In 2022, a new international farming strategy was launched to extend avocado, citrus, and mango production into new regions. The initiative, called Global Farming, is designed to broaden crop categories and secure a year-round supply from company-owned farms.
The first step took place in 2023 with the establishment of a farming entity in Morocco, focusing on 1,000 hectares of avocados, 400 hectares of citrus, and diversification into locally adapted crops. Earlier this month, the second entity was formed in Peru following the acquisition of Don Fermin, a citrus and avocado farm in Chincha.
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According to the new owners, the Peruvian farm allows operations to cover 10 to 11 months of the year, bringing the goal of a continuous global supply closer. The Peruvian portfolio includes Hass avocados and citrus varieties such as Nadorcott and Primosole. The farms are expected to provide higher yields due to the region’s growing conditions, as well as lower input costs compared to Israel.
Edorta Ibarra, previous owner of Don Fermin, said: “We are thrilled to see a company like Mehadrin taking over our family business. This farm is the legacy of many years of hard work, and when Mehadrin presented an ambitious plan to leverage it, as a stepping stone to enlarge its future in our country, we knew they were the right choice. The values and ethos strongly align with our family, and we are pleased that this next step for Don Fermin will provide opportunities for development and progress for our dear employees. I wish to thank Mehadrin and bless them in their new journey – welcome to Peru.”
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The move has been described as part of a five-year plan to create multiple farm bases with vertical reach into global markets. Future investments are also being considered in South and East Africa to complete a 12-month supply model.
Tzealon Tzemah, CEO of Mehadrin, commented: “Mehadrin is focusing its efforts and resources to reshape the face of the company to better suit the ever-changing dynamics in the Fresh Produce Industry. We see the acquisition of Don Fermin as a strategic and key milestone in our 5-year plan that will see Mehadrin becoming a multiple-source farm-based operation with a vertical reach into strategic destinations globally. I want to thank Edorta for his support during the process of handing over the business and to bring our valued customers from around the world to come and visit us in Peru!”
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Challenges in the acquisition process included identifying the right investment mix of crops and location. With Morocco and Peru now added, the farming program will expand the seasonal supply window and strengthen positioning as a supplier to both existing and new markets.
Roy van Grevenbroek, MD of Mehadrin Northern Europe, added: “I am very pleased to see our ambitious geographical diversification project bearing fruit. Mehadrin has so much value to add throughout the fresh produce supply chain, vast knowledge and experience in farming and packing, as well as strong commercial ties with multiple global strategic customers. Our Global Farming expansion project is up and running in Morocco, and with Peru added to our source basket, we can extend the supply of our core products into the summer and develop further subsidiary companies in additional markets such as North America and the Far East.”
In addition to extending the availability of avocados, citrus, dates, and mangoes, the program is evaluating other categories such as berries, grapes, and melons for future development.
© mehadrinFor more information:
Roy van Grevenbroek
Mehadrin
Tel: +44 (0) 787 665 3126
Email: [email protected]
www.mehadrin.co.il