Business
Organto Enters into Exclusive Organic Avocado Supply Agreement with Strategic Mexican Supply Partner
Revenue Potential of Approximately CDN $65 Million VANCOUVER, BC and BREDA, THE NETHERL...
About this update from Organto Foods, Inc.
[{"type":"text","content":"Organto Enters into Exclusive Organic Avocado Supply Agreement with Strategic Mexican Supply PartnerRevenue Potential of Approximately CDN $65 Million VANCOUVER, BC and BREDA, THE NETHERLANDS / ACCESSWIRE / March 31, 2021 / Organto Foods Inc. (TSXV:OGO)(OTC PINK:OGOFF)(FSE:OGF) (\"Organto\" or \"the Company\"), an integrated provider of organic and value-added organic fruits and vegetables today announced that it has entered into a 5 year exclusive supply agreement (\"Supply Agreement\") with a Mexican based supplier of organic avocados. The agreement provides for supply beginning in 2021 and through the end of calendar 2025 with an estimated revenue potential over the contract period of approximately CDN $65.01 million.\"We are extremely pleased to enter into this strategic long-term Supply Agreement, significantly expanding our supply of organic avocado from Mexico, a key growing region with a significant presence in the organic fruits and vegetables industry. Organic avocado is a key product in our expanding portfolio, supported by a year-round supply chain comprised of strategic supply partners from around the globe.\" commented Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe B.V. \"We are seeing demand for avocado continuing to grow, driven by its nutrient dense nutritional profile and a consumer focus on health and wellness. This strategic Supply Agreement significantly increases our capabilities and will play a key role as we scale our business to meet the demands of our customers.\"Under the terms of the exclusive Supply Agreement, Organto will have the right to market all production from the supplier for the next five years running through December 31, 2025. The supplier currently has approximately 100 hectares under production in the Nayarit region of Mexico, with harvests expected to increase as the existing orchards mature and additional capacity is added in the coming years. Products are currently Global GAP, SMETA and European Union organic certified, and the supplier has undertaken to work with Organto to obtain Fairtrade certification by the start of the 2021 season and Bio Suisse certification by the start of the 2022 season. Supply over the contract period is estimated to be in the range of 12.5 million to 14.0 million kgs. In order to obtain exclusive distribution rights, Organto has agreed to ...