Mission Produce, based in California, has reported another record-breaking quarter, leveraging its global sourcing capabilities to navigate challenges posed by unseasonably warm weather linked to El Niño. These conditions have hindered avocado production in Peru, leading to smaller fruit sizes and a global supply crunch that has driven avocado prices higher.
Unit sales prices surged 22% compared to the previous year, bolstering Mission’s financial performance. To mitigate the anticipated avocado shortfall from Peru during the Mexican low-season, Mission plans to augment its supply by sourcing from alternative third-party suppliers. The company’s robust sourcing team is pivotal in ensuring it meets customer demand amidst these market fluctuations.
In addition to enhancing sourcing strategies, Mission has focused on cost-cutting measures, aiming to achieve $10 million in annual savings following a successful implementation in the first quarter. These efforts, combined with strong avocado margins, have contributed to positive earnings year-to-date.
Mission’s second-quarter revenue soared 35% to $298 million, driven not only by avocado sales but also by an extended blueberry harvest season and expanding mango operations. Furthermore, the company has expanded its market footprint into Europe and Asia, and recently completed construction of a state-of-the-art distribution center in the U.K., equipped with cold storage and ripening facilities for mangoes.
With its diversified global assets and strategic initiatives, Mission remains well-positioned to capitalize on growth opportunities in the competitive fresh produce market.
