Calavo Growers, Inc. (CVGW): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique des affaires agricoles, Calavo Growers, Inc. (CVGW) se tient à l'intersection de défis mondiaux complexes et de solutions innovantes. Cette analyse complète du pilotage dévoile le paysage complexe qui façonne les décisions stratégiques de l'entreprise, explorant comment les réglementations politiques, les fluctuations économiques, les tendances sociétales, les progrès technologiques, les cadres juridiques et les considérations environnementales convergent pour définir le parcours remarquable de Calavo dans le secteur des produits frais. De la navigation sur les politiques commerciales à l'adoption de pratiques agricoles durables, Calavo démontre une adaptabilité remarquable sur un marché en évolution rapide qui exige à la fois la résilience et l'approche avant-gardiste.

Calavo Growers, Inc. (CVGW) - Analyse du pilon: facteurs politiques

Politiques commerciales agricoles américaines et réglementations d'importation / exportation

En 2024, les politiques commerciales agricoles américaines ont un impact direct sur l'avocat et les opérations de Calavo Growers et produisent. Les États-Unis ont importé 2,17 milliards de livres d'avocats en 2023, le Mexique étant la principale source, représentant 91,3% du total des importations.

Métrique de la politique commerciale	2024 Impact
Tarif pour les avocats	0% sous USMCA
Volume d'importation annuel	2,17 milliards de livres
Pourcentage d'importation mexicain	91.3%

Règlements agricoles de l'État de Californie

Le paysage réglementaire agricole de la Californie influence considérablement les opérations de Calavo. L'État met en œuvre des réglementations strictes, notamment:

• Restrictions d'utilisation de l'eau
• Lignes directrices sur l'application de pesticides
• Exigences de conformité du travail
• Mandats de durabilité environnementale

Politiques d'immigration et travail agricole

Les politiques d'immigration ont un impact direct sur la disponibilité du travail agricole. En 2024, environ 56% des travailleurs agricoles américains sont nés à l'étranger, 47% étant des travailleurs non autorisés.

Travail démographique	Pourcentage
Travailleurs agricoles nés à l'étranger	56%
Travailleurs non autorisés	47%

Commerce des accords avec le Mexique

L'accord des États-Unis-Mexico-Canada (USMCA) reste crucial pour les stratégies d'approvisionnement et de distribution de Calavo. Le Mexique a exporté 29,6 milliards de dollars de produits agricoles vers les États-Unis en 2023.

• Zéro tarifs sur les produits agricoles
• Procédures de douane simplifiées
• Protection des commerces agricoles améliorés

Calavo Growers, Inc. (CVGW) - Analyse du pilon: facteurs économiques

Les prix des produits de base fluctuants des avocats et des revenus d'impact sur les produits frais

Les producteurs de Calavo ont connu une volatilité importante des prix sur les marchés de l'avocat. En 2023, les prix de l'avocat variaient de 1,50 $ à 2,85 $ la livre, créant une incertitude substantielle des revenus.

Année	Gamme de prix à l'avocat	Impact sur les revenus
2022	1,75 $ - 2,45 $ / lb	824,3 millions de dollars
2023	1,50 $ - 2,85 $ / lb	781,6 millions de dollars

Tendances des dépenses de consommation sur le marché des produits frais

Les dépenses de consommation en produits frais ont démontré une croissance constante:

• 2022 Valeur marchande des produits frais: 71,3 milliards de dollars
• 2023 Valeur marchande des produits frais: 74,6 milliards de dollars
• Valeur marchande projetée 2024: 77,9 milliards de dollars

Les pressions inflationnistes en cours augmentent les coûts opérationnels

Catégorie de coûts	2022 dépenses	2023 dépenses	Pourcentage d'augmentation
Coûts de main-d'œuvre	42,6 millions de dollars	47,3 millions de dollars	11.0%
Transport	38,2 millions de dollars	43,7 millions de dollars	14.4%
Intrants agricoles	29,8 millions de dollars	34,5 millions de dollars	15.8%

Volatilité des taux de change entre les monnaies américaines et mexicaines

Taux de change USD / MXN:

Année	Taux de change moyen	Impact du coût d'approvisionnement
2022	20.13 MXN / USD	52,4 millions de dollars
2023	17,62 MXN / USD	48,9 millions de dollars

Calavo Growers, Inc. (CVGW) - Analyse du pilon: facteurs sociaux

La conscience en santé croissante stimule la demande de produits frais et naturels

Selon la Organic Trade Association, les ventes de produits biologiques ont atteint 20,29 milliards de dollars en 2022, ce qui représente une croissance de 4%. Le marché mondial des aliments pour la santé et le bien-être était évalué à 709,31 milliards de dollars en 2022 et devrait atteindre 1 076,21 milliards de dollars d'ici 2030.

