Avocados

US avocado import giant Mission Produce has bought a 50 per cent stake in major Chilean avocado exporter Cabilfrut, according to a report by La Tercera.

The California-based company will apparently make an initial investment worth US$10m in the Chilean group, although the total investment will significantly surpass this figure.

Cabilfrut signed the agreement as a strategic move to boost its commercial position, according to the report.

“Mission, which markets more than 100m kg of avocados a year, will support us with all of its experience in administration and product management, and fundamentally it will allow us to secure a supply to different market during the whole year, working jointly with the company’s operations in the US, Mexico and Peru,” explained Cabilfruit executive director Juan Pablo Cerda.

Cabilfrut will also benefit from Mission’s eight distribution and ripening centres in the US and Canada, while Mission will learn from Cabilfrut’s experience and client base in Europe and Latin America.

“Given that avocado demand is growing globally we believe it is fundamental to reinforce our relationship with Chile,” explained Mission vice-president of business development Jim Donovan.

“The financial strength of Cabilfrut and the recognised quality of its products around the world led to the signing of an agreement with them, which will allow us to generate an important growth in our market strategies.”

Although the acquisition will not immediately boost Mission’s avocado volume, the deal will eventually lead to greater volume from Chile which will allow Mission to supply a year-round offer of avocados from the US, Mexico, Chile and Peru.