Costa Group and Macquarie to invest millions in their avocado business
Back in December, Costa Group and Macquarie paid about $50 million for the Avocado Ridge orchards and packing operations in central Queensland. Under the agreement, MAFM purchased the farms and entered into a 20-year lease with Costa who would operate the orchards.
Mr Debney said the company has big plans for their avocado business and hopes to make avocados the fifth pillar of its burgeoning produce business. This decision makes sense as avocados are the second fastest growing produce globally after blueberries.
“Agricultural companies can be very asset-heavy, which inhibits their ability to grow very quickly ... to really grow rapidly we need some off-balance-sheet capacity,’’ Mr Debney told The Australian during an investor tour of the company’s Tasmanian berry operations this week.
“With Macquarie we have access to $300 million where they will acquire land, trees and water and we will be the operator of selected assets. What sits on our balance sheet and what doesn’t is up for discussion and we will balance that out.’’
source: weeklytimes.com.au
