What's Happening?
Mehadrin has launched a new international farming strategy to expand avocado, citrus, and mango production in Peru and Morocco. The initiative, known as Global Farming, aims to secure a year-round supply from company-owned farms. In 2023, Mehadrin established a farming entity in Morocco, focusing on avocados and citrus. Recently, the company acquired Don Fermin, a citrus and avocado farm in Peru, which will allow operations to cover 10 to 11 months of the year. The Peruvian farm includes Hass avocados and citrus varieties such as Nadorcott and Primosole. This expansion is part of a five-year plan to create multiple farm bases with vertical reach into global markets, with future investments considered in South and East Africa.
Why It's Important?
Mehadrin's expansion into Peru and Morocco is crucial for enhancing its global supply chain and market presence. By diversifying its farming operations, Mehadrin can offer a continuous supply of avocados and citrus, meeting the growing demand in North America and the Far East. The strategic acquisition of Don Fermin in Peru provides access to favorable growing conditions and lower input costs, potentially increasing yields and profitability. This move strengthens Mehadrin's position as a leading supplier in the fresh produce industry, allowing it to leverage its farming expertise and commercial ties to expand its market reach.
Beyond the Headlines
The expansion into Peru and Morocco reflects Mehadrin's commitment to sustainable farming practices and global market integration. By establishing farm bases in diverse regions, Mehadrin is not only securing its supply chain but also contributing to local economies through job creation and agricultural development. The company's focus on vertical integration and geographical diversification highlights its strategic approach to navigating the complexities of the global fresh produce market. This initiative may also set a precedent for other companies seeking to enhance their supply chain resilience and market competitiveness.
