16tip-
:~ :~:j:-.:: .:I: ..~:::(I,~.~ I... .... ..... .......... :~:,~ ~ l:. ...................... ........ ... .- -
.......... ..... .... ..... ..... ..... :.= ......:.,%-.-.-.-.-.a .. ....:"....:...
.......... ..... ... I 1 .. ... .... .w .w ... .. .
.... .... .... .. .... ...,., I., ... ... Q .. .... .... .... ............... ........-......... ....-....,...'. .-. -.-. .. .... .........:.-.-.-.-!..r..
.....~~::~::....... ...... :,.,.,.., :%:k.N ... 1.1- .......... ... :... :...* -::..
.... ....t ., .... ...... : .. I ....... ...... ..... ::.. = ,. ... . . .. ..
.. ................... .. .:.%'..:.....:: i ..., ..% .. ........... .......... ... .. ,: . . .... .....::-.
::' ~ ...% ... -- ::-:::--::::::.-.:. ..-....-.... .,,..:. -.:: ..'.....'--'.:'': "::':,.::-l:.iIr:j'I::.. ..... :::-i~ii~~ij ~ ~ ij
.. -~ .. .. .. .. .... f l . .. .., .;...... ,.I..,,..,
.. ........ ..... ....% .... .. ..7 ..... !: I .: .
.. -. ::: :
.. ... .. ..... ::: ..,.. : .... .... .. ........ .. ...... . ... ...... .. .. ..
I.,. .. .. .. .. .. '---.,-..... ... ..... .. ... .. I".'" -. ... "....., .':'::... ... ..... .......:.... ....
-.-.I.-.-: .-.-.,. ,: .:: . .... . .. . . . . . . . . . . .. :::~ ; .li;: :S :' :i:
.- . . .. :: -,. ,. ,- -\ -' :: ...: : ,..,* ., : : .:! .. ,. W v .- ,. ,-. :: ,., .,-,-- -. ,. . . = .. . .. ,., .'. . . .. . : : .- .-.- -.- .,. : ,., ,.,. .. . ., ,., ,. .
. .. : .: ... .. . ...:, : .... -., ft. W -.,: : : .,-.,: :: : .
.. .:. .... .. .. .. .. . .. .. ...: ..... ........ ... ... ........ .. .. .. ...... .
.......... :......... -- I.... ......
.... .. F ... ....: : : II ~ II .. .
.,......'.............. .l, r,.-,.;.: .::. ::,::.l...:.~~~..:-
.-. -..,..'-. ,.,,.:. .--.,,. ..
.....:..... ::..." .-:.'' .. .......~:.
..:..,..f..-... I ... .. .. .....:: I.,:: .: ,- .. ,.., .
I ,... ......... 1 11 -- ,---:.-t-. .:7..:::,.%-
-..'-.--.-.---. .-..-... ..,...::..:.:..:.-..*.,.,.",","". .,:*,.....,.,, --.,... ... ..... .. .. -- -- .
...... ...... .. ...: ....... I. .. :..,.,..,. :.,., .,.,.....,.,.-.-.- .-. -.-.-.-.,.,-.-.- .- .-.,.'. ...
:,.,,, .I.. .,..... ..: ... ,.-..,.,.,.-.-..... .... I. .I I..- --' '-"-:::.:::. .:-:.:::- :..,: :,,-:::: ::: .".,......
.':.....7.1.. .. ..: ':::,:....:-.~ ..-. : ..I.,,....l.. I .... I::.I...:... ... .-.'. '...,.:.::::l j~:i: j~~:i.. :.:: : :~: ~~:,
-.. .,L,.---.. .......................... ... ...... .. .. ..,.'.".,.,........... :~. 1: ,: ,,:, : .
..,. .,..,.,..... ':::' ..:: .,': .,.. :-. .'.'.-.. .-.. .. ...... :... ., .. .... ..." .-.,...'...:.. ..... ,.'., :.,.
.. : ..
.:~:- ...:: : :. :~] .:' : -%-.-.. I .... ... : .. : .... ......~. :.~ :
........ I .. ~.... ....... ... .."... .' .. .1. ".... :T.':.''''' '... ~ :~. ...:::. ... . ......, .." .... -. -j'l ~ ~:::
.. .'. '.''.'' .'....'.. .. ...... ... .. .. .. .. .. ... ... .. . .. .. ... : ... ., : ..... ...... .. .. ... .:.I. ..:... :.......:.. "': .. .... .,% .I. ..: ...... II. ....-.. ..
