Overall Performance and Drivers of Performance
Total horticulture and cereals exports were valued at €295 million in 2023, representing a 6% year-on-year decline. Mushrooms account for almost 50% of total export value. The mushroom sector has a reasonable year in the UK, the main market for Irish mushrooms, where sales increased in value despite lower volumes, reflecting price increases achieved during the year.
The sector is performing slightly behind the overall vegetable category in value and volume terms. However, it was not subject to the same weather disruptions in 2023 as other produce due to their production taking place in a controlled environment.
Trends by Key Products
The biggest factor affecting the mushroom sector in 2023 was the noticeable slowdown in the UK economy. This led to a greater search for value amongst consumers and within the fresh produce category led to consumers simplifying their purchases, buying only two to four fresh fruit and vegetables in their weekly shop. However, the sector has proved resilient to these challenges, with the volume of exports declining by only 6% year on year. Rising prices have helped producers to maintain their margins.
Brown mushrooms
Brown mushrooms continue to grow in popularity and were the biggest contributors to the growth of the market. Sliced mushrooms have also seen an upsurge in demand, albeit from a small base, driven by convenience and price point. There may be more opportunities in loose, as shoppers avoid plastic packaging, and purchase smaller amounts, while organic mushrooms struggled, due to higher prices. Across the sector, labour availability.
UK market
The UK remained the most important market for mushrooms. In relation to amenity Northern Ireland garden centres have traditionally relied on UK nurseries for their supplies, however the new Brexit-related arrangements mean that sales to Northern Ireland for Great Britain nurseries involve extra paperwork and logistical issues. There are opportunities in Northern Ireland for nurseries across the board, including niche suppliers.
Cereals
In 2023 the cereal growing area of 268,000ha was estimated to be down by more than 6%. Total cereal production was estimated at just under two million tonnes which is a decrease of 20% on 2022. The yields for all cereals were below the five-year averages. The reduced area and very challenging weather conditions during the year were key
contributing factors to this outcome. Higher costs, lower yields and prices have resulted in a very challenging year for the tillage sector.
The key market for cereals produced is the domestic market and for animal feed but there is an important element supplied into the food and beverage market. In 2023, the value of cereal exports was estimated at €80 million which is a value decrease of 4% year on year, with exports primarily destined for Northern Ireland.
Overall, maize remains the main export category with malt exports performing well. Both oats and barley volumes were lower leading to a fall in the value of their exports. The value of
wheat exports was stable helped by increased volumes from the 2022 harvest.
Prospects
The outlook for 2024 for the mushroom sector is positive, provided the secor manages to stay on top of costs and achieve some further price increases. There is a longstanding relationship between the industry and UK retailers, built on the quality of mushrooms supplied, and good service. In addition, Irish companies are positioning themselves as premium suppliers with innovative vitamin-enhanced mushrooms.
