The closure of the Denny Mushrooms farm in Phesantekraal in the Western Cape has sparked speculation over the feasibility of mushroom farming and whether the local market will now face a supply shortage. The farm is set to close in December 2025, making it the second Denny Mushrooms facility to shut down since 2022. Only the Gauteng farm will remain operational. The company declined to comment on the reasons why the farm was closing and the volume of mushrooms that would be removed from the market.
William van Niekerk, director of Cape Town market agent Fine Bros, told Farmer's Weekly that once the farm closed, shortages in the market would be felt, which could lead to price increases. There is uncertainty over what Denny Mushrooms' exit would mean for pricing over the long term, as the high volumes the company produced meant it had a big influence over prices.
"Denny does not discover prices daily on the fresh produce markets based on supply and demand, like other commodities. They decide on a feasible price and keep it constant throughout the year. Because of the competition in the market, most other producers have to follow suit," van Niekerk said.
He noted that until the supply gap left by Denny Mushrooms was filled over the long term, any farmer who could increase supply in the meantime stood to benefit.
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