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“Sea freight costs surged by 20%, intensifying competition in the export market of mushroom logs”

Since the conclusion of the pandemic, China's export volume of mushroom growing logs has progressively increased over the past two years, nearly reaching pre-pandemic levels. However, in the recent month, various expenses have seen continual escalation, presenting significant challenges for mushroom log companies. Zibo Hexu Biotechnology Co., Ltd., situated in Zibo, Shandong, has long been exporting mushroom logs to countries such as the United States, Canada, Australia, Spain, and France, boasting an annual export volume of 2 million logs. Mr. Peng, the company's manager, shared insights into the recent export dynamics of their mushroom logs.

"As of April 2024, sea freight has escalated by nearly 20%, labor costs have risen by nearly ¥1,000 per person per month, and the production cost of mushroom kits has climbed by approximately ¥0.1 per pack. These developments pose significant challenges for us as mushroom log manufacturers. The surge in costs translates to heightened market competition," remarked Peng. "Last month, we participated in the Edible Fungus Whole Industry Chain (Xiamen) Innovation Expo, one of the largest international exhibitions in the mushroom industry. During the exhibition, we learned that the trend of establishing factories and production overseas is gaining traction, with numerous foreign customers beginning to assess factory construction costs, labor expenses, energy consumption, and raw material expenditures. Once overseas production costs align with or undercut domestic production costs, the trend towards establishing factories abroad will become pervasive, significantly impacting domestic manufacturers."

"Edible mushrooms are recognized for their health benefits, particularly in enhancing human immunity. Amidst the pandemic, the concept of a healthy diet featuring a portion of meat, vegetables, and mushrooms has garnered attention. Overseas demand for mushrooms is steadily increasing, with individuals abroad consuming mushrooms almost daily, ranging from shiitake mushrooms to oyster mushrooms, king oyster mushrooms, and maitake mushrooms. The variety and consumption frequency continue to expand annually," Peng elaborated. "Currently, some overseas investors from other sectors are also turning their focus to the edible fungi industry, repurposing numerous idle farms into mushroom log production facilities with minimal modifications. Mushroom log production offers advantages such as rapid turnaround, short capital recovery time, and immense market demand."

China hosts numerous factories engaged in mushroom log production, particularly in Shandong Province, where numerous export-oriented manufacturers are situated. Reflecting on the company's strengths, Peng emphasized the vast potential of the foreign market for mushroom logs, while highlighting the existing challenge of technical services related to mushroom cultivation. "Many customers lack understanding of mushroom cultivation techniques. While prioritizing the quality of our mushroom logs, offering technical support for mushroom cultivation serves as our primary competitive edge in foreign markets. Additionally, we tailor our services to meet customer needs, developing mushroom varieties suited to foreign farms and employing diverse cultivation methods to ensure log quality."

Zibo Hexu Biotechnology Co., Ltd. primarily specializes in oyster mushroom log production, encompassing low-temperature, medium-temperature, and high-temperature variants, supplemented by king oyster mushrooms, maitake, and morel mushroom logs.

For more information:
Mr. Peng
Zibo Hexu Biotechnology Co., Ltd.
Tel: +86 18860550178