Organto Foods Inc., an integrated provider of fresh organic and conventional vegetables and fruits, announced the expansion of its avocado supply chain with the addition of a strategic grower based in Colombia.
Shipments have commenced, and commercial distribution in European markets is expected to start during the week of September 24th. Initially, Organto will receive weekly volumes of approximately 20,000 kgs. and expects to realize selling prices ranging from CDN $4.25 to CDN $5.25 per kg. dependent upon product size, packaging format and distribution point. Shipments are expected to run for the duration of the Colombian season and end in February 2020.
"Demand for avocado continues to grow globally due to its nutrient dense nutritional profile. Avocado contains heart-healthy mono-unsaturated fat, are naturally sodium, sugar and cholesterol free, are high in dietary fiber, contains vitamins A, B, C, E and K and also contains phytochemicals and antioxidants. Avocado has been described as the millennial generation's favorite fruit, leading to strong global demand for the fruit." commented Rients van der Wal, CEO of Organto Europe B.V. "We view avocado as a key product in our growing vegetable and fruits portfolio, and the addition of this new strategic supply source is very important as we work to develop our year-round supply capabilities to meet demand."
Over the past year, Organto has re-positioned its organic foods platform shifting from an asset heavy, single revenue stream business model, to an asset light, multi-stream business model. The company has made important progress in executing its plans including exiting company-owned growing operations, selling its vegetable processing facilities in Guatemala (subject to shareholder approval) and exiting company operated packaging operations in the Netherlands, all in favor of strategic sourcing arrangements with grower partners in Peru, Argentina, Mexico, Zimbabwe and others and third party processing and packaging arrangements with globally positioned strategic partners.
The expansion of avocado supply to Colombia aligns with Organto's supply chain expansion goals as it pursues new strategic supply sources intended to complete year-round supply of its core product offerings and also bring new complementary products to its existing portfolio.