Journal OUR MEMBERS AT MUSHROOM DAYS MUSHROOM EDUCATION ISSUE 6/2023 WINTER for the Food Industry MUSHROOMS IN THE MEDIA
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CONTENTS EDITOR Kura Antonello [email protected] ADVERTISING Leah Bramich [email protected] DESIGN Jihee Park [email protected] COPYRIGHT: All material is copyright to the AMGA AMGA UPDATE Message from the AMGA Chairman 5 AMGA Relationship and General Managers report 6 AMGA Marketing & Communications Manager report 8 AMGA MARKETING UPDATE The Blend - Final Campaign Report 24 Mushrooms in the Media 32 Finding the Opportunity for Mushrooms amidst Consumer Confidence Decline 14 INDUSTRY Mushroom Days by Geoff Martin and Images by Carmine Callisto 10 Australia’s appetite for imported mushrooms is rising – how do we measure? 28 Mushroom Industry Events 24 AMGA MANAGED, LEVY FUNDED PROJECT UPDATE 35
your blend for life At Legro, we think it’s important to listen to our clients. It all starts with a conversation to find out what a customer needs, followed by the right advise and aftercare. Haven’t you found the right solution yet? We are happy to think along with you. Contact me or one of my colleagues. Phil Badgery Sales Manager Australia & New Zealand +61 (0) 3 95555267 [email protected] www.legrogroup.com
How lucky are we to be in one of the best industries on the planet? Despite significant challenges in recent times, Australian mushroom farms, both big and small are working together to maintain a greater quality of product, with a fair price for all, and this comes at a time when mushrooms have hit mainstream media. In the past month our General Manager, Leah Bramich was interviewed by 2BG Sydney. We had a prominent feature in ABC online news titled ‘Mushroom sales are shooting up as people look to reduce meat consumption and boost their health.’, and in the same week Dr Flavia Fayet-Moore was interviewed for an hour on ABC Talk Melbourne discussing the health is wealth message to the nearly 4.3 million listeners per week that tune in. With our industry now having a farmgate value of $434.2M making us a significant contributor to the horticulture sector in this country – it saddens me that the current state of our industry isn’t as shiny. We have recently encountered substantial obstacles that have affected our operations: • From 1 July 2023, work restrictions for student visa holders will be re-introduced, limiting working hours for student visa holders to 24 hours a week. • A penalty rate trigger for over 38 hours worked. • Floods and other unforeseen weather conditions have culminated in an economic domino effect, putting pressure on store prices, knocking consumers for six at the check-out and ultimately impacting our bottom line. • Australian unions have called for a pay rise of 7% for minimum wage workers, could this be announced at the Minimum wage pay review in July? If successful, this will raise the national minimum wage of $1.50 an hour. • With 11 interest rate hikes since this time last year, MESSAGE FROM THE AMGA CHAIR we are all feeling the pinch. The only solution? We need to increase wholesale price. • Let’s not forget Inflation in general, squeezing our profit margins. even more significant for smaller farms. Despite the forementioned gloom, we as a peak industry body remain committed to advocating for the best interests of our members on these and other issues. As many of you know, SIAP has been postponed to July due to the scheduled date coinciding with ‘Mushroom Days’ in which many of our growers and members attended. For R&D, this results in more time to develop the R&D investment ideas which is a great advancement, but we still have some way to go for marketing. I apologize for the gloom and doom, but I feel the above items need to be mentioned. Larger farms can absorb some cost increases easier than smaller farms, and as I have mentioned in past reports, I’m concerned we have lost many smaller farms during the past 10 years. As an industry we need to be aware of this and support growers small and large. I was great to see some of our members representing our industry at the recent Mushroom Days in Holland. I encourage you to head to page 10 (and read an article from our AMGA International Correspondent’s (Geoff Martin and Carmine Callisto) who attended the event along with other AMGA members. As always, I welcome a call from AMGA members at any time, to speak about the issues that are important to you, your business and our industry. Regards Nick Femia Nick Femia AMGA Chair & SA Mushrooms [email protected] | 0412 655 607 5
It is astonishing how quickly this year seems to be flying by. As always, the AMGA have been extremely busy over the past quarter, with the majority of my time spent managing levy-funded research and development projects, as well as working closely with to find ways to improve Hort Innovations engagement and collaboration with our broader industry. I am pleased to report some exciting advancements in relation to Research and Development advice, however, conversations regarding the management of Marketing and Promotions levy continue. HORT INNOVATION UPDATE: A NEW INDUSTRY ADVICE MECHANISM FOR R&D Since the beginning of the year, I have been working closely with Andrew Francey, Hort Innovations new General Manager - Industry Services Delivery, to codesign a new advice mechanism for Research and Development investments. After lengthy consultation with industry, the AMGA board of directors has now approved the signing of a mutual memorandum of understanding for a new and improved model for R&D advice, which will comply with Hort Innovations governance requirements and provide the opportunity for improved collaboration with industry, by broadening stakeholder engagement throughout the R&D investment process. The investment cycle will begin each year with a twoday in-person workshop, inviting a broader range of industry personnel to attend. The format of the workshop is expected to be: Day 1) Review the Strategic Industry Plan (SIP), discover gaps in the SIP as well as emerging risks and opportunities, and analyse current R&D investments; and, Day 2) an ideation session or ‘think tank’ to consult with key stakeholders on the top-level design of possible investments. This is an extended version of the ‘ideation’ sessions held in December last year, with more time to analyse the investments and engage with a broader range of key industry stakeholders. A key part of the new and improved advice mechanism is the appointment of an R&D Coordinator – via a 3-year levy-funded project. The coordinator will be a full-time (contracted), resource for the industry, and managed by the AMGA. The role of the R&D coordinator will be to act as the conduit between growers and Hort Innovation, to concierge R&D projects from ideation through execution and evaluation. More details about the R&D role will be released soon, with recruitment expected to begin in late August/ September this year. Expressions of Interest to join the refreshed Strategic Industry Advisory Panel are expected to be offered at the end of July. AMGA RELATIONSHIP GENERAL MANAGER'S REPORT Leah Bramich AMGA Relationship & General Manager [email protected] | 0457 440 298 6
