Mushroom firm plans £500,000 development

Greyfriars is also looking for more growers to help meet increasing demand from its main buyers.

Managing director John Smith believes it could be a golden opportunity for farmers who are being encouraged to diversify.

The company, based at Wath near Ripon, has 47 satellite growers who typically earn £20,000 a year, with top ones reaching £30,000.

Greyfriars now wants to recruit another 15 growers, ideally from the Wensleydale/Swaledale area or ten miles either side of the A1 motorway.

While some UK mushroom companies have ceased trading in the last 18 months, Greyfriars' business has doubled. It supplies Tesco, Morrisons and Simply Fresh, a processing company producing 600,000 stir-fries a week.

"The Government is making it pretty clear that agriculture and horticulture is not going to be the same for very much longer and that farmers need to consider diversification perhaps more seriously than ever before," said Mr Smith. "I believe farmers would like to stay put on their farms; 100 acres will not earn anyone a living these days but mushrooms could allow them to make a proper living."

Mr Smith has strong views on the Government's attitude to diversification - believing many of its ideas to be "very daft".

"The pen pushers of Whitehall seem to think farm diversification is about people making jam and walking sticks and setting up bed and breakfast operations," he said. "There is a place for all these things but they need to think much more sensibly about what opportunities there are for people to do things which do not require subsidies."

There are no Government grants or subsidies for mushroom growing but Greyfriars provides its growers with a complete package of training and technical support. It helps with equipment and can help with financing.

Mr Smith accuses the Government of treating mushrooms as a Cinderella industry.

He cited the different attitude in both Southern and Northern Ireland where the governments had realised the tremendous impact the sector could have on the viability of Irish agriculture. As a result, over a ten year period, 1,200 producers sprang up, supported by the politicians.

"We feel people do not care about us in Government circles," said Mr Smith. "As a company we have lobbied Tony Blair in particular, and the opposition, for a greater understanding of the impact the relationship of the euro and the pound is having on our industry.

"But, because we are not politically important, we get understanding nods and little else."

He blames a 20pc drop in UK production on the significant advantage the exchange rate gives competitors in Southern Ireland and Holland. "As long as the euro remains where it is, not only mushroom growing but agriculture and horticulture generally will be under severe pressure," said Mr Smith.

Two key steps would help.

"The pound has got to have a better relationship with the euro. We have to be around the 72-73p level by either taking the pound down or the euro up. As long as it lies around 61-62p, it will have a serious economic impact on horticulture and agriculture generally."

The other step was to ensure exporters to this country applied the same rigorous standards and due diligence UK producers had to meet. Greyfriar's booming business was partly down to picking up trade when other suppliers had ceased trading but was largely due to the consistent supply and incredibly high quality of mushrooms its growers produced.

"There really are no better growers in the world," said Mr Smith. "They are simply outstanding and their success and performance makes it easier for us as a company to please our customers."

Of the 750,000 cases of produce a year supplied to just one customer, only 1,500 were rejected. Of those only 311 could not be replaced by the deadline.

It is all the more remarkable when that customer receives three deliveries a day, each one rigorously checked to meet all sorts of stringent criteria.

At the company's Top of the Crops award last week the winners were David and Sandra Jennings of Alne, near Easingwold, who averaged a monthly delivery of 7,993lb of mushrooms, 93pc of which were prime grade.

The new grading and distribution centre at Wath will be able to handle 100,000lbs of mushrooms a week, doubling the existing output there and pushing the company's total production to 250,000lbs a week.

"It will not lead to any increase in traffic," said Mr Smith. "All our vehicles are now only half full so it will allow us to make full use of them and give us the ability to meet new marketing opportunities."

The unit, which will be screened to blend in with the countryside, has received full planning permission and should begin operating on August 1. The contract has been awarded to Building Design Northern of Darlington.

"The new centre demonstrates our optimism for the future and our commitment to existing growers," said Mr Smith.

Anyone interested in becoming a grower can contact Mr Smith on 01765 640395.