2021 CAC Annual Report by California Avocado Commission

CALIFORNIA AVOCADO COMMISSION 2021 ANNUAL REPORT

TABLE OF CONTENTS CHAIRMAN’S LETTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 PRESIDENT’S LETTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 BOARD OF DIRECTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 AUDITED FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Independent Auditor’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Basic Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 INDUSTRY STATISTICAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

2 California Avocado Commission

On the covers: Gordon Kimball, Kimball Ranches - El Hogar

CHAIRMAN’S LETTER

iscal year 2020-21 was a year of adjusted expectations. A June heat wave, a far-reaching drought and strong winds resulted in a 257 million pound crop that was smaller — both in volume and size structure — than originally projected. And the pandemic, which we hoped would recede, continued to strain our operations. But throughout, I have remained bullish about our future. Not simply because as a grower I have weathered plenty of difficult seasons, but because my years with the California Avocado Commission have demonstrated that our staff, marketing team, board and growers make every effort to ensure our industry thrives, no matter the challenges. At the micro level consider this year’s smallersized, lower volume crop. By increasing the frequency of crop survey data and refining the tools we use to gather that information, we have enabled our marketing team to be better positioned to customize and time promotions to complement fruit size and harvest volume. At the macro level, we have dedicated years of hard work to establishing our premium brand, improving the use of data for everything from research to marketing, and developing partnerships to strengthen our advocacy efforts. With a safety net as robust as this, our industry is — and will continue to be — capable of making nimble adjustments to revised

expectations. I’m also bullish about our future because this year the statewide grower referendum, which represented the first vote since the Commission exempted smaller growers, approved the continued operation of the Commission for the next five years. The referendum, which passed with overwhelming support (75%), will ensure we can continue efforts to refine our industry and constructively solve problems. Just as we adapted our crop survey tools to provide us with more accurate data to fuel our marketing decisions, we will continue to search for the next big challenge on the horizon so we can adapt our production research and industry affairs programs and proactively address issues before they spiral out of control. Further, we will continue to develop robust programs to help growers improve on-farm practices that drive higher productivity and profitability.

Rob Grether Chairman

With GEM avocado acreage increasing in California groves and the fruit a popular discussion point with retailers, the Commission added the fruit to its popular avocado variety browser and GEM assets to its online pressroom.

2021 Annual Report

help protect the environment during wildfires, contribute to local economies and improve surrounding communities by reducing urban sprawl. We also shared the challenges our growers face and advocated for recognizing and incentivizing growers’ existing contriData from the Commission’s grower profitability study indicated that while irrigation costs remain significant, other butions to a healthy major cost factors play a critical role in the profitability of an operation. climate. As a result, the Commission was invited to work with Rivas on an avoThis year, the Commission conducted a study to collect concrete data on cado pilot program to preserve and expand the profitability of the California avocado industry and the operating characthe ecosystem benefits of avocado grove teristics of our diverse avocado enterprises. We are grateful to the growers who practices, and Jason Mraz was provided participated in the State-of-the-Industry survey and provided us with 2018-20 the opportunity to testify at an Assembly production, crop value, gross income, total expenses, water source and irrigainformational meeting on Environmental tion cost data, as well as their feedback concerning the most serious threats to Farming as our industry ambassador. their profitability. Ultimately, their active participation provided the CommisWith an eye to protecting our insion with a more representative spectrum of profitability and a more accurate dustry, the Commission remains diligent picture of profit and loss within our industry. Data indicated that while yields about identifying potential pest infestaare declining slightly, crop values are holding steady. Respondents also reported tions caused by global avocado imports. To continued growth in revenues, but it is clear expenses are growing at a faster rate that end, the Commission submitted exand applying pressure on growers’ net margins. Findings from the survey inditensive comments to the Animal and Plant cated irrigation costs remain significant, but are not the single major cause of Health Inspection Service concerning the increasing total expenses — rather, growers indicated costs associated with labor major threat the avocado seed moth, assoand compliance play a significant role in profitability. Although the survey data ciated with Ecuadorian avocado imports, indicates many of our growers remain profitable, the pace at which operational posed to quarantine security. In addition, costs are rising is a clear call-to-action and the Commission will use the findings CAC staff met with APHIS staff in Washfrom this report to assess growers’ most pressing challenges and develop strateington, D.C. to call for mandatory surveys gies to help growers optimize their yields. of Ecuadorian production areas. As a For the past several years, the Commission has made concerted efforts to result, APHIS revised the 2018 proposed address increasing consumer and trade interest in sustainability by identifying rule to include the Commission’s recomthe California avocado industry’s sustainability practices and the hundreds of mended surveillance protocols, ensuring laws our growers must comply with. This year, the Commission launched a sussites with detected pests are prohibited tainability webpage on the CaliforniaAvocado.com consumer website showcasfrom exporting avocados to the U.S. until ing our environmentally friendly farming methods, our commitment to worker the risk has been mitigated. well-being, and the role California groves play in supporting healthy communiOn the labor front, the Commisties and economic viability. To build awareness of our sustainability practices, sion continued to advocate for access to the Commission invited Assemblyman Robert Rivas, chair of the Assembly a secure and reliable workforce by signAgriculture Committee, to visit Jason Mraz’s California avocado grove and witing a letter of support for passage of the ness first-hand our sustainable growing practices and discuss how our groves

4 California Avocado Commission

Farm Workforce Modernization Act and maintained its active role as a member of the Agriculture Coalition for Immigration Reform. To support interest from California growers, the Commission expanded research and outreach efforts on the GEM variety. Favorable tree and fruit characteristics of the GEM variety — a compact tree structure well-suited to high-density planting, robust foliage that protects from sunburn and early-season, high yields of large fruit — have led it to become a popular choice with growers in recent years and is gaining attention from retailers. Given this increasing interest in GEM, the Commission established a multiyear (4-5 years) research trial to evaluate the feasibility of increasing GEM avocado grove productivity through high density planting. The Commission also reported findings from a GEM scarring trial, which indicated that windbreaks and windscreens could be useful in minimizing fruit scarring. In response to grower questions about the variety, the Commission also shared GEM observations and recommendations from a local nursery. To address consumer interest in the variety, CAC added information on GEMs to the consumer website and online pressroom to improve search engine results and establish CAC as a go-to source for GEM information. On the pest management front, the

Commission adopted a proactive management approach to the large avocado seed weevil by launching a three-year project designed to develop management tools in advance of the pest becoming a threat. The new study seeks to identify pheromones that attract the pest to feeding and mating sites, determine the weevil’s natural enemies and examine biological characteristics — such as flight patterns and avocado preferences — that could provide researchers with effective mitigation strategies.

The Commission also devoted significant efforts to continued research concerning avocado branch canker, which has become increasingly common. This year the Commission shared findings identifying Botryosphaeria as the primary causal agent of Avocado Branch Canker, confirmed wounds are the primary infection sites for the disease and outlined the best ABC disease management strategies when pruning. In the coming years, CAC will investigate optimal fungicides that

The Commission invited Assembly Ag Committee Chair Robert Rivas to tour Jason Mraz’s California avocado grove to learn more about how groves protect the environment and make positive impacts on local economies and communities. Jason also testified before the Assembly Informational Hearing on Environmental Farming on behalf of the California avocado industry.

2021 Annual Report

The new California Avocado Sustainability webpage shares California avocado growers’ commitment to environmentallyfriendly farming, worker well-being, healthy communities and economic viability.

6 California Avocado Commission

protect from ABC during pruning. Findings from the Commission’s State-of-the-Industry Survey indicated the biggest factor to mitigating increasing production costs is increasing California avocado yields. The Commission remains committed not only to conducting research to address potential and current challenges faced by California avocado growers, but also ensuring growers have access to information that can help them improve their yields. To that end, throughout the year CAC shared critical cultural management information via the bi-weekly GreenSheet and on the California avocado grower website including articles to help growers interpret soil/leaf/water analyses, best harvesting practices, and methods of coping with the extremes of climate change. In addition, the Commission

hosted both in-person field days and virtual seminars to address some of the most pressing topics. Growers were invited to learn about the insights gleaned from the Commission’s Pine Tree Ranch fertility program, as well as the California avocado rootstocks and GEM avocado trials being conducted at Pine Tree Ranch. CAC collaborated with experts from New Zealand and UC-Riverside to produce an avocado nitrogen and fertility webinar, and hosted its own heat mitigation strategies session for growers. To help growers cope with the continued pressures placed on their operations by COVID, the Commission consistently shared information about COVID protocols and funding resources for operations impacted by the pandemic. Further, CAC gathered and shared information regarding organic certification, mandated FSMA produce training sessions, disaster assistance, and drought, water conservation and irrigation system evaluation resources. As we move forward, I am encouraged by the opportunities ahead. As diverse as our California avocado operations are, every one of our growers is committed to growing premium fruit that represents the best this state has to offer. And we are backed by a strong support network of expert Commission staff, dedicated board members, and committed industry partners and advocates who will help us continually pursue opportunities to improve our industry and support our vision to grow and market the most-desired avocados in the world.