The current SIAP will meet on July 5 & 6, to endorse the proposed FY23/24 investments. WILL RISING INTEREST RATES AND INFLATION AFFECT CONSUMER BEHAVIOUR? We are now experiencing our eleventh rate rise since April 2022, coupled with rising inflation, many of us are wondering what effect this will have on the industry - not only on farm but in consumers weekly grocery shop. At a time when growers need to pass the rising cost of production onto the consumer, can farms raise prices without fear of mushrooms falling out of the shopping basket? Interesting insights from a recent 2023 Australian Consumer Outlook webinar, presented by NeilsonIQ, tell us that while consumer confidence is in decline, the future is not all doom and gloom for the fresh fruits and veggies in Australia. Take a look at the (rather lengthy) article on page ### to learn more. UNDERSTANDING THE EXOTIC MUSHROOM MARKET With the rise in popularity of exotic mushrooms, and more exotic varieties available on local green grocers’ shelves, we asked data analyst Wayne Prowse of Fresh Intelligence Consulting to take a deep dive into the volume and origin of exotics being imported into Australia. As you will read in his article, imported mushrooms have doubled over the past decade, valued at $16.8 million in 2022. While there has been an update on HS Codes last year in an attempt to better define these exotic varieties, more improvements need to be made to the global coding system, to adequately report volumes. As always, please feel free to call me at any time if you need further information on the AMGA's activities, or if you need assistance, advice, or connection on any topic. Sincerely Leah Bramich Horst - The Netherlands • +31(0)77 399 95 00 • [email protected] • www.christiaensgroup.com • Increases picking effi ciency • Facilitates ergonomic working • Suitable for existing and new farms • Expandable with (semi) automation solutions at the packing area MORE INFO SCAN QR THE POWER OF COMBINED EXPERIENCE YOUR PARTNER FOR ADVANCED PICKING TECHNOLOGIES THE DRAWER SYSTEM THE TILTING SHELVES • Maximise your harvesting performance • Minimise your maintenance • Safety & ergonomics • Sustainable & future proof • Expandable with (semi) automation solutions at the packing area • Big data & robotisation 7
There’s something about the mushroom community that’s utterly infectious. Maybe it’s the fact that our product is the healthiest on the planet? Or perhaps it’s the intense passion I feel from members of the association when we are on the phone? Whatever it is, I’m hooked, and I can’t wait to see what the remainder of the year holds for each of us. Do you want to know the number one lesson I have learned since starting my time at the Australian Mushroom Growers Association? A lot can happen in 4 months. In what can only be described as a “baptism of fire” (of the most supported kind) I have: Finalised The Blend Campaign that in the end reached a whopping 12.9M people. (You can read more about the results in my standalone report). Completed the planning stages for two AMGAmanaged, levy-funded marketing projects for Hort Innovation: MU22501 – Café Culture - $300,000 and MU22503 – Experiential Sampling and Events program - $200,000. Both of these projects will kick off in the second half of 2023 with plenty of exciting updates to follow. Planned wand kicked off the 2023 Mushrooms In Schools program that will impact over 12,000 students across Australia. The planning of this project included an update in marketing assets (digital assets, videos, lesson plans, etc) and a robust email marketing funnel that will expertly guide the schools through our information guides and modules. Met with our counterparts from the Mushroom Council and kicked off planning for future collaboration partnerships and projects, plus continued scope, planning, and implementation of our own marketing initiatives in the AMGA Comms Plan. Kura Antonello AMGA Marketing & Communications Manager [email protected] | 0419 650 778 Had numerous meetings with the Hort Innovation marketing team, fostering strong relationships and getting up to speed with the latest mushroom and consumer behaviour data. I also attended the HIA Consumer Trends Seminar and was interested to learn the growing role that ‘sustainability’ as a marketing message and purchase driver was to the agriculture industry. We will be seeing more sustainability messaging in our campaigns moving forward. Worked with our digital team on creating a more streamlined and effective members section on the website that will deliver an A+ UX (user experience) and had the opportunity to communicate to many of you and your teams, discussing marketing initiatives and ways we can work together to localise our marketing effort. In June I am excited to kick off my first “Mushrooms for Health” PR campaign, coinciding with Men’s Health Week with our expert Dietitian Jane Freeman. Through a juicy comms plan, we will be encouraging all Australian men to incorporate just 3-4 button mushrooms into their daily diets to unlock a host of nutritional benefits, that will positively impact their health, appearance, and overall vitality. With mushrooms rightfully being in more mainstream media of late, I hope that this campaign will be a big success and drive more mushrooms to be added to cart in the Winter months. It’s fair to say that my enthusiasm for our industry, and the marketing initiatives in our pipeline is at an all-time high - but as always, please feel free to contact me anytime if you need further information, recipes, digital assets or just to have a chat. Your insights and feedback are invaluable to me, so please don’t hold back. Sincerely Kura Antonello AMGA MARKETING AND COMMUNICATION MANAGER'S REPORT 8
