Peruvian agricultural export company Agrícola Chapi has received $130m in funding to expand its table-grape and avocado production.
The funding, from Canadian private-equity firm Cordiant Capital, will be allocated in stages until March 2024 and is part of a growth plan drawn up with Cordiant in 2022.
Chapi aims to grow its production land area to 1,200ha of avocados and 900ha of table grapes.
The Lima-headquartered exporter is also part of a “genetic improvement programme”, a table-grape breeding initiative, in partnership with US fruit technology companies Sun World and IFG (International Fruit Genetics).
CEO Augusto Baertl said: “Our plan aims to expand our agricultural frontiers with sustainable management that contributes to conserving the flora, fauna and water resources of the region.”
Cédric Garnier-Landurie, Cordiant Capital’s managing director, told Just Food Peru is “an important focal point due to the phenomenal growth in fruit export seen in the last decade”.
He added: “The weather is remarkable for permanent crops and provides an advantageous harvest season that is counter-seasonal to other producing regions.”
He said funding was allocated to Agricola Chapi as the business had “some of the best yields in avocado globally and very strong governance with a keen focus on the environment and community”.
Meanwhile, in South Africa, avocado supplier Westfalia Fruit was last month awarded a $300m loan facility from three banks to expand production and explore new markets. The fruit business is also planning to use the funds – provided by HSBC, the World Bank’s International Finance Corporation (IFC) and Standard Bank – to expand its current avocado production.
US avocado business Mission Produce also invested in avocado production this year, forming a joint venture with South Africa farming company ZZ2 Boerdery and private-equity firm Criterion Africa Partner.
It said there was a “significant” opportunity to grow the avocado market in Europe, where it plans to direct the majority of the JV’s exports.