PRESIDENT’S LETTER

hroughout history, California avocado growers have been subject to the whims of Mother Nature and have had to adapt to shifts in labor and resource availability, the ebb and flow of pests and diseases, and the perpetual tides of the market. For the second year in a row, however, those variables were compounded by two additional factors. The extremes of climate change — resulting in a lower-than-projected California avocado crop volume and smaller-sized fruit. And the uncertainties of a variable pandemic, which contributed to supply chain issues and labor shortages impacting a food service and retail industry already strained by the previous year. And yet, across the board we secured higher average lug prices for all sizes as compared to last year, procured a respectable average $1.14 in-season selling price, reported a continued increase in usage and sales of bagged avocados that helped move a smaller-sized crop, and ran successful promotions with 13 foodservice chains and 11 retail partners. I have long touted the importance of the California avocado industry’s ability to pull together — to face challenges as a diverse, but united-in-purpose whole. As I look back on this tumultuous year, it is clear my faith in our core operating principle — teamwork — has never been better placed. Over the past decades we have worked relentlessly to bring together and partner with talented, dedicated, knowledgeable individuals — California Avocado Commission staff, growers, handlers, researchers, agencies — to produce, distribute and market the best fruit on the planet. Further, we have extended those partnerships to carefully selected brand advocates, chefs, and retail/foodservice

partners who are committed to and representative of a premium brand we have so painstakingly established. Collectively, we pair promotions with availability, provide relevant and informative content that engages our consumers and empowers our trade partners, and showcase our premium fruit with unique retail/foodservice promotions that suit the needs of our partners without sacrificing our brand integrity. The groundwork we have laid by establishing these partnerships and gathering this talent has provided us with a keen understanding of our targeted consumers and data-driven marketing strategies nimble enough to adapt to swift changes in sentiment and harvest volume — even in years such as this. The following highlights are representative of the robust partnerships, data-driven decisions and adept adjustments that remain central to our success.

Tom Bellamore President

The Commission’s Avocado Ripeness Study indicates that today consumers look to purchase avocados they can enjoy the day of purchase as well as later in the week — indicating retailers can encourage sales of the fruit by displaying avocados of varying levels of ripeness.

2021 Annual Report

The return to in-person industry events provided the Commission with opportunities to showcase unique flavor profiles by using spice pairings and California avocado concept dishes for targeted foodservice industry decision makers.

8 California Avocado Commission

CONSUMER MARKETING — LIGHT-HEARTED, INFORMATIVE, INSPIRATIONAL AND RELEVANT The Commission has long committed itself to gaining a better understanding of our targeted consumers and their changing needs and interests. In a year marked with equal parts hope and uncertainty as the world endeavored to adapt to a “new normal,” the Commission developed a marketing plan focused on providing both information and inspiration. Noting consumers’ interest in health and wellness, sustainability and food safety, at-home meal preparation, and dining options that combine flavor with well-being, the Commission produced relevant and engaging content paired with uplifting imagery evoking the California lifestyle. As a result, the Commission’s consumer marketing activity produced impressive levels of engagement, garnering more than

1 billion impressions, and achieving brand awareness of 89% in our home state. Recognizing the light-hearted and uplifting “The best avocados have California in them” consumer campaign remained uniquely suited to this moment in time, the Commission continued the campaign and adopted fresh attributes — California colors, creativity, culture, drives, hope, kindness, sights, skies, taste, waves and wonder — representative of the California lifestyle. For year two of this award-winning campaign, the Commission partnered with 10 new artists to showcase inspirational artwork, including a custom “creativity” design in Venice, California by renowned street artist Shepard Fairey and his design team. Data indicates video spots showcasing this campaign clearly resonated with the California avocado audience and served to differentiate our brand. The 2021 Instapanel study reported 87% of consumers who viewed the spots said they were more willing to pay a premium price and 81% indicated California avocados were different than those from other origins. Similarly, the 2021 Spotify Nielsen Brand Effect Study indicated the ads exceeded benchmarks across the board, including ad recall, brand awareness, brand preference, favorability and purchase intent. Overall, the campaign garnered 333 million impressions. With recent data indicating California avocado targeted consumers spend most of their time on streaming video and digital channels, the Commission increased its use of videos in both public relations and ads. The Commission built upon its strong showing last year with video ads appearing as pre-roll on foodie and trending content available on YouTube, Hulu, POPSUGAR, and Viant, and paired video with audio ads on Spotify. Overall, the video advertising program produced a noticeable uptick in engagement with 93

million impressions on digital streaming channels and 16 million views on audio platforms. One of the clear advantages to content creation is the ability to repurpose and share that content across a variety of traditional, digital, social and streaming channels. Take, for example, CAC’s partnership with chef and health food enthusiast Oliver English who filmed three roadtrip videos preparing California avocado recipes amongst some of the state’s most stunning backdrops. In a nod to changes in lifestyle and travel brought about by the pandemic, the videos provided travelers with easy-to-prepare recipes. The videos were then shared across the Commission’s social media platforms, on content partner sites and used in pre-roll ad placements on Spotify, Hulu, YouTube and the Food Network, a channel that reported more than 25% growth in minutes watched during the pandemic era. In total, this activity garnered 3 million impressions. Similarly, the new “California Avocados — History, Growers and Culture” video, which showcased the fruit’s influence on California culture and cuisine while providing an up-close-and-personal tour of picturesque groves, was used throughout the season for public relations purposes and on digital channels including the CaliforniaAvocado. com site and CAC’s social platforms. By partnering with trusted and respected third-party advocates, the Commission created another avenue by which we can engage, inform and entertain our targeted consumers. Our advocates are talented storytellers and photographers who demonstrate the ease and joy of preparing on-trend California avocado recipes that appeal to a variety of lifestyles, share time-saving tips and tricks, and relay easy-to-understand nutrition information. The Commission developed recipe and content themes that paired consumers’ health, wellness and lifestyle interests with

the individual talents and specialties of our six Brand Advocates and six Living Well Brand Advocates. Themes included no/low waste meals for budget-conscious families, vegan recipes with a California coastal theme, on-trend multicooker recipes, meals that incorporate immune-boosting foods and meals families could prepare together. Advocates shared their California avocado content across their social media channels, in vlog and blog posts, and in articles and television appearances garnering 134 impressions across digital and traditional media. With a reported 72% of consumers using social media in some form, consumer engagement on these platforms remains a critical component of the Commission’s public relations efforts. This year, CAC reported a 95% increase in Facebook impressions, a 103% increase in retweets on Twitter and a 30% increase in YouTube subscribers. Ultimately, the California avo-

Launched in March, CAC’s LinkedIn page reported a 231% follower growth rate thanks to informative posts such as this one, which showcased how the Commission helps retailers promote California avocados in-store and across digital channels.

2021 Annual Report

The Commission’s award-winning “The best avocados have California in them” campaign creative received high marks from consumers and was repurposed for consumer and trade purposes, including this Instagram post by foodservice chain partner Flame Broiler.

cado social media campaigns on Facebook, Instagram, Twitter and Pinterest delivered more than 27 million impressions, 2.6 million engagements and an additional 2.8 million impressions for social posts promoting California avocado availability at local retailers. By sharing relevant, uplifting, informative and inspirational content and imagery, the Commission’s consumer public relations campaign secured nearly 918 million impressions.

New recipes, improved accessibility Acknowledging the penchant for fresh, easy-to-prepare meals as consumers increasingly prepared meals at home two years into the pandemic, the Commission found new ways to engage with its targeted consumers and showcase California avocado meals that appeal to a variety of lifestyles. CAC launched the season with an online cooking class led by celebrity chef Brian Malarkey for local, consumer and trade media, influencers and retail contacts. Chef, cookbook author, culinary personality and CAC Board member, Daniella Malfitano, joined the online session as moderator. Armed with fresh inspiration, the participants shared their experiences and recipes with their followers across various digital channels garnering 157 million impressions. 10 California Avocado Commission

Welcoming California avocado fans to join us in celebration of California Avocado Month, CAC hosted a California Avocado Recipe Contest via Modern Luxury’s premium California magazines. The winning recipe was showcased by chef and wellness influencer Nikki Martin, securing 514 million impressions. In addition, CAC hosted a local drive-in event for consumers, media and influencers featuring a California classic movie, Angels in the Outfield, and recipe cards developed by chef E Dubble of the Los Angeles-based Fraiche food truck garnering an additional 76 million impressions. To make it easier for consumers to find fresh inspiration for at-home meals featuring California avocados, the Commission continued efforts to optimize CaliforniaAvocado.com content and functionality, reaching its primary goal of being ranked first among its competition for site speed on mobile. Further, the recipe section was redesigned so consumers could easily view it on mobile devices, create shopping lists and select recipes based on meal occasions and lifestyle preferences. In addition, 91 new recipes ranging from sandwiches/burgers/wraps, salads and soups to side dishes, salads, beverages and breakfast options were added to the number one most-visited portion of the consumer website, the recipe section.