..... ., .....,.. --.-.-:: -.: ........ : ...... ........ .... .:... .. ... .. ...... = .,.-.,. .: .. ..-..-..-.... .-.---, ...... .... .... .. ..........,.,.,,.,.,."., .I.I. .... ..--. .. :. : ..- --....-.-:..-..-. .--.,.-...- ....-.-. -
.....:,., .,..'...... .'.:'. ..'.'.:. .'.........::....:............"...-...-..-.-..--.-...- .-..-..-: -.-.... .......... .''
.. . .. .. : , 6 : i ~.: ~ Ir::; ...: :: : ~ ~ ~ ~: : ... ........,.., .", : ...... . . .. .. ... ...... .:.. . .: : ~ :
............. ...:.I ... .... :.:.... .. .....::::::...:: :........:.. .:..:.I ...%
:;;.......:..., .... .,.,., ..,.'.".,...,;.,.,.,.......,.,:.-.-.-.....-.... I .::
-1 -, ---- .. .. ... '''''' ''':'' ''' :':'''''
........ ............... ...::-. ..
'.,.,.,.,.,.,*.,.".,.,.,.,.'',.,,........,....::. .: i I .. r .. .,.o ... ,.'..,.,.,.,.,....'.'.'.... .......
I.. .-. ....-: :::: ... ....:.... :.: ..:..
.1 ... ... ... .... ... ... ... ...... .. .. ... .... ...... ..... ..... ...........:::. ..1
.111''... .. ..... ............ ... ............. .. ..... .. ......... ......-...... ............,.,.,:.,.":
... ...... ........ :. .,..-..,., ... .. .... ..... .... .. ,.,. ... ...., .
:.. .,. --. .. ...,-. .,,. .. ., ..'. -:. ... ....... ..... ...: .... .: ......... .: ... .. .. .... -. ...': :~
........... ..: ... ....... ....... : .. .:....-.- .%. .. .. .. ...... .. ... .. ....' ..'.... .... .:;::.:1...: Ir.:.. .~.:.:.::..
. . . . ... : . . . .. : .. . %.
.....::: ~''':. ........ .:.. .. .. ..- .,.'. ..... ..: .-.% ...... ; ..... .: .. .. ... :.:::::: .... .. .....-..... .. .... .. .... .....
. .. . ... ........- .........,... ... ...
.-~::, -....:...'.. -...... .... .,:.,, .:-..,..:..,.-.- ... 11,-.-.-- ......................-....................... ................
... ... .................. .. .'.. .. ........ ...... ... ..... ...... .. ......... .....:. .~: .~~:::'.: :':::~(ii :
.... .-.. ~ .. '. ..... ....:_' ... ...-.-. ..l l. .I. ... ... ..,.....:..... :........... ... ........ ......... .. ,
.r r 1 .. ... . .. .. .. .. .. -.. .... .... : .. ... .... .. .. ........... .. .. .. .. .. . .. ., .'. .
.,.";.:... -....:.::: ~j... ... ...... .: ...-.,.,.,.-.,.,.. ..~ ~. ~ T .. j ..... : .. ....... ...... ..
.. ..-...,.. ., .,.: .,., ... . m..... .7 ., ..:... .. ....r. .. ..... .. .
.......... .. .... .. ... .. .... .: : :... -.-- ... ... .,.,..-..-...-.:.... .,.,. ...,.-:.:::::: i.:: -.-..- -.-.-......
. . .' ''.. I .... .. . . .. :. . .: i. '. .. .. ., ... . . I . . . . .. . .::~.'
~- .. .... .. %.. ... .:.r rI ., u U .. .... .. ...
:.,.......'-.'.. ..'. ".'..:. .....:.. .. .. ..'' :: ...::: ::'- .. ..... :.:::: I:::- ... ..S. """ : .....''..'. "' ": :` """ "'
P ... ...; .. .... .. ........ .. .. ....... ..........
....,,.-... ... ........:........-...... ... ..... ..............: .. ..... ......-:, ..... ... ..... :.. ...........:.--..-.--...-.-..,-..,-.
.. ... %, ,.. ... .... .... .. ., ... ... .. ....... ..... ........ : ...... ... ............... ....... ..... .r.~r. :
.. I .:. ...:., ...- .... .. ... :... .. .. .. ... . ... ...%...... ...................... ........... .......... .............. . .......-. .-. ...........,t.. ...:... ......
"'.. .... .. ..... ....... ~~.: ... :.............. .... .......... -I..-.-..-.-.-..'..'..---.- --.".--.......:....... -...-................... ..-.-.....,.---r,.,.::......
,,.,!., ....... ........ :......... .... .. .. ..... ......... ... .. .. ....... .... ............... ... .... .. ...... .. ........ I......... : .. ....
... ... ... .. ~i .. ..... .. .. ...~:,ji::i : .:: _1.. .. ........-..- .....,.... %,.,.,:..
