OXNARD, CA - Mission Produce is taking its avocado operations to the next level as it has announced its latest joint venture with ZZ2 Boerdery, one of South Africa’s largest farming companies, and Criterion Africa Partners (CAP), a private equity firm. Together, they will establish Selokwe Agri, the joint venture company, which is anticipated to expand to more than 1,000 hectares (2,400 acres) of avocado orchards in 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,” said Steve Barnard, Founder and Chief Executive Officer of Mission Produce. “South Africa is the 2^nd 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 U.K.”

In joining forces with ZZ2 and CAP, Mission will vertically integrate its operations in South Africa, utilizing the expertise of each of the shareholders to maximize production and distribution potential, a release explained.

CAP established Selokwe as part of its higher better use (HBU) investment strategy, which creates value through the improved usage of land, water, and labor resources in South Africa. It also increases employment opportunities in its regional communities. ZZ2 will bring expertise in avocado cultivation and environmentally conscious farming to the table in order to maintain CAP’s environmental, social, and governance standards.

“We look forward to deepening our relationships with some of the most well-established, reputable partners in South Africa, the world’s 8^th largest exporter of avocados,” said Keith Barnard, Senior Vice President of Sourcing, Mission Produce. “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 over 250 hectares (617 acres) of avocados at Selokwe, which are expected to be harvested for the first time during the 2023 season. Mission has also engaged Core Fruit to manage its logistics and transportation to the European market, where the majority of the volume from South Africa is planned to be distributed.

“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,” added Steve Barnard. “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.”

To read more, click here.

How will Mission continue to grow this partnership? Only time and AndNowUKnow will tell.

Mission Produce