More options for fans to share their love for California avocados Having developed a robust social media presence that has established the Commission as a trusted source for “all things avocado” and having expanded that sphere of influence with respected brand advocates, we also were presented with the opportunity to bring consumers into the brand-advocate fold with California avocado-branded merchandise. Launched at the end of 2020, the ShopCaliforniaAvocado.com merchandise shop continues

to grow in popularity. To that end, this fall we introduced new California avocado merchandise options just in time for holiday shopping. The new items featured “The best avocados have California in them” thematic on posters, beach towels, mugs, aprons and t-shirts, while new novelty items included an avo head perfect for sporting and outdoor events and a pit pillow for expectant mothers. Current revenues have offset delivery costs and average orders now value nearly $90.

TRADE MARKETING — INSPIRATION AND INFORMATION BUILD DEMAND Having weathered the challenges of 2020, year two of the pandemic placed additional stressors on retailers and foodservice operators in 2021 with an increase in supply chain issues and rising concerns about labor shortages. Recognizing the burdens faced by current and potential trade partners, the Commission relied on two of its greatest strengths: data and collaborative creativity, as the tools by which it could help partners drive demand without placing undue stress on partners’ operations. To broaden awareness of the Commission’s role as an industry leader, trusted resource and valuable partner, CAC utilized informative trade PR campaigns, advertising and a newly established presence on LinkedIn to demonstrate the value of California avocados and the services of the Commission. By sharing content on LinkedIn illustrating key activities, promotions and programs available to retailers and foodservice operations that partner with the Commission, CAC improved engagement with industry members while building brand awareness, loyalty and sales of California avocados. One of CAC’s posts, which shared a video demonstrating how CAC assists retail teams, garnered

78,000 impressions. In addition, CAC’s posts were routinely tagged by trade press, industry blogs, podcasts, executive chefs, industry professionals and avocado packers and handlers, expanding our sphere of influence and awareness. This business-tobusiness social presence was complemented by trade PR showcasing CAC news, California avocado availability, and key brand messages, advertising and programs. Combined trade PR and advertising yielded nearly 50 million impressions. Data from the State of the Avocado Category report indicated CAC’s tieredmarketing approach, which aligns customized marketing support with distribution, remains a powerful means of driving sales at the retail level. From 2017-20, the California avocado season averaged more than $5.2 million more sales per week than the non-California season and that gap is widening. The Commission’s focus on California markets is also validated by the data, which indicates California sales velocity and the average retail price of organic and conventional avocados is consistently higher than the rest of the nation. Further, a California Promotional Retail Study reported a 39% greater weekly average in dollar sales during a California avocado feature week versus a nonCalifornia avocado feature week and that dollar sales increased at a faster rate (23%) as compared to other avocados (16%).

The Commission found unique ways of engaging with consumers during the pandemic, including a familyfriendly drive-in event that celebrated California avocados with the Southern California classic Angels in the Outfield and secured 76 million impressions.

2021 Annual Report

Figures like this are an important means of demonstrating to current and future retail partners the value of California avocados and to encourage retailer support that will build demand for the fruit. Further, our continued efforts to gain insight into shoppers’ preferences and the role those preferences play in determining their avocado purchase decisions play a critical role in helping our retail partners successfully engage with consumers and build demand for California avocados. For example, the qualitative Avocado Ripeness Study conducted this year not only gleaned key changes in California consumers’ avocado purchasing behaviors it also provided critical insights for best merchandising practices. Clearly, our data-driven approach is working. Across the board, CAC’s retailer partners reported promotional gains. For example, PCC Community Markets hosted a virtual cooking class and posted social media videos that garnered 4.2 million views. PCC Community Markets’ bagged avocado promotion resulted in a 70% lift in sales. Natural Grocers hosted a first-

time Father’s Day Meal Deal promotion for organic avocados that led to a 21% lift in sales over the previous year. And a CAC-sponsored sales contest at Albertsons/Vons/Pavilions led to more than $2.5 million in sales and a 3.75% increase in bagged avocado sales. By providing retailer partners with data-backed strategies and CAC-branded materials and inspirational promotional ideas that go beyond advertising, we have been able to build demand for our fruit. To broaden awareness of the Commission’s expertise and resources in the foodservice sector, CAC hosted virtual and on-site sessions demonstrating how to build unique flavors with California avocados. Later in the season, CAC created the California Avocado Academy series consisting of 18 videos created by Chef Jason Hernandez focused on California style, cuisine, seasonal availability and tips and techniques. In addition, CAC launched an enewsletter promoting resources available to chain partners that reported an aboveaverage open and click-through rate. CAC staff attended two virtual and six in-person

In light of the pandemic, consumers showed even greater interest in health and well-being and sought recipes they could easily prepare at home. To meet those needs, the Commission partnered with Living Well Brand Advocates like Culinary Dietitian Wendy Jo Peterson, MS, RDN, who flexed her culinary creativity by creating recipes that could be prepared in popular multicooker appliances.

12 California Avocado Commission

The Commission continued to use uplifting and positive messaging paired with imagery emblematic of the California lifestyle in its “The best avocados have California in them” creative to uplift consumers.

The newly improved recipe section added 91 new recipes in 2021 along with appealing imagery and makes it easier for visitors to find similar recipes of interest to them.

2021 Annual Report

industry events, including the Virtual Flavor Experience — where the Commission earned the highest score for best demo session — and the World of Flavor where CAC staff demonstrated the halo value of avocados on the menu and, keeping in mind COVID protocols, showcased unique to-go delivery meal ideas. The Commission also hosted both onsite and virtual menu ideation sessions, presenting concepts based on a chain’s unique menu strategy and operational setup. As a result, CAC secured 13 foodservice chain promotions that ranged from new California avocado menu items to old favorites. On the global front, we expanded our brand presence in both Korea and China. In Korea, celebrity food stylist Bouen Lee hosted a virtual cooking class, celebrity chef Young Bin Kim led an in-person cooking class, 16 mothers-and-food influencers shared recipes with their followers and instore demos were held in 109 South Korean stores. In China, CAC continued efforts to broaden awareness of California avocados with consumer education, a new social media account on Redbook, engaged a celebrity chef to feature the fruit in Chinese cuisine and partnered with influencers focused on cooking, healthy living, fitness and parenting. Ultimately, it is the commitment of people across this industry that ensures we can adapt to unprecedented challenges and still produce a fruit that lives up to our brand promise, fetches a premium price, satisfies our targeted consumers and sustains an industry committed to quality. If we take away anything from the unprecedented challenges we have faced this past year it is this: our most important asset remains our people. We must continue to work together as a cohesive, focused whole to advance the California Avocados brand — do our research, make informed decisions, time it right and take bold initiatives to ride the shifting winds of the weather, the world and the market.

14 California Avocado Commission

2020-21 Board of Directors District 1 Member/Jessica Hunter-Secretary Member/ Ryan Rochefort-Vice Chairman Alternate/Michael Perricone

District 2 Member/John Cornell Member/Ohannes Karaoghlanian Alternate/Charley Wolk

District 3 Member/John Lloyd-Butler Member/Robert Grether-Chairman Alternate/Maureen Cottingham

District 4 Member/Rachael Laenen Member/Jason Cole-Treasurer Alternate/Doug O’Hara

District 5 Member/Andrew Prechtl Member/Randy Douglas Alternate/Daryn Miller

Handlers Member/Gary Caloroso Member/Peter Shore Alternate/Connor Huser

Public Member Daniella Malfitano

To contact a CAC representative, please visit: CaliforniaAvocadoGrowers.com/Commission/your-representatives

&$/,)251,$ $92&$'2 &200,66,21 $QQXDO )LQDQFLDO 5HSRUW DQG ,QGHSHQGHQW $XGLWRU¶V 5HSRUW )RU WKH <HDUV (QGHG 2FWREHU DQG

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 Table of Contents Page ,QGHSHQGHQW $XGLWRU¶V 5HSRUW 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV 5HTXLUHG 6XSSOHPHQWDU\ ,QIRUPDWLRQ ± 8QDXGLWHG %DVLF )LQDQFLDO 6WDWHPHQWV 6WDWHPHQWV RI 1HW 3RVLWLRQ 6WDWHPHQWV RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW 3RVLWLRQ 6WDWHPHQWV RI &DVK )ORZV 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV 6XSSOHPHQWDU\ ,QIRUPDWLRQ %XGJHWDU\ &RPSDULVRQ 6FKHGXOH 1RWH WR 6XSSOHPHQWDU\ ,QIRUPDWLRQ &RPELQLQJ 6WDWHPHQW RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW 3RVLWLRQ 6FKHGXOH RI 3URJUDP ([SHQVHV 2WKHU 5HSRUWV ,QGHSHQGHQW $XGLWRU¶V 5HSRUW RQ ,QWHUQDO &RQWURO 2YHU )LQDQFLDO 5HSRUWLQJ DQG RQ &RPSOLDQFH DQG 2WKHU 0DWWHUV %DVHG RQ DQ $XGLW RI )LQDQFLDO 6WDWHPHQWV 3HUIRUPHG LQ $FFRUGDQFH :LWK Government Auditing Standards

