It's A Perfect Time to Pick Avocados: Mexican Avocado Growers Fill Void Left by U.S. Shortage
2009-01-08 16:44:05 -
A series of events affecting the United States domestic avocado crop has created an opportunity for Mexican avocado growers to fill the void. Texas-based Organic Alliance, Inc. (Pink Sheets: ORGC) appears to have picked the right time to acquire prolific Mexico-based avocado grower "AvocadoMan" as the shortage ensues.
According to trade magazine "Packer," the 2008-09 California avocado crop is expected to be the smallest in two decades, but a bumper crop out of Mexico could help ensure ample volumes nationwide. Early season avocado producer Chile is also off considerably and North Carolina's crop faces troubles as well.
Organic Alliance may well be the beneficiary of a timely acquisition even though AvocadoMan was initially targeted because of the natural synergies with the company's existing organic business and to add AvocadoMan's robust revenue potential ($12,000,000 top-line revenue in 2007) to Organic Alliance's balance sheet. Now, with the crop shortages reported, AvocadoMan's ample supplies south of the border give Organic Alliance a hot ticket with distributors and perhaps a gateway to enhanced distribution of other foods from the Organic Alliance menu.
Future quarterly reports will indicate how Organic Alliance monetized the acquisition and the opportunity at present. Right now, it's hard to argue that the company couldn't have chosen a more perfect time to pick some avocados.
Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report. This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and shouldn't be used as basis for investment decisions. MP isn't an investment advisor, analyst or licensed broker dealer and this report isn't investment advice. MP has been paid $29,000 dollars by Organic Alliance Inc. for preparation and distribution of this report and other advertising services. This constitutes a conflict of interest as to MP's ability to remain objective in communication regarding subject companies.
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