Mission Produce (Avocados) Select Harvests (Almonds) Limoneira (Citrus)

Business Model
sourcing, producing, and distributing avocados to customers worldwide
relationships with growers in several countries, including Mexico, Peru, Chile, and Colombia
owns and operates its own farms in California, Mexico, and Peru.
consistent supply of high-quality avocados year-round
This includes partnerships with food manufacturers and distributors to create new avocado-
based products, as well as marketing campaigns aimed at increasing consumer demand for
avocados.

Size of industry and market share

Customers and concentration
revenue by selling fresh avocados to retailers, wholesalers, and foodservice companies.
Mission Produce also sells processed avocado products, such as guacamole and avocado
pulp, to food manufacturers and distributors

Competition and USPs

high-quality avocados year-round, through a vertically integrated supply chain that includes
sourcing, producing, and distributing the fruit. The company's extensive network of growers,
combined with its own farms, allows it to offer a consistent supply of avocados, even during
off-seasons.
Calavo Growers
Del Monte Fresh Produce
West Pak Avocado

Growth levers

Risks
Market conditions – effect on pricing
Inconsistent supply
Product and customer concentration

Market conditions: The fresh produce industry can be highly competitive and subject to
fluctuations in market conditions. If demand for avocados were to decline or if prices were
to decrease, Mission Produce's revenue and profitability could be negatively impacted.
Supply chain disruptions: As a vertically integrated company, Mission Produce is dependent
on its growers and suppliers to provide a steady supply of avocados. Any disruptions in the
supply chain, such as weather-related issues or transportation problems, could impact the
company's ability to meet customer demand.
Dependence on a single product: Mission Produce primarily focuses on the production and
distribution of avocados. While avocados have become increasingly popular in recent years,
the company's dependence on a single product could make it vulnerable to changes in
consumer preferences or market conditions.
Environmental concerns: As a company that relies on agricultural production, Mission
Produce may be vulnerable to the effects of climate change and other environmental
factors. Investors may be concerned about the impact of droughts, floods, or other weather-
related events on the company's operations.
Valuation: As a newly public company, investors may be concerned about the valuation of
Mission Produce's stock. The company's stock price could be affected by a wide range of
factors, including market conditions, financial performance, and investor sentiment.

Historical
Revenue growth
Profitability
Working capital – inventory, receivables and payables
Balance sheet strength

Mission Produce is a California-based avocado producer and distributor that operates in the
fresh fruit industry. The company was founded in 1983 and went public in 2020, with the
ticker symbol "AVO" on the NASDAQ stock exchange.
Mission Produce's business model involves sourcing, producing, and distributing avocados
to customers worldwide. The company has established relationships with growers in several
countries, including Mexico, Peru, Chile, and Colombia. Mission Produce also owns and
operates its own farms in California, Mexico, and Peru.
The company generates revenue by selling fresh avocados to retailers, wholesalers, and
foodservice companies. Mission Produce also sells processed avocado products, such as
guacamole and avocado pulp, to food manufacturers and distributors.
The company was founded by Steve Barnard, who currently serves as its CEO. Barnard has
been involved in the avocado industry for over 40 years and is considered a pioneer in the
field. In addition to Barnard, several other executives and board members have significant
experience in the produce industry.
Mission Produce is trying to solve several challenges in the avocado industry, including
ensuring a consistent supply of high-quality avocados year-round and developing
sustainable growing practices. The company is also investing in research and development
to create new avocado products and increase demand for the fruit.