California Avocado Commission

,QGHSHQGHQW $XGLWRU¶V 5HSRUW

%RDUG RI 'LUHFWRUV ,QGHSHQGHQW $XGLWRU¶V 5HSRUW &DOLIRUQLD $YRFDGR &RPPLVVLRQ ,UYLQH &DOLIRUQLD %RDUG RI 'LUHFWRUV &DOLIRUQLD $YRFDGR &RPPLVVLRQ 5HSRUW RQ WKH )LQDQFLDO 6WDWHPHQWV ,UYLQH &DOLIRUQLD :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ ILQDQFLDO VWDWHPHQWV RI WKH &DOLIRUQLD $YRFDGR &RPPLVVLRQ 5HSRUW RQ WKH )LQDQFLDO 6WDWHPHQWV &RPPLVVLRQ DV RI DQG IRU WKH \HDUV HQGHG 2FWREHU DQG DQG WKH UHODWHG QRWHV WR WKH ILQDQFLDO VWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVH WKH &RPPLVVLRQ¶V EDVLF ILQDQFLDO VWDWHPHQWV DV OLVWHG LQ :H KDYH DXGLWHG WKH DFFRPSDQ\LQJ ILQDQFLDO VWDWHPHQWV RI WKH &DOLIRUQLD $YRFDGR &RPPLVVLRQ WKH WDEOH RI FRQWHQWV &RPPLVVLRQ DV RI DQG IRU WKH \HDUV HQGHG 2FWREHU DQG DQG WKH UHODWHG QRWHV WR WKH ILQDQFLDO VWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVH WKH &RPPLVVLRQ¶V EDVLF ILQDQFLDO VWDWHPHQWV DV OLVWHG LQ Management’s Responsibility for the Financial Statements WKH WDEOH RI FRQWHQWV 0DQDJHPHQW LV Responsibility UHVSRQVLEOH IRU DQG IDLU SUHVHQWDWLRQ RI WKHVH ILQDQFLDO VWDWHPHQWV LQ Management’s forWKH theSUHSDUDWLRQ Financial Statements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uditor’s Responsibility HUURU 2XU UHVSRQVLELOLW\ LV WR H[SUHVV DQ RSLQLRQ RQ WKHVH ILQDQFLDO VWDWHPHQWV EDVHG RQ RXU DXGLWV :H Auditor’s Responsibility FRQGXFWHG RXU DXGLWV LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ Government Standards 2XU UHVSRQVLELOLW\ LV WR H[SUHVV DQ RSLQLRQ RQ WKHVH ILQDQFLDO VWDWHPHQWV EDVHG Auditing RQ RXU DXGLWV :H LVVXHG E\ RXU WKH DXGLWV &RPSWUROOHU *HQHUDO ZLWK RI WKH 8QLWHG VWDQGDUGV 6WDWHV 7KRVH VWDQGDUGV UHTXLUH ZH SODQ FRQGXFWHG LQ DFFRUGDQFH DXGLWLQJ JHQHUDOO\ DFFHSWHG LQ WKH WKDW 8QLWHG 6WDWHV DQG RI SHUIRUP WKH WR REWDLQ DSSOLFDEOH UHDVRQDEOH WR DVVXUDQFH ZKHWKHU WKH ILQDQFLDO VWDWHPHQWV DUH Standards IUHH IURP $PHULFD DQG DXGLW WKH VWDQGDUGV ILQDQFLDO DERXW DXGLWV FRQWDLQHG LQ Government Auditing PDWHULDO PLVVWDWHPHQW LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV 7KRVH VWDQGDUGV UHTXLUH WKDW ZH SODQ DQG SHUIRUP WKH DXGLW WR REWDLQ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU WKH ILQDQFLDO VWDWHPHQWV DUH IUHH IURP $Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW HYLGHQFH DERXW WKH DPRXQWV DQG GLVFORVXUHV LQ PDWHULDO PLVVWDWHPHQW WKH ILQDQFLDO VWDWHPHQWV 7KH SURFHGXUHV VHOHFWHG GHSHQG RQ WKH DXGLWRU¶V MXGJPHQW LQFOXGLQJ WKH DVVHVVPHQW RI WKH ULVNV RI PDWHULDO PLVVWDWHPHQW RI WKH ILQDQFLDO VWDWHPHQWV ZKHWKHU GXH WR IUDXG RU $Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW HYLGHQFH DERXW WKH DPRXQWV DQG GLVFORVXUHV LQ HUURU ,Q PDNLQJ WKRVH 7KH ULVN SURFHGXUHV DVVHVVPHQWV WKH DXGLWRU FRQVLGHUV LQWHUQDO MXGJPHQW FRQWURO UHOHYDQW WR WKH WKH ILQDQFLDO VWDWHPHQWV VHOHFWHG GHSHQG RQ WKH DXGLWRU¶V LQFOXGLQJ &RPPLVVLRQ¶V SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQ RI WKH ILQDQFLDO VWDWHPHQWV LQ RUGHU WR GHVLJQ DXGLW DVVHVVPHQW RI WKH ULVNV RI PDWHULDO PLVVWDWHPHQW RI VWDWHPHQWV ZKHWKHU GXH WR IUDXG RU SURFHGXUHV WKDW DUH DSSURSULDWH LQ WKH FLUFXPVWDQFHV EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ HUURU ,Q PDNLQJ WKRVH ULVN DVVHVVPHQWV WKH DXGLWRU FRQVLGHUV LQWHUQDO FRQWURO UHOHYDQW WR WKH WKH HIIHFWLYHQHVV RI WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO ZH H[SUHVV QR VXFK RSLQLRQ $Q &RPPLVVLRQ¶V SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQ RI WKH $FFRUGLQJO\ ILQDQFLDO VWDWHPHQWV LQ RUGHU WR GHVLJQ DXGLW DXGLW DOVR LQFOXGHV HYDOXDWLQJ WKH DSSURSULDWHQHVV RI DFFRXQWLQJ SROLFLHV XVHG DQG WKH UHDVRQDEOHQHVV RI SURFHGXUHV WKDW DUH DSSURSULDWH LQ WKH FLUFXPVWDQFHV EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ VLJQLILFDQW DFFRXQWLQJ HVWLPDWHV PDGH E\ PDQDJHPHQW DV ZHOO DV HYDOXDWLQJ WKH RYHUDOO SUHVHQWDWLRQ RI WKH HIIHFWLYHQHVV RI WKH &RPPLVVLRQ¶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acias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618

www.mgocpa.com

Macias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618

www.mgocpa.com

2021 Annual Report

Opinion ,Q RXU RSLQLRQ WKH ILQDQFLDO VWDWHPHQWV UHIHUUHG WR DERYH SUHVHQW IDLUO\ LQ DOO PDWHULDO UHVSHFWV WKH ILQDQFLDO SRVLWLRQ RI WKH &DOLIRUQLD $YRFDGR &RPPLVVLRQ DV RI 2FWREHU DQG DQG FKDQJHV LQ LWV ILQDQFLDO SRVLWLRQ DQG LWV FDVK IORZV IRU WKH \HDUV WKHQ HQGHG LQ DFFRUGDQFH ZLWK WKH DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD Other Matters Required Supplementary Information $FFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD UHTXLUH WKDW WKH PDQDJHPHQW¶V GLVFXVVLRQ DQG DQDO\VLV DV OLVWHG LQ WKH WDEOH RI FRQWHQWV EH SUHVHQWHG WR VXSSOHPHQW WKH EDVLF ILQDQFLDO VWDWHPHQWV 6XFK LQIRUPDWLRQ DOWKRXJK QRW D SDUW RI WKH EDVLF ILQDQFLDO VWDWHPHQWV LV UHTXLUHG E\ WKH *RYHUQPHQWDO $FFRXQWLQJ 6WDQGDUGV %RDUG ZKR FRQVLGHUV LW WR EH DQ HVVHQWLDO SDUW RI ILQDQFLDO UHSRUWLQJ IRU SODFLQJ WKH EDVLF ILQDQFLDO VWDWHPHQWV LQ DQ DSSURSULDWH RSHUDWLRQDO HFRQRPLF RU KLVWRULFDO FRQWH[W :H KDYH DSSOLHG FHUWDLQ OLPLWHG SURFHGXUHV WR WKH UHTXLUHG VXSSOHPHQWDU\ LQIRUPDWLRQ LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD ZKLFK FRQVLVWHG RI LQTXLULHV RI PDQDJHPHQW DERXW WKH PHWKRGV RI SUHSDULQJ WKH LQIRUPDWLRQ DQG FRPSDULQJ WKH LQIRUPDWLRQ IRU FRQVLVWHQF\ ZLWK PDQDJHPHQW¶V UHVSRQVHV WR RXU LQTXLULHV WKH EDVLF ILQDQFLDO VWDWHPHQWV DQG RWKHU NQRZOHGJH ZH REWDLQHG GXULQJ RXU DXGLW RI WKH EDVLF ILQDQFLDO VWDWHPHQWV :H GR QRW H[SUHVV DQ RSLQLRQ RU SURYLGH DQ\ DVVXUDQFH RQ WKH LQIRUPDWLRQ EHFDXVH WKH OLPLWHG SURFHGXUHV GR QRW SURYLGH XV ZLWK VXIILFLHQW HYLGHQFH WR H[SUHVV DQ RSLQLRQ RU SURYLGH DQ\ DVVXUDQFH Other Information 2XU DXGLWV ZHUH FRQGXFWHG IRU WKH SXUSRVH RI IRUPLQJ DQ RSLQLRQ RQ WKH &RPPLVVLRQ¶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