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Mushroom Days was held in the Netherlands in ‘s-Hertogenbosch between the 10th and 12th May. This event is normally held every three years, with the last being held in 2019; the event was cancelled in 2022 because of lingering concerns regarding Covid and the geopolitical situation in Ukraine; so mushroom growers and exhibitors were pleased to be back, with over 4500 delegates from more than 80 countries being represented. This International Event is the major mushroom industry networking opportunity, delegates can catch up with friends and acquaintances whilst viewing the latest developments the machinery and other industry specialists have to offer. There was a good turnout from Australia, the Tolson Family were here in force, with Rob, Nora, David, Kevin and son Clint, as well as Robert and son Chris. Douglas Schirripa made his usual cameo appearance along with the Callisto brothers, Carmine and Michael, Raymon Teeuwen of Dynamic Electrical Systems completed the South Australian contingent. Phil Badgery of Legro Australia, Steve Willemse of SJW Mushrooms and Geoff Martin of Dr Mush Advisory brought up the rear. Jose Cambon and Peter Vu formerly from Costa Mushrooms, but now with HighLine Mushrooms in Canada, were also sighted at the event. The main theme running through the event focussed on picking and packing, with the main motivator being the difficulties of finding staff willing to work on mushroom farms in Europe and the increasing cost of employing them. The Christiaen’s Group farm tour visited Heereco to view the Drawer System in operation. The GTL Europe farm tour visited Voet Champignons to view belt harvesting and packing systems, as well as the modern tilting shelves at Nesco, with its case run rooms, from which beds are drawn after pinning onto a specialised high-speed gantry to be reloaded onto smaller nets into the tilting shelf harvesting rooms. This is almost a back to the future scenario, reminiscent of the days of set back rooms commonly used with wooden trays. Interesting presentations were given by both Christiaen’s MUSHROOM DAYS 2023 10
and GTL Europe. Geert Lemmers discussed the opportunity of Phase 1 in Phase 2 tunnels, referencing the recent Christiaen’s project at Mercer Mushrooms in New Zealand. Jack Lemmen of GTL discussed new developments in relation to packaging systems. Robotic picking is still under development, but likely to be a long way off into the future and even then robots will never be able to completely replace humans for handpicking. One interesting development which was displayed on the GTL farm tour was a laser camera which can be programmed to display which mushrooms should be picked by shining a green dot on individual mushrooms: great for training purposes and even for normal harvesting; unfortunately photography was banned. Legro held a very well attended open evening at their new Cuijk mushroom casing operation, which has a dock for barges carrying deep dug peat via the River Maas. Visitors were driven around the operation on a motorised vintage tram; an impressive facility demonstrating the company’s commitment to the mushroom industry into the future. In general, there was an air of uncertainty with growers from many countries bemoaning difficult market conditions, rising costs for labour and energy. In Europe the cost of gas has increased by 50% since Putin’s invasion of Ukraine, as consequence many operations are no longer cooking out compost to save costs. Peat suppliers remain upbeat about continuing supplies of deep dug peat being available for mushroom casing well into the future, despite the actions of some European Governments to curtail the extraction of peat. The UK Government has banned the use of peat by hobby gardeners and has severely restricted the use of peat in the horticultural sector; the mushroom industry is to be restricted to a depth of 20 mm of peat-based casing from 2024, with a complete ban on peat casing to come into force by 2030. Wageningen University For the first time at Mushroom Days there was a Science Hub, featuring amongst other organisations Teagasc, Wageningen Universiteit, Penn State University, as well as our very own University of Sydney with posters on display of levy funded R&D undertaken by Dr Michael Kertesz and his team. Well was attending Mushroom Days worth enduring the long haul flight from Australia; if only just being able to meet up with good friends, acquaintances and meeting new people in the industry it was. 11
The AMGA led, levy-funded program MU20003 – Educating the Food Industry of the Nutritional Benefit of Mushrooms is now in its second year, and as we transition to the more exciting phase of the project, Food Industry engagement and mushroom menu interventions, we have some exciting resources and news to share. The project is being facilitated by Nutrition Research Australia (NRAUS) and Chef Adam Moore, who have developed a range of educational resources, which are now available for download from the AMGA website https://australianmushroomgrowers.com.au/foodindustry/. These resources consolidate the evidencebased nutritional advice from NRAUS, based on years of scientific research, and extensive culinary tips from Chef Adam Moore, to create a valuable ‘mushroom educational toolkit’ of resources specifically designed to upskill the food industry. The ‘toolkit’ includes three educational fact sheets, an eBook, a handy ‘which mushrooms is best for cooking’ reference poster for food service kitchens, and three educational videos (which at the time of writing, have been filmed, but yet to be produced). The resources provide information on three key food service educational themes: • Mushrooms, the X-factor ingredient for plantbased eating – Dr. Flav talks about the different dietary trend chefs need to cater for, and how mushrooms are the x-factor ingredient for plant based diets. EDUCATING THE FOOD INDUSTRY ABOUT MUSHROOMS Leah Bramich (AMGA GM), Chef Adam Moore, Dr. Falvia Fayet-Moore (NRAUS), Rowan Anderson (White Prince) and Jutta Wright (NRAUS) 12
