Vegetable and fruit grower Costa Group has set its sights on becoming Australia's biggest supplier of avocados after buying a significant Queensland grower.
Costa and Macquarie Agricultural Funds Management (MAFM) have agreed to acquire the Lankester Avocado orchards and packing operation for an undisclosed price.
Costa chief executive Harry Debney says the purchase is part of Costa's strategy to make avocados its fifth core product, alongside berries, mushrooms, citrus and glasshouse tomatoes.
"Our production and supply period will now span from February to August, bringing us closer to achieving 52-week supply and our ultimate goal to be the number one grower, packer and marketer of avocados," he said.
Lankester Avocado has three farms in the Atherton region of far north Queensland, with 130 hectares planted and another 60 hectares to be planted over the next 12 months
MAFM will purchase the farms and Costa will operate them under a 20-year lease.
The Lankester family will stay on in key management and operational roles.
Costa currently has about 370 hectares of avocados in central Queensland and the South Australian riverland.
A company spokesman said the Australian avocado industry is very fragmented, and Costa is looking for more acquisitions in order to supply avocados all year round.
Avocados are one of the fastest growing fresh produce categories in the world, as their health benefits became more widely known, he said.
Shares in Costa dropped 12 cents to $4.94 on Wednesday.