,....,,. ..-. .... .. .. : :.. .. :...1 "... .......,:,." .. .,. ., .. ... .. ... ... . .. ... .. ... ... .. l.-- .l...... : .. ... .. :11.1 ... .: %: ... -.-..-..".",., ...,., .'
.... t'.-..,., ............ ....... .. ..............:.:....:. ::i :::' ': ': :: :i :i:: :jii:: ::':':.:.:
.% . : I : : . .: .
:.:~:.:.: '.~.:l .. :.. ....... ..: ........ : .... ..... .. .:........:. .:..... ..'. .. ....,j:'- ljl '.. ,.-..I.I. : ,. ..-I,,...-.=I.- ..,..I.,--,:...,,:::..::( .... .... = ...-. .-.
..,.". .. ... '..'- ...'.. .. ...' .... ... ....' : : : ...". .*'.' ... .. . . ..7 : .. :..; : :: :..:.... ....; .. : ... .- ..i: ... ... ....-- : i. .
:. : .. .. 1111-1 1,11,11, : ., ... .: ..... .. ... .. ,.:...:. .. ..,.,.,.,.--. ... %.-...: I ~ ~ ~.. -...,- .. ..- .... ,.%.. ..1 .. ... ..- .. .. . :.....,,....-..---.-.-..-... .
.................. ... ...... ... I .. ........ .:,.,1:11,,...-.%%..-..:-.,....::- ........... ... .,..:.-~-:~ .~ 1.. .:.:
-.-,..,.,.:" ,,,,* ... .. .. .. .. -.-. . :. ... 21- % ........ : ...:..-..... .. ,
.. .. ...: ........... I."I.'.,..,.,.-......,.:. ,.,.. ., ., ..-....,.-.-. --.-..-.,.-.. ..,...,.i :. ... ..... .
.. . ,- ... .... ... 11.... .. ,,.. "..,, .. : ,..,, ...-- ... .. .. .. .. .''. .,. .... %..-... .. .. .. .
.,.;.,....:..,.,.,...-...'.-.... ....:...... .:.,.,.. ...,.. ....-.-. .-.. -. ..... ..... ....... .... :..... ....W...............
...,,,,.%.,.. .,... ... .... .11..::...........,..... ...... .:... ..
... ... :::. ::::::'.: ... .. ... -..... -.- .-..-. .-. -.. -.. %-. L ... ... .. ... .. .. .. ... % .... ..... ..... ...
.. :,..,,. -: .... !r i % ...- ...-.,,. -.. ..... .. .
.. .. ..% .:1 .... ..... .. .. %-.-.. .. ., :: ,: .
:... ........ :.: .,.,. .: ....... .. %.. l.- -. 111- ., .. .. ... ..
............ ...." .r .:... .. .. .. .... '"..'. .,.: ..-.. .. -. .. ... .. :... .. .. .. ........ .. ... .. .. .. ... ... ... .. .. .--..,. ,:- ,-..... ..
.. . .. . . ..... .. .... .... .~l 'il~ r i .. I ... ... .... .. ... .I .. ..
.. I I ... .... .. .. ... .. .. .... .. ......... .........-. .. .:: ... .. .. . ... ..t.--% -. ,
.. ::..... .. .... : : -~:9:-. .. .. .. .. .:.. .. ..... ...-. .....- .. .. .. .. .. .. ..
~~. ~. .. -. .. . .....'. .. ... ... ... .. ....~...~
.. ..... ..........:.:;.'........ : .. r~.. ... .. ... ,...: ... .
Industry Report 91-1
Marketing Alternatives for
North Florida
Shiitake Mushroom
Producers
by
Robert L. Degner
and
M. Beth Williams
November 1991
Florida Agricultural Market Research Center
Institute of Food and Agricultural Sciences
University of Florida
Gainesville, FL 32611
ACKNOWLEDGEMENTS
We are indebted to the Center for Cooperative Agricultural Programs at Florida
A & M University for their financial support of research on Shiitake mushrooms and to
Clay Olson, County Extension Director, Taylor County for his technical and financial
support of this market research. We also express appreciation to Donna Hyde for typing
the manuscript.
TABLE OF CONTENTS
ACKNOWLEDGEMENTS ......................................... i
TABLE OF CONTENTS ........................................... ii
SUM M ARY ................................................... iv
INTRODUCTION ............................................... 1
FIN D IN G S .................................................... 3
ASIAN GROCERY STORES ................................. 3
RESTAURANTS .......................................... 4
ORIENTAL .............................................. 5
ITALIAN ................................................ 5
HIGH-VOLUME INDEPENDENT RESTAURANTS ............... 6
Produce W holesalers ................................... 8
CONCLUSIONS ................................................ 9
REFERENCES ................................................. 12
APPENDIX .................................................... 13
Florida Agricultural Market Research Center
A Service of the
Food and Resource Economics Department
of the
Institute of Food and Agricultural Sciences
The purpose of the Center is to provide timely, applied research on current and
emerging marketing problems affecting Florida's agricultural and marine industries. The
Center seeks to provide research and information to production, marketing and
processing firms, and groups and organizations concerned with improving and expanding
markets for Florida agricultural and marine industries.