Mission Produce became a public company in October 2020, so financial data prior to that is
not publicly available. However, since going public, the company has released financial
statements for the fiscal year ended October 31, 2020, as well as for the first three quarters
of fiscal year 2021.
For the fiscal year ended October 31, 2020, Mission Produce reported revenue of $816
million, a 7% increase from the previous year. Net income for the year was $37.5 million, up
from $16.5 million in the prior year.
For the first three quarters of fiscal year 2021, which ended on July 31, 2021, Mission
Produce reported revenue of $818.2 million, a 13.8% increase from the same period in the
previous year. Net income for the first three quarters of fiscal year 2021 was $56.8 million,
up from $16.2 million in the same period of the previous year.
Mission Produce's financials show consistent revenue growth over the past few years,
indicating a strong demand for its products. The company's net income has also increased
significantly, indicating effective cost management and operational efficiency. However, as
with any company, there are risks and uncertainties that could affect its financial
performance in the future.
The unique selling proposition (USP) of Mission Produce is its focus on providing high-quality
avocados year-round, through a vertically integrated supply chain that includes sourcing,
producing, and distributing the fruit. The company's extensive network of growers,
combined with its own farms, allows it to offer a consistent supply of avocados, even during
off-seasons.
In addition, Mission Produce is known for its commitment to sustainability, investing in
practices that reduce water usage, minimize waste, and protect the environment. The
company has also developed innovative packaging solutions that help to extend the shelf
life of avocados, reducing food waste and improving the overall quality of the product.
Another unique aspect of Mission Produce is its investment in research and development,
with a focus on developing new avocado products and expanding the market for the fruit.
This includes partnerships with food manufacturers and distributors to create new avocado-
based products, as well as marketing campaigns aimed at increasing consumer demand for
avocados.
Overall, Mission Produce's USP is its ability to offer a consistent supply of high-quality
avocados, while also prioritizing sustainability, innovation, and customer service.
Mission Produce competes with several companies in the fresh produce industry,
particularly those involved in the production and distribution of avocados. Some of the main
competitors of Mission Produce include:
Calavo Growers: Calavo Growers is a California-based avocado producer and distributor that
has been in business since 1924. The company operates in the same industry as Mission
Produce and is one of its main competitors.
Del Monte Fresh Produce: Del Monte Fresh Produce is a global produce company that
produces and distributes a wide range of fruits and vegetables, including avocados. The
company competes with Mission Produce in the distribution of avocados to retailers and
foodservice companies.
Fresh Del Monte Produce: Fresh Del Monte Produce is another global produce company
that competes with Mission Produce in the avocado market. The company has operations in
several countries and produces a variety of fresh fruits and vegetables.
West Pak Avocado: West Pak Avocado is a California-based avocado producer and
distributor that competes with Mission Produce in the same industry. The company has
been in business since 1985 and has a strong presence in the avocado market.
Index Fresh: Index Fresh is another California-based avocado producer and distributor that
competes with Mission Produce. The company has been in business since 1914 and has
established relationships with growers in several countries, including Mexico, Peru, and
Chile.
These are just a few examples of the many competitors that Mission Produce faces in the
fresh produce industry.

As with any publicly traded company, there may be various concerns that investors have
regarding Mission Produce. Some potential concerns that investors may have include:
Market conditions: The fresh produce industry can be highly competitive and subject to
fluctuations in market conditions. If demand for avocados were to decline or if prices were
to decrease, Mission Produce's revenue and profitability could be negatively impacted.
Supply chain disruptions: As a vertically integrated company, Mission Produce is dependent
on its growers and suppliers to provide a steady supply of avocados. Any disruptions in the
supply chain, such as weather-related issues or transportation problems, could impact the
company's ability to meet customer demand.
Dependence on a single product: Mission Produce primarily focuses on the production and
distribution of avocados. While avocados have become increasingly popular in recent years,
the company's dependence on a single product could make it vulnerable to changes in
consumer preferences or market conditions.
Environmental concerns: As a company that relies on agricultural production, Mission
Produce may be vulnerable to the effects of climate change and other environmental
factors. Investors may be concerned about the impact of droughts, floods, or other weather-
related events on the company's operations.
Valuation: As a newly public company, investors may be concerned about the valuation of
Mission Produce's stock. The company's stock price could be affected by a wide range of
factors, including market conditions, financial performance, and investor sentiment.
These are just a few examples of the concerns that investors may have regarding Mission
Produce. It's important for investors to conduct their own research and seek professional
advice before making investment decisions.

Mission Produce went public on October 1, 2020, and since then, its stock has experienced
some fluctuations. The company's initial public offering (IPO) price was $12 per share, and
on its first day of trading, the stock closed at $12.60 per share.
Since then, the stock has seen some volatility, with prices fluctuating based on market
conditions and company news. As of February 25, 2023, the stock price for Mission Produce
is $13.53 per share, which represents an increase of about 13% from its IPO price.