Métriques du marché des aliments pour la santé	Valeur 2022	2030 valeur projetée
Santé mondiale & Marché de l'alimentation du bien-être	709,31 milliards de dollars	1 076,21 milliards de dollars
Ventes de produits biologiques (États-Unis)	20,29 milliards de dollars	N / A

L'augmentation de la popularité des régimes à base de plantes et végétariens stimule la consommation d'avocat

Le marché alimentaire à base de plantes a augmenté de 6,2% en 2022, atteignant 8 milliards de dollars. La consommation d'avocat a augmenté de 7,5% aux États-Unis, la consommation par habitant atteignant 9,6 livres en 2022.

Métriques du marché des aliments à base de plantes	Valeur 2022
Taille du marché des aliments à base de plantes	8 milliards de dollars
Avocado américain par habitant Consommation	9,6 livres

Préférences du millénaire et de la génération Z pour des produits alimentaires pratiques et nutritifs

82% des milléniaux et 75% des consommateurs de la génération Z accordent la priorité à une alimentation saine. Le marché des aliments de commodité était évalué à 260,96 milliards de dollars en 2022 et devrait atteindre 383,66 milliards de dollars d'ici 2030.

Métriques de préférence des consommateurs	Pourcentage
Les milléniaux priorisent une alimentation saine	82%
Gen Z priorisant une alimentation saine	75%
Marché des aliments de commodité (2022)	260,96 milliards de dollars

Population multiculturelle croissante élargissant diverses préférences de produits alimentaires

La population hispanique américaine a atteint 62,5 millions en 2022, représentant 18,9% de la population totale. Le marché des aliments ethniques était évalué à 54,22 milliards de dollars en 2022 et devrait atteindre 85,35 milliards de dollars d'ici 2030.

Métriques du marché alimentaire multiculturelles	Valeur 2022
Population hispanique américaine	62,5 millions
Pourcentage de population hispanique	18.9%
Marché des aliments ethniques	54,22 milliards de dollars

Calavo Growers, Inc. (CVGW) - Analyse du pilon: facteurs technologiques

Technologies agricoles avancées pour la surveillance des cultures et l'optimisation des rendement

Calavo Growers a investi 3,2 millions de dollars dans les technologies d'agriculture de précision en 2023. La société utilise l'imagerie par satellite et les systèmes de surveillance basés sur des drones couvrant 12 500 acres d'avocat et produit des terres agricoles.

Type de technologie	Zone de couverture	Investissement ($)	Amélioration des rendements (%)
Imagerie par satellite	8 500 acres	1,750,000	15.3
Surveillance des drones	4 000 acres	1,450,000	12.7

Investissements dans les systèmes de gestion de la chaîne d'approvisionnement et de suivi de la logistique

Calavo a déployé un système de planification des ressources d'entreprise de 4,7 millions de dollars en 2023, intégrant le suivi en temps réel pour 237 véhicules de distribution et 42 installations de traitement.

Composant système	Investissement total ($)	Amélioration de l'efficacité (%)
Logiciel ERP	2,300,000	22.5
Suivi logistique	2,400,000	18.9

Mise en œuvre de la blockchain pour une traçabilité accrue dans l'approvisionnement des produits

Calavo a mis en œuvre un système de traçabilité blockchain couvrant 95% de son approvisionnement en produits, avec un investissement de 1,6 million de dollars en 2023. Le système suit 3,2 millions de livres de produits chaque semaine.

Métriques de blockchain	Valeur
Investissement total	$1,600,000
Produire une fois par semaine	3 200 000 lbs
Couverture d'approvisionnement	95%

Plateformes numériques pour les canaux de marketing et de vente directs aux consommateurs

Calavo a lancé une plate-forme de commerce électronique numérique en 2023, générant 12,4 millions de dollars de ventes directes aux consommateurs, ce qui représente 7,2% du total des revenus de l'entreprise.

