Vegetable and fruit grower Costa Group has moved to make avocados a core focus through a joint acquisition of the Lankester Avocados orchards and packing operation.
Lankester Avocados 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.
Costa and Macquarie Agricultural Funds Management (MAFM) have jointly agreed to acquire Lankester Avocados.
Under the agreement, MAFM will purchase the farms and enter into a 20-year lease with Costa to operate them.
“This strategic acquisition is another step in executing our strategy to build avocados into our fifth vertically integrated core produce pillar,” Costa Group chief executive Harry Debney said on Wednesday.
“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.”
Shares in Costa were three cents lower at $5.03 at 1124 AEST.