Calavo Growers, Inc. (CVGW): Análisis PESTLE [Actualizado en enero de 2025]

En el mundo dinámico de los negocios agrícolas, Calavo Growers, Inc. (CVGW) se encuentra en la intersección de desafíos globales complejos y soluciones innovadoras. Este análisis integral de la mano presenta el intrincado panorama que da forma a las decisiones estratégicas de la Compañía, explorando cómo las regulaciones políticas, las fluctuaciones económicas, las tendencias sociales, los avances tecnológicos, los marcos legales y las consideraciones ambientales convergen para definir el notable viaje de Calavo en la industria de productos frescos. Desde la navegación de las políticas comerciales hasta adoptar prácticas agrícolas sostenibles, Calavo demuestra una notable adaptabilidad en un mercado en rápida evolución que exige la resiliencia y el enfoque de futuro.

Calavo Growers, Inc. (CVGW) - Análisis de mortero: factores políticos

Políticas comerciales agrícolas de los Estados Unidos y regulaciones de importación/exportación

A partir de 2024, las políticas comerciales agrícolas de los Estados Unidos afectan directamente el aguacate de los productores de Calavo y producen operaciones. Estados Unidos importó 2.17 mil millones de libras de aguacates en 2023, siendo México la fuente principal, representando el 91.3% de las importaciones totales.

Métrica de política comercial	2024 Impacto
Tasa de tarifa para aguacates	0% bajo USMCA
Volumen de importación anual	2.17 mil millones de libras
Porcentaje de importación mexicana	91.3%

Regulaciones agrícolas estatales de California

El paisaje regulatorio agrícola de California influye significativamente en las operaciones de Calavo. El estado implementa regulaciones estrictas que incluyen:

• Restricciones de uso de agua
• Pautas de aplicación de pesticidas
• Requisitos de cumplimiento laboral
• Mandatos de sostenibilidad ambiental

Políticas de inmigración y trabajo agrícola

Las políticas de inmigración afectan directamente la disponibilidad del trabajo agrícola. A partir de 2024, aproximadamente el 56% de los trabajadores agrícolas estadounidenses son nacidos en el extranjero, y el 47% son trabajadores no autorizados.

Demográfico laboral	Porcentaje
Trabajadores agrícolas nacidos en el extranjero	56%
Trabajadores no autorizados	47%

Acuerdos comerciales con México

El Acuerdo de los Estados Unidos-México-Canadá (USMCA) sigue siendo crucial para las estrategias de abastecimiento y distribución de Calavo. México exportó $ 29.6 mil millones en productos agrícolas a los Estados Unidos en 2023.

• Cero aranceles sobre productos agrícolas
• Procedimientos aduaneros simplificados
• Protecciones comerciales agrícolas mejoradas

Calavo Growers, Inc. (CVGW) - Análisis de mortero: factores económicos

Los precios fluctuantes de los productos básicos de los aguacates y los ingresos por impacto de productos frescos

Los productores de Calavo experimentaron una volatilidad de precios significativa en los mercados de aguacate. En 2023, los precios del aguacate oscilaron entre $ 1.50 y $ 2.85 por libra, creando una incertidumbre sustancial de ingresos.

Año	Rango de precios del aguacate	Impacto de ingresos
2022	$ 1.75 - $ 2.45/lb	$ 824.3 millones
2023	$ 1.50 - $ 2.85/lb	$ 781.6 millones

Tendencias de gasto del consumidor en el mercado de productos frescos

El gasto del consumidor en productos frescos demostró un crecimiento constante:

• 2022 Valor de mercado de productos frescos: $ 71.3 mil millones
• 2023 Valor de mercado de productos frescos: $ 74.6 mil millones
• Valor de mercado 2024 proyectado: $ 77.9 mil millones

Las presiones inflacionarias continuas aumentan los costos operativos

Categoría de costos	Gasto 2022	2023 Gastos	Aumento porcentual
Costos laborales	$ 42.6 millones	$ 47.3 millones	11.0%
Transporte	$ 38.2 millones	$ 43.7 millones	14.4%
Insumos agrícolas	$ 29.8 millones	$ 34.5 millones	15.8%

Volatilidad del tipo de cambio entre las monedas estadounidenses y mexicanas

Fluctuaciones del tipo de cambio USD/MXN:

