South Mill Champs and Grupo APAL partner to expand mushroom production in Mexico

Kennett Square, Pa.-based mushroom grower South Mill Champs has entered a cross-border partnership with Grupo APAL.

The partnership will form a 50/50 Mexican joint venture, Royal Champs S. de R.L. de C.V., according to a news release.

Royal Champs will build and operate composting and mushroom growing operations at multiple sites in Mexico, primarily for import and inclusion in South Mill Champs' supply chain in the U.S. and Canada, the release said.

"This expansion reflects a strategic step forward in our commitment to delivering the freshest and highest quality mushrooms daily from coast to coast,” Mike Pia Jr., vice president of business growth at South Mill Champs, said in the release. “The partnership with Grupo APAL will allow us to focus on our expansive expertise of mushroom production and supply chain management. The Mexican expansion, in combination with expansions in British Columbia and Pennsylvania in recent years, demonstrates our commitment to modernizing and leading innovation in the mushroom industry across North America."

Armando Paredes Arroyo, president of Grupo APAL, said in the release that the company was “thrilled” to partner with South Mill Champs to expand the mushroom production industry in Mexico.

“Our expertise in food production and logistics in Mexico combined with SMC's proven leadership in this industry will ensure the successful execution of this exciting project,” he said.

Grupo APAL is the private investment company of Paredes Arroyo, a dairy producer, supplier and shareholder of Alpura, a dairy products company based in Mexico City, the release said.

Royal Champs plans to break ground later this year on a Dutch-style, integrated mushroom facility encompassing phase 3 compost, mushroom growing farms, and packing operations on a 257-acre site near Queretaro, Mexico, according to the release.