The Center is staffed by a basic group of economists trained in agriculture and
marketing. In addition, cooperating personnel from other IFAS units provide a wide
range of expertise which can be applied as determined by the requirements of individual
projects.
SUMMARY
* A joint research and demonstration project by Florida A & M University
and the University of Florida has shown that Shiitake (Japanese)
mushrooms can be successfully grown in North Florida using abundant
hardwoods that presently have little economic value.
* The objective of this study was to explore the market potential for direct
sales of Shiitake mushrooms to retail Asian grocery stores and restaurants
where prevailing market prices are in the $5.00 to $6.00 per pound range.
* Telephone interviews of 48 Asian grocery store managers revealed that
only one store was selling fresh Shiitake mushrooms. For this one store,
sales were intermittent and volume was only 3 pounds per week.
* Less than 10 percent of the Asian grocers handle fresh produce. Only
four expressed any interest in selling fresh Shiitake mushrooms, and
projected weekly sales were 10 pounds or less. Thus, the market potential
for direct sales to Asian grocery stores appears to be very limited.
* Approximately 100 Oriental, Italian and mixed menu high volume
independent restaurants were contacted by telephone and 30 were
successfully interviewed.
* Of the 14 Oriental menu restaurants interviewed, only half used fresh
mushrooms of any kind, and none used Shiitake mushrooms in any form.
among Oriental restaurants using common mushrooms, volume was
relatively low.
* Oriental menu restaurant managers expressed little interest in using
Shiitake mushrooms, because of their cost and lack of familiarity with
Shiitakes. The market potential for direct sales to this market segment
appears to be quite low.
* Among Italian restaurants, those that are classified as "white tablecloth"
use modest quantities of fresh mushrooms, including Shiitakes. Current
users of Shiitakes are generally satisfied with their quality, but they
expressed interest in buying directly from growers if prices were
competitive. Quantities used ranged from 2 to 40 pounds per week.
* Italian restaurants, with the exception of the white tablecloth type,
represent limited market potential.
* Among the high volume independent restaurants, those with French menus
have the greatest incidence of Shiitake mushroom usage. Even so, typical
volume is small, usually about 5 pounds per week.
* Of 25 foodservice suppliers interviewed, 16 sold fresh mushrooms and 10
handled Shiitakes.
* Of the 10 produce wholesalers currently selling Shiitake mushrooms, 8
were interested in buying directly from North Florida growers. Weekly
volume ranged from 35 to 200 pounds, and averaged slightly over 100
pounds.
* About three-fourths of the produce wholesalers' supplies currently come
from suppliers in Pennsylvania, with the remainder coming from North
Florida growers. Thus, North Florida producers are likely to have a
competitive edge with respect to shelf life and transportation costs.
* The immediate focus for market development should be on sales to
produce wholesalers because usage by Asian grocery stores and restaurants
is very limited. Serving individual business establishments is likely to be
costly and sales volume low.
* Longer term market development should include educational materials,
recipes, and product samples for chefs.
INTRODUCTION
In 1986, the Center for Cooperative Agricultural Programs (CCAP) at Florida
A & M University initiated a multi-year research and demonstration project in
conjunction with the University of Florida which focused on the Japanese edible
mushroom, commonly known as the "Shiitake mushroom." This project sought to adapt
Shiitake mushroom production technology to North Florida conditions and provide
small-scale agricultural producers with a profitable alternative enterprise. Clay Olson,
County Extension Director of Taylor County, coordinated the project.
Although there were some production problems at the outset, it soon became
apparent that Shiitake mushroom production was technically feasible in North Florida.
By 1990, the Florida Mushroom Growers Association had been formed with thirty-four
(34) active members. One of the Association's priorities was to identify viable market
outlets. The Florida Agricultural Market Research Center (FAMRC) was asked to assist
with this task.
