London, 5 Sep (AIM) – The multinational company Westfalia Fruit has announced an expansion of its avocado packaging facility in Chimoio in the central Mozambican province of Manica.
According to a press release, Westfalia Fruit notes that this is “a significant development that underscores its steadfast commitment to propelling Mozambique’s avocado sector forward”.
It adds, “With a focus on fostering growth and innovation, the company is proud to unveil its upcoming packhouse expansion initiative”.
The company states that the upgraded facility will be completed by the second week of February 2024 to accommodate increased demand and to “reinforce Westfalia Fruit’s commitment to community development and collaboration, thereby enhancing Mozambique’s growing avocado industry”.
It concludes, “this packhouse expansion embodies not only the company’s dedication to Mozambique’s avocado sector but also signifies a significant stride towards reinforcing the local economy and promoting sustainable agricultural practices”,
Westfalia Fruto Mozambique is a Mozambican private equity company founded in 2013. The main shareholder with 75 per cent of the capital is Westfalia Fruit (Pty) Ltd, part of the Hans Merensky Holdings (Pty) Ltd group, a company specialising in the production, promotion, processing, packaging, and handling of tropical fruits. Hans Merensky Holdings is South Africa’s largest avocado producer and exporter, and Europe’s largest avocado importer.
A 2020 case study by the British social investment company AgDevCo, which holds the remaining 25 per cent stake in Westfalia Fruto Mocambique, pointed out that “in order to be sold on export markets, fruit needs to comply with international industry standards by meeting a set of phytosanitary and ethical requirements”.
It continued, to do this, “Westfalia has facilitated their Global G.A.P certification by training [farmers] how to change their practices to comply with the trademark’s standards”.
The study found that this has resulted in the first signs of what is known as “crowding in” whereby government or donor investment in services and infrastructure acts as a catalyst for wider growth. In this case, investment by donors covering the initial cost of setting up certification compliance, which involves a range of new operational practices and record keeping, has provided increased opportunities for smallholder farmers.
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