California Avocado Commission

2WKHU 5HSRUWLQJ 5HTXLUHG E\ Government Auditing Standards ,Q DFFRUGDQFH ZLWK Government Auditing Standards ZH KDYH DOVR LVVXHG RXU UHSRUW GDWHG -DQXDU\ RQ RXU FRQVLGHUDWLRQ RI WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DQG RQ RXU WHVWV RI LWV FRPSOLDQFH ZLWK FHUWDLQ SURYLVLRQV RI ODZV UHJXODWLRQV FRQWUDFWV DQG JUDQW DJUHHPHQWV DQG RWKHU PDWWHUV 7KH SXUSRVH RI WKDW UHSRUW LV VROHO\ WR GHVFULEH WKH VFRSH RI RXU WHVWLQJ RI LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DQG FRPSOLDQFH DQG WKH UHVXOWV RI WKDW WHVWLQJ DQG QRW WR SURYLGH DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ RU RQ FRPSOLDQFH 7KDW UHSRUW LV DQ LQWHJUDO SDUW RI DQ DXGLW SHUIRUPHG LQ DFFRUGDQFH ZLWK Government Auditing Standards LQ FRQVLGHULQJ WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DQG FRPSOLDQFH

,UYLQH &DOLIRUQLD -DQXDU\

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV )RU WKH <HDUV (QGHG 2FWREHU DQG 8QDXGLWHG ,1752'8&7,21 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV 0' $ SURYLGHV DQ RYHUYLHZ DQG DQDO\VLV RI WKH ILQDQFLDO DFWLYLWLHV RI WKH &DOLIRUQLD $YRFDGR &RPPLVVLRQ &RPPLVVLRQ IRU WKH \HDUV HQGHG 2FWREHU DQG ,W KDV EHHQ SUHSDUHG E\ PDQDJHPHQW DQG LV UHTXLUHG VXSSOHPHQWDU\ LQIRUPDWLRQ WR WKH ILQDQFLDO VWDWHPHQWV 3OHDVH UHDG LW LQ FRQMXQFWLRQ ZLWK WKH ILQDQFLDO VWDWHPHQWV LGHQWLILHG LQ WKH DFFRPSDQ\LQJ WDEOH RI FRQWHQWV ),1$1&,$/ +,*+/,*+76 x

7KH &RPPLVVLRQ¶V DVVHWV H[FHHGHG LWV OLDELOLWLHV DV RI 2FWREHU E\ WRWDO QHW SRVLWLRQ 7KLV DPRXQW GHFUHDVHG RU IURP WKH SULRU \HDU DPRXQW RI

2I WKH WRWDO QHW SRVLWLRQ DW WKH HQG RI ILVFDO \HDU QHW LQYHVWPHQW LQ FDSLWDO DVVHWV GHFUHDVHG WR RU IURP WKH SULRU \HDU DPRXQW RI

1HW SRVLWLRQ UHVWULFWHG IRU PDUNHWLQJ DW WKH HQG RI ILVFDO \HDU GHFUHDVHG WR RU IURP WKH SULRU \HDU DPRXQW RI

8QUHVWULFWHG QHW SRVLWLRQ DW WKH HQG RI ILVFDO \HDU GHFUHDVHG WR RU IURP WKH SULRU \HDU DPRXQW RI 7KLV DPRXQW PDGH XS RI WRWDO QHW SRVLWLRQ

7KH &RPPLVVLRQ¶V DVVHWV H[FHHGHG LWV OLDELOLWLHV DV RI 2FWREHU E\ WRWDO QHW SRVLWLRQ 7KLV DPRXQW LQFUHDVHG RU IURP WKH SULRU \HDU DPRXQW RI

2I WKH WRWDO QHW SRVLWLRQ DW WKH HQG RI ILVFDO \HDU QHW LQYHVWPHQW LQ FDSLWDO DVVHWV GHFUHDVHG WR RU IURP WKH SULRU \HDU DPRXQW RI

1HW SRVLWLRQ UHVWULFWHG IRU PDUNHWLQJ DW WKH HQG RI ILVFDO \HDU LQFUHDVHG WR RU IURP WKH SULRU \HDU DPRXQW RI

8QUHVWULFWHG QHW SRVLWLRQ DW WKH HQG RI ILVFDO \HDU GHFUHDVHG WR RU IURP WKH SULRU \HDU DPRXQW RI 7KLV DPRXQW PDGH XS RI WRWDO QHW SRVLWLRQ

29(59,(: 2) 7+( %$6,& ),1$1&,$/ 67$7(0(176 7KLV 0' $ LV LQWHQGHG WR VHUYH DV DQ LQWURGXFWLRQ WR WKH &RPPLVVLRQ¶V ILQDQFLDO UHSRUW 7KH &RPPLVVLRQ¶V ILQDQFLDO UHSRUW LQFOXGHV WKUHH EDVLF ILQDQFLDO VWDWHPHQWV 6WDWHPHQWV RI 1HW 3RVLWLRQ 6WDWHPHQWV RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW 3RVLWLRQ DQG 6WDWHPHQWV RI &DVK )ORZV 7KH &RPPLVVLRQ¶V EDVLF ILQDQFLDO VWDWHPHQWV DOVR LQFOXGH QRWHV WR WKH EDVLF ILQDQFLDO VWDWHPHQWV )LQDQFLDO VWDWHPHQWV DUH GHVLJQHG WR SUHVHQW D EURDG RYHUYLHZ RI WKH ILQDQFLDO GDWD IRU WKH &RPPLVVLRQ LQ D PDQQHU VLPLODU WR D SULYDWH VHFWRU EXVLQHVV 7KH Statements of Net Position SUHVHQW LQIRUPDWLRQ RQ DOO DVVHWV DQG OLDELOLWLHV RI WKH &RPPLVVLRQ XVLQJ WKH DFFUXDO EDVLV RI DFFRXQWLQJ ZLWK WKH GLIIHUHQFH UHSRUWHG DV QHW SRVLWLRQ 2YHU WLPH LQFUHDVHV RU GHFUHDVHV LQ QHW SRVLWLRQ PD\ VHUYH DV D XVHIXO LQGLFDWRU RI WKH FXUUHQW ILQDQFLDO FRQGLWLRQ RI WKH &RPPLVVLRQ

California Avocado Commission

&$/,)251,$ $92&$'2 &200,66,21 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV &RQWLQXHG )RU WKH <HDUV (QGHG 2FWREHU DQG 8QDXGLWHG

7KH Statements of Revenues, Expenses and Changes in Net Position SUHVHQW LQIRUPDWLRQ VKRZLQJ KRZ WKH &RPPLVVLRQ¶V QHW SRVLWLRQ YDULHG GXULQJ WKH PRVW UHFHQW ILVFDO \HDU $OO FKDQJHV LQ QHW SRVLWLRQ DUH UHSRUWHG DV VRRQ DV WKH XQGHUO\LQJ HYHQW JLYLQJ ULVH WR WKH FKDQJH RFFXUV UHJDUGOHVV RI WKH WLPLQJ RI UHODWHG FDVK IORZV 7KH Statements of Cash Flows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¶V 5HSRUW LQ DFFRUGDQFH ZLWK Government Auditing Standards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

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV &RQWLQXHG )RU WKH <HDUV (QGHG 2FWREHU DQG 8QDXGLWHG $V QRWHG HDUOLHU QHW SRVLWLRQ PD\ VHUYH RYHU WLPH DV D XVHIXO LQGLFDWRU RI WKH &RPPLVVLRQ¶V ILQDQFLDO SRVLWLRQ 7KH ODUJHVW SRUWLRQ RI WKH &RPPLVVLRQ¶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¶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¶V OLDELOLWLHV SULPDULO\ FRQVLVW RI FXUUHQW OLDELOLWLHV LQFOXGLQJ DFFRXQWV SD\DEOH DFFUXHG OLDELOLWLHV GHSRVLWV GXH DQG ILGXFLDU\ OLDELOLW\ DPRXQWV KHOG IRU $,3 /LDELOLWLHV DW WKH HQG RI ILVFDO \HDU WRWDOHG GHFUHDVLQJ IURP D EDODQFH RI LQ 7KLV GHFUHDVH ZDV GXH WR ORZHU QRQ PDUNHWLQJ REOLJDWLRQV RZHG WR YHQGRUV /LDELOLWLHV DW WKH HQG RI ILVFDO \HDU WRWDOHG LQFUHDVLQJ IURP D EDODQFH RI LQ 7KLV LQFUHDVH ZDV GXH WR KLJKHU QRQ PDUNHWLQJ REOLJDWLRQV RZHG WR YHQGRUV 1HW SRVLWLRQ FRQVLVWV RI WKUHH FDWHJRULHV 1HW LQYHVWPHQW LQ FDSLWDO DVVHWV UHVWULFWHG IRU PDUNHWLQJ DQG XQUHVWULFWHG 1HW LQYHVWPHQW LQ FDSLWDO DVVHWV UHSUHVHQWV WKH &RPPLVVLRQ¶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

