Organto Foods Inc., an integrated provider of fresh organic vegetables and fruits announced the expansion of its avocado supply chain with the addition of a strategic grower based in Morocco. The addition of supply from Morocco further expands Organto's avocado supply chain to include supply from Colombia, South Africa, Mexico and Morocco, for sale to customers throughout Europe.
Shipments from the supplier commenced the last week of December with product available for commercial distribution the second week of January. Morocco's close proximity to Europe enables Organto to sell these avocados in European markets approximately a week following harvesting and processing, much sooner than the three to five weeks required for product delivered from Latin American markets. Organto is forecasting to receive weekly volumes of approximately 25,000 to 30,000 kgs. at expected selling prices ranging from $4.00 to $5.00 per kg. dependent upon product size, packaging format and distribution point. Shipments are scheduled to run for the course of the Moroccan season which is expected to end in early April 2020.
"Demand for avocado continues to grow globally due to its nutrient dense nutritional profile and we are pleased to expand our sourcing and supply to this strategic growing region. Avocado has been described as the millennial generation's favorite fruit, leading to continued strong global demand." commented Rients van der Wal, CEO of Organto Europe B.V. "We view avocado as a key product in our expanding vegetable and fruits portfolio, and the addition of this new strategic supply source is very important as we work to build our year-round supply capabilities to meet demand."
Over the past year, Organto has repositioned 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 processing facilities in Guatemala and exiting Company operated packaging operations in the Netherlands, all in favor of worldwide strategic sourcing arrangements, including partners in Peru, Argentina, Colombia, Mexico, Zimbabwe and Morocco as well as third party processing and packaging arrangements with globally positioned strategic partners.
The addition of avocado supply from Morocco aligns with Organto's supply chain expansion goals as it pursues new strategic supply sources intended to provide year-round supply of core product offerings and also bring new complementary products to its existing portfolio.
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