Business is mushrooming Loveday Farms acquired by South Mill Champs, one of the largest producers in North America By: Martin Cash Posted: 7:00 PM CDT Thursday, Jul. 23, 2020

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This article was published 23/07/2020 (1653 days ago), so information in it may no longer be current.

Loveday Mushroom Farms has been acquired by a U.S company and will become the mid-continent arm of one of the largest mushroom producer groups in North America.

The fourth generation family firm that doubled in size 10 years ago was acquired by South Mill Champs, based just outside Philadelphia.

That group was formed in 2017 when South Mill bought B.C.-based Champs a regional competitor of Loveday in some of its Western Canada markets.

With two production facilities around the city, Loveday employs close to 200 people.

Burton Loveday, the president of the company was not available for comment but said in a press release “We’re very happy to join the South Mill Champs organization. The combining of efforts will allow us to expand our capabilities and leverage South Mill Champs’ infrastructure to further support our customers’ growth and ever-increasing demands.”

Terms of the deal were not disclosed.

Sergio Varela, the chief financial officer of South Mill Champs, said Loveday has room for significant expansion and the plan is to do just that and ultimately generate increased employment.

South Mill has multiple production facilities in Pennsylvania just west of Philadelphia – where about one half of the mushrooms grown in North America come from – and Champs has about eight facilities in B.C.

“Loveday has extremely high quality production and it’s well known throughout the industry.” – South Mill Champs CFO Sergio Varela

“We had both coasts covered fairly well with large operations on both coasts,” Varela said. “The part that was missing was the middle of the continent. You have to be there to be able to supply within 48 hours to our customers. That was the key strategy for the transaction, the geographic nature of where Winnipeg is.”

After they’re picked mushrooms have a shelf life of about nine days.

Loveday currently distributes between Alberta and Northwestern Ontario. While it does not currently sell into the U.S. Valera said now that it has become part of the South Mill Champs group the potential to start shipping south of the border will be explored.

A few years ago Loveday was churning out about 72,576 kilograms of mushrooms a week at its two plants — a 125,000-square-foot facility that’s been operating on Mission Street for the last 73 years, and a 73,000-square-foot one that opened about 10 years ago in Springfield.

According to recent press reports Loveday currently produces more than 2.7 million kilograms of white, crimini, oyster, portabella, shiitaki and enoki mushrooms per year.

Varela said in addition to the regional coverage South Mill Champs will get with the acquisition of Loveday the quality of its production was essential.

“Loveday has extremely high quality production and it’s well known throughout the industry,” Varela said. “It’s got a great reputation and has a great relationship with customers and suppliers.”

South Mill Champs officials said the combination is in response to increasing market demand as the health benefits of mushrooms become mainstream. The joint company’s enhanced production and supply capabilities will expand its ability to supply fresh, high quality mushrooms to all major population areas in North America within 48 hours. Joining forces will improve production efficiencies across both companies and broaden its future planned compost and mushroom expansion plans.

With the Champs and Loveday acquisition South Mill Champs s likely not done yet.

The company has a large plot of land in the Kennett Square regions of Pennsylvania that is fully permitted with the potential future expansion there as well.

martin.cash@freepress.mb.ca