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From the article:
I recently learned that Canada’s mushroom production has been growing over the last 20 years, and much of it is exported to the United States, while production in the United States has declined. Differences in policy toward migrant workers between the United States and Canada, and differences in investments in new technology may explain the divergence in mushroom production between the two countries.
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You would be surprised to learn that almost 69% of the US mushroom production occurs in the borough of Kennett Square, Pennsylvania. It is a small town of about 6000 people, but mushroom-growing facilities around town produce almost 451 million pounds of mushrooms annually (2024). 451 million pounds of mushrooms would occupy about 45 American football fields or 35 soccer fields. The dollar value of mushroom production in the US is roughly $ 1 billion per year.
China is the undisputed leader in mushroom production. China accounts for 93% of the world’s global mushroom production.
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Growers use an old system called “Pennsylvania doubles” to grow mushrooms. Specialized, two-story cinderblock buildings with wooden shelves and intensive manual picking characterize the system. The system is designed with the assumption of cheap labor.
The growing houses provide a strictly controlled environment for growing white button, cremini, and portobello mushrooms on stacked beds, producing approximately 400 to 500 million pounds of mushrooms annually. Growers can manage the temperature, humidity, and airflow to create optimal conditions for mushroom mycelium to grow and fruit.
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As you can see in the video below, the conditions inside the mushroom-growing facilities are hot, humid, and stinky! The process of harvesting mushrooms is fairly manual, unless the grower has invested in a robotic harvesting system from companies like 4AG Robotics. Most US production facilities lack an automation design.
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Mushrooms are a type of fungus. If you have the right spawn available and can control the environment economically, you can grow mushrooms year-round. Mushrooms have a short shelf life. Mushrooms are 92% water. A mushroom starts losing water as soon as it is harvested. Anyone who has seen a fresh mushroom that has begun to dehydrate knows how unappetizing it can look.
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Canada and the United States grow mushrooms year-round in climate-controlled, indoor warehouses. Readers of this newsletter are aware of my massive skepticism about the economic viability of vertical farming, but mushrooms provide a counterexample in which vertical farming actually works. The main difference is that mushrooms are fungi and do not need sunlight for photosynthesis.
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Most mushroom production facilities in Canada are located in British Columbia and Ontario, close to the US border, and deliver their products to the northern United States within 36-48 hours of harvest. Production geography relative to population is the structural constraint that neither shelf-life extension nor improved cold chains can fully overcome.
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Mushrooms are fragile and bruise under their own weight. Vibration and pressure can cause bruising in transit. Each bruise initiates a localized decay, which accelerates from the point. It limits the number of handoffs or transfer events, since each event is a risk. Mushrooms can lose quality if they dehydrate or become too heavy, and they require an ideal relative humidity of 90-95%.
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So, why is US production dropping while production in Canada is rising, even though 99.6% of Canada’s exports go to the US? A big part of the answer to this question lies in how the United States and Canada provide support to migrant workers who come over to pick mushrooms.
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As mushroom farming is a year-round specialty crop, it doesn’t qualify for the H-2A temporary guest worker program. Without the H-2A labor option, growers concentrated in the Pennsylvania region are competing fiercely for local workers in a tight labor market.
The industry has used a mix of undocumented workers, immigrant workers with temporary protections, and labor contractors. The termination of TPS (Temporary Protected Status) for Venezuelan migrants, combined with broader immigration enforcement, will likely shrink the pool of available workers further.
Canada has taken a more flexible and stable approach. The Seasonal Agricultural Worker Program (SAWP) of Canada includes mushrooms. The national commodity list for SAWP workers includes mushrooms alongside fruits, vegetables, grains, dairy, and other sectors.
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The impact of seasonal H2A workers is not limited to mushrooms only.
It creates a legal labor vacuum across all commodities that operate year-round. It includes year-round industries such as dairy, beef cattle and other livestock operations, hog and poultry production, mushrooms, nursery and greenhouse operations, some tree fruit operations, aquaculture, and forestry. These sectors are a significant portion of the US agriculture GDP and the food system.
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