California-based agribusiness Limoneira Company has entered the Argentinian market for the first time through a new joint venture and land acquisition.
Limoneira – which grows, packs and sells a range of citrus products including lemons and oranges – has entered into the joint venture agreement with Argentinian citrus product producer FGF Trapani, which owns 3,200 acres of citrus groves in the provinces of Salta, Jujuy and Tucuman, as well as owning and operating a juice processing facility in Tucuman.
As part of the agreement, Limoneira will create a new subsidiary in Argentina called Limoneira Argentina, and will acquire 25% of the parcels of Finca Santa Clara – approximately 1,200 acres of planted lemons –upfront, with an additional 25% to be acquired over a three-year period.
Limoneira Argentina and FGF’s joint venture will operate under the name Trapani Fresh, with Limoneira Argentina holding a 51% stake and responsibility for all fresh fruit sales, while FGF will hold a 49% stake.
FGF Trapani will maintain 100% ownership and control of the juice processing facilities and operations.
Harold Edwards, Limoneira president and CEO, said: “We are excited to add FGF’s rich supply of citrus to our global production and increase our competitive position.
“Our two companies have a long history with a combined 205 years in the business and this joint venture is bringing together years of industry knowledge and expertise.”
Alex Teague, Limoneira senior vice-president, added: “It’s very exciting for us to expand our global footprint into Argentina and thereby strengthen our ability to become a 365-day, 24/7 global supplier of fresh citrus to our valued customers around the world.
“This joint venture fits in nicely with our One World of Citrus initiative and we are looking forward to welcoming FGF’s family owned business to the Limoneira team.
“This relationship will provide Limoneira with access to new markets and distribution networks, increase production and technical capacity and also reduce impact on operating results.”
© FoodBev Media Ltd 2019