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End of an Era: Rising Costs Force Closure of Iconic Sunshine Coast Mushroom Farm

After nearly half a century of local production, SjW Mushrooms in Chevallum is closing its doors due to unsustainable operating costs and a $10,000 weekly loss.

SR
By Staff Reporter
News reporter · Updated about 6 hours ago

A prominent fixture of the Sunshine Coast's agricultural community is closing its doors for good. Joanne and Steve Willemse, the owners of SjW Mushrooms in Chevallum, have made the heartbreaking decision to shut down their commercial farm after exhausting every financial avenue to keep the business afloat.

Despite downsizing their operations and selling off personal assets—including an apartment and the investment property intended to fund their retirement—the couple could no longer sustain the mounting losses. The farm has been hemorrhaging an average of $10,000 per week in its final months.

"It's got to the stage now where we're not making any money at all; we're actually losing money," Joanne Willemse said. "On average, we're losing about $10,000 a week."

A Long History Cut Short

The Willemse family has a rich history of mushroom farming in Queensland dating back to the 1950s. Fifteen years ago, Steve and Joanne branched out on their own, acquiring a farm in Woodford before expanding to their Chevallum site a year later. Over the years, SjW Mushrooms grew into a key regional supplier, servicing IGA supermarkets, independent fruit shops, and local markets.

However, the economic reality of modern farming has proved insurmountable. While wholesale prices for a box of mushrooms have remained stagnant for nearly two decades, the cost of growing, packaging, and transporting them has skyrocketed. Recent global events, including geopolitical instability in the Middle East, have further drove up fuel and input costs.

The closure has devastated the farm's remaining 15 staff members, down from a peak workforce of 65. It also means the couple’s adult children, who were actively involved in running the farm, must seek employment elsewhere, ending hopes that the family's third generation would eventually take the reins.

The Ripple Effect on Local Business

Local wholesalers and hospitality businesses are bracing for the impact of losing such a major supplier. Adam Forbes of wholesale fruit and vegetable company The Produce Partner expressed deep concern over the farm's closure.

"We get up to a tonne of mushrooms through those guys weekly," Mr. Forbes said. "They were such a great local farm… it's really going to put a dent in the local market. It's going to push pricing up across the board."

Mr. Forbes noted that local restaurants and chefs are already operating on razor-thin margins and cannot easily absorb further price hikes, leaving primary producers to bear the brunt of the financial squeeze.

Industry-Wide Pressures

The struggles facing the Willemse family reflect a broader decline in the national mushroom industry. Data from the latest Horticulture Statistics Handbook shows national mushroom production fell by 12 percent to 52,784 tonnes, while consumer purchases dropped by 7 percent as cost-of-living pressures forced shoppers to tighten their grocery budgets.

AUSVEG spokesperson Andrew MacDonald described the current operating environment for growers as "extremely challenging," citing a combination of rising production costs, heavy compliance burdens, and persistent labor shortages.

While large-scale commercial farming faces severe headwinds, some smaller boutique growers are still finding room to innovate. In Coolum, Martin Anfosso and Elona Kovach have successfully transitioned their specialty mushroom business from a residential garage to an industrial shed. Producing high-value gourmet varieties for local cafes and retail stores, they remain optimistic but highly cautious about the industry's economic pressures.

For Joanne Willemse, the focus remains on the critical value of domestic farming. "We pay a lot of taxes, farmers, just like any other business," she said. "However, we're a primary producer. We feed the country."

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