October 13 2006, 11:25

Is Ukraine able to become a large player on European mushroom market?

Commercial production of champignon and oyster mushrooms in Ukraine has been developing by quite rapid rates in recent years in Ukraine. Relatively modest initial investments encourage a large number of new entrepreneurs to start this business. At the same time, a quite small percentage of mushroom growers continue developing the production after 2-3 years from the start, because mushroom production is technology intensive and highly competitive. Still, this business has wide perspectives in Ukraine.

Poland is one of the most successful countries - champignon producers. Since 15 recent years this country has become one of the largest suppliers of fresh, frozen and canned mushroom commodities to the markets of EU and Eastern European countries. Holland, the traditional champignon supplier, has started to lose competition with Polish growers recently. As of today, the wholesale price for champignons is in average 35-40% lower on Polish market than in Ukraine.

An average wholesale price for champignon fluctuates within $1.56-1.86/kg in Ukraine and $1.07-1.47/kg in Poland. No significant changes were observed in the wholesale price situation past year in Ukraine. To the opinion of the experts of the Agricultural Marketing Project, a rapid development of cannery industry in Ukraine, and also new investments to the flash freezing facilities for produce commodities and mushroom processing should contribute to the further growth of the commercial mushroom production.