Mushroom growers in Kennett Square, Pennsylvania, say shiitakes grown on logs imported from China can be labeled “Product of the USA,” the Philadelphia Inquirer reported on January 28, 2019. They say the cheap logs are driving local producers out of business.
How it works
Shiitakes grow on logs of compressed sawdust and grain inoculated with mushroom spawn. In China, the logs are made with Chinese sawdust, grain and spawn, then shipped on a six- to eight-week voyage. In USA grow houses, the mushrooms are picked within a week to 10 days and the logs are thrown away.
Because the mushrooms are harvested in the USA, they meet USDA country-of-origin labeling rules. “They’re clearly not U.S. grown,” said Daniel J. Royse, a Penn State professor emeritus. He said the USDA treats the logs as spawn, but “the logs actually are colonized substrate, they shouldn’t be allowed.”
The toll
- Oakshire Mushroom Farms had $37 million in sales in 2017. Owner Gary Schroeder said Chinese log makers wiped out 85% of his log sales in nine months. In early January, the company cut its workforce from 65 to 16 and filed for bankruptcy. It also lost Costco, which switched to cheaper Canadian mushrooms.
- Kennett Square Specialty Mushrooms CEO Lou Caputo said his log output fell from 85,000 a week to 25,000.
“We believe the Chinese are skirting the law,” Schroeder said. He said the USDA and U.S. Customs told growers the issue did not merit their attention. The agencies could not be reached because of the partial government shutdown. A spokeswoman for Rep. Chrissy Houlahan said her office was looking into the growers’ concerns.
FAQ
Why can these shiitakes be labeled Product of USA?
They are harvested in the USA, which meets USDA country-of-origin labeling rules, even though the logs and spawn come from China.
Which farm filed for bankruptcy?
Oakshire Mushroom Farms in Kennett Square, Pennsylvania.
How much log business did Oakshire lose?
About 85% of its log sales, according to owner Gary Schroeder.
Source & credit
Source: Sam Wood, The Philadelphia Inquirer: “Sown in China, grown on high seas, ‘Product of USA’ mushrooms are killing American farms”, January 28, 2019.

