Mission Produce Inc. is navigating growth within a volatile agricultural market shaped by evolving consumer trends and global supply chain constraints. The company has adopted a volume-driven strategy, expanding operations across targeted regions to align with consumption trends, particularly for avocados, mangos, and blueberries.
The company reports increased volumes across these core products. Avocado production is expected to grow significantly, with Peru's crop projected to more than double this season following a weather-affected decline last year. Mango volumes have reached record levels, while expanded blueberry acreage has supported further production increases. Strategic grower relationships and a flexible sourcing network have enabled Mission Produce to meet growing global demand and expand into new markets such as Europe and the U.K.
The rise in volumes presents pricing challenges. Avocado prices are forecasted to decline by 10–15% year-over-year due to increased supply in the U.S. and other markets. While lower prices may encourage greater consumer demand, they also raise concerns about potential margin pressures. In the second quarter of 2025, average per-unit selling prices increased, but margins were compressed due to sourcing difficulties in Mexico and added costs related to tariffs. The company acknowledges that rising volumes may adversely affect profitability if not managed with improved operational efficiency.
In the broader market, Mission Produce competes with companies such as Calavo Growers, Inc. (CVGW) and Fresh Del Monte Produce Inc. (FDP). Calavo operates across the fresh and processed avocado segments, with a focus on maintaining supply consistency and managing the complexities of sourcing, particularly in Mexico.
Fresh Del Monte, operating a vertically integrated model, emphasizes profitability through supply chain adjustments and product development, including in its fresh-cut offerings. Its avocado segment benefits from investments in infrastructure and acquisitions to support global sourcing and processing capabilities.
Together, these companies reflect the challenges and strategic adjustments underway in the global produce industry, as firms balance volume growth with pricing pressures, sourcing constraints, and evolving consumer preferences.
Source: The Globe and Mail