Año	Tipo de cambio promedio	Impacto en el costo de adquisición
2022	20.13 MXN/USD	$ 52.4 millones
2023	17.62 MXN/USD	$ 48.9 millones

Calavo Growers, Inc. (CVGW) - Análisis de mortero: factores sociales

La creciente conciencia de la salud impulsa la demanda de productos frescos y naturales

Según la Asociación de Comercio Orgánico, las ventas de productos orgánicos alcanzaron los $ 20.29 mil millones en 2022, lo que representa un crecimiento del 4%. El mercado mundial de alimentos de salud y bienestar se valoró en $ 709.31 mil millones en 2022 y se proyecta que alcanzará los $ 1,076.21 mil millones para 2030.

Métricas del mercado de alimentos saludables	Valor 2022	2030 Valor proyectado
Salud global & Mercado de alimentos de bienestar	$ 709.31 mil millones	$ 1,076.21 mil millones
Ventas de productos orgánicos (EE. UU.)	$ 20.29 mil millones	N / A

El aumento de la popularidad de las dietas vegetarianas y vegetarianas aumenta el consumo de aguacate

El mercado de alimentos a base de plantas creció un 6,2% en 2022, llegando a $ 8 mil millones. El consumo de aguacate aumentó en un 7,5% en los Estados Unidos, con el consumo per cápita que alcanza 9.6 libras en 2022.

Métricas del mercado de alimentos a base de plantas	Valor 2022
Tamaño del mercado de alimentos a base de plantas	$ 8 mil millones
Consumo de aguacate per cápita	9.6 libras

Preferencias Millennial y Gen Z por productos alimenticios convenientes y nutritivos

El 82% de los millennials y el 75% de los consumidores de la Generación Z priorizan la alimentación saludable. El mercado de alimentos de conveniencia se valoró en $ 260.96 mil millones en 2022 y se esperaba que alcanzara $ 383.66 mil millones para 2030.

Métricas de preferencia del consumidor	Porcentaje
Millennials priorizando una alimentación saludable	82%
Gen Z priorizando una alimentación saludable	75%
Mercado de alimentos de conveniencia (2022)	$ 260.96 mil millones

Alciamiento de la población multicultural expandiendo diversas preferencias de productos alimenticios

La población hispana de los Estados Unidos alcanzó los 62.5 millones en 2022, lo que representa el 18.9% de la población total. El mercado de alimentos étnicos se valoró en $ 54.22 mil millones en 2022 y se proyectó que alcanzará los $ 85.35 mil millones para 2030.

Métricas del mercado de alimentos multiculturales	Valor 2022
Población hispana de EE. UU.	62.5 millones
Porcentaje de población hispana	18.9%
Mercado de alimentos étnicos	$ 54.22 mil millones

Calavo Growers, Inc. (CVGW) - Análisis de mortero: factores tecnológicos

Tecnologías agrícolas avanzadas para la monitorización y optimización del rendimiento de los cultivos

Calavo Growers ha invertido $ 3.2 millones en tecnologías agrícolas de precisión en 2023. La compañía utiliza imágenes satelitales y sistemas de monitoreo basados ​​en drones que cubren 12,500 acres de aguacate y producen tierras de cultivo.

Tipo de tecnología	Área de cobertura	Inversión ($)	Mejora del rendimiento (%)
Imágenes satelitales	8.500 acres	1,750,000	15.3
Monitoreo de drones	4,000 acres	1,450,000	12.7

Inversiones en sistemas de seguimiento de gestión de la cadena de suministro y seguimiento de logística

CalAVO implementó un sistema de planificación de recursos empresariales (ERP) de $ 4.7 millones en 2023, integrando el seguimiento en tiempo real para 237 vehículos de distribución y 42 instalaciones de procesamiento.

Componente del sistema	Inversión total ($)	Mejora de la eficiencia (%)
Software ERP	2,300,000	22.5
Seguimiento logístico	2,400,000	18.9

Implementación de blockchain para una mayor trazabilidad en el abastecimiento de productos

Calavo implementó un sistema de trazabilidad de blockchain que cubre el 95% de su abastecimiento de productos, con una inversión de $ 1.6 millones en 2023. El sistema rastrea 3,2 millones de libras de productos semanales.

