South Mill Champs Comments on Flawed Preliminary U.S. Trade Ruling Built on False Premise: U.S. Customers Choose Canadian Mushrooms For Their Premium Quality, Not Their Price

Giorgio-initiated trade case defies basic market facts and would punish customers with higher prices for a product they choose because it is better

KENNETT SQUARE, Pa., July 15, 2026 /PRNewswire/ -- South Mill Champs, the second-largest mushroom grower in North America, today commented on a preliminary U.S. Department of Commerce anti-dumping (AD) determination which forms a part of a general trade case against fresh mushroom imports from Canada. The case, initiated by competitor Giorgio Foods, is built on a claim that is contradicted by the most basic market evidence: South Mill Champs' Canadian-grown mushrooms sell in the United States at a higher price than its American-grown product. That is not the pricing profile of a company dumping goods. It is the pricing profile of a company that has invested in developing a premium product.

"We have earned our position by growing the best and most consistent product available, and investing to keep it that way," said Lewis Macleod, CEO of South Mill Champs. "A dumping allegation requires showing that we are pricing our product unfairly low. The opposite is true. Our customers pay more for Canadian-grown mushrooms because they are worth more. This action was brought by a competitor that has chosen litigation over investment. We will contest it at every stage, and have the facts and real-world competitive dynamics on our side."

Added Mr. Macleod: "Trade actions are a distraction from what matters: growing a better mushroom and growing the market for this great food product. We will continue to make our case to the ITC, where real-world data will speak for itself. We are confident that with the facts on our side, and our fundamental focus on product quality and consistent service above all else, we will continue to win where it matters most – with our customers."

A trade allegation the evidence does not support

Anti-dumping law is designed to address a specific practice: selling goods in a foreign market below fair value, typically below the price charged in the home market, in order to gain market share through price rather than product merit. South Mill Champs does not do this.

South Mill Champs' Canadian-grown mushrooms are sold in the United States at a higher price than its Canadian-grown mushrooms are sold in Canada – and at a higher price than its U.S.-produced mushrooms. That single fact undermines the foundation of Giorgio's allegation. South Mill Champs' customers pay a premium for Canadian product because it meets a standard – of freshness, consistency, and reliability – that the market has come to expect from modern growing facilities. That is not an unfair trade advantage. That is competition delivering results for buyers and consumers.

Commerce preliminary conclusion does not reflect the real-world competitive dynamics 

The reason that Commerce found some dumping by SMC was because of asymmetrical comparisons that are built into the AD law. For example, Commerce calculates an average SMC U.S. market selling price by including all SMC U.S. sales transactions. But when calculating the corresponding Canada market average selling price, U.S. law requires only including above-cost sales. In addition, in this case the Commerce Department compared U.S. market prices for South Mill Champs' grade 2 product to effectively its Canada market prices for grade 1 product – not a like-for-like comparison.

Real-world pricing tells a different story: using their same formulas, had the Department simply compared South Mill Champ's average U.S. prices to its average Canadian prices, the calculated AD rate would be zero.

Older facilities closing because of quality, not price competition

South Mill Champs' growing share of the North American market is the direct result of its long history of investment in modern agricultural infrastructure. Across the United States, traditional tray-style mushroom facilities have closed and are continuing to close. The reason is not pricing pressure from Canadian imports. It is that the market has moved. Retailers and foodservice operators require a fresher, more consistent product than oldergeneration operations can reliably deliver. South Mill Champs has built the facilities capable of meeting that standard. The market has rewarded that investment.

Trade law was not designed to shield incumbents from competitors who have invested more and produced better. The trade case that Giorgio has initiated punishes innovation, punishes customers — who face higher prices for a product they actively prefer — and sets a damaging precedent for how agricultural trade disputes are resolved. If Giorgio prevails, the outcome will slow down investment in the continued modernization of U.S. infrastructure, hurting the customer and the mushroom consumer, and stifling the growth of mushroom demand.

This is just latest step in longer trade case

The Department of Commerce's preliminary determination is one step in a multi-stage legal process, not a final outcome. Critically, the U.S. International Trade Commission must separately render a final decision on whether U.S. producers have suffered material injury from Canadian imports. If the USITC finds they have not, all duties are terminated, regardless of Commerce conclusions.

South Mill Champs will assert its case fully and vigorously at every stage of this process. 

Quality and investment underpin South Mill Champs' competitive position

South Mill Champs has built its position as a North American market leader through sustained investment in modern growing infrastructure, precision cultivation, and integrated supply chains across its U.S. and Canadian operations. It directly employs more than 600 people nationwide, headquartered in Kennett Square, Pennsylvania, the heart of a state that produces approximately 69% of all mushrooms sold in the United States.

The integrated North American mushroom supply chain has served American buyers, retailers, and foodservice operators for decades. Canadian production complements domestic U.S. supply, meeting demand that U.S. growers alone do not fully satisfy.

Disrupting that supply chain through trade actions based on faulty premises raises costs for consumers and buyers with no corresponding gain in supply quality or security.

About South Mill Champs

South Mill Champs is the second-largest mushroom grower in North America, headquartered in Kennett Square, Pennsylvania. With growing and processing facilities across the United States and Canada, and has built its market position through sustained investment in innovation and modern agricultural infrastructure. For more information, visit www.southmill.com.

SOURCE South Mill Champs