The business model of Mission Produce is primarily focused on the production and
distribution of avocados. The company operates as a vertically integrated business, meaning
that it manages the entire supply chain for avocados from growing the fruit to distributing it
to customers.
Mission Produce's business model involves the following key activities:
Growing: The company works with a network of growers to produce avocados at farms in
California, Mexico, Peru, and other locations. Mission Produce uses advanced farming
techniques and technology to grow avocados efficiently and sustainably.
Packing and shipping: Once the avocados are harvested, they are packed in the field or in
packing facilities, sorted, and shipped to distribution centers or customers around the
world. Mission Produce uses its own transportation fleet and logistics systems to ensure
that the avocados are delivered quickly and efficiently.
Marketing and sales: Mission Produce works with customers in the retail, wholesale, and
foodservice sectors to market and sell avocados. The company has a strong brand and
marketing presence, including advertising campaigns and promotions to increase demand
for avocados.
Research and development: Mission Produce invests in research and development to
improve the quality and yield of avocados. The company also develops new varieties of
avocados that are better suited for different growing regions or customer preferences.
Overall, Mission Produce's business model is focused on providing high-quality avocados to
customers around the world while managing the entire supply chain to ensure efficiency
and sustainability. By operating as a vertically integrated business, the company can capture
value at each stage of the supply chain and build a strong brand and customer base.
Vertical integration – control over supply chain, reliable and consistent supply of high-
quality avocados, elimination of third-party suppliers leading to lower overhead costs,
improved efficiency and productivity, better pricing, maintain quality standards,

Mission Produce is focusing on vertical integration because it allows the company to have
greater control over its supply chain, which can lead to improved efficiency, quality, and
profitability. By managing all aspects of the avocado production and distribution process,
Mission Produce can ensure that its avocados are grown and handled in a consistent and
sustainable manner, from the farm to the store shelf.
Vertical integration also helps Mission Produce to differentiate itself from competitors and
build a strong brand. By controlling the entire supply chain, the company can offer
customers a reliable and consistent supply of high-quality avocados, which can lead to
increased customer loyalty and market share.
In addition, vertical integration can provide cost savings by eliminating the need to rely on
third-party suppliers or distributors, which can reduce overhead costs and improve profit
margins. By managing the entire supply chain, Mission Produce can also identify and
address any inefficiencies or bottlenecks in the process, which can lead to further cost
savings and increased productivity.
Overall, vertical integration is a key part of Mission Produce's business strategy, allowing the
company to maintain a competitive advantage in the avocado market and drive sustainable
long-term growth.

Mission Produce owns farms as a part of its vertical integration strategy to ensure a
consistent and reliable supply of high-quality avocados. By owning farms, the company can
have greater control over the avocado production process, from the growing and harvesting
of the fruit to the distribution and sale of the product. This allows Mission Produce to
maintain quality standards, ensure sustainability, and reduce risk associated with supply
chain disruptions.
Owning farms also enables Mission Produce to experiment with new growing techniques
and develop new avocado varieties that are better suited for different growing regions or
customer preferences. This research and development can lead to improved quality,
increased yields, and greater cost efficiency over time.
In addition, owning farms can provide a competitive advantage by allowing Mission Produce
to offer customers a reliable and consistent supply of avocados, which can lead to increased
customer loyalty and market share. The company's ownership of farms also provides a
unique marketing opportunity, allowing Mission Produce to promote its brand as a vertically
integrated and sustainable producer of high-quality avocados.
Overall, owning farms is a key part of Mission Produce's vertical integration strategy,
allowing the company to maintain quality standards, reduce risk, and improve efficiency and
profitability.

