Fresh Del Monte (NYSE: FDP) expects to augment its growing avocado business with a new packing facility in Mexico, which is set to be completed by next 2017.

In a webcast earlier this week to coincide with the company's quarterly results, CEO Mohammad Abu-Ghazaleh commented on the development when he was asked about investment plans.

Earlier, CFO Richard Contreras had indicated the company had slated US$160 million in capital investment for 2016, of which US$67 million had been spent in the first six months.

"The major part of that would be our Philippine new plantations in bananas and pineapples," Abu-Ghazaleh clarified.

"We have a project that is going on now. We will have the largest and most modern avocado packing plant in Mexico by next year, so that’s one of our major investments which is ongoing as we speak," he said.

Chilean blueberry acquisition

On the same day Del Monte also announced it had purchased a 320-acre blueberry farmi n Chile in June this year, including  agricultural production land, packing houses and farm equipment.

"The purchase price for this business acquisition was $7.1 million and was funded using operating cash flows and available borrowings under the Credit Facility," the company said a 10-K form submitted to the Securities and Exchange Commission (SEC).

"The initial accounting for this business combination has not been completed because the appraisal of the property, plant and equipment has not yet been received."

In the webcast, Abu-Ghazaleh said the company has had an existing blueberry farm for more than 20 years in Chile, but the latest announcement involved new land.

He said the company was ramping up its production of blueberries as well as other berries.

"I hope by next year we will be an important player in this field," he said, adding this endeavour would have a global approach.

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