Mastronardi, AppHarvest form joint venture FarmCo
Kingsville, Ontario-based Mastronardi Produce Ltd. and Morehead, Ky.-based AppHarvest have signed a nonbinding letter of intent to form FarmCo, a joint venture to develop a portfolio of controlled environment agriculture facilities.
The goal is to expand supply of fruits and vegetables, including leafy greens, to Mastronardi’s existing fresh produce marketing and distribution business, according to a news release.
FarmCo will have its own leadership team and calls for the two partners to contribute equity and assets of more than $100 million.
The venture would use the equity contributed from both companies to raise more capital to fund its growth, including a goal to build more than 750 acres of CEA facilities in the U.S. for fresh fruits and vegetables, including leafy greens.
“We have seen the demand for locally-grown produce skyrocket, particularly over the past 18 months as more people are cooking from home, and this partnership will allow us to significantly increase our ability to get more fresh, flavorful locally-grown produce to tables across America,” Paul Mastronardi, president and CEO of Mastronardi, said in the release.
Mastronardi Produce grows and markets products under the SUNSET brand, including Campari, Flavor Bombs and Angel Sweet tomatoes. Family-owned for more than 70 years, Mastronardi Produce produces tomatoes, peppers, cucumbers and berries.
“… Partnering more closely with [Mastronardi] to fulfill the growing demand for quality local, fresh produce across the United States positions us together to make an even greater impact to establish a climate-resilient, sustainable food system to ensure food security,” Jonathan Webb, AppHarvest founder and CEO, said in the release.
AppHarvest is an applied technology company in Appalachia region of Kentucky, developing and operating indoor farms, using technology such as artificial intelligence and robotics. The company’s Morehead, Ky., facility is 60 acres.
