Mission Produce reported lower second-quarter earnings for fiscal 2026 as falling avocado prices and supply-chain pressures reduced margins, even as sales volumes increased. The company announced the results on June 8 after completing its acquisition of Calavo Growers on May 28, 2026.

Mission Produce generated revenue of $290.9 million during the quarter ended April 30, 2026, while reporting a net loss of $7.2 million. Avocado sales volumes rose 15% year over year, but average avocado prices dropped sharply due to high Mexican supply levels and temporary mismatches between customer demand and available fruit sizes.

The acquisition of Calavo expands Mission Produce further into prepared foods, private label products, and North American produce distribution.

What is Mission Produce?

Mission Produce is a global fresh produce company focused mainly on sourcing, growing, packing, and distributing Hass avocados. The company also operates mango and blueberry businesses and supplies retail, wholesale, and foodservice customers across more than 25 countries.

Mission Produce operates packing facilities in the United States, Mexico, Peru, and Guatemala while managing a global distribution network serving North America, Europe, China, and the UK.

At a glance

  • Mission Produce reported Q2 2026 revenue of $290.9 million
  • Net loss reached $7.2 million for the quarter
  • Avocado sales volumes increased 15% year over year
  • Average avocado selling prices fell 36%
  • Mission completed its acquisition of Calavo Growers on May 28, 2026
  • The company launched a new $100 million share repurchase program
  • U.S. avocado consumption and household penetration reached record highs

Why did Mission Produce report lower earnings?

Mission Produce said margins weakened because avocado prices dropped significantly during the quarter while sourcing costs increased.

Higher Mexican avocado production created abundant supply across the market. At the same time, delays in California and Peru harvests increased sourcing costs for specific fruit sizes that customers needed, especially during April.

Gross profit fell to $20.5 million from $28.4 million a year earlier, while adjusted EBITDA declined to $7.1 million from $19.1 million.

How did avocado market conditions affect the business?

The company sold 191.5 million pounds of avocados during the quarter, compared with 166.4 million pounds a year earlier.

However, the average avocado selling price dropped to $1.29 per pound from $2.00 per pound in the prior-year period. Mission Produce said lower pricing reflected strong Mexican supply levels and changing market conditions across North America.

Despite weaker pricing, the company said U.S. avocado consumption continued to expand, with household penetration reaching record levels.

What does the Calavo acquisition mean for Mission Produce?

The Calavo acquisition significantly expands Mission Produce’s role in the North American produce and prepared-food sectors.

Calavo supplies avocados, tomatoes, papayas, guacamole, salsa, and other ready-to-eat products under branded and private-label formats. The acquisition also gives Mission Produce a stronger position in value-added grocery products and prepared foods.

Mission Produce paid approximately $266 million in cash and issued more than 17.5 million shares as part of the transaction.

Why is this acquisition important for supermarkets and retailers?

Retailers are increasingly investing in prepared produce, convenience foods, and private-label grocery categories as consumers seek ready-to-eat products.

The Calavo acquisition allows Mission Produce to expand beyond fresh avocados into refrigerated prepared foods and store-brand supply chains. This could strengthen the company’s relationships with supermarkets, wholesalers, and foodservice operators across North America.

The transaction also supports broader consolidation trends across the fresh produce industry, where scale and supply reliability are becoming more important.

What industry trends are shaping the avocado market?

The global avocado industry continues to grow as consumer demand rises in retail grocery and foodservice markets.

At the same time, suppliers are facing greater pressure from pricing volatility, climate-related farming risks, transportation costs, and shifting harvest cycles across major production regions including Mexico, Peru, and California.

Companies with vertically integrated supply chains and diversified sourcing operations are increasingly better positioned to manage supply disruptions and maintain year-round availability.

What happens next?

Mission Produce expects avocado industry volumes during the fiscal third quarter to increase between 5% and 10% year over year.

The company also expects higher avocado production from its Peru operations during the second half of fiscal 2026. Mission Produce said pricing should remain below last year’s levels but anticipates improving margins as supply conditions stabilize.

The outlook could also influence wider US fresh produce sector supply trends, particularly across avocado sourcing, prepared foods, and supermarket distribution channels in North America.

The company expects synergies from the Calavo acquisition to begin contributing during the fourth quarter of fiscal 2026, particularly through cost savings, operational efficiencies, and expanded prepared-food distribution.

Editor’s Note: Information in this article is based on Mission Produce’s fiscal second quarter 2026 financial results announcement released on June 8, 2026, including company disclosures related to the Calavo Growers acquisition, avocado market conditions, operational performance, and forward-looking outlook.