• Culinary Tips and tricks – with Chef Adam Moore in the kitchen teaching us his top tips for cooking mushrooms in a food service kitchen. • Farm to Plate – Providing information on how mushrooms grow, as special guest Rowan Anderson of White Prince takes Adam and Dr. Flav on a tour of Premier Mushrooms, west of Sydney. These resources will be communicated broadly to the food service industry, provided as an ongoing resource for culinary schools, used to assist the upcoming ‘mushroom menu intervention’ case studies, and presented to attendees at the very exciting ‘Mushroom Masterclass’ conference roadshow, which will be delivered in the last year of the project. CULINARY SCHOOL FARM TOUR As part of the projects ‘top down, bottom up’ approach to culinary education, culinary students are an important part mushrooms food service future. The first culinary school farm tour was conducted in mid-May, with 40 emerging chefs from The Star Culinary Institute visiting Elf Farms compost facility, Premier Mushrooms, and White Prince, to witness firsthand how compost is made, how mushrooms grow right through to picking and packing. The culinary students were taken on a tour by David Tolson, Chris Tolson and Matthew Fensom, and received educational fact sheets to support their learning. The White Prince team organised an exceptional lunch to showcase to the students how mushrooms could be used to create delicious meatfree pies, blended burgers, vegetarian quiche, and fancy chicken and mushroom vol au vents – perfect for catering. The students took boxes of mushrooms back to The Star, to start creating their own mushroom dishes. Dr. Flav and Chef Adam Moore in the kitchen studio 13
It’s impossible to turn on any form of media right now and escape the doom and gloom reports of household pressures due to rising interest rates and the increased cost of living. Each of the big 4 have separate theories for when this will hit us, but there is one thing we know for sure, as we are living through our eleventh rate rise since April 2022, another rate rise is imminent. Compounded by the pain of increased energy costs, growers around the country are not only feeling this financial stress on their own farms, but many are also worried about the decline in consumer confidence due to these economic pressures, and the perception that consumers see mushrooms as a luxury item, not a staple for the family dinner table. What is challenging for inflation is that it has a very strong psychological effect on both businesses and consumers and after the pandemic, we are perhaps a little more gun-shy and conservative than we used to be. As we brace ourselves not knowing what impact this will have on our industry, growers are also wondering when and if they can put their prices up to recoup their own increased costs of production, without mushrooms losing their share of the grocery basket. What we experienced in the first half of 2023 is not a complete disruption in consumer confidence as we FINDING THE OPPORTUNITY FOR MUSHROOMS AMIDST CONSUMER CONFIDENCE DECLINE Leah Bramich AMGA Relationship & General Manager [email protected] | 0457 440 298 experienced during the COVID-19 pandemic, but it is an evolution from the inflationary environment that we are currently experiencing, the effects of which are expected to increase by the end of this year. Customers are still buying, but as our cost of living rises, low and middleincome earners are being more cautious, and are seeking thrifty ways to find deals or save money. In May this year, Hort Innovation hosted a 2023 Australian Consumer Outlook webinar as part of their ‘Hort Insights’ series (funded via Hort Innovation’s multi-industry investment in consumer behaviour data MT21004). The webinar, presented by Marco Silva, leader for the Fresh Industry clients at NielsonIQ took a deep dive into current consumer spending vs one-year and two years prior, as well as key learnings from the GFC and pandemic to predict how our current situation is likely to affect consumer buying behaviour for fresh produce. Despite 13 years in consumer data analysis with Nielson, like us, Marco doesn’t have a crystal ball to tell us when or how hard this will hit us here in Australia, but he did have some reassuring data that suggests that consumers will continue to shop, and fresh fruits and veggies (and mushrooms), are expected to remain relatively stable – here in Australia at least. AUSTRALIAN CONSUMER OUTLOOK NielsonIQ performed a Consumer Outlook Survey in early 2023 and compared this with the 2022 mid-year survey. From his analysis, Marco reported that overall, the average Australian Consumer is feeling more unsettled about their finances versus a year ago. 14
As expected, the main reason for this is the increased cost of living and concerns about grocery prices, with 41% of Aussies worried about the rise in food costs, but most importantly and as expected, the biggest concern for consumers is rising interest rates. With most Australian’s not owning their houses outright, there has been a 12% jump in consumer concerns about debt repayment and subsequent rent increases. 47% of Australian consumers say they are in a worse financial position than they were 12 months ago, and only one-third of Australians say that they only have enough money for the basics; utilities, mortgage/rent, transport, and groceries. 15
GLOBAL OUTLOOK The higher cost of living is of course not unique to Australia, with most developed countries experiencing a similar impact due to inflation, causing a downturn in confidence worldwide. As seen in the dip in Australian consumer confidence in the second half of last year, we are not immune from the external forces causing the global economic downturn. While there’s no doubt there will be more roll-on effects here in Aus, we are somewhat shielded in Australia and aren’t as impacted as much as other countries; in particular, parts of Europe, the US, and China. As we spare a thought for our overseas mushroom counterparts, we can also be grateful that ours is the Australian mushroom industry, and we are not reliant on export trade like macadamia, almond, table grapes, and other commodities. 16
THRIFTY SHOPPERS NEW BUYING STRATEGIES. As Australian households begin to feel the pinch at the checkouts, many thrifty shoppers are looking for ways to mitigate against this. A trend continuing post-pandemic is that most Australian consumers are shopping more often and switching retailers. A mere 7% of consumers are loyal to one outlet, while around 75% of us shop across three or more retailers. This is likely reflective of consumers money saving strategies, as consumers visit a variety of retailers to sniff out promotions and better prices. An interesting insight from NielsonIQ is the ‘long-term and slow building’ increase in market share of discount store Aldi. As more and more Aussies seek better buys, the thriftiest of shoppers tend to go to Aldi first, then visit larger retailers second, to top up their shop for what they can’t find. Aldi is harnessing this trend, by recently launching a ‘You’ll save more if you shop at Aldi first’ campaign. This same trend can be seen for green grocers, as more shoppers