Food security remains a central theme for BCI's Infrastructure & Renewable Resources (I&RR) program, which continues to identify agricultural investments that offer both community and investor value. A recent example is BCI's investment in Costa Group, a large Australian grower, packer, and marketer of fresh fruits and vegetables.
In 2024, BCI, in partnership with Paine Schwartz Partners and Driscoll's, completed a take-private transaction that valued Costa at approximately A$2.5 billion. This investment reflects BCI's broader strategy of diversification across geographies and sectors. Costa Group has a history spanning over 120 years and plays a significant role in Australia's produce industry. It is active in five main categories: berries, mushrooms, glasshouse-grown tomatoes, citrus, and avocados.
© BCI
Costa Group operates around 8,000 hectares of planted farmland in Australia, 40 hectares of glasshouse facilities, and three mushroom production sites. International operations include joint ventures in Morocco and Asia, covering approximately 750 hectares. The company employs over 10,000 people.
BCI has identified opportunities in Costa's international expansion, production of high-value crops, and application of agricultural technology. Costa's product and geographic diversification help manage climate and weather-related risks. Its collaboration with Driscoll's Inc. supports global berry operations, including joint ventures in Australia, Asia, and the Americas.
Costa has incorporated technology such as artificial intelligence to monitor variables like rainfall, temperature, and soil conditions on its berry farms. This allows for localized yield predictions and optimized harvesting, helping manage labor and logistics costs. The use of AI is used within polytunnel farming systems to enhance growing conditions.
The company is also trialing smart robotics for berry harvesting. These robots are capable of identifying ripeness and picking berries efficiently, with the aim of maintaining product quality and reducing waste. Costa's Innovation Centre in New South Wales is currently testing close to 30 new fruit and vegetable varieties, including cucumbers.
Costa has also introduced changes in its packaging practices, including recycled paper packaging for grapes and QR codes on avocado packaging to improve traceability and consumer information.
BCI views the company's approach to crop management, technological adoption, and international partnerships as elements that could support continued growth. The investment in Costa expands BCI's exposure to the agricultural sector while aligning with broader objectives related to long-term food supply and production efficiency.
For more information:
British Columbia Investment Management Corporation
Tel: +1 778 410 7310
Email: [email protected]
www.bci.ca
