The future of an Ottawa mushroom farm is in jeopardy less than two months after its biggest competitor closed its doors, leaving more than 200 people out of work.

Continental Mushrooms shut down and went into receivership in August, after more than 40 years in business in Metcalfe.

Now, the owners of Carleton Mushroom Farms in Osgoode worries it — and its 80 employees — could be next.

Carleton Mushroom Farms in Osgoode produces about 100,000 lbs. of mushrooms per week. (CBC) 45,000 lbs. of mushrooms per week — the owners of Carleton Mushroom Farms believe its main problem is the cost of energy. But while Continental Mushrooms spent millions ridding itself of a mould problem — causing production to drop down from 200,000 to

Fernando Medeiros said his father opened the farm in 1984. It now produces about 100,000 lbs. of mushrooms per week, sold to local grocers including Farm Boy, Produce Depot and Giant Tiger.

Roadblocks to switch to cost-saving natural gas

Carleton Mushroom Farms currently uses oil and propane to heat its facilities and sterilize its mushroom rooms but as costs continue to rise, energy bills can range from $50,000 per month in the summer to $100,000 per month in the winter, Medeiros said.

Fernando Medeiros said his father opened Carleton Mushroom Farms in 1984. (CBC) "It's extremely tough. All the energy costs have gone up, which affects everything that we do, right down to the corrugation that we buy and the plastic trays that we buy. Labour costs have gone up — everything has gone up," he said. "Now we're constantly trying to find ways of saving money and natural gas would be a large part of that."

Medeiros said the farm could save $400,000 a year by switching to natural gas but efforts over the past two years have hit roadblocks.

To serve the farm, Enbridge said it would have to hook up a pipe to a connection point about 7.5 kilometres away — at a cost of $2 million. Enbridge operations manager Michael Wagle said it's a long way to go for one customer who needs a special pipe for commercial use.

"Under the guidelines we operate as a regulated utility," he said. "We can't take the cost of this project and pass it on to other customers. It's just wouldn't be appropriate or fair."

Farm expansion could create new jobs

The farm has called on area MP Pierre Poilievre for help.

"That's the goal to find a commercially viable way that this kind of a project can stand on its own two feet, pay for itself and create some jobs," Poilievre said.

Medeiros said the plan to expand the facility and hire 30 more workers is on hold and it might never happen if the switch to natural gas doesn't go ahead. Looking ahead five to 10 years, the farm may not survive, he said.



"It's really hard for us to survive and grow to meet market demands," he said. "It's sad to say. You don't want to go out of business. But if you don't save money in certain areas, that's the end game."