Orsero: greater integration with agricultural supply chains. Focus on North America

On the one hand, the future focus, through M&A, on North America. On the other, the drive – thanks above all to the leverage provided by partnerships – towards the integration of food supply chains. All this whilst maintaining a constant focus on high-quality, value-added products. These are among the priorities of Orsero to support the business. Yes, the business. The Italian multinational, whose senior management Orsero met with La Lettera al Risparmiatore, currently has Europe at the heart of its operations (turnover of 357.2 million in the first quarter of 2025). Revenues – far more limited (22.4 million) – outside Europe are linked to Mexico (avocado production and exports) and Costa Rica (support for banana and pineapple imports).

Well then: the situation is set – at least in part – to change. The group aims to establish a direct presence in North America. The objective is to be achieved through external growth. There are several proposals on the table, with the profile of the potential target characterised by a number of broad criteria. Firstly, turnover: the idea here is to be in the region of 200 million dollars. The distribution business – balanced between large-scale retail and wholesale markets – will then need to be well diversified in terms of product categories. However, particular attention will be paid to value-added products that are not already in the company’s ‘catalogue’. In this regard, a business that is heavily reliant on avocados (which Orsero exports from Mexico to the US), for example, would be ruled out. Furthermore, turnaround deals are ruled out. On the contrary! The Italian group is aiming for a deal that will boost its EBITDA margin. Finally: the timing. Orsero gives no indication here. Nevertheless – given the favourable climate for strategic and industrial deals in the wake of weakened competition from private equity – a move as early as 2025 cannot be ruled out, should the right conditions arise. But it is not merely a question of greater international expansion. Another priority, in fact, is to increase the integration of production chains. One example of this is the recent partnership between Hermanos Fernández Lopez – a Spanish company within the group – and Cooperativas Unidas de la Palma (“Cupalma”) in the Canarian banana sector. On the one hand, the agreement allows Cupalma’s producers to make use of Orsero’s Spanish infrastructure (from ripening to distribution); and, on the other hand, enables Orsero itself – alongside the consolidation of commercial relations – to exercise greater control over the product and, consequently, to continue along the path of value-added offerings. This single recent transaction is concrete evidence of the objective to increase the turnover generated by such initiatives. To date, revenue attributable to greater integration within the production chain accounts for around 40 per cent of the total. The objective? To reach – ideally – around 70 per cent of consolidated sales. The remaining 30 per cent – comprising what is known as ‘trading’ activity – is, however, considered the minimum threshold necessary to maintain sufficient business flexibility in the face of ongoing market volatility.

So far, these are some thoughts on likely shopping trends and agricultural supply chains. But there is also a commitment to value-added products. This strategy – which was launched some time ago – is continuing. Not only because of the higher profit margins and the fact that it enables Orsero to strengthen its brand and raise brand awareness, but also because these are sectors that allow for a positive return on investment (ROI) to be achieved relatively quickly. However, investors – particularly with regard to value-added products such as berries – have expressed concerns. The economic crisis, political uncertainty and reduced purchasing power may limit demand for these product categories and, consequently, impact Orsero’s business. The company, calling for a more in-depth analysis, dismisses these concerns. Between January and May 2025, the company points out, the most expensive, high-quality products saw greater growth than lower-cost ones. An example? Berries – priced at 12.77 euros per kilo equivalent by Orsero – saw a 72 per cent increase in volume compared with the same period in 2024. Pears and apples, on the other hand – again according to the multinational – have, conversely, seen a 4 per cent decline. And this despite their cost being 1.07 euros per kilo equivalent. To put it another way: value-added goods – whilst ‘commodity’ goods remain absolutely essential – are not experiencing any slowdown and, to date, no particular problems are apparent. That said, however, a further objection can be raised in more general terms. The current uncertainty is also fuelled by the chaos surrounding tariffs instigated by Donald Trump. This is a context in which there is a risk that Orsero’s business will suffer negative effects and, with it, its profit and loss account. The multinational – whilst fully aware of the complexity of the situation – once again does not share this concern. First and foremost because – as is pointed out – Orsero is not, in general, an exporter to the US. Therefore, any tariffs do not affect it directly. Of course! The company admits that avocados are exported from Mexico to the US. However, the turnover generated by this activity is limited (around 50 million dollars) compared to total revenue, which stood at 1.57 billion euros in 2024. Not only that. The USMCA (the free trade agreement between Canada, the US and Mexico) – which covers avocados – is legally very difficult to amend. So – Orsero adds – regardless of Washington’s statements, it is not very likely that we will see any developments that would give rise to real problems. This is also because alternative geographical sources of supply are difficult to identify. In Peru, for example, the growing season is limited, whilst in Colombia there are quality issues. Furthermore – Orsero states – the ‘Made in the USA’ solution is impractical, given that policies to protect local interests (for example in California) and the high cost of local labour make this option economically unsustainable. Ultimately, therefore, the Italian multinational – as things stand – does not view tariffs as a concrete problem. Not even with regard to its likely future direct presence in the US? In that case – concludes Orsero – it might be necessary to give the matter some thought. In general, however, any potential issues would be more than offset by the positive industrial and strategic value of the entire operation.

Indeed, the strategic and industrial significance. Another important area is the expansion of the group’s infrastructure. The extension of the Verona site was recently completed – and brought into operation – where, amongst other things, there is a focus on soft fruits. The situation in Greece, however, is running slightly behind schedule. In Athens, the organic growth of the facilities is being hampered by a lack of smooth communication between the company and the local authorities. The situation in Seville, on the other hand, is quite different. Here, the land for the new warehouses has been purchased. The administrative and bureaucratic procedures are underway, and the first brick is expected to be laid in 2026. The total investment commitment for the Spanish city stands at around 15 million by 2030. In short: the effort to support the company’s growth is reflected in the figures. Finally, the fresh-cut produce segment. In the past, the business of ready-to-eat fruit and vegetables had become a key focus for the company. In reality, however, growth in this segment has fallen short of expectations. The group reports that the start of this sector in 2025 has been very positive. Furthermore, it is a sector characterised by good profitability. Overall, however, it is undeniable that – mainly because the price of pre-cut fruit remains a burden for consumers – the expected boom has not materialised. Consequently, the group’s current stance – with regard to this segment – is one of ‘wait and see’.

Figures on the rise
In the first quarter of 2025, Orsero generated €379.6 million in revenue (compared with €337.8 million in the same period of 2024).
Net profit stood at 8.14 million (compared with 4.9 million a year earlier).