California Avocado Commission

&$/,)251,$ $92&$'2 &200,66,21 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV &RQWLQXHG )RU WKH <HDUV (QGHG 2FWREHU DQG 8QDXGLWHG

67$7(0(176 2) 5(9(18(6 (;3(16(6 $1' &+$1*(6 ,1 1(7 326,7,21 2SHUDWLQJ UHYHQXHV 2SHUDWLQJ H[SHQVHV 2SHUDWLQJ LQFRPH ORVV 1RQRSHUDWLQJ UHYHQXHV &KDQJH LQ QHW SRVLWLRQ 1HW SRVLWLRQ ± EHJLQQLQJ RI \HDU 1HW SRVLWLRQ ± HQG RI \HDU

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

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV &RQWLQXHG )RU WKH <HDUV (QGHG 2FWREHU DQG 8QDXGLWHG &$3,7$/ $66(76 7KH &RPPLVVLRQ¶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¶6 ),1$1&,$/ 0$1$*(0(17 7KLV ILQDQFLDO UHSRUW LV GHVLJQHG WR SURYLGH D JHQHUDO RYHUYLHZ RI WKH &RPPLVVLRQ¶V ILQDQFHV DQG WR VKRZ WKH &RPPLVVLRQ¶V DFFRXQWDELOLW\ IRU WKH PRQH\ LW UHFHLYHV 4XHVWLRQV FRQFHUQLQJ DQ\ RI WKH LQIRUPDWLRQ SURYLGHG LQ WKLV UHSRUW RU UHTXHVWV IRU DGGLWLRQDO ILQDQFLDO LQIRUPDWLRQ VKRXOG EH DGGUHVVHG WR &DOLIRUQLD $YRFDGR &RPPLVVLRQ 0DXFKO\ 6XLWH / ,UYLQH &DOLIRUQLD SKRQH QXPEHU

California Avocado Commission

%$6,& ),1$1&,$/ 67$7(0(176

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 6WDWHPHQWV RI 1HW 3RVLWLRQ &$/,)251,$ $92&$'2 &200,66,21 2FWREHU DQG 6WDWHPHQWV RI 1HW 3RVLWLRQ 2FWREHU DQG

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

6HH DFFRPSDQ\LQJ QRWHV WR EDVLF ILQDQFLDO VWDWHPHQWV

California Avocado Commission

6HH DFFRPSDQ\LQJ QRWHV WR EDVLF ILQDQFLDO VWDWHPHQWV

&$/,)251,$ $92&$'2 &200,66,21 6WDWHPHQWV RI 1HW 3RVLWLRQ &$/,)251,$ $92&$'2 &200,66,21 2FWREHU DQG 6WDWHPHQWV RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW 3RVLWLRQ )RU WKH <HDUV (QGHG 2FWREHU DQG

&XUUHQW DVVHWV &DVK DQG FDVK HTXLYDOHQWV 2SHUDWLQJ UHYHQXHV $VVHVVPHQWV UHFHLYDEOH $VVHVVPHQW UHYHQXH 2WKHU UHFHLYDEOHV +$% UHEDWH DVVHVVPHQW UHYHQXH UHVWULFWHG 3UHSDLG H[SHQVHV $GPLQLVWUDWLYH DQG PDUNHWLQJ IHHV )LGXFLDU\ FDVK DQG FDVK HTXLYDOHQWV 2WKHU RSHUDWLQJ UHYHQXHV DPRXQWV KHOG IRU $,3 7RWDO RSHUDWLQJ UHYHQXHV ,QYHQWRU\ 5HVWULFWHG 2SHUDWLQJ H[SHQVHV &DVK DQG FDVK HTXLYDOHQWV 0DUNHWLQJ $VVHVVPHQWV UHFHLYDEOH 1RQPDUNHWLQJ SURJUDPV 7RWDO FXUUHQW DVVHWV $GPLQLVWUDWLRQ

1RQFXUUHQW DVVHWV 7RWDO RSHUDWLQJ H[SHQVHV &DSLWDO DVVHWV EHLQJ GHSUHFLDWHG QHW 2SHUDWLQJ LQFRPH ORVV 7RWDO DVVHWV

1RQRSHUDWLQJ UHYHQXHV &XUUHQW OLDELOLWLHV ,QWHUHVW LQFRPH $FFRXQWV SD\DEOH DQG DFFUXHG OLDELOLWLHV *UDQW LQFRPH $FFRXQWV SD\DEOH DQG DFFUXHG OLDELOLWLHV 2WKHU LQFRPH SD\DEOH IURP UHVWULFWHG DVVHWV )LGXFLDU\ OLDELOLWLHV DPRXQWV KHOG IRU $,3 7RWDO QRQRSHUDWLQJ UHYHQXHV 'HSRVLWV &RPSHQVDWHG DEVHQFHV GXH ZLWKLQ RQH \HDU &KDQJH LQ QHW SRVLWLRQ

7RWDO FXUUHQW OLDELOLWLHV 1HW SRVLWLRQ EHJLQQLQJ RI \HDU 1RQFXUUHQW OLDELOLWLHV 1HW SRVLWLRQ HQG RI \HDU &RPSHQVDWHG DEVHQFHV GXH LQ PRUH WKDQ RQH \HDU

7RWDO QRQFXUUHQW OLDELOLWLHV 7RWDO OLDELOLWLHV 1HW SRVLWLRQ 1HW LQYHVWPHQW LQ FDSLWDO DVVHWV 5HVWULFWHG IRU PDUNHWLQJ 8QUHVWULFWHG 1HW SRVLWLRQ

6HH DFFRPSDQ\LQJ QRWHV WR EDVLF ILQDQFLDO VWDWHPHQWV 6HH DFFRPSDQ\LQJ QRWHV WR EDVLF ILQDQFLDO VWDWHPHQWV

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 6WDWHPHQWV RI 1HW 3RVLWLRQ &$/,)251,$ $92&$'2 &200,66,21 2FWREHU DQG 6WDWHPHQWV RI &DVK )ORZV )RU WKH <HDUV (QGHG 2FWREHU DQG

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

&DVK IORZV IURP LQYHVWLQJ DFWLYLWLHV &XUUHQW OLDELOLWLHV ,QWHUHVW RQ LQYHVWPHQWV $FFRXQWV SD\DEOH DQG DFFUXHG OLDELOLWLHV 1HW LQFUHDVH GHFUHDVH LQ FDVK DQG FDVK HTXLYDOHQWV $FFRXQWV SD\DEOH DQG DFFUXHG OLDELOLWLHV

SD\DEOH IURP UHVWULFWHG DVVHWV &DVK DQG FDVK HTXLYDOHQWV EHJLQQLQJ RI \HDU )LGXFLDU\ OLDELOLWLHV DPRXQWV KHOG IRU $,3 &DVK DQG FDVK HTXLYDOHQWV HQG RI \HDU 'HSRVLWV &RPSHQVDWHG DEVHQFHV GXH ZLWKLQ RQH \HDU 5HFRQFLOLDWLRQ RI RSHUDWLQJ LQFRPH WR QHW FDVK

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

California Avocado Commission

6HH DFFRPSDQ\LQJ QRWHV WR EDVLF ILQDQFLDO VWDWHPHQWV

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV 2FWREHU DQG

6800$5< 2) 6,*1,),&$17 $&&2817,1* 32/,&,(6 7KH IROORZLQJ LV D VXPPDU\ RI WKH VLJQLILFDQW DFFRXQWLQJ SROLFLHV IROORZHG E\ WKH &DOLIRUQLD $YRFDGR &RPPLVVLRQ &RPPLVVLRQ (a)

Activities of the Commission 7KH &DOLIRUQLD $YRFDGR &RPPLVVLRQ LV DXWKRUL]HG XQGHU &DOLIRUQLD ODZ WR HQJDJH LQ SURJUDPV RI DGYHUWLVLQJ SURPRWLRQ PDUNHWLQJ UHVHDUFK DQG SURGXFWLRQ UHVHDUFK UHODWHG WR WKH VDOH RI &DOLIRUQLD JURZQ DYRFDGRV 7KH &RPPLVVLRQ LV DXWKRUL]HG WR OHY\ DQ DVVHVVPHQW DJDLQVW SURGXFHUV RI DYRFDGRV IRU WKH SXUSRVHV RI FDUU\LQJ RXW LWV SURJUDPV 7KH DVVHVVPHQW IRU WKH \HDUV HQGHG 2FWREHU DQG ZDV DQG UHVSHFWLYHO\ RI WKH JURVV UHYHQXHV UHFHLYHG E\ SURGXFHUV 7KH &RPPLVVLRQ DOVR UHFHLYHV RI WKH DVVHVVPHQWV FROOHFWHG E\ WKH )HGHUDO +DVV $YRFDGR %RDUG +$% RQ +DVV DYRFDGRV SURGXFHG DQG VROG LQ &DOLIRUQLD ZKLFK LV UHVWULFWHG IRU XVH RQ PDUNHWLQJ DFWLYLWLHV 7KH &RPPLVVLRQ¶V %RDUG RI 'LUHFWRUV LV FRPSRVHG RI QR IHZHU WKDQ HLJKW DQG QR PRUH WKDQ WHQ SURGXFHU PHPEHUV ZKR GR QRW KDQGOH DYRFDGRV WKURXJK WKH VDPH OHJDO HQWLW\ XQGHU ZKLFK WKH\ ZHUH HOHFWHG DV D SURGXFHU PHPEHU RI WKH &RPPLVVLRQ WZR KDQGOHU PHPEHUV DQG RQH SXEOLF PHPEHU

