Growing PA Mushroom Industry Topic Of Hearing In Southern Chesco

KENNETT SQUARE, PA — If you dine at any number of venues in southeastern Pennsylvania, you might see a menu item that boasts it is made with "Kennett Square mushrooms."

That's because Chester County is ranked first, by county, in the nation for mushroom production and Kennett Square claims the title "Mushroom Capital of the World." Pennsylvania as a whole produces two-thirds of the nation's mushrooms.

It's really the whole region of southeastern Pennsylvania that comprises the mushroom "capital," said Pennsylvania Rep. Christina Sappey (D-168th), who represents the area.

Sappey is a member of the State House Agriculture and Rural Affairs Committee. For her, mushrooms are more than a specialty crop; the mushroom growers and workers in District 168 and southeastern PA represent an industry that impacts the whole Commonwealth.

Farming mushrooms employs 10,000 people in the Commonwealth and adds almost $3 billion to Pennsylvania's economy, according to Mushroom Farmers of Pennsylvania. About 65 percent of all mushrooms consumed in the United States are grown on 68 Pennsylvania mushroom farms.

But restaurant tables and your spaghetti sauce are not the only imaginable destinations for the Chester County crop.

Sappey hosted a hearing in New Garden Township on July 20 to gather other legislators and interested parties and show them the economic impact of the mushroom industry on all of Pennsylvania, and to help them see growth opportunities.

"We all reap the benefits of the mushroom industry in Pennsylvania, and especially in my District, where it keeps the schools strong and supports the quality of life here. We need the taxes the mushroom farms produce," Sappey told Patch.

Sappey said she has been trying to get to know the mushroom growers, to understand how they do what they do. She's been surprised and fascinated, she said, to learn that it's a 100 percent sustainable practice with enormous economic impact for Chester County.

The Representative said, "People are paying more attention to what they eat and where it comes from now. Mushrooms are good for you, and there are so many things people don't know about."

She and others have a broader vision for the industry that includes composting and related uses in bioremediation. In addition to traditional uses to enhance soil and improve crop yields, a growing body of research indicates that mushroom compost is effective in remediating soil contamination from oil spills, toxins, acid mine drainage, and even PFAS chemicals.

In the July 20 meeting, legislators had a Q&A session with three mushroom industry stakeholders: Glenn Cote, General Manager of Laurel Valley Farms in Landenburg; Stephen Allaband, New Garden Township Supervisor; and Rachel Roberts, Executive Director of the American Mushroom Institute.

Laurel Valley Farms: Hidden Economic Treasure of SE Chesco

Chesco's Laurel Valley Farms is the largest single-site mushroom composting operation in North America. The company is owned by 5 mushroom farms representing three of the largest packing operations in Pennsylvania: Basciani Foods, Phillips Mushrooms, and Giorgi Foods, Cote said in the hearing.

Cote told legislators that mushroom production on LVF compost accounts for roughly 25 percent of local mushroom production and 12 percent of the national production of mushrooms.

"In the past 21 years, Laurel Valley has invested over $20 million dollars to modernize our composting operations. Our investments have reduced our environmental footprint while increasing our capacity and biological efficiency. In addition to providing our owners with consistent high-quality substrate, Laurel Valley is the only area composting operation the recycles the post-harvest mushroom compost into a series of value-added soil products for the horticulture and landscape industries," Cote explained in the hearing.

Laurel Valley Farms has two divisions: The Substrate division making high-quality mushroom compost to grow mushrooms and the Soils Division making high-quality soil products, Cote said.

"The challenges we face going forward will require additional investment in infrastructure and technology. Labor costs and equipment repair costs are skyrocketing this year as the state recovers from the pandemic. The margins we are experiencing as growers were already slim prior to the pandemic and are now threatening the viability of our business. Unfortunately, this leaves us with little ability to reinvest in our businesses," Cote told the committee.

Township, Industry Ask For Support

New Garden Township Supervisor Stephen Allaban told the committee that mushroom farms account for 60 percent of jobs in the Township, and he pointed out that the township is home to some of the County's highest-income residents, and some of the lowest. New Garden Township produces 26 percent of all mushrooms grown in the United States, he said.

Allaban told legislators the Township needs their help getting grant funding for its farmers and for infrastructure that supports the farms. Residential growth and increasing mushroom production are both happening, he reminded those present.

He explained the Township's eight repacking and distribution facilities run seven days a week with trucks coming and going. While those facilities follow strict guidelines for their operation, he said there is sometimes "dissonance between residential and agricultural communities."

Representing the industry, Rachel Roberts of the American Mushroom Institute informed those present of needs within the industry, to keep it viable in Pennsylvania.

"Fresh mushroom consumption is on the rise," Roberts said. "Consumers are turning to mushrooms for their versatility, nutritional and health benefits. That’s a good thing. Our industry — especially here in Pennsylvania — wants to grow with demand. But capital costs, input sourcing, residential sprawl, and other issues are stifling the industry which supports more than 9,300 direct and indirect jobs here in Chester County and surrounding areas, with nearly $315 million in employee compensation and an economic impact of $1.2 billion."

Roberts added, "Any support from the state would be helpful in continuing this thriving economy here in the Commonwealth.

A full account of the hearing testimony can be read here.

Sappey's hearing in New Garden Township brought interested parties to the place where it is all happening. She said she wants to build an understanding of the importance of mushrooms to the local and state economy, along with an appreciation for the tasty crop itself.

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