The increase in avocado consumption in the United States, which according to data from the Hass Avocado Board (HAB) increased by 168% between 2008 and 2018, led Fresh Del Monte Produce Inc. to open an avocado sorting and packaging facility in Mexico in December 2019. The company's goal was to improve efficiency and increase its shipping capacity to the North American market.
Fresh Del Monte sources its avocados primarily from Mexico, where it has its own sourcing operations that ensure a constant supply of high-quality avocados during the growing season. The company also sources avocados from independent producers in the United States, Chile, and Peru.
Fresh Del Monte's capital expenditures related to the fresh and value-added products segment totaled $ 77.5 million, or 63%, of its 2019 capital expenditures.
Over the past year, these capital expenditures were primarily related to the aforementioned avocado packing and grading facility in Mexico; a new freshly cut fruit production facility in Japan; and the expansion and improvements made to the Mann Packing facilities, including the construction of the new manufacturing plant in Gonzales, California.
Additionally, Fresh Del Monte invested on a new fresh pineapple packaging facility in Kenya, on improvements in its pineapple production operations in Costa Rica and the Philippines, as well as in its non-tropical operations in Chile, and on the expansion and improvements to its recent North American facilities and information technology initiatives.