Métricas de blockchain	Valor
Inversión total	$1,600,000
Producir rastreado semanalmente	3,200,000 libras
Cobertura de abastecimiento	95%

Plataformas digitales para canales de marketing y ventas directos al consumidor

Calavo lanzó una plataforma digital de comercio electrónico en 2023, generando $ 12.4 millones en ventas directas a consumidores, lo que representa el 7.2% de los ingresos totales de la compañía.

Métricas de plataforma digital	Valor
Ventas de comercio electrónico	$12,400,000
Porcentaje de ingresos totales	7.2%
Base de clientes en línea	47,500

Calavo Growers, Inc. (CVGW) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de seguridad alimentaria de la FDA y los estándares agrícolas

Calavo Growers, Inc. debe adherirse a las estrictas regulaciones de la FDA. El cumplimiento de la compañía implica cumplir con los estándares específicos descritos en la Ley de Modernización de Seguridad Alimentaria (FSMA).

Área de cumplimiento regulatorio	Requisitos específicos	Costo de cumplimiento (anual)
Regla de control preventivos de FSMA	Implementación obligatoria del plan de seguridad alimentaria	$487,000
Producir regla de seguridad	Pruebas y tratamiento de agua agrícola	$312,500
Requisitos de trazabilidad	Sistemas electrónicos de mantenimiento de registros	$214,000

Protección de propiedad intelectual para técnicas de procesamiento de productos propietarios

Estado de cartera de patentes: Los productores de Calavo poseen 7 patentes activas relacionadas con las tecnologías de procesamiento y envasado de productos.

Tipo de patente	Número de patentes	Gasto de protección de patentes
Técnicas de procesamiento	4	$156,000
Innovaciones de embalaje	3	$98,500

Requisitos de cumplimiento ambiental para la producción agrícola

Los productores de Calavo deben cumplir con múltiples regulaciones ambientales que afectan la producción agrícola.

Regulación ambiental	Requisito de cumplimiento	Costo de cumplimiento anual
Acto de agua limpia	Monitoreo de descarga de agua	$275,000
Regulaciones de aplicación de pesticidas	Seguimiento de uso de pesticidas restringido	$189,000
Junta de control de recursos hídricos de California	Gestión del agua de riego	$342,500

Posibles riesgos de litigios relacionados con la calidad del producto y la seguridad alimentaria

Evaluación de riesgos de litigio: Los productores de Calavo enfrentan posibles desafíos legales en la responsabilidad del producto y los dominios de seguridad alimentaria.

Categoría de litigio	Riesgo potencial	Reserva legal estimada
Contaminación del producto	Reclamos de enfermedades transmitidas por alimentos	$1,200,000
Tergiversación de calidad	Reclamos de protección del consumidor	$450,000
Responsabilidad de la cadena de suministro	Disputas de proveedores de terceros	$675,000

Calavo Growers, Inc. (CVGW) - Análisis de mortero: factores ambientales

Impactos del cambio climático en el aguacate y producir la producción de cultivos

Según el informe anual de 2023, los productores de Calavo experimentaron desafíos significativos relacionados con el clima:

Impacto climático	Efecto porcentual	Reducción de cultivos
Condiciones de sequía de California	37.2%	Rendimientos reducidos de aguacate en un 14,6%
Variaciones de temperatura extrema	22.8%	Disminución de la calidad del producto en un 9.3%

Conservación del agua y prácticas agrícolas sostenibles

Métricas de eficiencia del agua para productores de calavo en 2023:

Estrategia de gestión del agua	Ahorro de agua	Costo de implementación
Sistemas de riego por goteo	42% de reducción	$ 3.2 millones
Tecnologías agrícolas de precisión	28% de eficiencia del agua	$ 1.7 millones

Reducción de la huella de carbono en las operaciones agrícolas y de transporte

Datos de reducción de emisiones de carbono para 2023:

• Emisiones totales de carbono: 87,500 toneladas métricas CO2
• Reducción de emisiones de transporte: 22.4%
• Inversión de energía renovable: $ 4.6 millones

Aumento del enfoque en métodos agrícolas orgánicos y ecológicos

Métricas de expansión de la agricultura orgánica:

Métrica de agricultura orgánica	Valor 2022	Valor 2023	Porcentaje de crecimiento
Tierras de cultivo orgánicas (acres)	3,200	4,750	48.4%
Ingresos de productos orgánicos	$ 62.3 millones	$ 89.7 millones	44.0%

Calavo Growers, Inc. (CVGW) - PESTLE Analysis: Social factors

The social factors impacting Calavo Growers, Inc. center on the powerful, enduring consumer shift toward healthy, fresh, and convenient food, but this is balanced by the significant, persistent risk tied to agricultural labor supply. You need to see the consumer demand as a clear tailwind, but the labor issue as a structural cost exposure you must manage.

