Farmmi Inc is engaged in processing and distributing dried edible mushrooms, mainly Shiitake and Mu Er mushrooms, and trading other agricultural products. The Company produces andsells Shiitake mushrooms, Mu Er mushrooms, other edible fungi, and other agricultural products such as rice and edible oil. The Company also sells non-fungi agricultural products such as crabs and oranges on its online store Farmmi Liangpin Market http://www.farmmi88.com
Looking at expanding international sales and diversifying products
Ms. Yefang Zhang, Farmmi’s Chairwoman and CEO, commented, “We are always pleased when we can support and mutually grow with our customers. It is the best endorsement we could ask for. In this case, the latest order takes on added importance because it reflects our ongoing push to diversify our sales base with an increased international presence. Our sales and marketing teams have been doing an outstanding job and we expect to build momentum as we move through the year and leverage our extensive product line and track record of excellent support.”
Growing demand for food that is low in fat and cholesterol content and is packed with nutrients such as selenium, potassium, vitamins, and other micronutrients is expected to escalate the growth of the global mushroom market. Rapidly expanding the foodservice industry is boosting demand for mushroom across hotels, restaurants, and cafeterias. Increasing adoption of mushrooms as a substitute for meath, coupled with increasing number of vegan populations, is anticipated to further drive the countries is generating export opportunities for major mushroom producing Asian countries.
Button Mushroom to Hold the Largest Market Share
Increased R&D on white button mushroom to find out about its potential in preventing cancer, along with its availability at affordable prices as compared to specialty mushroom varieties is projected to escalate the demand for button mushrooms during the forecast period.
From Metastock instruments we see overall gross margin decreased by 1.12 percentage points to 16.46% for the year ended September 30, 2020 from 17.58% for the year ended September 30, 2019. The decrease in overall gross margin reflects lower sales for the year ended September 30, 2020, as compared to the year ended September 30, 2019, primarily due to the decreased customer orders and lower international sales caused by the COVID-19 pandemic, and the price reductions to stimulate customer orders.