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Mushroom Production Analysis ex 2017/2018 Crop

November 22, 2017

In the afternoon of Dec. 10, 2017, Zhangzhou Canned Food Chamber of Commerce held the mushroom production analysis meeting ex 2017/2018 crop in Zhangzhou Hotel. There were 25 persons attended the meeting, who are from 23 heads companies, including mushroom canneries, can manufacturing enterprises and production supervisors located in Xiangcheng, Longwen, Longhai, Taiwanese investment zones, Nanjing, Pinghe and Huaan counties, etc. The meeting was chaired by Vice Chairman Mr. Huang, and Mr. Lin, president of the meeting, addressed the meeting.
In the meeting, Mrs. Hong, Vice Chairman and other responsible persons reported the collected information about raw material of mushroom, and analyzed the mushroom production, the sales and the widespread phenomenon in mushroom cannery --- no margin, even loss, in the past few years.
Regarding 2017/2018 crop, there is an agreement for the production and sales from the winter and the spring mushroom:
1. Due to the change of mushroom planting mode, the ups and downs of raw material supply lead to uncertainties in the whole crop. In the early stage, there are enough raw materials to produce; in the end part, especially entering March, the raw materials will be only available about 10 days for the production. The lack of raw material directly affects the production, supply and sales. So, this crop is conducted in steps and phases, including contract and price.
2. A comprehensive analysis of all aspects, the hard-cost goes up, including the exchange rate, package materials, environmental inputs, labor costs and others (US dollar price increased by 10-12%; RMB price increased by 5-7%).
3. The price of raw materials mushroom is not less than the previous year or even slightly more expensive than last year.
In view of the aboves, the president stressed that all enterprises must clearly define their profit points, orders cautious and phased, have a strategy, and the attitude be calm.

2017-12-15