You are correct that owning farms can be capital intensive for Mission Produce and may
lead to lower profit margins in the short term. There are many costs associated with owning
and operating farms, including land acquisition and development, labor costs, equipment
and infrastructure, and ongoing maintenance and repairs.
However, Mission Produce's vertical integration strategy is designed to capture value at
each stage of the supply chain, from growing to distribution and marketing. By owning
farms, the company can capture value at the production stage by controlling the quality and
supply of avocados.
In addition, owning farms can provide cost savings in the long term by eliminating the need
to rely on third-party suppliers or distributors. By managing the entire supply chain, Mission
Produce can identify and address any inefficiencies or bottlenecks in the process, which can
lead to further cost savings and increased productivity.
Furthermore, owning farms provides Mission Produce with a competitive advantage by
allowing the company to differentiate itself from competitors and build a strong brand
based on sustainability and quality. This can lead to increased market share and customer
loyalty, which can ultimately lead to higher profits in the long term.
Overall, while owning farms can be capital intensive and may lead to lower profit margins in
the short term, it is a key part of Mission Produce's vertical integration strategy and can
provide many benefits in the long term, including improved quality, reduced risk, and
increased market share.

The main costs associated with relying on third-party suppliers and distributors can include:
Markup costs: Distributors may charge a markup on the products they sell, which can
reduce profit margins for the producer.
Transportation costs: When relying on third-party suppliers or distributors, producers may
need to pay for transportation costs to move their products from one location to another.
This can include the cost of shipping or trucking products to retailers or other distributors.
Quality control costs: When relying on third-party suppliers or distributors, producers may
need to invest in quality control measures to ensure that their products meet the desired
standards. This can include inspections, testing, and certification processes, which can be
costly.
Contractual obligations: Working with third-party suppliers or distributors often requires
contractual agreements, which can come with additional legal and administrative costs.
As for the margins that distributors take, this can vary depending on the industry and the
specific distributor. However, distributors typically take a percentage of the revenue
generated by the products they sell, which can range from 5% to 25% or more, depending
on the industry and the type of products being sold.

Mission Produce primarily makes money by selling avocados and other produce to
customers, which can include retailers, foodservice companies, and other wholesalers. The
company's main customers are grocery store chains, including major national and
international retailers such as Costco, Walmart, Kroger, and Aldi, as well as foodservice
companies such as Sysco, US Foods, and Performance Food Group.
Mission Produce sources avocados from its own farms and from third-party growers, which
it then sells to its customers through its distribution network. The company also offers
ripening and packaging services to its customers, which can add value to the products and
help to differentiate Mission Produce from competitors.
In addition to selling avocados, Mission Produce has also diversified into other produce
categories, including berries, asparagus, and mangos. This allows the company to offer a
broader range of products to its customers and to leverage its distribution network and
supply chain expertise to capture additional value in these categories.
Overall, Mission Produce's revenue is generated primarily through the sale of avocados and
other produce to its customers, which include major retailers, foodservice companies, and
other wholesalers. The company's vertical integration strategy and focus on quality and
sustainability help to differentiate it from competitors and to capture additional value in the
supply chain.
Mission Produce's diversification into other products is driven by several factors, including
the desire to capture additional value in the supply chain, the need to mitigate risk and
reduce dependence on a single commodity, and the opportunity to leverage the company's
distribution network and supply chain expertise to capture value in other produce
categories.
By diversifying into other products, Mission Produce can leverage its existing relationships
with customers and suppliers to expand its product offerings and capture additional
revenue streams. This can help to reduce the company's dependence on avocados, which
can be subject to fluctuations in supply and demand and other market factors.
In addition, Mission Produce's diversification strategy allows the company to leverage its
expertise in the produce industry to capture value in other categories. For example, the
company's experience with ripening and packaging avocados can be applied to other fruits
and vegetables, which can help to improve product quality and reduce waste.
As for plans to go into other fruits, Mission Produce has already expanded into other
produce categories beyond avocados, including berries, asparagus, and mangos. However,
it's worth noting that any further expansion into other fruit categories would likely depend
on a variety of factors, including market demand, supply chain considerations, and the
company's overall strategic priorities.