(b)

Measurement Focus, Basis of Accounting, and Financial Statement Presentation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¶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¶V SROLF\ WR XVH UHVWULFWHG UHVRXUFHV ILUVW WKHQ XQUHVWULFWHG UHVRXUFHV DV WKH\ DUH QHHGHG

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG (c)

&DVK (TXLYDOHQWV

)RU SXUSRVHV RI WKH VWDWHPHQWV RI FDVK IORZV WKH &RPPLVVLRQ FRQVLGHUV FDVK DQG IXQGV LQYHVWHG LQ WKH /RFDO $JHQF\ ,QYHVWPHQW )XQG /$,) RI WKH 6WDWH RI &DOLIRUQLD IRU ERWK UHVWULFWHG DQG XQUHVWULFWHG IXQGV WR EH FDVK HTXLYDOHQWV $GGLWLRQDOO\ LQYHVWPHQWV ZLWK RULJLQDO PDWXULWLHV RI WKUHH PRQWKV RU OHVV DW WKH WLPH RI SXUFKDVH DUH FRQVLGHUHG FDVK HTXLYDOHQWV

,QYHVWPHQWV

7KH &RPPLVVLRQ YDOXHV LWV LQYHVWPHQW LQ DFFRUGDQFH ZLWK WKH SURYLVLRQ RI *RYHUQPHQWDO $FFRXQWLQJ 6WDQGDUGV %RDUG *$6% 6WDWHPHQW 1R Fair Value Measurement and Application ZKLFK UHTXLUHV HQWLWLHV WR XVH YDOXDWLRQ WHFKQLTXHV WKDW DUH DSSURSULDWH XQGHU WKH FLUFXPVWDQFHV DQG IRU ZKLFK VXIILFLHQW GDWD DUH DYDLODEOH WR PHDVXUH IDLU YDOXH ,QYHVWPHQWV WKDW DUH QRW WUDGHG RQ D PDUNHW VXFK DV LQYHVWPHQWV LQ H[WHUQDO SRROV DUH YDOXHG EDVHG RQ WKH VWDWHG IDLU YDOXH DV UHSUHVHQWHG E\ WKH H[WHUQDO SRRO 5HVWULFWHG DQG XQUHVWULFWHG FDVK DUH SRROHG IRU LQYHVWPHQW SXUSRVHV 5HFHLYDEOHV

Assets, Liabilities, and Net Position

1R DOORZDQFH IRU XQFROOHFWLEOH DFFRXQWV KDV EHHQ UHFRUGHG IRU WKH \HDUV HQGHG 2FWREHU DQG 0DQDJHPHQW KDV HYDOXDWHG WKH DFFRXQWV DQG EHOLHYHV WKH\ DUH DOO FROOHFWLEOH 0DQDJHPHQW HYDOXDWHV DOO DFFRXQWV UHFHLYDEOH DQG LI LW LV GHWHUPLQHG WKDW WKH\ DUH XQFROOHFWLEOH WKH\ DUH ZULWWHQ RII GLUHFWO\ DV D EDG GHEW H[SHQVH &DSLWDO $VVHWV

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

<HDUV

)XUQLWXUH 2IILFH HTXLSPHQW /HDVHKROG LPSURYHPHQWV 6RIWZDUH /DQG ,PSURYHPHQWV

RU WHUP RI OHDVH ZKLFKHYHU LV OHVV 5HPDLQLQJ WHUP RI WKH SURSHUW\ OHDVH

California Avocado Commission

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG &RPSHQVDWHG $EVHQFHV &RPPLVVLRQ HPSOR\HHV UHFHLYH IURP WR GD\V RI YDFDWLRQ HDFK \HDU GHSHQGLQJ XSRQ OHQJWK RI VHUYLFH $Q HPSOR\HH PD\ DFFXPXODWH HDUQHG YDFDWLRQ WLPH WR D PD[LPXP RI GD\V 2QFH DQ HPSOR\HH DFFUXHV GD\V RI XQXVHG YDFDWLRQ WLPH WKH &RPPLVVLRQ FRPSHQVDWHV WKH HPSOR\HH GD\V RI DFFUXHG DQG XQXVHG YDFDWLRQ WLPH DW WKH HPSOR\HH¶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

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG

'(7$,/(' 127(6 21 $66(76 $1' /,$%,/,7,(6 (a)

&DVK DQG FDVK HTXLYDOHQWV FRQVLVWHG RI WKH IROORZLQJ DW 2FWREHU

Cash and Cash Equivalents

3HWW\ FDVK 'HPDQG GHSRVLWV /RFDO $JHQF\ ,QYHVWPHQW )XQG

7RWDO FDVK DQG FDVK HTXLYDOHQWV

Investment in State Investment Pool 7KH &RPPLVVLRQ LV D YROXQWDU\ SDUWLFLSDQW LQ /$,) ZKLFK LV UHJXODWHG E\ &*& 6HFWLRQ XQGHU WKH RYHUVLJKW RI WKH 7UHDVXUHU RI WKH 6WDWH RI &DOLIRUQLD 7KH IDLU YDOXH RI WKH &RPPLVVLRQ¶V LQYHVWPHQW LQ WKLV SRRO LV UHSRUWHG LQ WKH DFFRPSDQ\LQJ ILQDQFLDO VWDWHPHQWV DW DPRXQWV EDVHG XSRQ WKH &RPPLVVLRQ¶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air Value Measurement and Application *$6% 6WDWHPHQW 1R Fair Value Measurement and Application VHWV IRUWK WKH IUDPHZRUN IRU PHDVXULQJ IDLU YDOXH 7KDW IUDPHZRUN SURYLGHV D IDLU YDOXH KLHUDUFK\ WKDW SULRULWL]HV WKH LQSXWV WR YDOXDWLRQ WHFKQLTXHV XVHG WR PHDVXUH IDLU YDOXH 7KH KLHUDUFK\ JLYHV WKH KLJKHVW SULRULW\ WR XQDGMXVWHG TXRWHG SULFHV LQ DFWLYH PDUNHWV IRU LGHQWLFDO DVVHWV RU OLDELOLWLHV OHYHO PHDVXUHPHQWV DQG WKH ORZHVW SULRULW\ WR XQREVHUYDEOH LQSXWV OHYHO PHDVXUHPHQWV

California Avocado Commission

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nvestments Authorized by the California Government Code and the Commission’s Investment Policy 7KH &RPPLVVLRQ DGRSWHG &DOLIRUQLD *RYHUQPHQW &RGH &*& 6HFWLRQ DQG WKH 8QLWHG 6WDWHV 'HSDUWPHQW RI $JULFXOWXUH 86'$ 'LUHFWLYH DV LWV LQYHVWPHQW SROLF\ 7KH WDEOH EHORZ LGHQWLILHV WKH LQYHVWPHQW W\SHV WKDW DUH DXWKRUL]HG XQGHU &*& 6HFWLRQ DV ZHOO DV FHUWDLQ SURYLVLRQV RI &*& 6HFWLRQ DQG 86'$ 'LUHFWLYH WKDW DGGUHVV LQWHUHVW UDWH ULVN DQG FRQFHQWUDWLRQ RI FUHGLW ULVN

$XWKRUL]HG ,QYHVWPHQW 7\SH 6WDWH RI &DOLIRUQLD %RQGV DQG 1RWHV 8 6 7UHDVXU\ 2EOLJDWLRQV 8 6 $JHQF\ 6HFXULWLHV %DQN /RDQV 6WXGHQW /RDQ 1RWHV 2EOLJDWLRQV LVVXHG IRU 5HFRQVWUXFWLRQ DQG 'HYHORSPHQW 1HJRWLDEOH &HUWLILFDWHV RI 'HSRVLWV %DQNHU¶V $FFHSWDQFHV &RPPHUFLDO 3DSHU &RUSRUDWH %RQGV DQG 1RWHV /RFDO $JHQF\ ,QYHVWPHQW )XQG /$,)

