Business
Mission Produce™ Establishes Vertical Integration in South Africa, Partners With ZZ2, Cap, and Core Fruit
Mission Produce partners with ZZ2, Criterion Africa Partners, and Core Fruit with plans to develop over 1,000 hectares of avocados for global distribution
About this update from Mission Produce, Inc.
[{"type":"text","content":"Mission Produce partners with ZZ2, Criterion Africa Partners, and Core Fruit with plans to develop over 1,000 hectares of avocados for global distribution\nOXNARD, Calif., Feb. 07, 2023 (GLOBE NEWSWIRE) -- Mission Produce, Inc. (NASDAQ: AVO) (“Mission” or “the Company”) a world leader in sourcing, producing, and distributing fresh Hass avocados with additional offerings in mangos and blueberries, today announced a joint venture with ZZ2 Boerdery (“ZZ2”), one of South Africa’s largest farming companies, and Criterion Africa Partners (“CAP”), a private equity firm developing assets within the forestry value chain in Sub-Saharan Africa. The joint venture company, Selokwe Agri (“Selokwe”), is expected to expand to over 1,000 hectares of avocado orchards in the premium growing region of Limpopo, South Africa. “As global demand for avocados continues to grow,1 establishing additional sources of owned production through vertical integration is a key element of our sourcing strategy to promote increased supply reliability,” said Steve Barnard, Founder and Chief Executive Officer, Mission Produce. “South Africa is the 2nd largest exporter of avocados to the European Union (EU) and the United Kingdom (UK) during the Summer season.1 So, our new investment in the region is expected to support our expansion in export markets, especially in conjunction with the anticipated March opening of our newest forward distribution center in the UK.” Partnering with ZZ2 and CAP to vertically integrate the Company's operations in South Africa leverages the expertise of each shareholder to maximize the production and distribution potential of the region. CAP established Selokwe as part of its higher and better use (“HBU”) investment strategy, which creates value through the improved utilization of land, water and labor resources in South Africa and increases employment opportunities in its regional communities. In addition, ZZ2 brings its expertise in avocado cultivation and environmentally conscious farming to maintain compliance with CAP’s environmental, social and governance (ESG) standards, including the maintenance of the Global G.A.P. and Sustainability Initiative of South Africa (SIZA) certifications. “We look forward to deepening our relationships with some of the most well-established, reputable partners in South Africa, the world’s 8th largest e...