A lack of Government support for the NI mushroom sector is putting businesses at risk of closure, according to a group of local growers.
The NI Mushroom Growers’ Association (NIMGA) said there is now “a very real danger” that the mushroom sector will disappear from NI.
Whilst the sector boosts annual sales over £60m, it is heavily consolidated with NIMGA figures indicating the number of farms in NI has fallen from 296 in 1990 to just 12 farm today.
The group maintains that the number of growers could shrink further and points to the Republic of Ireland (ROI), where mushroom growers have “much more generous support”.
The example is given by NIMGA of a mushroom farm with annual sales of £3.5m which is aiming to expand turnover by 50%.
Under the current grant scheme in NI, the maximum support available for equipment is £143,500, whereas in ROI up to £623,500 could be available, mainly due to a 40% grant aid scheme. Similarly, support for renewable energy investment is more generous in ROI and a scheme for automation allow grants of up to €1m, whereas no scheme exists in NI.
Labour
The other key issue facing NI mushroom growers is access to labour, with NIMGA stating that 95% of people employed in the local sector come from outside the UK.
Again, the group argues that growers in ROI are in a better position as they have “access to workers from the EU and further afield”.
When all costs associated with visas and recruitment are considered, NIMGA maintain that it takes £8,130 to get a migrant worker on to a NI mushroom farm.
The main visa scheme in the UK lasts for six months, so over a two-year period, the body argues these recruitment costs are quadrupled to over £32,500 for a single labour unit.
“Growers in the ROI do not have to pay £1,500 towards visa costs, so a two-year visa costs them £6,630 in comparison,” NIMGA analysis states.
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