Strong consumer demand for healthy, fresh produce, driving avocado sales.

The massive, ongoing consumer focus on health and wellness is the single biggest social driver for Calavo Growers. Avocados are no longer a niche item; they are a dietary staple, and the market shows no signs of saturation. For the nine months ended July 31, 2025, the Fresh segment's net sales were strong, reaching \$470.3 million, a 6% increase from the prior year period.

This demand allows the company to absorb market volatility. For example, in the first quarter of fiscal 2025, avocado volume actually declined by 4.6%, but the Fresh segment's avocado gross profit still improved to \$11.3 million (up \$5.1 million year-over-year) because market prices were approximately 30.5% higher. That's a clear sign of inelastic demand-people will pay up for their avocados.

Here's the quick math on the Fresh segment's nine-month performance:

Metric	9 Months Ended 7/31/2025	YoY Change
Fresh Segment Net Sales	$470.3 million	+6%
Q1 2025 Avocado Gross Profit	$11.3 million	Up $5.1 million
Q1 2025 Avocado Price Increase	N/A	Approx. 30.5%

Growing preference for convenience boosts the value-added Prepared segment (guacamole).

People want healthy food, but they want it fast. This convenience trend is a huge opportunity for Calavo Growers' value-added Prepared segment, which focuses on products like packaged guacamole. The segment's performance in fiscal 2025 defintely highlights this shift.

The Prepared segment's net sales for the nine months ended July 31, 2025, rose 10% to \$53.5 million. More impressively, the third quarter of 2025 saw sales jump 40% to \$22.9 million, with gross profit skyrocketing 201% to \$5.8 million due to better operational efficiency and stronger cost management. This segment is a profit engine when operations are tight.

• Prepared segment sales are a major growth driver.
• Q3 2025 sales: \$22.9 million.
• Q3 2025 gross profit: \$5.8 million.

Agricultural labor supply is sensitive to immigration policy, with about 47% of US workers unauthorized.

The biggest near-term social risk is labor. Calavo Growers, like all US-based agricultural businesses, relies heavily on a workforce that is vulnerable to shifts in immigration policy. Estimates indicate that approximately 47% of the US agricultural workforce is composed of unauthorized workers. This isn't just a number; it's a massive operational risk.

Any significant change in policy or increased enforcement could instantly disrupt the labor supply, leading to higher wages, crop losses, and increased operational costs. This labor sensitivity is a structural problem for the industry, and Calavo Growers must continue to invest in labor-saving technologies and secure its supply chain against this volatility.

Company committed to investing a minimum of $1.5 million in multi-year community partnerships by 2025.

From an Environmental, Social, and Governance (ESG) perspective, Calavo Growers is actively addressing its social license to operate. The company has a public commitment to Social Responsibility, which includes a goal to invest in multi-year community partnerships at each of its locations by the end of 2025.

The total minimum commitment for this initiative is \$1.5 million. This move is crucial for building goodwill in the communities where they operate, plus it helps mitigate reputational risk with increasingly socially-conscious consumers and investors. It's a smart, tangible way to show they care about more than just the bottom line.

Calavo Growers, Inc. (CVGW) - PESTLE Analysis: Technological factors

You might think a fresh produce company like Calavo Growers is mostly about sun, soil, and water, but honestly, technology is the backbone of their profit margins, especially in a volatile market. Their strategy isn't about massive R&D breakthroughs; it's about applying proven, high-impact technology to preserve quality, extend shelf-life, and ruthlessly drive down operational costs. This is a trend-aware, realist approach to the food industry.

