Mission Produce Achieves Strong Performance Amidst Challenging Avocado Market Conditions
Mission Produce, a leading avocado supplier, has reported strong performance in the second quarter of 2026 despite being impacted by an unusually high supply environment.
According to the company's recent conference call transcript, Mission Produce executed with excellence in its sales team while maintaining manageable margins despite multi-year low prices. In April, the company experienced an unfavorable step change in per unit margins due to a temporary imbalance of supply and demand of core fruit sizes, which pressured margins further as they worked to fill in the shortfalls.
However, Mission Produce's decision to continue supporting its customers in the face of compressing margins was deliberate to help them meet heightened demand and facilitate longer-term value creation. The company's transition away from Mexican avocados and toward other growing regions, including California and Peru, has allowed it to lean back into its multi-region sourcing network, which has long been one of its most durable competitive advantages.
Supply of fruit and sizing curves have normalized, and per unit margins are recovering. The company's relationships with customers remain solid, and it expects to deliver strong performance for the remainder of the year. Mission Produce's model is intentionally designed to perform across most environments and remains a key competitive advantage over its peers.
Notably, the high volume dynamics experienced in Q2 had a positive impact on the category, with U.S. avocado consumption reaching new highs, increasing strong double digits versus last year. Penetration continued to expand, with more than 1.6 million new households entering the category. This reinforces that avocados remain a category with substantial runway and is one of the more durable growth categories in the grocery store.
Mission Produce's CEO, John Pawlowski, emphasized the company's commitment to its legacy and customers while navigating this next chapter. The acquisition of Calavo closed earlier than anticipated on May 28th, which will further enhance the company's capabilities and expand its offerings.
Andrew Pearson, Vice President of Investor Relations and Strategy, noted that Mission Produce maintains consistent and strong per unit margins in most avocado pricing environments, even when prices are low. This is a testament to the company's vertical integration and multi-region sourcing network.
