating input costs and the decline in the value of the sterling, has put growers in a precarious position, significantly increasing their risk of having to close their operations. Hopefully, upcoming promotions will boost mushroom demand in the near future, providing some relief and easing the pressure on growers.
Source: Teagasc Advisory – Mushroom E-Bulletin 2, April 2025