are turning to supermarkets for their main grocery shop and leaving fresh produce for the locally owned independent grocer. Despite not being called out as a main strategy for managing grocery expenses, a big share of this new multi-store grocery buying strategy belongs to online grocery shopping. The pandemic played a pivotal part in online grocery shopping development, and we saw a huge rise in the number of online shoppers, with most consumers having no other option during nationwide lockdowns. As life returned to its new normal, shoppers returned to bricks and mortar stores, but not as much as they did pre-pandemic, and online penetration continues to grow. In the last year, 58% of Australian households shopped online for their largest grocery orders (average spend $109), using visits in-store for top-ups (average spend $50). It’s great to see that 36% of online purchases included fresh produce, a huge jump in online fresh sales compared to two years ago. Consumers clearly have growing confidence in the quality of online fresh produce. 17
PRICE VS PROMOTION. Promotions remain the key strategy to manage grocery expenses, with 35% of us (up 16% from last year) opting to buy what’s on sale, rather than being loyal to a particular product or brand. Not surprisingly, there is a 19% increase in the number of consumers who claim they will stop buying certain products if they feel they can’t afford them. Taking a deeper look into the consumer budget-saving strategy of ‘stop buying certain products,’ this doesn’t necessarily translate into a loss of category growth. Take a look at the top ten performing grocery categories, where price inflation is masking underlying category weakness as demand drops. While units per shop declined in six of the ten categories, and there was a drop in penetration in a couple, higher price per unit is still the main growth driver. Of course, this is not the case for all categories, but certainly the top ten, including fresh meat, bakery, and fresh vegetables. 18
The same perspective can be seen in relation to the growth contribution of the top ten fresh produce categories, with the average price per unit (shown in yellow) is the top growth driver for each category. 19
IT’S NOT ALL BAD NEWS FOR MUSHROOMS As we saw during the pandemic, out-of-home spending was impacted much more than the supermarkets, as consumers opted to save money by eating out less, meaning the food service channel declined, but supermarket sales of fresh produce remained relatively stable – so it’s not all bad news for fresh produce. There are great opportunities for mushrooms to retain their share of the grocery basket, but we need to consider how each consumer demographic is likely to adapt. By concentrating on the macro-economic factors, it’s easy to subscribe to the doom and gloom of consumer outlook, but different demographic groups of Australians will be impacted differently, depending on their situation. It is important for us to remember who our loyal customer is, and who is not. WHILE CONSUMERS ARE BUYING LESS, THEY ARE PAYING MORE, WHICH IS SUSTAINING CATEGORY GROWTH. Strugglers, or consumers with lower incomes and tighter budgets, are expected to search for cheaper alternatives at the supermarket and become thrifty with their spending. These conscious efforts to save money will impact their choice of shopping channel, food category, and product choice. Promotion and price will likely be the key drivers of low to middle-income families saving strategies. But let’s look at the reality here, we know that low-income earners largely fall into the ‘lowmushroom-user’ category- so they are likely not buying our mushrooms anyway. As we saw last year, middle-income earners who represent most of the Australian population, are cautious and will likely eat out less and entertain more at home. The good news is, consumers still want to indulge to treat themselves, by turning to premium products in-store rather than spending money on dining out. Thanks to the pandemic, middle-income home cooks’ culinary talents were upskilled and their confidence in cooking with fresh ingredients increased. Higher-income earners, making up 30% of the population, are likely to be unchanged or thrive during this period, as they feel more secure financially and confident to spend. For food service, there is likely to be an increased awareness of seasonal produce to offer a lower cost per dish. With mushrooms being in relatively stable supply and price year-round, this is hopefully an advantage for our category. © 2022 Nielsen Consumer LLC. All Rights Reserved. 29 13% 14% 19% 15% 14% 20% 44% 50% 35% 22% 14% 19% 7% 8% 7% Dec 2021 Source: NielsenIQ 2023 Consumer Outlook Homescan Panel Survey | Australia | Which of the following best describes how COVID-19 impacted your overall household financial situation over the last 2 years? Therefore, it’s important to look at consumers based on their outlook on spending 29 Strugglers: Have suffered financial insecurity and continue to do so today. Rebounders: Experienced income or job loss but now feel they are back on track. Cautious: Not impacted financially but are cautious with spending. Unchanged: Not impacted and continued to spend the same. Thrivers: Saved money and feel more financially secure. Jun 2022 Dec 2022 20
THE MUSHROOM OPPORTUNITY A significant opportunity exists for mushrooms to lean on the current shroom boom trend, and inspire this middle to high-income demographic, to use more mushrooms in more of their home-cooked dishes. In 2022, NielsonIQ conducted a comprehensive review of the mushroom category and identified that despite a slight decline in sales during the pandemic, Seniors and Sinks/Dinks (Single/Double income no kids) are still our highest mushroom users, collectively representing 71.8% of mushroom sales. They also identified a $9.4m opportunity for mushrooms. By increasing SINKS and DINKS annual penetration by +1 point, and annual frequency by +.05 points, would increase the volume opportunity by 763 tonnes. It should also be noted that this calculation was developed using pandemic & post-pandemic figures. 21
