Neuburger ends vegetarian Fungi Pads production

Neuburger has stopped producing its vegetarian Fungi Pads, citing rising costs and weak demand, ORF reported. The Mühlviertel family business will end production of the mushroom-based products at the end of September.

The Fungi Pads, made from king oyster mushrooms under the Hermann.Bio brand, have been produced in Ulrichsberg, a town in the Rohrbach district, since 2023. They were developed as an alternative to meat products.

Managing director Thomas Neuburger cited higher production costs, inflation and cautious demand for more expensive food, according to the company. It said continuing production was no longer economically viable.

Four employees are affected. Neuburger said other staff would be able to continue working elsewhere in the company, which employs 77 people.

The company plans to use its existing production hall for a new vegan product line from 2027. It also plans to make a fermented food for the European market on the former mushroom-production floors.

Neuburger previously sold vegetarian products under the Hermann fleischlos label, but discontinued that line in 2022. The company said it had invested about 50 million euros in developing meat-free production and mushroom cultivation.

Founded in 1919 as a butcher’s shop and inn, the family business became known for its Leberkäse. Neuburger did not disclose current sales figures. Thomas Neuburger said the decision had been difficult and that the company had held on to the product idea because it continued to believe in its quality.