Mission Produce's move into mangoes and berries is likely driven by a combination of
market demand, supply chain considerations, and the opportunity to leverage the
company's existing distribution network and supply chain expertise to capture additional
value in these categories.
Mangoes and berries are both popular and growing categories in the produce industry, with
strong demand from consumers and increasing consumption across various markets. By
expanding into these categories, Mission Produce can capture additional revenue streams
and leverage its existing relationships with customers and suppliers to grow its business.
In addition, Mission Produce's existing expertise in the produce industry can be applied to
these categories to improve product quality, reduce waste, and enhance the overall
customer experience. For example, the company's experience with ripening and packaging
avocados can be applied to other fruits and vegetables, including mangoes and berries,
which can help to improve product quality and reduce spoilage.
Overall, Mission Produce's move into mangoes and berries is likely driven by a combination
of market demand, supply chain considerations, and the opportunity to leverage the
company's existing expertise and distribution network to capture additional value in these
categories.
Mission Produce generates a significant portion of its revenue from value-added services
such as ripening, packing, and distribution. While the company does not break out the
specific revenue and profit figures for these services, it is a key part of the company's overall
business model and is seen as a source of differentiation and value for customers.
By offering value-added services, Mission Produce is able to differentiate itself from other
produce suppliers and capture additional value in the supply chain. For example, the
company's ripening services can help to ensure that avocados and other produce are
delivered to customers at the optimal ripeness, reducing spoilage and waste and improving
the overall quality of the product.
In addition, Mission Produce's expertise in logistics and supply chain management allows
the company to optimize its operations and reduce costs, which can help to improve
profitability. The company's vertical integration strategy, which includes owning and
operating its own farms and distribution facilities, also allows it to capture additional value
in the supply chain and improve overall profitability.
Overall, while the specific revenue and profit figures for Mission Produce's value-added
services are not publicly disclosed, they are a key part of the company's overall business
model and are seen as a source of differentiation and value for customers.
Yes, Mission Produce owns and operates its own logistics and distribution network as part of
its vertical integration strategy. This includes a fleet of trucks and distribution centers in key
markets around the world.
By owning and operating its own logistics and distribution network, Mission Produce is able
to have greater control over the supply chain and ensure that products are delivered to
customers in a timely and efficient manner. This can help to reduce costs, improve product
quality, and enhance the overall customer experience.
In addition, owning and operating its own logistics and distribution network allows Mission
Produce to capture additional value in the supply chain and improve overall profitability. By
owning the trucks and distribution centers, the company can reduce its reliance on third-
party logistics providers and capture additional margin in the supply chain.
Overall, Mission Produce's ownership of its own logistics and distribution network is a key
part of the company's overall business model and allows it to differentiate itself from other
produce suppliers while capturing additional value in the supply chain.

Mission Produce uses a combination of technology, data analytics, and process optimization
to maximize fleet utilization and reduce logistics costs.
To optimize fleet utilization, Mission Produce uses a proprietary transportation
management system (TMS) that allows the company to track and manage its trucks and
deliveries in real time. This system enables the company to monitor the location and status
of its trucks, optimize routing and delivery schedules, and minimize empty miles and
downtime. By optimizing fleet utilization in this way, Mission Produce is able to reduce
transportation costs and improve efficiency.
In addition to using technology to optimize fleet utilization, Mission Produce also uses data
analytics to identify trends and patterns in its logistics operations. By analyzing data on
delivery times, routes, and costs, the company can identify areas for improvement and
implement changes to reduce costs and improve efficiency.
Finally, Mission Produce is focused on process optimization across its logistics and
distribution network. By continuously refining and improving its processes, the company can
reduce costs, improve delivery times, and enhance the overall customer experience. For
example, the company may implement new packaging or handling processes to reduce
damage to products during transport or optimize loading and unloading procedures to
reduce wait times and improve efficiency.
Overall, Mission Produce uses a combination of technology, data analytics, and process
optimization to maximize fleet utilization and reduce logistics costs. By continuously
improving its logistics operations, the company is able to improve efficiency, reduce costs,
and enhance the overall customer experience.
Mission Produce sources avocados from a variety of growers and suppliers located primarily
in Mexico, Peru, Chile, Colombia, and California. The company has established long-term
relationships with many of its suppliers, which helps to ensure a reliable supply of high-
quality avocados.
To control the supply of avocados, Mission Produce utilizes a number of strategies,
including:
Direct sourcing: Mission Produce has established relationships with growers and suppliers in
key producing regions, allowing the company to source avocados directly from the source.
This helps to ensure that the avocados are fresh, high-quality, and meet the company's strict
standards.
Quality control: Mission Produce has implemented strict quality control measures to ensure
that the avocados it sources meet its standards for freshness, flavor, texture, and
appearance. The company employs a team of quality control specialists who inspect each
shipment of avocados before they are accepted and shipped to customers.
Traceability: Mission Produce has implemented a traceability system that allows the
company to track avocados from the grower all the way to the customer. This system
enables the company to identify and address any quality or safety issues that may arise.
Farming partnerships: Mission Produce has established farming partnerships with growers
in key producing regions, allowing the company to have greater control over the supply of
avocados. These partnerships often involve the company providing technical assistance and
support to growers to improve the quality and yield of their crops.
Overall, Mission Produce utilizes a combination of direct sourcing, quality control,
traceability, and farming partnerships to ensure a reliable supply of high-quality avocados.
By controlling the supply chain from the grower to the customer, the company is able to
ensure that its avocados meet its strict standards for freshness, quality, and safety.

