31 July 2009

Mushrooms - a dirty business

| WanniAss
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The ABC website has an interesting article on the (I assume) little known mushroom war in Canberra. The long established Canberra Mushrooms (who are actually in Yass) vs Majestic Mushrooms, the upstarts.

    Majestic Mushrooms has entered a market tightly held by Canberra Mushrooms for 20 years.

    Canberra Mushrooms is in Yass and the farm supplies 85 per cent of Canberra’s market, and they are planning significant expansion.

    Clint Smithers of Canberra Mushrooms describes the bidding war when the new kid arrived on the block.

    He says they “had a deal with Majestic Mushroom when they first moved in … we gave them all the names of places we don’t supply, that get their mushrooms from Sydney and to go and attack that.”

    “Straight away they tried to attack our customers,” he says “they got a couple, then we just went and took the ones we gave them, so it’s balanced out a bit.”

I knew mushroom growers spent their days in the s**t, but I never knew how dirty it was.

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88612 and Iceman, do you both know eachother? Your writing styles are very, very similar.

I totally agree with you 88612. Who would start a business and allowing the competitor to dictate who you should sell your product to and who you shouldn’t? Canberra Mushrooms must be kidding themselves! Sounds like they had a monopoly for too long and are worried about Majestic Mushrooms.

Have you seen the latest ABC posting on Wed 12/8 http://www.abc.net.au/rural/act/canberra/ , Majestic Mushrooms have responded with:

“There was never any agreement, arrangement nor understanding to share any clients,” they say.

“Any attempt to do so was by Canberra Mushrooms. We believe that this is a free market and that competition is healthy. The consumer will benefit and competition keeps us striving to produce a quality product at a competitive price.”

Good on you Majestic Mushrooms, my friends and I are right behind you!!

it’s business. i highly doubt there is such thing as a “deal” as to which clients belong to who.

plus, think about it. which new business will sign a deal saying, “yeah sure. i’ll just take the remainder of your clients and not even try to compete with you.”

hence, once again, i highly doubt anything like a “deal” exsists.

i pine for such puns, cat. oyster you and you stir me… [we should go now…]

The cat did it10:19 pm 31 Jul 09

So, according to Canberra Mushrooms, there’s not mushroom in the Canberra market for another supplier?

sorry, couldn’t resist.

Maybe Smithers can get Fat Tony to run them out of town.

Pandy said :

ACCC needs to get involved

Sounds pretty much like an illegal cartel to me. Basically any deal that is designed to prevent competition is against the Trade Practices Act.

Should be an easy open and shut case with the incriminating statement from Mr Smithers.

The ACCC have been very clever with the enforcement of the anti-cartel laws. If you tell them about your involvement in a possible cartel agreement, you will be granted immunity from prosecution – a real world example of the Prisoners Dilemma problem.

eyeLikeCarrots1:44 pm 31 Jul 09

astrojax said :

stop it carrots. now. ; )

i hadn’t heard this story, but then they keep me in the dark and… i blame the swiss.

There are a few biolumnescent mushies you can get to help you to see…

seekay said :

Gosh! Competition! Whatever next?

FoodMushroom fight? Although I don’t know how much hurt one can inflict with a handful of mushrooms…

Bluebell said :

Golden news, hopefully the price will come down when there some competition!

You can only have so many dish using mushroom before you become very unpopular in your household…

stop it carrots. now. ; )

i hadn’t heard this story, but then they keep me in the dark and… i blame the swiss.

eyeLikeCarrots11:12 am 31 Jul 09

I had a mate who worked in this industry.. he was a fungi to hang around with.

Back on topic… This obviously requires an antitrust case in the High Court.. imagine how High the court would get after sampling the product ?

What is it with people who target the Canberra market, call themselves ‘Canberra’n, base themselves OUTSIDE canberra, then expect Canberra to bend over backwards for them?

Its competition, plain and simple, and if I was a customer who had to choose between ‘Canberra Mushrooms’ made in Yass, and ‘Majestic Mushrooms’ made in Canberra, Id always buy local. Having said that, if I was in Yass, I would buy from the locally-based ‘Canberra Mushrooms’.

Thoroughly Smashed10:43 am 31 Jul 09

Sorry

Thoroughly Smashed10:33 am 31 Jul 09

chewy14 said :

Quote from unnamed mushroom insider:

“They better watch out or we’ll put a Cap in their ass.”

A death cap?

The price of mushrooms went sharply upwards some years ago, and never came down again. I still think $8 – $10 a kilo is rather a lot.

Postalgeek said :

Great. Now the police have to contend with roving gangs of smurfs and elves looking to bash each other.

LOL +1

Golden news, hopefully the price will come down when there some competition!

Danman said :

Pandy – why ?

“Almost” sounds like collusion
Not allowed unless you are a fuel company.

Pandy – why ?

Great. Now the police have to contend with roving gangs of smurfs and elves looking to bash each other.

ACCC needs to get involved

Gosh! Competition! Whatever next?

love to see the way they offered the clients that canberra mushrooms didn’t deal with – as if to say, we own 85% of the market, have fun with the remainder. who are they kidding?? of course the new players will go after their competitor’s clients…

Quote from unnamed mushroom insider:

“They better watch out or we’ll put a Cap in their ass.”

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