OBJECTIVES
The original objective of this research was to explore the market potential for
direct sales of Shiitake mushrooms by producers to Asian grocery stores in the North
Florida trade area. The scope of the project was later expanded to include independent
ethnic restaurants and produce wholesalers, especially wholesalers catering to the
INTRODUCTION
In 1986, the Center for Cooperative Agricultural Programs (CCAP) at Florida
A & M University initiated a multi-year research and demonstration project in
conjunction with the University of Florida which focused on the Japanese edible
mushroom, commonly known as the "Shiitake mushroom." This project sought to adapt
Shiitake mushroom production technology to North Florida conditions and provide
small-scale agricultural producers with a profitable alternative enterprise. Clay Olson,
County Extension Director of Taylor County, coordinated the project.
Although there were some production problems at the outset, it soon became
apparent that Shiitake mushroom production was technically feasible in North Florida.
By 1990, the Florida Mushroom Growers Association had been formed with thirty-four
(34) active members. One of the Association's priorities was to identify viable market
outlets. The Florida Agricultural Market Research Center (FAMRC) was asked to assist
with this task.
OBJECTIVES
The original objective of this research was to explore the market potential for
direct sales of Shiitake mushrooms by producers to Asian grocery stores in the North
Florida trade area. The scope of the project was later expanded to include independent
ethnic restaurants and produce wholesalers, especially wholesalers catering to the
foodservice trade. The trade area was defined as encompassing the Tampa-Orlando-
Tallahassee geographic region.
Specific objectives were to: (1) Determine current quantities of exotic mushrooms
handled by each major type of buyer, i.e., Asian grocery stores, ethnic restaurants and
produce wholesalers (2) Determine current marketing channels for Shiitake mushrooms
and identify major handlers (3) Determine prevailing prices for Shiitake mushrooms and
estimate potential direct sales at selected price levels.
PROCEDURES
Asian food stores and Oriental restaurants were identified in the 1991-92 Florida
Business Directory (American Publishing Company, 1991). The restaurant contact list
was also augmented with Tablecloth/Gourmet listings from the 1990-91 Directory of
High Volume Independent Restaurants (Business Guides, Inc., 1990). Finally,
foodservice distributors handling fresh produce in the North Florida region were
identified from the 1990 Directory of Foodservice Distributors (Business Guides, Inc.,
1990).
Asian grocery managers, restaurant kitchen managers and managers of
foodservice distributors handling produce, gourmet and specialty items were interviewed
by telephone in April and May, 1991 by FAMRC staff. Separate questionnaires were
developed for each of the three types of respondents.
FINDINGS
ASIAN GROCERY STORES
Forty-eight Asian grocery store managers were interviewed, and only one was found to
be selling fresh Shiitake mushrooms and only one other had ever tried selling them.
Both of these stores complained that sales volume was too low to make it worth their
while, and shelf life was too short. The one store currently selling Shiitake mushrooms
sold them intermittently, and weekly sales were usually one three-pound container. Both
said small restaurants were their best customers for Shiitake mushrooms. Two wholesale
suppliers of Shiitake mushrooms were identified by the Asian stores: Orlando Specialties
based in Orlando, and T & S Mills Research Center, located in North Carolina. Only
three stores were found to be selling dried Shiitake mushrooms. During the six month
period prior to the interviews (late 1990 and early 1991) the dried mushrooms were
retailing for an average of $4.75 per pound, with a range of $4.00 to $5.50 per pound.
As for other exotic mushrooms, one firm was selling canned straw mushrooms.
The market potential for fresh Shiitake mushrooms appears quite limited among
the Asian stores. One firm expressed a willingness to buy them at a delivered price of
$6.00 per pound, and a total of four were willing to buy at $5.00 per pound. At $4.00
per pound, no additional store managers were willing to buy. As for projected sales at
various price levels, the four managers expressing an interest in handling fresh Shiitake
mushrooms were reluctant to make estimates; at $4.00 per pound, one manager said
weekly sales would be about 10 pounds. All managers interested in Shiitake mushrooms
said they would have to see samples before buying.
A major limiting factor is the lack of fresh produce departments in the Asian
stores. Only four of the forty-eight carry fresh produce of any kind, and most of these
have very limited produce departments. For the most part, Asian grocers are not
interested in stocking fresh produce of any kind, particularly relatively expensive
mushrooms with low turnover and short shelflife.
Based upon the limited expression of interest in Shiitake mushrooms and
extremely low anticipated volume by Asian grocery stores, it appears that they are not
likely to be a significant market outlet for North Florida mushroom producers.
RESTAURANTS
It was hypothesized that Oriental and Italian restaurants would be most likely to
use Shiitake mushrooms. Accordingly, 54 Oriental restaurants and 26 Italian restaurants
were identified in the trade region that bought display advertising in the telephone
Yellow Pages. It was assumed that display advertising would be done by larger firms.
