BLANDON, PA — The U.S. Commerce Department has preliminarily found that Canadian producers sold fresh mushrooms in the United States below fair value, clearing the way for additional import duties as domestic growers face rising competition and farm closures.
The antidumping determination follows a preliminary Commerce Department finding in May that Canadian mushroom producers received government subsidies. Imports from Canada will now face preliminary duties intended to offset both the subsidies and the below-market pricing.
The Giorgi Companies and other U.S. mushroom producers welcomed the findings, arguing that the trade measures could improve competitive conditions for domestic growers and packers.
Commerce’s determinations remain preliminary. The U.S. International Trade Commission issued a preliminary finding in January that the imports were injuring or threatening injury to the domestic industry, according to Giorgi.
Nine U.S. mushroom farms have closed during the past two years as Canadian imports gained market share while overall domestic mushroom consumption remained relatively flat, Giorgi stated.
The Blandon-based company contends that lower-priced imports have increased pressure on U.S. producers’ ability to invest in facilities, employees and production capacity.
“This ruling is a win for fairness, competition and the future of American mushroom farming,” Mark Currie, chief executive officer of Giorgi’s food division, stated.
Currie said the company’s focus would remain on serving customers, investing in its operations and expanding demand as the federal trade investigations proceed.
Other members of the U.S. producer coalition also cited the potential effect on domestic investment.
“A more level playing field allows for growth and investment among U.S. producers,” Ron Moule, chief operating officer of Kennett Square Mushroom Operation, stated.
CJ Ciarrocchi, president and chief executive officer of Modern Mushroom Farms, said the determination could support the long-term viability of family-owned mushroom operations.
J-M Farms President Pat Jurgensmeyer stated that the preliminary decision could help create a more balanced competitive market for domestic producers.
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