Adds Established Grower Based in Morocco
VANCOUVER, BC / ACCESSWIRE / January 22, 2020 / Organto Foods Inc. (TSXV:OGO)(OTC:OGOFF) ('Organto' or 'the Company'), an integrated provider of fresh organic vegetables and fruits today announced the expansion of its avocado supply chain with the addition of a strategic grower based in Morocco. The addition of supply from Morocco further expands Organto's avocado supply chain to include supply from Colombia, South Africa, Mexico and Morocco, for sale to customers throughout Europe.
Shipments from the supplier commenced the last week of December with product available for commercial distribution the second week of January. Morocco's close proximity to Europe enables Organto to sell these avocados in European markets approximately a week following harvesting and processing, much sooner than the three to five weeks required for product delivered from Latin American markets. Organto is forecasting to receive weekly volumes of approximately 25,000 to 30,000 kgs. at expected selling prices ranging from $4.00 to $5.00 per kg. dependent upon product size, packaging format and distribution point. Shipments are scheduled to run for the course of the Moroccan season which is expected to end in early April 2020.
'Demand for avocado continues to grow globally due to its nutrient dense nutritional profile and we are pleased to expand our sourcing and supply to this strategic growing region. Avocado has been described as the millennial generation's favorite fruit, leading to continued strong global demand.' commented Rients van der Wal, CEO of Organto Europe B.V. 'We view avocado as a key product in our expanding vegetable and fruits portfolio, and the addition of this new strategic supply source is very important as we work to build our year-round supply capabilities to meet demand.'
Over the past year, Organto has repositioned its organic foods platform shifting from an asset heavy, single revenue stream business model, to an asset light, multi-stream business model. The Company has made important progress in executing its plans including exiting Company-owned growing operations, selling its processing facilities in Guatemala and exiting Company operated packaging operations in the Netherlands, all in favor of worldwide strategic sourcing arrangements, including partners in Peru, Argentina, Colombia, Mexico, Zimbabwe and Morocco as well as third party processing and packaging arrangements with globally positioned strategic partners. The addition of avocado supply from Morocco aligns with Organto's supply chain expansion goals as it pursues new strategic supply sources intended to provide year-round supply of core product offerings and also bring new complimentary products to its existing portfolio.
ON BEHALF OF THE BOARD,
Chair and Interim Chief Executive Officer
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Organto's business model is rooted in its commitment to sustainable business practices focused on environmental responsibility and a commitment to the communities where it operates, its people and its shareholders. The Organto Foods Group is an integrated provider of year-round value-added branded organic vegetables and seasonal organic and non-GMO fruit and vegetable products using an asset-light business model to serve a growing socially responsible and health conscious consumer around the globe.
FORWARD LOOKING STATEMENTS
This news release may include certain forward-looking information and statements, as defined by law including without limitation Canadian securities laws and the 'safe harbor' provisions of the US Private Securities Litigation Reform Act of 1995 ('forward-looking statements'). In particular, and without limitation, this news release contains forward-looking statements respecting Organto's business model and markets; Organto's integrated supply capabilities and plans to continue to develop and expand these capabilities; plans to expand product offerings; Organto's belief demand for avocado continues to grow globally due to its nutrient dense nutritional profile; Organto's belief that avocado is a key product in its portfolio of products; management's beliefs, assumptions and expectations; and general business and economic conditions. Forward-looking statements are based on a number of assumptions that may prove to be incorrect, including without limitation assumptions about the following: the ability and time frame within which Organto's business model will be implemented and product supply will be increased; cost increases; dependence on suppliers, partners and contractual counter-parties; changes in the business or prospects of Organto; unforeseen circumstances; risks associated with the organic produce business generally, including inclement weather, unfavorable growing conditions, low crop yields, variations in crop quality, spoilage, import and export laws and similar risks; transportation costs and risks; general business and economic conditions; and ongoing relations with distributors, customers, employees, suppliers, consultants, contractors and partners. The foregoing list is not exhaustive and Organto undertakes no obligation to update any of the foregoing except as required by law.
SOURCE: Organto Foods Inc.
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