Avocado giant Mission Produce banks on orchards outside Mexico to help meet US demand
- Mission Produce snaps up rival Calavo Growers in $466mn deal to dominate the US avocado market.
- Strategic shift away from Mexican heartlands as gang extortion and violence threaten steady supply.
- US avocado consumption hits record highs, with retail prices dropping 18% despite inflation elsewhere.
- Company betting on massive expansion in Peru and Guatemala to keep the toast toppings flowing.
Brief Summary
The avocado industry is undergoing a massive corporate consolidation as Mission Produce looks to secure its supply chain against the backdrop of Mexican cartel violence. By acquiring Calavo Growers, the company has cemented its status as the only publicly traded avocado distributor in the US, aiming to double its revenue to $4bn within a decade. The industry is moving away from a reliance on Mexican harvests, which have been frequently disrupted by extortion rackets and government security failures, in favor of diversified plantations in South and Central America.
Why This Matters
If you are one of the millions of Americans who buy avocados, this consolidation and shift in supply chains will dictate the price and availability of your produce. While prices have dipped recently due to a temporary market glut, the reliance on foreign plantations means your grocery bill is directly tied to the political stability of Mexico and the climate risks in Peru and Guatemala. As these companies grow, they are effectively betting that your appetite for 'superfoods' will remain consistent, turning a seasonal treat into a global commodities game that affects everything from your breakfast order to the inflation rate of your local produce aisle.