To watch the Australian Consumer Outlook 2023 webinar, presented by NeilsonIQ, click or scan here IN SUMMARY It’s difficult to say if we are going to have a soft landing or a hard landing in the economy, but one thing is for sure - as we have not reached peak inflation yet, things are set to get worse in Australia before they get better. It is likely we will see a reduction in the number of Australians spending money on entertainment, overseas trips, and dining out, but groceries are expected to remain relatively stable, as we saw during the pandemic. There are lots of success stories of products that have benefited from the economic downturn, as consumers still seek ways to entertain with friends and family and indulge. We need to harness the opportunity this provides for mushrooms. There is still room in the grocery basket for mushrooms, but we need to focus on our true customers, our mushroom lovers, to inspire them to cook more delicious mushroom meals at home. An easy sell during winter of course, but more focus will be needed towards the end of the year. As we all know, as the weather changes, mushrooms seem to fall from our summer recipe repertoire, and this will come at a time when families are likely going to start to feel the sting of rising interest rates. To focus on a positive; despite farms and families feeling the pinch, we should be very grateful that we are not reliant on seasonality and exports, or at risk of cheaper imports from neighbouring countries like our international counterparts – and we should thank our lucky stars we are part of the Australian Mushroom industry. SCAN ME 22
A significant opportunity exists for mushrooms to lean on the current shroom boom trend. In 2022, NielsonIQ identified a $9.4m opportunity for mushrooms. 23
By all accounts, AMGA’s Summer marketing campaign Mushroom + Mince = The Blend was a massive success. This year’s campaign continued to build momentum from the 21-22 Blenditarian launch, with a focus on reengaging and inspiring our previous campaign entrants, our mushroom lover subscribers, and acquiring new ‘Blenditarians’ to teach them how easy it is to chop, blend and cook. With the support of celebrity chef Adrian Richardson to reassure audiences that the meaty taste remains, and AMGA Dietitian, Jane Freeman providing nutritional advice, this year’s campaign focused on acquisition, education, and activation through two consumer competitions, PR outreach, digital campaign, Aldi retailer collaboration, grower Involvement, and food service activation. I am ecstatic to announce that all our campaign initiatives exceeded our KPIs. (If you want to check out the entire campaign, I encourage you to read my last report in the Autumn edition of the AMGA Journal.) THE RESULTS ARE IN, THE BLEND REACHES 12.9M AUSSIES Here are our campaign highlights and results: • The total Campaign reached 12.9M • 10,010 people entered our consumer competitions • Aldi Stickers – On-Pack Promotion: 1,832 scan the code which equated to around 89% of the total home page traffic to our competition page during February. • Our paid digital ads were seen 3.5M times • Our email list increased by 75% during the campaign period, with an average open rate of 69% giving us 13,000 more people joining our Mushroom Lovers Club. • Our social media engagement jumped by 215% which is HUGE in this current social media climate • Our TikTok Campaign Impressions were seen by nearly 2M, proving that ‘The Blend’ cooking technique is enticing for early adopters. • Our PR results reach 7.2M+ people with features in publications including Women’s Day, Prevention Magazine, Food Technology Magazine, Kidspot, news.com.au, plus uptake by numerous Influencers. Kura Antonello AMGA Marketing & Communications Manager [email protected] | 0419 650 778 24
• Total reach from our fabulous campaign influences reaches 1,6M+ Hulk Smash Food The Wonders Of Play Aussie Foodie Family Our Fam In Squares Still to come June coverage from Leah Itsines with 593,000 Followers. As an AMGA-funded Initiative part of our Marketing and Communications strategy, I think it’s fair to say that this campaign delivered. Not only did we see strong results in all areas, but our consumer feedback and survey results illustrated that this campaign changed consumer behaviour. In fact, 87% of our survey respondents said that they would adopt The Blend cooking method after seeing our campaign. I can’t wait to adopt some key learnings and take The Blend to another level in 2024. Please let me know f you have any questions regarding this campaign, or what clarification on any results generated. Clockwise from top left Instagram influences @ hulksmashfood, @ thewondersofplay, @ leahitsines, @ourfaminsquares 25
PR RESULTS TOTAL PR REACH 7.2M+ 26
CAMPAIGN HIGHLIGHTS 12.9M+ Total Reach 5,000 Aldi Stickers Applied 1,800+ Aldi QR Code Scans 10,010 Total Competition Entries 9972 People Completed our post campaign survey 182,180 Campaign emails sent 87% Of survey respondents said that they would now adopt The Blend Total website Page Views 502,569 Current Accumulative Database is 55,567 Compact+ Picking lorry Due to the good results, we delivered a lot of picking lorries to our satisfied customers. This picking lorry is going up and down automatically and the big advantage of this lorry is that the picker can handle this lorry completely by herself. Scan the QR code to see the movie of our picking lorry! Mushroom emptying unit with casing separator The emptying unit with casing separator is an emptying conveyor, winch and casing Separator combined as one hydraulic driven unit for emptying growing rooms. It also enables separating compost and casing. www.mushcomb.com 27
Australia produces around 66,000 tonnes of mushrooms per year which are mostly all consumed in the domestic market. In addition, Australia’s imported mushrooms have been increasing. According to the Australian Bureau of Statistics, Australia imported 4,659 tonnes of mushrooms in 2022, worth AU$16.8 million. This is 5 per cent more than the previous year and more than doubling over the last decade. Imported mushrooms now account for around 7 per cent of Australia’s mushroom consumption. South Korea is the main supplier and last year accounted for 77 per cent share of imported mushrooms followed by China with 21 per cent. Mushrooms from AUSTRALIA’S APPETITE FOR IMPORTED MUSHROOMS IS RISING HOW DO WE MEASURE? China increased their market share in 2022 from around 15 per cent in previous years. The remaining share was supplied in small volumes from Europe. Most of the imported mushrooms are different varieties to the Agaricus mushrooms available in Australia. Imported mushrooms may include Shiitake, Boletus, Cantharellus, Matsutake, Truffles and others which give Australian consumers more choice. Due to the international trade reporting systems using Harmonized Codes (HS codes) the breakdown of specific varieties is not possible at these levels. The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs BY WAYNE PROWSE, FRESH INTELLIGENCE CONSULTING 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 A$ per kg CIF Tonnes per year Source: ITC Trademap; Fresh Intelligence analysis Other Spain Italy China Korea, South Average AU$ per kg AUSTRALIA - MUSHROOM IMPORTS 2013 - 2022 28
