July 10, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Native to North America, blueberries were first commercially cultivated for sale in 1916. Now, one hundred and seven years later, the U.S. is the largest blueberry producer in the world, commercially growing the crop in 26 states. However, it’s only 10 U.S. states: Oregon, Washington, Georgia, Michigan, California, New Jersey, North Carolina, Florida, Texas, and Minnesota that are responsible for more than 98 percent of the harvest. 

Although strawberries are the most-produced berry in the U.S., the blueberry is ranked second, with production growing at a faster rate than that of strawberries over the past decade. From 2010-2019, fresh market-cultivated blueberry output grew at a CAGR of 5 percent, climbing from 246.4 million pounds in 2010 to 373 million pounds in 2019. 

This boom in production saw the volume of fresh blueberries on the U.S. market increase fivefold, fluctuating between $2.75-$4.00 per pound, depending on market volatility. 

Noting these trends, Carofin and Carolina Financial Securities continue to expand their berry platform, announcing the acquisition of a blueberry farm in the U.S. Southeast region via a deal funded through the single purpose vehicle (SPV) Berry Capital Management II (BCM II). 

Carolina Finance Group (CFG), which is the parent company of both Carofin and CFS, is a  private investment bank that structures investments and raises critical capital for small-to-medium sized businesses seeking growth capital in the U.S. Together, Carofin and CFS have raised more than $1.3 billion since 1995 over 200-plus private transactions. 

Carofin stated that it raised the necessary capital to close the BCM II financing through backing from a syndicate of high-net-worth accredited investors and family offices as investors increasingly are turning to Carofin as a source for direct private investments in venture-stage through middle-market operating companies. 

“We know that investors are seeking yield outside of traditional bond and real estate investments,“ said Garrick Ruiz, VP of sales and syndication, Carofin. “BCM’s repeatable structure has gained traction with investors for their current income-oriented portfolios. We’re thrilled with the continued success of this program.”

To-date, Carofin and its affiliates have raised in excess of $1.3 billion across more than 200 direct private investments. In addition to its focus on agriculture, the firm stated that it has also raised capital for various companies in the food production vertical, including sweet potato farming, poultry processing, tomato farming, and organic beef cattle ranching, among others over the past decade. 

The $2.5 million in funding for this latest deal secured a farm lease with an institutional agriculture Real Estate Investment Trust (REIT); purchased equipment for the operation of the farm; and provided working capital to prepare the crop for the 2023 harvest. 

“Each farm further puts Carolina Berry Group (CBG) in a position to support our retail customers better as well as our marketing partnerships,” said Brick Rooks, CEO, CBG. “Our direct operation of these farms gives us the vertical approach that is needed to supply such a pivotal window, with the best and most consistent supply possible.”

“Southern-grown blueberries continue to be a high conviction crop, as demonstrated with the closing of BCM II,” added Joshua Green, VP of sales and analytics, Carofin. “We’ve got a structure that enables Brick to go out and do what he does best — farm berries and grow CBG’s footprint in the Southeast.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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