The interview cooperation rate for these firms was extremely low. Only four of the 26
Italian and 14 of the 54 Oriental menu restaurants identified through Yellow Page
advertising were willing to be interviewed. The majority of the non-cooperators refused
because they use no fresh mushrooms and had no interest in using them. In addition to
the Italian and Oriental restaurants identified through Yellow Page advertising, a list of
44 high-volume independent restaurants (HVI) was obtained from a another trade
directory (Business Guides, Inc. 1990). Several of the HVI restaurants had Italian
menus, but there was considerable menu diversity. The HVI list included seafood,
Spanish, general American and French menus. About half of the HVI restaurant
managers submitted to an interview. Results of the restaurant survey appear below in
three sections: (1) Oriental, (2) Italian, (3) High-volume Independent Restaurants.
ORIENTAL
Of the 14 Oriental restaurants contacted, only half used fresh mushrooms of any
kind and none used Shiitake mushrooms. Very few kitchen managers were familiar with
Shiitakes. Several managers were curious about Shiitakes, and said they would like to
have samples. However, when asked about their willingness to purchase them at prices
of $4.00 to $6.00 dollars per pound, only one manager still appeared interested--at $4.00
per pound. Most of the Oriental restaurant managers appeared to be extremely cost
conscious, and several expressed concern over the relatively high price of Shiitakes.
Further, the Oriental restaurants using fresh mushrooms tended to use relatively small
quantities. Typical fresh white button mushroom volume ranged from 5 to 30 pounds
per week, with most firms using 5 to 10 pounds. Thus, even if Shiitake mushrooms could
be successfully introduced to Oriental restaurants, the volume per outlet would probably
be quite small.
ITALIAN
Only six Italian menu restaurants were willing to provide information about their
mushroom use. However, many of the uncooperative firms specialized in pizza. Five
of the six cooperators were white tablecloth" general menu Italian restaurants, and all
used fresh mushrooms. Three used Shiitakes, and usage ranged from about 2 to 40
pounds per week, at a cost of $5.75 to $7.00 per pound. For the most part, they were
satisfied with the quality of Shiitakes they were receiving, although one expressed a
preference for smaller sizes. One firm, the largest user of Shiitakes, expressed interest
in buying them from North Florida growers at $6.00 per pound; although the manager
said he would be pleased to be able to buy them for $4 and $5 per pound, he did not
expect a significant increase in the total usage of Shiitakes at the lower prices. The
current users of Shiitakes were ambivalent as to the source of fresh mushrooms; they
were willing to buy directly from producers or from produce wholesalers.
Non-users expressed little interest in buying Shiitake mushrooms. Their menus
and the relatively high price of Shiitakes were the major reasons for lack of interest.
High volume "white tablecloth" Italian restaurants offer some potential for direct sales
by North Florida mushroom growers, but once again, low volume may make it difficult
to serve this segment of the market efficiently.
HIGH-VOLUME INDEPENDENT RESTAURANTS
Approximately half of the 44 listed high-volume independent (HVI) restaurants
in the market region were contacted, and 14 were successfully interviewed. Two of the
cooperators had Italian menus, and their responses were included in the Italian section
above. The remaining 12 restaurants represented a wide variety of menu types, including
seafood, Spanish, general American menu, and French.
All of the HVI restaurants use the common white button mushroom, in quantities
ranging from about 30 to 120 pounds per week. However, only four HVI restaurants
were found to use Shiitake mushrooms. Three of the four using Shiitakes specialized
in French cuisine, and the fourth was a general American menu restaurant. Three of
the four use about five pounds per week, and one about 15 pounds.
Prices paid by the restaurants for Shiitake mushrooms ranged from about $4.70
to $6.00 per pound. None reported problems with quality or service by current suppliers.
All current users expressed an interest in buying Shiitake mushrooms produced in North
Florida, but only at $4.00 to $5.00 per pound. Even at the lower price, volume would
remain unchanged. All stipulated that quality would be an important consideration. For
the most part, managers of the HVI restaurants were ambivalent as to their preferences
with respect to direct grower deliveries or wholesaler deliveries, saying that price and
dependability of supply and quality were the most important considerations. One was
currently buying directly from a grower, but the others were getting their supplies of
Shiitakes from area produce wholesalers.
Restaurants that do not currently use Shiitake mushrooms offered little
encouragement for future potential. Managers of the HVI restaurants with seafood or
Spanish menus felt that Shiitake mushrooms could not be used advantageously in their
traditional dishes. However, several managers of restaurants with American menus
expressed an interest in seeing samples. But, given their relatively small volume of
common mushroom usage, it appears very unlikely that these restaurants would use more
than 5 to 10 pounds of Shiitake mushrooms if they could be convinced to try them.
Among HVI restaurants, the greatest potential appears to be among French and
American menu establishments. Even so, the relatively small numbers of users, their
geographic dispersion and weekly volumes of only five to 15 pounds would make it
difficult for growers to serve this market efficiently with direct sales.
