Kennett Square, PA-based Phillips Mushroom Farms is a leading mushroom producer in the United States., and it’s on a fast-track to getting even bigger.

The company’s Warwick, MD, facility is currently being expanded for the fourth time — this time adding 80,000 square feet to its facility —which will be in production by January 2019.

When completed, it will be the largest single growing facility in the United States.

National Sales Manager Kevin Donovan told The Produce News that the facility was originally designed to produce both conventional and organic mushrooms — the latter of which the company realized several years ago would quickly become of major category in its business.

“The new addition is for organic production,” explained Donovan. “When completed, the facility will produce about a million pounds of mushrooms every week in total.”

Donovan and other company executives are eagerly anticipating the New York Produce Show on Dec. 10-13 in New York City. And the company will exhibit on the trade show floor at the Jacob K. Javits Center on Wednesday, Dec. 12.

“We will feature our entire line of mushrooms, which includes all varieties,” said Donovan. “And extra emphases will be on our organic line. This line has expanded tremendously over the years, and we now have all major varieties in an organic option, as well as our popular Organic Gourmet Blend. The four-ounce pack combines sliced Baby Bellas, sliced Shitakes and Yellow Oyster mushrooms, giving consumers a mix of their favorite varieties in an organic option.”

He added that the response to the item was fast and strong, and it continues to increase in demand, noting that the organic line continues its growth sales spurt.

“The only problem we now have is that the mushrooms are very tight in North American,” he pointed out.

“Pennsylvania, which is a leading mushroom area of the country, has had a very hot, humid and wet summer, so production is off. Compost and raw materials are not as good as they should be, compounding the problem. Prices are stronger because of the shortage.”

He pointed out that operating costs have skyrocketed in the past couple of years, which also affects market prices.

Fuel, operation expenses, wages and every other aspect of production have, he said, “gone through the roof.”

He added that hopefully as cooler weather is now setting in, the situation will change to help ensure enough mushrooms for the holiday season.

Despite the issues, mushroom demand is strong and growing.

Phillips Mushroom’s long and successful history in cultivating mushrooms began in 1927. Since then, it has remained a leader in the mushroom category, always staying abreast of trends and ahead of demands.

The company remains a family-owned-and-operated business. A new generation of team members have joined the company: Marshall Rush and Sean Steller, both whom, along with Donovan, represented the company at the PMA Fresh Summit in October.

On the New York Produce Show, Donovan said it’s a great venue and opportunity for the company to visit with its Northeastern and other customers.

“It’s a great setting,” he commented. “It draws the professionals we want to connect with.”

“People have a little more time to talk, ask questions and overall network, as compared to larger national events,” he added. “Phillips Mushrooms has exhibited every year since the show’s first event, and we plan to continue in the future.”