Mission Produce, the largest US avocado distributor, is expanding orchards outside Mexico to meet rising demand. The company sells a third of the 3bn lbs of avocados consumed annually in the US and aims to double revenue as the market could reach 6bn lbs in 15 years. Growth is driven by Hispanic cuisines and younger consumers seeking fresh, nutritious foods.
Sales volumes rose 12% year-over-year despite a slight decline in overall produce sales. Retail prices dropped 18% due to bumper crops. Mission acquired Calavo Growers for $466mn, becoming the only publicly traded avocado distributor.
While Mexico supplies over 75% of its avocados, the company also operates in Peru and Guatemala to diversify supply and reduce reliance on Michoacán, where criminal extortion and violence have disrupted production. US inspections were suspended three times since 2022. Mission filed $12.5mn in tariff refund claims after Trump’s emergency duties were invalidated.
El Niño threatens Pacific coast agriculture.
Source: Financial Times Companies · Summarized by HeadlinesBriefing