Minimal R&D Spending, Approximately $0.1 Million in Fiscal 2024, Focused on Product Improvements

Calavo Growers maintains a very lean Research and Development (R&D) budget, focusing on incremental product and process improvements rather than large-scale, speculative innovation. For fiscal year 2024, the total R&D expenditure was approximately $0.1 million. To be fair, this is a consistent figure, as R&D costs for both fiscal 2023 and 2022 were also approximately $0.1 million.

This minimal spending reflects a strategy where R&D is embedded within operations, concentrating on tangible product quality and customer needs. The focus is on:

• Sensory and shelf life testing for new products.
• Reviewing process and product trends based on customer and supplier input.
• Expanding the product category to drive new sales for customers.

Here's the quick math: with total net sales of $661.5 million in fiscal 2024, the R&D spend represents a negligible fraction of revenue, confirming a low-tech, high-efficiency operational model for the core business.

Leveraging State-of-the-Art Ripening and Packing Facilities for Operational Efficiency

The real technological investment is in the plant infrastructure, particularly for the Prepared segment, which focuses on guacamole. Calavo Growers leverages state-of-the-art facilities and food preservation technology to maintain quality and extend the sellable window of highly perishable products. This is where they win on logistics.

The most critical technology in the Prepared segment is Ultra-High Pressure (UHP) Processing, also known as High-Pressure Processing (HPP). This non-thermal pasteurization method is a game-changer for avocado products because it:

• Inactivates pathogens like Listeria monocytogenes without heat, preserving the fresh flavor and nutritional profile.
• Subjects products to pressure up to 87,000 psi (pounds per square inch).
• Extends the refrigerated shelf-life of their guacamole products up to 60 days.

This extended shelf-life is a direct technological advantage, reducing spoilage risk and allowing for wider, more cost-effective distribution. The company also continually invests in its packing house equipment and distribution centers to efficiently manage the flow of fresh avocados from diverse sourcing regions like Mexico, Peru, and Colombia.

Launching a New Internal ESG Data Management System in 2025 for Auditable Metrics

In the realm of governance technology, Calavo Growers is making a significant move to meet increasing investor and customer demand for transparency. The company's goal is to integrate Environmental, Social, and Governance (ESG) metrics into its financial filings and ensure its ESG disclosures are independently assured and/or verified by 2025.

To support this, Calavo is launching a new internal ESG data management system. This system is designed to provide auditable and verifiable ESG metrics and a clear reporting history. What this estimate hides is that the system's configuration and data collection have been progressing since late 2022, but the 2025 deadline for independent verification is the crucial compliance milestone. This is a necessary investment to reduce regulatory and reputational risk.

Use of a Vertically Integrated Supply Chain Helps Manage Product Quality and Logistics

Calavo Growers' vertically integrated supply chain is a strategic asset, and technology is the lubricant that keeps it efficient. This integration manages the entire process-from harvesting to distribution-across multiple growing regions.

The immediate benefit of this technological and operational integration is clear in their recent results. The Prepared segment's gross profit rose a significant 27% for the nine months ended July 31, 2025, driven partly by 'improved operational efficiency' and stronger cost management. This efficiency stems from their ability to:

• Control the ripening process using specialized technology in their distribution centers.
• Utilize the HPP technology to stabilize the prepared product line.
• Manage logistics for year-round, consistent product quality.

The table below summarizes the core technological applications driving their business segments in fiscal 2025:

Business Segment	Core Technology Application	Operational Benefit	2025 Fiscal Year Impact (9-Month Period)
Prepared (Guacamole)	Ultra-High Pressure (UHP) / HPP	Extended shelf-life (up to 60 days); Clean-label preservation; Food safety.	Prepared Segment Gross Profit up 27% (due to efficiencies and volume).
Grown (Fresh Avocados, etc.)	State-of-the-Art Ripening & Sorting	Consistent ripeness level; Reduced per-pound handling costs for large crops.	Supports a 6% rise in Fresh Segment sales (9-month period).
Corporate Governance	Internal ESG Data Management System	Auditable, verifiable ESG metrics; Integration into financial reporting.	Supports goal for independent ESG disclosure verification by 2025.

Finance: Review the Q4 2025 earnings release for any updated R&D or capital expenditure figures related to technology and operational efficiency.

