By Lynda Kiernan

Highline Mushrooms announced an investment of $20 million for the construction of a second farm north of Calgary, in Alberta. 

The decision to move forward with the project, which will create 120 jobs for the region, was driven in large part by the repeal of Bill 6, legislation that delisted mushroom farms from being categorized as primary agriculture.

“This directly influenced our decision to move forward on our farm expansion plans,” said Aaron Hamer, CEO, Highline Mushrooms, according to the Calgary Herald. “The prior regime’s decision to delist mushroom farms as primary agriculture was a mistake. Mushrooms expand in size four per cent every hour or double in size in a single day, so our farm’s harvest demands are constant and ongoing.”

Founded in 1961 in Ontario, Highline has grown over the years to become the largest organic mushroom grower not only in Canada, but the world, producing white, mini bela, and portabella mushrooms without the use of pesticides or fungicides. 

We’re most excited about the innovative decisions we’ve made on how we’re going to build the farm,” said Hamer. “We believe that when it’s built it will be one of the world’s most state-of-the-art and technologically advanced mushroom facilities. It aligns with our history and culture of being innovative and leading the way in this industry.”

In 2016, Highline was acquired by global banana and produce company Fyffes for C$145 million (US$165 million at the time).

“Highline is a very fine business with a strong position in an important product category,” said Fyffes Chairman David McCann at the time. “We look forward to working with Glenn Martin and his management team to continue to develop the business.”

Within a matter of months, Fyffes announced it has agreed to acquire 100 percent of the equity in All Seasons Mushrooms Inc., one of the largest mushroom growers in Western Canada, for C$59.1 million (US$46 million at the time).

“Together, Highline and All Seasons will be well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply U.S. customers with premium and organic mushrooms,” said McCann in a company statement.

Mushrooming Potential

Mushroom production is currently a category with high potential. Entry barriers are low, with comparatively  little land, labor, or capital requirements. Additionally, demand has steadily increased over the past two decades, and as populations grow, urbanization increases, and the mushroom plays an ever stronger role in healthy eating, wellness, plant-based meat alternatives, and as a functional food in food tech initiatives, mushrooms are positioned for continued growth. Between 2016 and 2024, a report issued by Transparency Market Research states that the global mushroom market will see a CAGR of 8.2 percent, to exceed a value of $69 billion. 

At the cutting edge of mushroom-based food tech is MycoTechnology, which closed on a $30 million Series C led by S2G Ventures Fund II in February of this year. 

Founded in 2013 Dr. Brooks Kelly, Jim Langan, Peter Lubar, and Alan Hahn, MycoTechnology has pioneered the development of a variety of innovative organic food processing platform using mushroom roots (mycelium). Although the full range of possibilities for their technology is not yet known, the company has used their platform to solve some of the toughest challenges faced by the food and beverage industries.

Through mushroom fermentation technology, MycoTechnology’s flagship product, ClearTaste®, is the world’s first organic bitter blocker, which helps companies reduce the sugar content of their products by blocking bitterness. Additional testing has revealed that ClearTaste® is also able to block the metallic aftertaste associated with potassium chloride, a common salt replacer.  Their second product, PureTaste®, is solving how we will feed an exponentially growing population with a sustainable, functional, and nutritional plant-based protein.

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.