Produce Wholesalers
Twenty-five foodservice distributors handling produce, specialty or gourmet items
serving the market region were identified through a leading trade directory (Business
Guides, Inc. 1990).
Sixteen of the 25 firms currently handle fresh mushrooms, and 10 of the 16 sell
Shiitakes. The nine wholesalers that do not sell fresh mushrooms said they were very
unlikely to do so within the foreseeable future for various reasons; some were suppliers
of processed gourmet items, others handled fresh produce but no mushrooms because
their established clientele did not use them.
Of the 10 firms handling Shiitake mushrooms, 8 were interested in possibly buying
directly from North Florida growers but two firms were not. One of the firms that was
not interested in buying North Florida Shiitake mushrooms handled Shiitakes on a
special order basis, and purchases were erratic and usually small. However, the other
firm handled "hundreds of pounds" per week, receiving them from a supplier in
Pennsylvania.
Of the eight wholesalers interested in buying Shiitake mushrooms from North
Florida growers, two handled relatively small quantities on a special order basis for their
customers. However, the remaining six handled them on a regular basis, with weekly
volumes ranging from 35 to 200 pounds and averaging slightly over 100 pounds per week.
About one-fourth of the total quantity handled by these six wholesalers was supplied by
a mushroom producer in North Florida, with the remainder supplied by mushroom
growers in Pennsylvania, largely Elite Mushrooms (Avondale, PA) and Jim Paxon &
Sons (Oxford, PA). All eight firms currently selling Shiitake mushrooms reported having
no quality problems. Although many of the produce wholesalers sell to retail food stores
as well as foodservice customers, virtually all Shiitake mushrooms go to upscale "white
tablecloth" restaurants. Many are independent restaurants, but some are affiliated with
hotels or country clubs.
The prevailing wholesale prices at the time of interviewing were consistent with
those obtained from the restaurants, i.e., $5.33 to $7.00 per pound, with most around
$5.50. Most of the eight wholesalers favorably predisposed to buying North Florida
Shiitake mushrooms were noncommittal on prices they were willing to pay, but three
expressed interest at $5.00 per pound and four at $4.00. Several said quality was a
critical factor and that they would negotiate price after seeing samples. As with the
restaurants, price elasticity of demand appears to be quite low, that is, volume sold is not
very responsive to price. For example, lowering the price to wholesalers from $5.00 to
$4.00 per pound is not likely to result in significantly larger sales.
CONCLUSIONS
The initial target market of retail Asian grocery stores in the Tampa-Orlando-
Tallahassee marketing region proved to be a disappointment. Very few such stores
handle fresh produce, and many managers were unfamiliar with Shiitake mushrooms.
Only one of 48 stores contacted was currently selling Shiitakes, and sales volume was
extremely low. A few managers of Asian grocery stores expressed interest in selling
Shiitake mushrooms, but potential sales are likely to be 10 pounds or less per week per
store. Thus the market development opportunities for this type of outlet appear to be
very limited.
The next phase of this study focused on independent restaurants, and proved
equally disappointing. A survey of Oriental, Italian, Spanish and American menu
restaurants found few users of Shiitake mushrooms. However, French menu restaurants
appear to have considerably more potential. Weekly sales among French restaurants
ranged from 5 to 40 pounds, which may make this market segment attractive to
mushroom growers if enough French restaurants can be identified in a given geographic
area to make direct sales economically worthwhile.
The greatest potential for immediate sales is to produce wholesalers that serve
the foodservice trade. Eight produce wholesalers expressed interest in obtaining Shiitake
mushrooms directly from North Florida growers, and these firms are listed in the
appendix. Six of these firms reported weekly sales ranging from 35 to 200 pounds, with
virtually all Shiitake mushrooms going to upscale restaurants. Deliveries to produce
wholesalers would likely be more stable and more efficient than sales directly to
restaurants. Because most Shiitake mushrooms are obtained from distant, out-of-state
sources, Florida growers may have a slight shelf-life advantage as well as a transportation
cost advantage which should make them more competitive.
The immediate focus for market development should be on product wholesalers,
but the restaurants should not be forgotten. Growers can target upscale continental
restaurants which can be served efficiently. Further, the North Florida mushroom
growers should develop educational materials directed at chefs because many are
unfamiliar with Shiitake mushrooms. Personal calls on restaurant managers and chefs,
11
product samples and educational materials including recipes should be integral
components of future market development plans for the rapidly growing Florida industry.