Calavo Growers, Inc. (CVGW) - PESTLE Analysis: Legal factors

Incurred $4.2 million in Q3 2025 discrete costs from a temporary FDA detention hold on imports

You need to be acutely aware of the immediate, tangible costs of cross-border regulatory friction. Calavo Growers, Inc. (CVGW) took a direct hit in the third quarter of fiscal 2025 (Q3 2025) when a temporary Food and Drug Administration (FDA) detention hold was placed on certain avocado imports from Mexico. This wasn't a minor inconvenience; it translated into approximately $4.2 million of discrete, non-recurring costs for the Fresh segment.

Here's the quick math: The Fresh segment's gross profit for Q3 2025 was $12.4 million, a 32% decrease from the prior year, and the detention costs were a primary driver. This single, isolated event-resolved by September 2, 2025-highlights the significant financial risk tied to international supply chain compliance and customs clearance.

The $4.2 million charge covered a few things:

• Third-party inspection and testing costs.
• Incremental logistics and handling expenses.
• Inventory write-downs on fruit diverted or sold at distressed prices.

Mexican Federal Court recognized Calavo de Mexico as a maquila, aiding tax recovery efforts

On the flip side of international legal risk, Calavo Growers achieved a significant legal win in Mexico in August 2025. A Federal Court formally recognized Calavo de Mexico (CDM) as a maquila (a type of company that imports raw materials duty-free for manufacturing/processing and then exports the finished product).

This recognition is defintely a positive development. It strengthens Calavo Growers' position to recover Value-Added Tax (Impuesto al Valor Agregado or IVA) receivables from the Mexican tax authorities (SAT), which have been subject to delays and detailed reviews since fiscal 2014. Plus, it bolsters their defense in a long-standing 2013 tax assessment.

Compliance required with the FDA's Food Safety Modernization Act (FSMA)

Compliance with the FDA's Food Safety Modernization Act (FSMA) is non-negotiable for a food company of this scale. While Calavo Growers states that all its U.S. facilities are in compliance with FSMA, the regulatory scrutiny extends to its entire supply chain, including contracted farms.

A recent example shows where the risk lies: an October 2024 FDA Warning Letter cited violations of the FSMA's Produce Safety Regulation at a contracted papaya farm. The key violation was the failure to provide adequate, readily accessible toilet facilities for workers in growing areas, a repeat offense from a 2023 inspection. This is a serious issue because it can lead to the product being deemed 'adulterated' under the Federal Food, Drug, and Cosmetic Act.

The legal and compliance mandate is clear: you must enforce FSMA standards across all third-party suppliers, not just your own packinghouses. The risk of product adulteration is real.

Subject to stringent California state laws on water usage and pesticide application

Operating in California means navigating some of the country's most stringent environmental and agricultural laws. Calavo Growers' California operations are subject to oversight by the California Department of Food and Agriculture (CDFA), which covers everything from weights and measures to pesticide application.

The near-term focus in 2025 for California avocado growers is managing water use and pest control under increasing regulatory pressure. Growers are advised to monitor pesticide permits closely to avoid renewal delays. Looking ahead, the company is already preparing for new climate disclosure laws taking effect in California in 2026, which will expand the scope of required reporting on their carbon footprint and supply chain impacts.

This table summarizes key legal and regulatory risks and their financial or operational impact as of 2025:

Legal/Regulatory Factor	Status/Impact (FY2025)	Financial/Operational Detail
FDA Detention Hold (Mexico Avocados)	Resolved; High discrete cost incurred.	$4.2 million in discrete costs in Q3 2025; impacted Fresh segment gross profit.
Maquila Recognition (Calavo de Mexico)	Favorable Federal Court ruling in August 2025.	Strengthens position for IVA (VAT) recovery and defense in a 2013 tax assessment.
FSMA Produce Safety Regulation	Compliance risk demonstrated by October 2024 Warning Letter.	Cited for repeat violation (inadequate toilet facilities) at a contracted papaya farm; risk of product adulteration.
California Environmental Laws	Ongoing compliance; preparation for new laws.	Subject to CDFA regulations on water/pesticides; preparing for new 2026 California climate disclosure laws.

The next concrete step is for the Compliance and Operations teams to review the lessons learned from the Q3 2025 FDA detention and the recent FSMA warning letter to formalize a new, auditable 90-day compliance checklist for all international imports and contracted farms.

