Total Produce makes further inroads in North American market
Total Produce makes further inroads in North American market
Total Produce, based in Dublin, Ireland, has purchased a 45 percent share of Eco Farms Avocados Inc., a Temecula, CA-based grower, shipper and importer of avocados and other fruit.
Eco Farms, which was started by a partnership led by company President Steve Taft in the early 1970s, was one of the pioneers in the development of the organic avocado sector.
Taft told The Produce News Sept. 2 that the company has entertained offers before but the timing was never right. He said a number of factors entered into the decision to allow Total Produce to purchase a minority stake in the avocado operation with the ability to take controlling interest at an unannounced time down the road.
"Certainly the age of the partners was a factor," he said.
However, he added that there will be no immediate changes in the management of Eco Farms.
Total Produce's first entry into the North American marketplace came in early 2013 when it agreed to purchase a controlling interest in the Vancouver, BC-based Oppenheimer Group in two phases over a four- to five-year period.
Taft said the Irish firm's method of operation is to "acquire well-run companies and not change a lot of things." He said that was another factor in partnering with the European-based firm.
The Eco Farms president expects that the new partnership will result in an infusion of cash "that may allow us to do a few things," but he wouldn't reveal any specifics. He did say that Eco Farms has done a little business in Europe in the past "and this might make that a little bit easier."
However, he added that he did not anticipate shipping any California avocados to Europe, "but maybe from some of the other areas that we represent."
Like most California avocado grower-shippers, Eco Farms also imports from several other major production areas including Mexico, Chile and Peru. Taft said that aside from Total Produce's wholesale business and an avocado connection through Oppenheim, this is the company's first foray into the avocado-production business.
Taft did say that there has been quite a bit of consolidation in the avocado business over the past decade and indicated this would allow Eco Farms to remain as a viable grower-shipper.
The company's general manager, Matthew Clark, told an international produce publication that involvement from Total Produce will allow Eco Farms to increase its grower base around the world and double its volume within the next three to five years.