authorities around the world to identify products when assessing duties and taxes and for gathering statistics. The HS is administrated by the World Customs Organization (WCO) and is updated every five years. The last update implemented from January 2022 revised mushroom products to include extra variety codes and included Shiitake and others. Prior to 2022 almost all mushrooms were imported under a “catch all” code 070959 which were essentially all mushrooms excluded agaricus, which were recorded separately in 070951. From January 2022 the revised international codes included … 070951 “Fresh or chilled mushrooms of the genus “”Agaricus””” 070952 Fresh or chilled truffles 070953 Fresh or chilled mushrooms of the genus Cantharellus 070954 “Fresh or chilled shiitake “”Lentinus edodes””” 070955 “Fresh or chilled matsutake “”Tricholoma matsutake, Tricholoma magnivelare, Tricholoma anatolicum, Tricholoma dulciolens, Tricholoma caligatum” 070956 “Fresh or chilled truffles “”Tuber spp.””” In addition to the catch all code 070959 Fresh or chilled edible mushrooms and truffles (excl. Agaricus, Boletus, Cantharellus, shiitake, matsutake and Tuber spp.) In addition to the 6-digit international codes each country authority (ABS in Australia) may add extra digits for segmentation. As the following table shows almost all imported mushrooms prior to 2021 were measured in 0709590062 excluding agaricus measured in 070951. Now with the additional international codes the new catch all code in Australia is 070959 0090 and more imports of the specific varieties are picked up in the new codes. However, it may not be the case as the catch all code is still measuring most of the imports while the codes for Shiitake and others are lower than anticipated and leaves many still not identified. Some insights can then be gained from checking the supplier country’s exports data and we can see that China records sending 167 tonnes of Shiitake mushrooms to Australia and 742 tonnes of all other which they define within 070959 as “Winter Mushrooms 070959 30” and “Other Mushrooms 070959 90” 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 yr chg 5 yr trend2022 share Volume Tonnes 1,914 2,291 2,364 2,742 3,255 3,588 4,008 3,991 4,430 4,659 5% 7% 100% Value Million AUD 5.7 7.2 8.6 9.8 10.8 12.3 13.9 13.7 14.0 16.8 20% 8% 100% Unit Value AU$ / kg 2.98 3.16 3.64 3.57 3.31 3.43 3.48 3.44 3.15 3.60 14% 1% 1.00 HS Code 709590062 Fresh or chilled mushrooms and truffles (excl. mushrooms of the genus Agaricus) 1,456 1,961 2,364 2,742 3,247 3,568 4,005 3,990 4,425 - Value Million AUD 4.4 6.3 8.6 9.8 10.7 12.2 13.9 13.7 13.9 - Unit Value AU$ / kg 3.03 3.21 3.64 3.57 3.30 3.42 3.48 3.44 3.15 709590090 Fresh or chilled mushrooms (excl. Agaricus, Boletus, Cantharellus, Shiitake, Matsutake and Truffles (Tuber spp.)) 4,418 94.8% Value Million AUD 15.6 93.2% Unit Value AU$ / kg 3.54 0.98 70954 "Fresh or chilled shiitake ""Lentinus edodes""" 108 2.3% Value Million AUD 0.63 3.7% Unit Value AU$ / kg 5.81 1.61 70956 "Fresh or chilled truffles ""Tuber spp.""" 68 1.5% Value Million AUD 0.29 1.7% Unit Value AU$ / kg 4.31 1.20 70952 Fresh or chilled truffles 40 0.9% Value Million AUD 0.20 1.2% Unit Value AU$ / kg 4.95 1.37 70951 "Fresh or chilled mushrooms of the genus ""Agaricus""" 458 330 - - 8 20 3 1 5 25 400% 6% 0.5% Value Million AUD 1.30 0.94 0.00 0.00 0.03 0.08 0.01 0.01 0.02 0.03 39% -20% 0.2% Unit Value AU$ / kg 2.86 4.13 4.00 4.67 9.00 4.60 1.28 -72% -25% 0.36 Source: ITC Trademap; Fresh Intelligence analysis AUSTRALIA MUSHROOMS IMPORTS BY PRODUCT 29
South Korea has no further breakdown from the 6-digit code and, even with the new codes, still recorded almost all export to Australia in 070959 “Fresh or chilled edible mushrooms and truffles (excl. Agaricus, Boletus, Cantharellus, shiitake, matsutake and Tuber spp.)” except for 7 tonnes of Shiitake. Shiitake was also recorded as imported by Australia under the same code. Of the 108 tonnes Shiitake imported, 7 tonnes were from Korea and 101 tonnes from China. The volume from China however was less than the 167 tonnes that China reported as exporting to Australia, although not significant in the overall import measure. Unpacking the data available via trade databases reveals useful insights. Importantly we can place some factual numbers around the value and quantity of imports, the suppliers, and trends so that strategic decisions can be made with some evidence base. However, it is possible that available data can also raise more questions. For example, if the main varieties of interest are not being imported then what is being imported under the catch all “other” code 070959 0090? A message to anyone in the industry involved in importing would be to ensure that the correct HS codes are applied so that the industry has a clear picture of the import landscape and its impact on the domestic supply. GTL Europe is one of the foremost suppliers of equipment and project regarding composting operations and mushrooms farms. Our product line includes machines, air handling, harvesting and control systems as well as turn-key facilities. GTL Europe is a capable and reliable partner working with its costumers in close cooperation on innovative solutions and developments. Your partner in composting and mushroom cultivation worldwide 077 - 396 7777 [email protected] www.gtl-europe.nl Hudsonweg 2, 5928 LW Venlo More information? www.gtl-europe.nl or scan the QR-code 30
Global Axis understands the significance of providing valued products on time, every time. This has been our strength consistently over the last 30 years, and will continue to be our focus. Get in touch, Carmine Callisto Managing Director Global Axis Import Solutions Global Axis Import Solutions is a proud family owned Australian business ‘making it happen’ since 1988. We offer a comprehensive range of high-quality products and services, predominantly the distribution of growing substrates for the mushroom, berry, and horticultural industries. This includes the supply of: • Mushroom casing • Sphagnum peat moss • Specialised peat-based growing mixes • Coir peat • Mushroom growing supplements • Mushroom spawn • Fungicides, larvicides, & disinfectants. (08) 8277 1040 [email protected] www.globalaxis.com.au Stay updated Connect with us today!
