Mega center to supply year-round avocados
Mission Produce launches its multimillion-dollar distribution facility with Abbott, Laredo officials on hand
LAREDO — Mission Produce celebrated the grand opening of one of its largest facilities on Wednesday with Gov. Greg Abbott, discussing the value of Laredo to the state and country as its largest land port.
“I am proud to welcome Mission Produce’s new distribution center to Laredo, spurring economic growth and creating even more good-paying jobs for generations of Texans to come,” Abbott said.
The company directly invested $50 million to build the new facility, said Teclo Garcia, Laredo’s director of economic development. Through discussion with Mission Produce CEO Steve Barnard, and an eight-year tax break, construction of the mega center began in summer 2020.
After the eight years, the company will start paying 100 percent of their taxes, which would go into the city’s general fund.
The facility spans 33 acres with 81,000 square feet of storage space. It holds four giant coolers, 66 refrigerated dock positions, approximately 900 staging and inspection positions, and 10 ripening rooms to allow for year-round production and stock.
According to Garcia, experts from throughout Texas and California were brought in to oversee the ripening rooms as they find local employees. The estimated number of total employees to be hired is around 120, with the possibility of more being hired per peak seasons. As of Tuesday, approximately 70 to 80 have been hired, Barnard said.
Laredo Mayor Pete Saenz said the new facility will develop growth within the economy starting with the job opportunities that pay a livable wage. However, the number of all warehouse and administrative positions or their salaries are still unclear.
Per full-time job postings by Mission Produce, a forklift driver could earn $14.50 an hour while a CDL Class A driver position pays $20-25 an hour.
Despite the pandemic creating a price increase for avocados, Mission still expanded into Texas, Abbott said.
“Everything is bigger in Texas, including the distribution of avocados,” he said. “… This project and the entire Laredo community are part of the great Texas economic success story.”
Elaborating on the impact Laredo has on the country, both Saenz and International Bank of Commerce Board Chairman Dennis Nixon provided some key figures.
Port Laredo’s trade value in July was $141 billion, and the city is close to becoming the top port of produce and cold storage, behind the Valley, Saenz said.
Nixon said 40 percent of Mexican imports into the United States travel through Laredo. Because of this, he believes that if the Port of Laredo does not work, Texas and the nation does not work.
Mission was founded in 1983 and has worked in countries across the globe to continue to provide avocados year-round, Barnard said. After working with Dole Asia and in Mexico, Mission was able to get a hold of a yearround supply that resulted in an avocado revolution.
Through new techniques and technology, a test began at a Ralph’s grocery store which determined that people often looked for ripe avocados and that 100 percent of the time would leave empty-handed if they couldn’t find one. Thus, the ripening rooms provide year-round ripe avocados and the overwhelming demand resulted in Mission working in Peru to produce the necessary supply.
“Seventy-three percent of the consumption in the U.S. comes from Mexico, so the importance of this facility is critical,” Barnard said. “That percentage might not change, but the volume overall number is going to keep going up. This facility is giving us a lot of flexibility. We can bring product here, we can bag it, we can ripen it, we can use it to backfill other facilities.”
While smaller than Mission’s production facility in Peru, growth is still on the horizon and Laredo is now a central hub for the transportation of avocados.
Ultimately, the prospect of two new land bridges to Mexico is exciting, Barnard said, as the flow of goods may be sure to benefit from additional lanes, resulting in a larger influx of revenue for Laredo-based companies handling goods.