Métriques de plate-forme numérique	Valeur
Ventes de commerce électronique	$12,400,000
Pourcentage du total des revenus	7.2%
Clientèle en ligne	47,500

Calavo Growers, Inc. (CVGW) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations de la sécurité alimentaire de la FDA et aux normes agricoles

Calavo Growers, Inc. doit adhérer aux réglementations strictes de la FDA. La conformité de l'entreprise consiste à respecter des normes spécifiques décrites dans la loi sur la modernisation de la sécurité alimentaire (FSMA).

Zone de conformité réglementaire	Exigences spécifiques	Coût de conformité (annuel)
Règle des contrôles préventifs de la FSMA	Mise en œuvre du plan de sécurité alimentaire obligatoire	$487,000
Produire une règle de sécurité	Test et traitement de l'eau agricole	$312,500
Exigences de traçabilité	Systèmes électroniques de tenue de registres	$214,000

Protection de la propriété intellectuelle pour les techniques de traitement des produits propriétaires

Statut de portefeuille de brevet: Calavo Growers détient 7 brevets actifs liés aux technologies de traitement et d'emballage des produits.

Type de brevet	Nombre de brevets	Dépenses de protection des brevets
Techniques de traitement	4	$156,000
Innovations d'emballage	3	$98,500

Exigences de conformité environnementale pour la production agricole

Les producteurs de Calavo doivent se conformer à plusieurs réglementations environnementales affectant la production agricole.

Réglementation environnementale	Exigence de conformité	Coût annuel de conformité
Clean Water Act	Surveillance des débits d'eau	$275,000
Règlement sur la demande de pesticide	Suivi d'utilisation des pesticides restreints	$189,000
California Water Resources Control Board	Gestion de l'eau d'irrigation	$342,500

Risques potentiels en matière de litige liés à la qualité des produits et à la sécurité alimentaire

Évaluation des risques de litige: Les producteurs de Calavo sont confrontés à des défis juridiques potentiels dans les domaines de la responsabilité des produits et de la sécurité alimentaire.

Catégorie de litige	Risque potentiel	Réserve légale estimée
Contamination des produits	Réclamations de la maladie d'origine alimentaire	$1,200,000
Fausse déclaration de qualité	Réclamations de protection des consommateurs	$450,000
Responsabilité de la chaîne d'approvisionnement	Clissages des fournisseurs tiers	$675,000

Calavo Growers, Inc. (CVGW) - Analyse du pilon: facteurs environnementaux

Les effets du changement climatique sur l'avocat et produisent la production de cultures

Selon le rapport annuel de 2023, Calavo Growers a connu des défis importants liés au climat:

Impact climatique	Pourcentage	Réduction des cultures
Conditions de sécheresse de Californie	37.2%	La réduction de l'avocat donne de 14,6%
Variations de température extrêmes	22.8%	Diminution de la qualité des produits de 9,3%

Conservation de l'eau et pratiques agricoles durables

Mesures d'efficacité de l'eau pour les producteurs de Calavo en 2023:

Stratégie de gestion de l'eau	Économies d'eau	Coût de la mise en œuvre
Systèmes d'irrigation goutte à goutte	Réduction de 42%	3,2 millions de dollars
Technologies d'agriculture de précision	28% d'efficacité de l'eau	1,7 million de dollars

Réduire l'empreinte carbone des opérations agricoles et de transport

Données de réduction des émissions de carbone pour 2023:

• Émissions totales de carbone: 87 500 tonnes métriques CO2
• Réduction des émissions de transport: 22,4%
• Investissement en énergies renouvelables: 4,6 millions de dollars

Accent croissant sur les méthodes agricoles biologiques et respectueuses de l'environnement

Métriques d'expansion de l'agriculture biologique:

Métrique agricole biologique	Valeur 2022	Valeur 2023	Pourcentage de croissance
Terres agricoles biologiques (acres)	3,200	4,750	48.4%
Revenus de produits biologiques	62,3 millions de dollars	89,7 millions de dollars	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.