Mission Produce partners with firms to develop avocado acreage in South Africa

Oxnard, Calif.-based Mission Produce Inc. has entered a joint venture to develop South African avocado production.

Mission Produce has joined with ZZ2 Boerdery, one of South Africa’s largest farming companies, and Criterion Africa Partners, a private equity firm developing assets within the forestry value chain in sub-Saharan Africa, according to a news release. The joint venture company, Selokwe Agri, is expected to expand to nearly 2,500 acres of avocado orchards in the premium growing region of Limpopo, South Africa. 

“As global demand for avocados continues to grow, establishing additional sources of owned production through vertical integration is a key element of our sourcing strategy to promote increased supply reliability,” Steve Barnard, founder and CEO of Mission Produce, said in the release. “South Africa is the second-largest exporter of avocados to the European Union and the United Kingdom during the summer season. 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 United Kingdom.”
 
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, according to the release.

CAP established Selokwe as part of its higher and better use investment strategy, which creates value through the improved use 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 GlobalG.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 eighth-largest exporter of avocados,” Keith Barnard, senior vice president of sourcing for Mission Produce, said in the release. “The avocado seasonality of South Africa extends our supply availability by approximately two to three months before Peru’s peak season and is expected to bring a long-term benefit in our ability to offer a year-round supply of ripe hass avocados.”

ZZ2 has currently developed more than 615 acres of avocados at Selokwe, which are expected to be harvested for the first time this 2023 season, the release said. Mission has engaged Core Fruit to manage its logistics and transportation to the European market, where the majority of volume from South Africa is planned for distribution.

“The opportunity to grow the avocado market in Europe is significant — in 2022, the EU’s per capita consumption was 3.3 pounds, compared to the U.S.’s 8.5 pounds,” Steve Barnard said in the release. “The addition of a high-quality source to our existing network strengthens Mission Produce’s position as a global market leader and enhances our ability to drive avocado market growth in the EU.”

Mission Produce is vertically integrated in Peru, Colombia, Guatemala and South Africa, and manages over 13,600 acres of avocados, the release said.