Mission Produce uses a combination of data analysis, market research, and industry
expertise to predict demand and supply for its products.
To predict demand, the company monitors trends and patterns in the market, including
consumer preferences, seasonal variations, and changes in demand for specific products.
The company also analyzes sales data and customer feedback to identify patterns and
trends in demand. By combining this data with market research and industry expertise, the
company is able to develop accurate forecasts of demand for its products.
To predict supply, Mission Produce works closely with its network of growers and suppliers
to monitor crop yields and production trends. The company also uses data analysis and
predictive modeling to forecast supply based on factors such as weather patterns, soil
conditions, and other variables that can affect crop yields. By combining this information
with market research and industry expertise, the company is able to develop accurate
forecasts of supply for its products.
Overall, Mission Produce uses a combination of data analysis, market research, and industry
expertise to predict demand and supply for its products. By accurately forecasting demand
and supply, the company is able to optimize its production and distribution operations,
reduce costs, and enhance the overall customer experience.

Mission Produce typically enters into contracts with its customers for the sale and supply of
its products. These contracts typically specify the terms and conditions of the sale, including
the quantity, quality, and price of the products to be supplied.
The specific terms of each contract can vary depending on a number of factors, including
the product being sold, the customer's requirements, and the prevailing market conditions.
However, some of the common terms that may be included in a contract between Mission
Produce and its customers include:
Product specifications: The contract may specify the type and quality of the product to be
supplied, as well as any relevant certifications or standards that the product must meet.
Quantity and delivery schedule: The contract may specify the quantity of the product to be
supplied, as well as the delivery schedule and any other logistical requirements.
Pricing and payment terms: The contract may specify the price of the product, as well as the
payment terms and any applicable discounts or incentives.
Termination and cancellation: The contract may specify the circumstances under which the
contract may be terminated or canceled, as well as any penalties or fees that may apply.
Overall, contracts between Mission Produce and its customers are designed to provide
clarity and certainty around the terms and conditions of the sale. By entering into contracts
with its customers, Mission Produce is able to establish long-term relationships and provide
a high level of service and reliability.
Customers may prefer Mission Produce for a variety of reasons, including:
Quality: Mission Produce places a strong emphasis on the quality of its products and has
established a reputation for providing high-quality, consistent products.
Reliability: The company has a strong track record of meeting customer demands and
providing reliable service, which can be particularly important in industries with tight supply
chains and limited product availability.
Vertical integration: Mission Produce's vertical integration strategy allows it to have greater
control over the quality and consistency of its products, which can result in a more reliable
supply chain for customers.
Innovation: The company has a history of innovation in the produce industry, introducing
new products and value-added services that can help customers differentiate their offerings
and stay ahead of the competition.
Sustainability: Mission Produce has a commitment to sustainability and social responsibility,
which can be important factors for customers who are increasingly focused on these issues.
Overall, customers may prefer Mission Produce for a combination of factors, including
product quality, reliability, innovation, sustainability, and value-added services. By providing
a high level of service and focusing on customer needs, Mission Produce is able to build
strong relationships with its customers and maintain its position as a leading producer and
distributor of avocados and other produce products.

