Costa Group said demand for mushrooms growing nationally in Australia

Costa Group said demand for mushrooms growing nationally in Australia

Australia-based produce supplier Costa Group is to invest in its domestic mushroom production to meet what it says is growing demand for the vegetable.

Costa Group plans to double the output at its site in South Australia to 240 tonnes a week. The company has mushroom production facilities across five states but CEO Harry Debney said the location and age of the plant saw it secure the investment.

"The availability of land on the existing site has helped make this investment happen with supporting infrastructure already in place and the existence of a one-kilometre buffer zone around the site. This provides us with longevity of tenure and is important to ensure a return on our investment.
The Monarto site is our most modern facility and its central location relative to our network of farms means we can not only supply the local South Australian market with quality mushrooms but all other states within one to two days of shipment," Debney said.

The project, worth AUD60m (US$44.8m), is being supported by a AUD1.8m grant from South Australia's state government. Construction on the expansion is expected to start later this year and be operational in 2018.