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KEN GIGLIOTTI \/ FREE PRESS files<\/p>\n
Mushrooms in Loveday Mushroom Farms\u2019 growing area.<\/p>\n
But the American base will likely be hit with higher mushroom prices: South Mill Champs plans to pass a new duty to customers, upping the cost of its portabellas and shiitakes.<\/p>\n
Canadian imports are being taxed with countervailing duties. The U.S. Department of Commerce has launched an investigation into fresh mushrooms; its preliminary findings say Canadian producers receive unfair government subsidies<\/a>.<\/p>\n Most imports will see a tariff of 2.84 per cent. South Mill, as of May 18, was being charged 1.62 per cent, Macleod said.<\/p>\n \u201cAt what point do mushroom consumers buy less mushrooms because of the impact of the increased prices?\u201d he said. \u201cAs an industry, the downside to increased prices to consumers is decreased demand. And really, (it comes) at a time when everybody is challenged with increased costs.\u201d<\/p>\n Canadian customers won\u2019t be impacted by South Mill Champs\u2019s increases, nor will the 300 staff at the Manitoba company be laid off, he said.<\/p>\n He joins others in the industry speaking out against the duties.<\/p>\n The preliminary findings set a \u201cworrying\u201d precedent for producers across Canada and the United States, Macleod said.<\/p>\n Businesses get tax exemptions when buying agricultural equipment. For South Mill Champs, that includes peat mixers and trolleys for mushroom picking.<\/p>\n These tax exemptions \u2014 which are found throughout Canada and the U.S. \u2014 are being used as the basis for the department\u2019s levies, Macleod and national organization Mushrooms Canada have pointed out.<\/p>\n (A May 13 Mushrooms Canada news release says provincial sales tax exemptions, available to farmers generally, are being targeted.)<\/p>\n \u201cTo avoid tax pyramiding, it really is the end consumer that pays the sales tax \u2014 otherwise you\u2019d have tax on top of tax,\u201d Macleod said. \u201cThat\u2019s standard policy across North America.\u201d<\/p>\n A final decision on the countervailing duty will likely come later this year.<\/p>\n Meanwhile, the United States has a separate investigation targeting anti-dumping duties, which could be addressed this month.<\/p>\n It comes four years after Canada started exporting mushrooms to the United States.<\/p>\n Manitoba exports were valued at $22.3 million in 2025, up from $13.2 million in 2022. Last year, the province exported 3.74 million kilograms of mushrooms to the U.S., according to government figures.<\/p>\n Canadian growers generally have newer infrastructure than Americans \u2014 better composting, metal beds instead of wood \u2014 and that increases competition, Macleod said.<\/p>\n U.S.-based group Fresh Mushrooms Fair Trade Coalition submitted a complaint to the American government, saying Canadian mushrooms were unfairly subsidized. It led to the investigation.<\/p>\n Giorgio Mushroom Co. is a coalition member and touts itself as one of the world\u2019s biggest mushroom producers. In a news release, it called the preliminary ruling an \u201cimportant first step.\u201d<\/p>\n Unfair subsidies distort competition, accelerate farm closures and increase pressure on U.S. producers, the release says.<\/p>\n \u201cAn unfair subsidy would be one where the subsidy is just provided for product that is sold outside of the country, but not within the country,\u201d said Chad Lawley, a University of Manitoba agribusiness professor.<\/p>\n \n\t\tWinnipeg Free Press | Newsletter\n\t<\/p>\n \t\t\t\t\t \u201cOr on the tax treatment side, if mushrooms that were being exported face a different tax structure than mushrooms that are being consumed within Canada \u2014 I would view that as trade distorting.\u201d<\/p>\n Lawley said he didn\u2019t know the specifics of the mushroom industry.<\/p>\n American and Canadian producers regularly sell to each other to ensure they have enough goods for their customers. That will continue, Macleod said.<\/p>\n Producing mushrooms in America is usually more expensive because of wooden platform usage, as opposed to metal in Canada, said Donna Kurt, head of the Manitoba Mushroom Society.<\/p>\n gabrielle.piche@winnipegfreepress.com<\/p>\n \t\t\t\t Gabrielle Pich\u00e9 Gabrielle Pich\u00e9 reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle<\/a>.<\/p>\n Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print \u2014 part of the Free Press\u2018s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press\u2019s history and mandate<\/a>, and learn how our newsroom operates<\/a>.<\/p>\n<\/p>\n<\/p>\n
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