Fresh Del Monte acquires Ugandan avocado oil supplier

Fresh Del Monte Produce has acquired Avolio, Uganda’s leading supplier of bulk crude and edible avocado oil.

The deal gives Fresh Del Monte a majority stake in Avolio, according to a news release, and allows Fresh Del Monte to convert avocados into premium avocado oil, driving growth in its specialty ingredients and innovation segment.

“Acquiring Avolio is a strategic step aligned with our long-term vision to extract greater value across our supply chain while advancing our commitment to sustainability,” Mohammad Abu-Ghazaleh, chair and CEO of Fresh Del Monte, said in the release. “It complements our newest business division — biomass and specialty ingredients — through which we are transforming agricultural byproducts into high-impact solutions that enhance soil health, support human wellness and create new applications for a circular economy.”

Avolio’s extraction technology will be scaled to process 140 metric tons of avocados per day, according to the release.

The avocado oil industry is valued at approximately $1.2 billion and growing at a CAGR (compound annual growth rate) of 8% to 10%, according to Fortune Business Insights. Fresh Del Monte plans to expand into other locations through increased production capacity and the development of new facilities to meet growing global demand, according to the release.