Educational materials for chefs can benefit the entire industry by increasing total
demand for Shiitake mushrooms, but such materials can be particularly effective for
individual growers that invest their own time and money in sales calls. A combination
of joint and individual market development efforts can assure the Florida mushroom
industry of a profitable future.
12
REFERENCES
1. American Directory Publishing Company. 1991-92 Florida Business Directory.
Omaha, Nebraska, 1991.
2. Business Guides, Inc. 1990 Directory of Foodservice Distributors. New York,
New York, 1989.
3. Business Guides, Inc. 1990-91 Directory of High Volume Independent
Restaurants. New York, New York, 1990.
APPENDIX
Appendix Table .-Potential Shiitake Mushroom Customersa
CUSTOMER TYPE
WHOLESALERSb
BASS & SWAGGERTY
CITY PROVISIONERS, INC.
GULF PRODUCE
RED FISHER
UNITED PRODUCE OF PINELLAS,INC
MOVSOVITZ
EAST COAST FRUIT CO.
ORLANDO SPECIALTY
CREWS & GARCIA
ASIAN GROCERY STORESE
MANDARIN SUPER MARKET
ORIENTAL FOOD & GIFTS
DONG & PHOUNG ORIENTAL
WONG KAI IMPORTS INC.
BUYER'S NAME
BOB CONE
TONY POWERS
NEIL SANDLER
PAUL
SAMUEL V. LUMIA
PAM WHOOTEN
JERRY PORTNOY
BARRY
RICK
BEITY
KOCHA ADAM
ROSE
JOHN WONG
RESTAURANTSd
LE POMPANO RESTAURANT
BENTLEY'S
CHRISTINI'S RISTORANTE ITALIANO
THE INN BETWEEN
ENZO'S
MONTE CARLO
SPANISH PARK
LE CORDON BLEU
BON APETIT
BOB HEILMAN'S BEACHCOMBER
CHINA DRAGON
ANDREW DENNIS
KEN
CARLO FILANDE
MANUEL CANTHO
ENZO
ROMEO
CHRIS VALDEZ
GEORGE
KARL RIELL
GORDON
JAMES CHIN
PHONE
904-255-0423
904-673-2443
904-356-0026
813-621-3481
813-822-4051
904-764-7671
904-355-7591
407-856-1611
813-236-5536
904-268-5215
813-924-8066
407-894-7013
813-758-1432
813-596-0333
813-797-1177
407-345-8770
813-349-7117
407-834-9872
813-879-6245
813-248-6138
407-647-7575
813-733-2151
813-442-4144
904-252-3839
ADDRESS
ANTICIPATED VOLUME
330 CARSWELL AVE., HOLLY HILL, 32017
PO BOX 2246, DAYTONA BEACH, 32015
3335 BRIGHT AVE., JACKSONVILLE, 32205
5302 E. DIANA, TAMPA, 33610
1830 3RD AVE SOUTH, ST PETE., 33712
3100 HILTON ST., JACKSONVILLE, 32209
3335 N. EDGEWOOD AVE., JACKSONVILLE, 32205
1213 E. PINE AVE., ORLANDO, 32824
2801 E. HILLSBOROUGH, TAMPA, 33610
11408 SAN JOSE BLVD., JACKSONVILLE, 32217
7280 TAMIAMI TRAIL S., SARASOTA,
1121 VIRGINIA DR., ORLANDO,32803
8959 US HWY 301, SARASOTA,
19325 GULF BLVD., INDIAN SHORES, 34635
2516 MCMULLEN-BOOTH RD.,CLEARWATER, 34621
7600 DR.PHILLIPS BLVD., ORLANDO, 32819
431 BEACH RD., SARASOTA, 34242
1130 S. HWY 17-92, LONGWOOD, 32750
3940 W. CYPRESS ST., TAMPA, 33607
3517 E. 7TH AVE., TAMPA, 33605
537 W. FAIRBANKS AVE., WINTER PARK, 32789
150 MARINA PLAZA, DUNEDIN, 34689
447 MANDALAY AVE., CLEARWATER, 33515
1415 N. RIDGEWOOD, DAYTONA BEACH, 32014
a The firms appearing here consented to be listed as potential customers for Shiitake mushrooms grown in North Florida.
b For wholesalers, potential volume is defined as follows: low=less than 50 pounds per week, medium=50 to 100, high more than 100 pounds per week.
c All Asian grocery stores had sales of 10 pounds per week or less.
d Restaurants' potential volume is defined as follows: low=less than 15 pounds per week; medium 15 to 20 pounds and high= more than 20 pounds per week.
LOW
LOW
LOW
HIGH
LOW
MEDIUM
LOW
HIGH
HIGH
LOWd
LOW
HIGH
LOW
MEDIUM
LOW
LOW
LOW
MEDIUM
LOW
LOW
|