Amidst the doom and gloom of our rising costs of living, mushrooms are emerging to have their moment in the Australian media spotlight, with media outlets reporting that more and more Aussies are turning to mushrooms, as a cost-effective replacement to meat. On the back of two media releases reporting the recent mushroom levy-funded research from Nutrition Research Australia and CSIRO, ABC news, and radio outlets nationwide have picked up the story, also reporting that due to consumers’ drive to eat less red meat, sales have ‘shot up in value by 25 percent between 2012 and 2020’ (citing Hort Innovation figures). Perhaps a little creative license there from the journalists, but a news day for mushrooms is still a good news day. Journalist from ABC Rural, Fiona Broom first picked up the story on 15 May, featuring a story Mushrooms increasingly in demand as a meat alternative with metro radio stations following suit. I had the pleasure of being interviewed on Sydney’s 2GB Drive with Chris O’Keefe the same day to talk about our industry, how mushrooms grow, and why mushrooms are very different from vegetables (information that is still news to much of the public), and SBS Food, featuring a story How to prepare and cook exotic mushrooms. ABC Melbourne’s Richelle Hunt dedicated her hour-long program to mushrooms a few days later, which was tremendous. During ‘The Conversation Hour’, Richelle interviewed four mushroom experts to cover a range of topics including growing, nutrition research, the fascinations of wild fungi, and took calls throughout the show from listeners wanting to share their favourite mushroom recipes. All this free publicity is certainly adding fuel to the ‘shroom boom’ fire. Josef Sestokas, a former police officer, now an exotic mushroom grower spoke about how his love of mushrooms inspired him to start his own mushroom business at the start of his retirement. ‘Flooding Creek Fungi’ sells exotic mushrooms to restaurants and local farmers’ markets in Gippsland. Dr. Flavia Fayet-Moore of Nutrition Research Australia, spoke about two AMGA-led research programs, highlighting the unique culinary and nutritional properties of mushrooms, the incredible opportunities mushrooms provide for improved human health outcomes - particularly in the institutional catering sector in relation to Vitamin D, and the opportunity for mushrooms to be separated from vegetables in the new Australian Dietary Guidelines. Flavia’s passion for mushrooms is palpable in this (and every) interview. Alison Pouliot, ecologist, fungi expert, and keynote speaker for the ‘Festival of Fungi’ (being held from May to July on the coast of NSW), spoke about wild mushrooms, alerting to the dangers of ill-informed and non-guided foraging adventures, and passionately highlighting the fundamental role mycelium plays in providing nutrients for plant growth. Dr. Naomi Kakosche, Senior Research Scientist at CSIRO spoke about their current research investigating if consuming mushrooms can affect our memory and mood and help lower blood pressure. The CSIRO are currently facilitating two research projects, one mushroom-levy funded which is investigating if the beta-glucans in mushrooms can lower cholesterol, and a privately funded project, researching if a synthetic version of mushroom-derived Ergothioneine can improve cognitive decline. MUSHROOMS IN THE MEDIA BY LEAH BRAMICH, AMGA RELATIONSHIP AND GENERAL MANAGER ABC Radio Melbourne - The Conversation Hour SBS Food – How to prepare and cook exotic mushrooms ABC Rural – Mushrooms increasingly in demand as a meat alternative 2BG Sydney – radio interview (listen from 1:44:00) 32
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INDUSTRY EVENTS 40 Australian Mushrooms Journal | 2019 (3) 75th Annual Conference of the Bund Deutscher The 75th annual conference of the Bund Deutscher Champignon- und Kulturpilzbauern e. V. (BDC), is a three-day event at the Park Hotel in Heilbronn, Baden-Württemberg. The Federal Garden Show (BUGA) held on the same dates provides a mushroom exhibition specially organized by the BDC to show how mushrooms grow, how they can be prepared and what valuable ingredients they contain. 28th to 30th September 2023 Germany der-champignon.de/ and www.buga23.de/englisch 20th ISMS and 26th NAMC CONFERENCE The 20th International Congress on the Science and Cultivation of Edible and Medicinal Mushrooms (Live 20th ISMS Congress) will be held in conjunction with the 26th North American Mushroom Conference. Full details to be confirmed. www.isms.biz/ More details coming soon. February 26-29, 2024 JW Marriott Resort & Spa, Las Vegas, NV https://www.isms.biz/ 2024 International Botanical Congress The IBC takes place every six years under the supervision of the International Association for Botanical and Mycological Societies (IABMS). Rooted in the tradition of Systematic Botany, the IBCs have enlarged their scope over more than a century to become an integrated forum for knowledge on a broad scope of topics in the plant and mycological world. Nomenclature Section, 15–19 July 2024 Congress, 21–27 July 2024. Madrid, Spain https://ibcmadrid2024.com/ AMGA Conference – October 2024 October 2024 - More details to be released soon. TBC www.amgaconference.com.au 34
AMGA MANAGED, LEVY-FUNDED PROJECT UPDATE AMGA MANAGED, LEVY-FUNDED R&D PROJECTS: MU20003 – Educating the food industry about Australian Mushrooms • Mater Hospital in Brisbane engaged for case study menu intervention, with program due to start in August 2023 • Educational resources complete, which can be viewed here: https://australianmushroomgrowers. com.au/food-industry/ • First culinary farm tour complete • Conference roadshow being developed, with execution before July 2024 MU20000 – Food Safety, Quality and Risk Management • New AMGA Testing program has been launched to Industry, funding one full suite of tests per mushroom business, per year. • The Mushrooms Safe education program is developed • First webinar complete. More to be delivered this year. MU20006 – Mushroom Industry Crisis and Reputation Risk Management • Monthly monitoring continues. • Support provided to FSANZ in relation to potential food safety risks of imported Enoki • New holding statements have been developed to manage identified potential risks MU22001 – Scientific basis for a mushroom food group in the Australian Dietary guidelines • NRAUS have completed the scientific report • A variation was accepted to extend the scope of work to include dietary modelling and a published opinion piece • The been extended to October 31 2023 • AMGA to lead advocacy work, funded separately to the project. MU22009 – Alternative Casing Substrate – research review and symposium • Greg Seymour (ISMS), Helen Grogan (Teagasc), Ralph Noble (Microbiotech) and Geoff Martin (Dr Mush) engaged to deliver the research component. • International zoom meetings complete with almost 80 international key opinion leaders • Research report extension granted due to Mushroom Days - due to be received end May • Stop go in contract for the Symposium – likely not to go ahead MU22010 – Inbound Outbound Study Tours • Project Reference Group Assigned • Inbound tour to be designed 2023, 2024 & 2025 • Outbound scholarship program to be designed for 2024 & 2025 MU22007 – Mushroom Industry Conference and Roadshow (Direct tender) • Waiting to be evaluated and contracted • Roadshow to be designed 2023, 2025 • Conference to be designed 2024, 2026 AMGA MANAGED, LEVY-FUNDED M&P PROJECTS: MU22502 - The Blend (Direct tender) • Final report completed • Contract now complete MU22503 - Experiential Product Sampling and Events Program (Direct Tender) • Project waiting to be evaluated & contracted • Due to start May 2023 MU22501 - Café Culture (Direct Tender) • Project waiting to be evaluated & contracted • Due to start May 2023 35
FLIP TO READ MUSHROOM LINK FLIP TO READ THE AMGA JOURNAL