Some mushroom farmers in Canada are expressing worries about the potential impact of recent American tariffs on their product sales in both countries. The United States government announced an 8.26 per cent anti-dumping tariff on Canadian mushrooms on July 14 following an investigation into the fairness of Canadian mushroom growers’ sales practices.
Mushrooms Canada, previously known as the Canadian Mushrooms Growers Association, confirmed to CBC News that the U.S. started collecting these duties on July 17. This tariff comes after a 2.84 per cent tariff announced in May. Concerns arise among some local mushroom growers who do not export to the U.S., fearing that larger companies selling to the American market may shift focus to increase sales within Canada.
Mike Medeiros, a partner at Carleton Mushroom Farms, warned that an oversupply in the Canadian market could drive prices down, negatively impacting local farms. The company, based in Osgoode, Ottawa, produces around 136,000 kilograms of fresh mushrooms weekly, catering to Canadian retailers like Costco and Loblaws.
Canadian fresh mushrooms hold a 20 per cent share in the American market, with Mushrooms Canada CEO Ryan Koeslag attributing this success to higher quality. Despite the tariffs, some Canadian exporters report that American customers are currently willing to absorb the increased costs.
Agnesh Marsonia, general director of Champag Mushrooms near Montreal, mentioned that there have been discussions with American farms by some customers, although no concrete decisions have been made yet. Marsonia anticipates a potential reduction in production to avoid saturating the local market and causing a drop in mushroom prices.
The Fresh Mushrooms Fair Trade Coalition in the U.S. alleges that Canadian growers receive unfair subsidies due to government tax exemptions, an assertion countered by Mushrooms Canada. Koeslag believes there will still be demand for Canadian mushrooms in the U.S., but higher costs may lead to reduced demand and lower farm profits.
While mushroom consumption in Canada has declined in recent years, eastern Ontario remains a key cultivation area due to Quebec’s significant demand. Koeslag predicts future price increases in the U.S. due to tariffs, posing challenges to smaller farms. Mushrooms Canada is appealing both tariffs to the U.S. Department of Commerce, with a final decision expected in the fall. Canadian fresh mushrooms have not been subjected to the latest 50 per cent tariffs proposed by the U.S. government.
[Source](https://www.cbc.ca/news/canada/ottawa/local-mushroom-farmers-concerns-us-tariffs-9.7282599)