The pricing of Mission Produce's products typically takes place through a combination of
market forces and negotiations with customers.
Avocado pricing is primarily determined by supply and demand factors, which are
influenced by a variety of factors including weather conditions, production volumes, and
global economic conditions. Mission Produce monitors these factors closely and adjusts its
pricing strategy accordingly.
In addition to market forces, Mission Produce also negotiates pricing with its customers
based on a variety of factors, including the quantity of product being purchased, the
frequency of purchases, and the specific requirements of the customer. Mission Produce
strives to provide competitive pricing to its customers while also maintaining profitability for
the company.
Overall, the pricing of Mission Produce's products is influenced by a variety of market forces
and negotiated agreements with customers. By closely monitoring market conditions and
maintaining strong relationships with customers, the company is able to set pricing that is
both competitive and profitable.
As of my knowledge cutoff date of September 2021, I do not have access to the
latest market share data for Mission Produce. However, according to its IPO
prospectus filed in October 2020, the company estimated that it held a 16% share of
the global avocado market and a 25% share of the U.S. avocado market, based on
data from 2019. It's worth noting that market share can fluctuate over time based on
a variety of factors, including changes in supply and demand, competition, and
industry trends.

Calavo Growers and Mission Produce are both major players in the avocado and fresh
produce industry, but they have some differences in their business models and operations.
Business Model: Calavo Growers is a vertically integrated company that operates in three
primary segments: Fresh Products, Calavo Foods, and RFG. The Fresh Products segment
includes the growing, packing, and selling of fresh avocados and other produce. Calavo
Foods produces and sells processed avocado products such as guacamole and salsa. RFG
provides logistics and distribution services for fresh produce. On the other hand, Mission
Produce has a more focused business model that is primarily centered on the growing,
harvesting, and distributing of avocados.
Farm Ownership: Both Calavo Growers and Mission Produce own and operate avocado
farms, but the extent of their ownership differs. Calavo Growers owns and operates farms in
California and Mexico, while Mission Produce has a larger and more diverse portfolio of
farms in various regions around the world.
Product Mix: While both companies specialize in avocados, they have slightly different
product mixes. Calavo Growers also produces other fruits and vegetables such as tomatoes,
citrus, and pineapples, while Mission Produce's product mix is more heavily focused on
avocados.
Geographic Presence: Both companies have a global presence and distribute avocados to
customers in various regions around the world. However, the geographic distribution of their
operations and customer bases differs.
Overall, both Calavo Growers and Mission Produce are major players in the avocado
industry, but they have slightly different business models and operational focuses.

Mission Produce has several future plans that they are pursuing. Here are some of the key
initiatives that the company is focusing on:
Expansion into new markets: Mission Produce is actively expanding into new international
markets, including Asia and Europe. The company has established partnerships and
distribution agreements with leading retailers and distributors in these regions, and they are
working to increase their market share in these areas.
Diversification of product offerings: Mission Produce is expanding beyond its core avocado
business and entering new product categories, such as mangoes and berries. The company is
also investing in value-added products, such as fresh-cut fruit and guacamole.
Increased vertical integration: Mission Produce is continuing to invest in its vertical
integration strategy, which involves owning and operating more aspects of the supply chain,
from farming to distribution. This approach is designed to give the company greater control
over quality and consistency, and to provide a more reliable supply of produce to customers.
Technology and innovation: Mission Produce is investing in technology and innovation to
improve the efficiency and sustainability of its operations. The company is exploring new
farming techniques, such as precision agriculture and sustainable farming practices, and is
developing new packaging and transportation technologies to reduce waste and improve
freshness.
Overall, Mission Produce is positioning itself for long-term growth and success in the
produce industry by pursuing a combination of strategies, including expanding into new
markets, diversifying its product offerings, increasing vertical integration, and investing in
technology and innovation.

Currently, Mission Produce has two large segments, marketing and distribution of
the products from the source of cultivation to international export and international
cultivation. The latter means that the company is permanently making investments in
the acquisition of new fertile and functional lands for the expansion of its business
model.

A significant part of the company's revenue comes from its marketing and distribution

segment. There is a huge difference as compared to the revenue coming from the
farming segment. With this in mind, I would say that Mission Produce is mainly an
expert in marketing and distribution. I believe that Mission Produce's business model
directly depends on its sales capabilities as well as the economic conditions of each
region, because if there were drastic changes in this phase of the marketing process,
there would be drastic changes in its annual earnings.