Calavo Growers, Inc. (CVGW) - PESTLE Analysis: Environmental factors

You're looking for the hard numbers on Calavo Growers, Inc.'s environmental performance as of 2025, and the reality is that their core business-fresh produce-is inherently exposed to climate risk, but they are aggressively moving to mitigate it with clear, near-term targets. The company is strategically positioned to meet its 100% sustainable packaging goal this year, but the long-term risk from weather volatility remains a critical factor that directly impacts supply and margins.

Goal to validate 100% of packaging as recyclable, reusable, or compostable by 2025.

Calavo Growers has a firm, near-term goal to validate that 100% of its packaging is either recyclable, reusable, or industrially compostable by the close of the 2025 fiscal year. This is a crucial move, as consumer and retailer demand for sustainable packaging is no longer a preference but a mandate. The goal is part of the broader Sustainable Agriculture pillar of their ESG strategy, which also includes a target to migrate at least 50% of packaging components to recycled content (by volume) by 2030. This strategy helps them manage costs and maintain access to major customers like Walmart, which accounted for approximately 12% of total net sales in 2024.

Climate change poses a direct risk from weather events like droughts and wildfires impacting supply.

Honestly, for a company whose revenue is tied to fresh produce like avocados and tomatoes, climate change is an existential business risk, not just a sustainability metric. Calavo Growers explicitly lists 'risks associated with the environment and climate change, especially as they may affect our sources of supply,' and 'the impact of weather on market conditions' in its 2025 financial filings as factors that could materially alter results. You saw this play out in the first half of fiscal year 2025, where the Fresh segment saw a 16.0% decline in avocado volume in Q2 2025, which was offset by a 40.6% increase in average price per carton, but still indicates supply volatility.

Here's the quick math on the risk exposure:

• Avocado production, particularly in California, faces pressure from increasing water costs and restrictions due to drought.
• Supply chain disruptions from extreme weather events directly threaten the distribution of the 409 million pounds of avocados, tomatoes, and papayas the company handled in fiscal year 2024.
• The company must manage its supply chain across multiple geographies, including Mexico, which adds complexity when weather events hit a single sourcing region.

Target to achieve carbon neutrality for Scope 1 and 2 emissions by 2027.

The company has set an ambitious climate action goal to achieve carbon neutrality for its Scope 1 (direct) and Scope 2 (indirect from purchased energy) emissions by 2027. This is a significant commitment, especially considering the baseline for their broader carbon reduction goal is 2022. Achieving this goal requires substantial capital investment in renewable energy, energy efficiency, and potentially carbon offsets.

The 2027 goal is part of a larger plan to reduce the total carbon footprint by 50% by 2030 across Scope 1, 2, and 3 emissions (against a 2022 baseline).

Climate Action Target	Goal	Baseline/Context	Deadline
Scope 1 & 2 Emissions	Achieve Carbon Neutrality	Targeted 0 emissions (net)	2027
Total Carbon Footprint (Scope 1, 2, & 3)	Reduce by 50%	Against a 2022 baseline	2030
Food Waste	Reduce by 50%	Against a 2022 baseline	2030

What this estimate hides is the cost of transitioning from traditional energy sources, but the long-term benefit is a reduced exposure to volatile energy prices.

Reduced average daily water use by 34% in the Uruapan facility.

A concrete win on the environmental front is the significant reduction in water use at the Uruapan, Mexico facility, a key processing center. The company successfully lowered its average daily water use by 34% through a targeted employee engagement program. This reduction was achieved over a six-month period and involved specific operational changes, which is defintely an actionable model for other facilities.

The water savings were driven by a few clear actions:

• Installation of new water meters for better tracking.
• Upgrading 90% of faucets to more efficient models.
• Switching to smart toilets in employee facilities.

This kind of efficiency is critical for a food producer, especially in water-stressed regions, and it shows that targeted, low-cost operational improvements can yield substantial environmental and financial returns. The Uruapan facility has also received the Clean Industry Distinction for meeting all environmental requirements for water consumption and other factors for ten consecutive years.

Next Step: Finance and Operations should draft a capital expenditure proposal by the end of Q4 2025 to scale the Uruapan water-saving equipment upgrades to at least two other high-water-use facilities by Q2 2026.