Oppy partners with Mexican avocado consortium to smoothen supply

From Fresh Fruit Portal | 13 May 2022

Overview of avocados from Mexico in the U.S. market, complemented by charts from Agronometrics. Original published on May 12, 2022. 

Oppy has reached an agreement with a consortium of avocado growers and packers in Michoacán to form a vertically integrated supply of the sought after fruit and improve its sourcing of the commodity.

The agreement complements and will be co branded with Eco Farms, an California avocado specialist Eco Farms. Oppy acquired a 65% share of the grower in 2021 as part of its strategy to deepen its position in the avocado market.

Avoworks, a recently formed consortium featuring Michoacán grower-packers Adeac, AvoHit and La Viña and featuring a ripening center in McAllen, Texas, began shipping through the Oppy-Eco Farms network in late March.

“We’re excited that Avoworks chose Oppy and Eco Farms to build their U.S. sales,” said Rodrigo Lopez, avocado category director Oppy.

“Between the producers that make up Avoworks, we now have the capacity to grow and pack very significant volumes of avocados for the market. While Oppy’s avocado category has grown strategically after acquiring a controlling interest in Eco Farms, we recognize the potential that comes with even greater, constantly reliable supply,” he added.

Lopez notes that this model offers a distinct advantage over the industry’s typical, more transactional supply approach.

AvoWorks Manager Pedro Somarriba concurs, “Together we’re bringing forward a vertically integrated solution — centered in continuity and integrity of supply — provided by a trio of esteemed producers, and channeled through Oppy’s sales and marketing structure. We are positioned to participate in significant retail programs while consistently meeting the needs of customers large and small.”

Somarriba noted that the fruit marketed by the partnership will be co-branded as Avoworks and Eco Farms, to distinguish its quality at the trade level, and looks forward to collaborating with Oppy on innovations that add value at retail. An added advantage is AvoHit’s brand new state-of-the-art packing facility, which opened in February 2022.

avocado volumes by histo 40

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

“Avocado demand shows no sign of waning, nor does the opportunity to capture the valuable sales dollars they drive at retail, so consistent supply is critical,” said Oppy’s Mark Smith, who directs sales and strategy for the Oppy-Eco Farms initiative.

“By adding AvoWorks to our grower network, we can smooth out some of the volume dynamics that can affect the flow of Mexican avocados into the market.”

Eco Farms President Steve Taft added, “We are pleased to have the Avoworks group as one of our key partners. Having consistent high quality fruit is very important for us and our customers, so we’re looking forward to generating great results with this program.”

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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