For Mission Produce, their profit margin on avocados will depend on various factors,
including the cost of growing and sourcing the avocados, packaging and transportation
costs, and the price at which they sell the avocados to their customers. They may also earn
additional revenue from value-added services such as ripening, bagging, and labeling.
It's worth noting that profit margins in the produce industry tend to be relatively low, due to
factors such as perishability, seasonality, and price sensitivity. As a result, companies in this
industry often focus on achieving high sales volumes and maintaining low costs in order to
generate profits.

es, you are correct. Fresh produce companies often have high capital requirements due to
the perishable nature of their products and the need to invest in equipment, technology,
and infrastructure to ensure that their products are stored, transported, and delivered in
optimal conditions.
Here are some of the reasons why fresh produce companies may have high capital
requirements:
Storage and transportation infrastructure: Fresh produce must be stored and transported
under specific temperature and humidity conditions to maintain quality and freshness. This
requires specialized infrastructure, such as refrigerated warehouses, trucks, and other
equipment, which can be expensive to acquire and maintain.
Technology and automation: To optimize production and distribution processes, fresh
produce companies may need to invest in technologies such as inventory management
software, sensors, and other automation tools that can be expensive to implement.
 Quality control measures: To ensure that products meet quality standards and regulatory
requirements, fresh produce companies may need to invest in quality control measures
such as lab testing, inspections, and certifications, which can be costly.
Working capital: Fresh produce companies typically require significant working capital to
cover costs such as raw materials, labor, and overhead, as well as to manage fluctuations in
demand and supply.
Overall, the high capital requirements of fresh produce companies can be a significant
barrier to entry for new competitors and can make it challenging for existing companies to
remain competitive. However, companies that are able to effectively manage their capital
investments and optimize their operations can achieve profitability and growth in this
industry.

es, you are correct. Fresh produce companies generally have higher inventory turnover
compared to other types of businesses. This is because fresh produce has a limited shelf life
and is perishable, so it must be sold quickly before it spoils. Therefore, companies in the
fresh produce industry must manage their inventory efficiently to minimize waste and
ensure that their products remain fresh and appealing to customers.
Produce companies typically have a shorter inventory holding period compared to other
industries, which can lead to higher inventory turnover ratios. This means that the company
is able to quickly sell its inventory and generate revenue, which can improve profitability
and cash flow.
Additionally, fresh produce companies may also face unique challenges in managing their
inventory, such as fluctuations in supply and demand, weather-related issues, and other
factors that can impact the availability and quality of their products.
Overall, fresh produce companies must be highly efficient in their inventory management
practices to ensure that they are able to sell their products quickly and efficiently while
maintaining high quality standards. This can be achieved through effective supply chain
management, production planning, and other strategies that help to optimize inventory
turnover and maximize profitability.

Profit margins for vertically integrated fresh produce companies can vary depending on a
number of factors, including the specific products they produce, their market position, and
their operational efficiency. However, as a general rule, vertically integrated companies that
control more aspects of their supply chain tend to have higher profit margins than companies
that rely more heavily on external suppliers.
Here are some of the key profit margin metrics that are commonly used to evaluate the
financial performance of vertically integrated fresh produce companies:
1. Gross profit margin: This metric measures the percentage of revenue that a company retains
after subtracting the cost of goods sold. For vertically integrated companies, a higher gross
profit margin may be indicative of greater control over production costs, as well as more
efficient logistics and distribution practices.
2. Operating profit margin: This metric measures the percentage of revenue that a company
retains after subtracting all operating expenses. For vertically integrated companies, a higher
operating profit margin may reflect greater control over costs across the entire supply chain,
as well as more efficient use of resources.
3. Net profit margin: This metric measures the percentage of revenue that a company retains
after subtracting all expenses, including taxes and interest. For vertically integrated
companies, a higher net profit margin may reflect greater control over all aspects of the
business, from production to distribution to marketing and sales.
It is worth noting that profit margins can vary widely within the vertically integrated fresh
produce industry, depending on factors such as the specific products being produced, the
markets being served, and the competitive landscape. However, in general, companies that
are able to maintain high levels of operational efficiency and control costs effectively are
likely to perform well on these key profit margin metrics.