0D[LPXP 0DWXULW\

0D[LPXP 3HUFHQWDJH RI 3RUWIROLR

0D[LPXP ,QYHVWPHQW LQ 2QH ,VVXHU

\HDU \HDU \HDU \HDU \HDU

1RQH 1RQH 1RQH 1RQH 1RQH

\HDU \HDU GD\V GD\V \HDU 1 $

1RQH 1RQH 1RQH

1RQH 1RQH 1RQH 1RQH PLOOLRQ

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG

Disclosures Relating to Interest Rate Risk ,QWHUHVW UDWH ULVN LV WKH ULVN WKDW FKDQJHV LQ PDUNHW LQWHUHVW UDWHV ZLOO DGYHUVHO\ DIIHFW WKH IDLU YDOXH RI DQ LQYHVWPHQW *HQHUDOO\ WKH ORQJHU WKH PDWXULW\ RI DQ LQYHVWPHQW WKH JUHDWHU WKH VHQVLWLYLW\ RI LWV IDLU YDOXH WR FKDQJHV LQ PDUNHW LQWHUHVW UDWHV ,QIRUPDWLRQ DERXW WKH VHQVLWLYLW\ RI WKH IDLU YDOXHV RI WKH &RPPLVVLRQ¶V LQYHVWPHQWV WR PDUNHW LQWHUHVW UDWH IOXFWXDWLRQV LV SURYLGHG E\ WKH IROORZLQJ WDEOH WKDW VKRZV WKH &RPPLVVLRQ¶V LQYHVWPHQWV E\ PDWXULW\ 5HPDLQLQJ 0DWXULW\ 0RQWKV RU /HVV ,QYHVWPHQW 7\SH /RFDO $JHQF\ ,QYHVWPHQW )XQG

Disclosures Relating to Credit Risk *HQHUDOO\ FUHGLW ULVN LV WKH ULVN WKDW DQ LVVXHU RI DQ LQYHVWPHQW ZLOO QRW IXOILOO LWV REOLJDWLRQ WR WKH KROGHU RI WKH LQYHVWPHQW 7KLV LV PHDVXUHG E\ WKH DVVLJQPHQW RI D UDWLQJ E\ D QDWLRQDOO\ UHFRJQL]HG VWDWLVWLFDO UDWLQJ RUJDQL]DWLRQ /$,) GRHV QRW KDYH D UDWLQJ SURYLGHG E\ D QDWLRQDOO\ UHFRJQL]HG VWDWLVWLFDO UDWLQJ RUJDQL]DWLRQ Concentration of Credit Risk 7KH LQYHVWPHQW SROLF\ RI WKH &RPPLVVLRQ FRQWDLQV QR OLPLWDWLRQV RQ WKH DPRXQW WKDW FDQ EH LQYHVWHG LQ DQ\ RQH LVVXHU EH\RQG WKDW VWLSXODWHG E\ WKH &*& 7KH &RPPLVVLRQ KDG QR LQYHVWPHQWV LQ DQ\ RQH LVVXHU RWKHU WKDQ H[WHUQDO LQYHVWPHQW SRROV WKDW UHSUHVHQWHG RU PRUH RI WRWDO &RPPLVVLRQ LQYHVWPHQWV DW 2FWREHU DQG Custodial Credit Risk &XVWRGLDO FUHGLW ULVN IRU deposits LV WKH ULVN WKDW LQ WKH HYHQW RI WKH IDLOXUH RI D GHSRVLWRU\ ILQDQFLDO LQVWLWXWLRQ D JRYHUQPHQW ZLOO QRW EH DEOH WR UHFRYHU LWV GHSRVLWV RU ZLOO QRW EH DEOH WR UHFRYHU FROODWHUDO VHFXULWLHV WKDW DUH LQ WKH SRVVHVVLRQ RI DQ RXWVLGH SDUW\ 7KH FXVWRGLDO FUHGLW ULVN IRU investments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

California Avocado Commission

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG :LWK UHVSHFW WR LQYHVWPHQWV FXVWRGLDO FUHGLW ULVN JHQHUDOO\ DSSOLHV RQO\ WR GLUHFW LQYHVWPHQWV LQ PDUNHWDEOH VHFXULWLHV &XVWRGLDO FUHGLW ULVN GRHV QRW DSSO\ WR D ORFDO JRYHUQPHQW¶V LQGLUHFW LQYHVWPHQW LQ VHFXULWLHV WKURXJK WKH XVH RI PXWXDO IXQGV RU JRYHUQPHQW LQYHVWPHQW SRROV VXFK DV /$,) (b)

Capital Assets &DSLWDO DVVHWV EHLQJ GHSUHFLDWHG )XUQLWXUH 2IILFH HTXLSPHQW 6RIWZDUH /DQG LPSURYHPHQWV 7RWDO FDSLWDO DVVHWV EHLQJ GHSUHFLDWHG

1RYHPEHU

&DSLWDO DVVHWV QHW RI GHSUHFLDWLRQ

&DSLWDO DVVHWV EHLQJ GHSUHFLDWHG )XUQLWXUH 2IILFH HTXLSPHQW 6RIWZDUH /DQG LPSURYHPHQWV 7RWDO FDSLWDO DVVHWV EHLQJ GHSUHFLDWHG /HVV DFFXPXODWHG GHSUHFLDWLRQ IRU )XUQLWXUH 2IILFH HTXLSPHQW 6RIWZDUH /DQG LPSURYHPHQWV 7RWDO DFFXPXODWHG GHSUHFLDWLRQ &DSLWDO DVVHWV QHW RI GHSUHFLDWLRQ

'HOHWLRQV

2FWREHU

1RYHPEHU

$GGLWLRQV

'HOHWLRQV

/HVV DFFXPXODWHG GHSUHFLDWLRQ IRU )XUQLWXUH 2IILFH HTXLSPHQW 6RIWZDUH /DQG LPSURYHPHQWV 7RWDO DFFXPXODWHG GHSUHFLDWLRQ

$GGLWLRQV

2FWREHU

'HSUHFLDWLRQ H[SHQVH ZDV DQG IRU WKH \HDUV HQGHG 2FWREHU DQG UHVSHFWLYHO\ 2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG (c)

Long-term Liabilities 1RYHPEHU &RPSHQVDWHG DEVHQFHV

1RYHPEHU &RPSHQVDWHG DEVHQFHV

$GGLWLRQV

'HOHWLRQV

$PRXQW 'XH ZLWKLQ 2QH <HDU

'HOHWLRQV

2FWREHU

$PRXQW 'XH ZLWKLQ 2QH <HDU

27+(5 ,1)250$7,21 (a) Avocado Inspection Program

(b)

'XULQJ )HEUXDU\ WKH &RPPLVVLRQ FRQWUDFWHG ZLWK WKH 6WDWH 'HSDUWPHQW RI )RRG DQG $JULFXOWXUH WR DGPLQLVWHU WKH $YRFDGR ,QVSHFWLRQ 3URJUDP $,3 IRU WKH 6WDWH RI &DOLIRUQLD 6WDWH 6LQFH WKH &RPPLVVLRQ LV LQ VXEVWDQFH DQ DJHQW IRU WKH 6WDWH ILGXFLDU\ FDVK DQG FDVK HTXLYDOHQWV DPRXQWV KHOG IRU $,3 DUH RIIVHW E\ ILGXFLDU\ OLDELOLWLHV DPRXQWV KHOG IRU $,3 $V RI 2FWREHU DQG DQG UHVSHFWLYHO\ ZDV KHOG E\ WKH &RPPLVVLRQ IRU WKH $,3 Line of Credit

(c)

2Q 0DUFK WKH &RPPLVVLRQ REWDLQHG D UHYROYLQJ OLQH RI FUHGLW IURP %DQN RI WKH :HVW LQ WKH DPRXQW RI ZLWK D YDULDEOH LQWHUHVW UDWH DW SULPH UDWH SOXV DQG D IORRU RI 7KH RULJLQDO PDWXULW\ GDWH IRU WKH OLQH RI FUHGLW ZDV )HEUXDU\ ZKLFK ZDV H[WHQGHG WR )HEUXDU\ XQGHU WKH VDPH WHUPV DV WKH RULJLQDO DJUHHPHQW $W 2FWREHU DQG WKHUH ZDV QR RXWVWDQGLQJ EDODQFH GXH RQ WKH OLQH RI FUHGLW Risk Management

,QVXUDQFH 3URJUDPV RI WKH &RPPLVVLRQ

$GGLWLRQV

2FWREHU

7KH &RPPLVVLRQ¶V FRYHUDJH LV DV IROORZV Commercial General Liability ± LQVXUHG E\ )LUHPDQ¶V )XQG ,QVXUDQFH – *HQHUDO DJJUHJDWH FRYHUDJH RI DQG IRU HDFK RFFXUUHQFH Automobile Liability ± LQVXUHG E\ )LUHPDQ¶V )XQG ,QVXUDQFH ± &RYHUDJH LV SHU ERGLO\ LQMXU\ RU SURSHUW\ GDPDJH VXEMHFW WR D GHGXFWLEOH Crime Liability ± LQVXUHG E\ 7UDYHOHUV &DVXDOW\ 6XUHW\ ± &RYHUDJH LV VXEMHFW WR D GHGXFWLEOH

California Avocado Commission

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG Umbrella Liability ± LQVXUHG E\ )LUHPDQ¶V )XQG ,QVXUDQFH ± *HQHUDO DJJUHJDWH FRYHUDJH RI DQG IRU HDFK RFFXUUHQFH Travel Accident Liability ± LQVXUHG E\ +DUWIRUG /LIH ,QVXUDQFH &RPSDQ\ ± &RYHUDJH LV SHU SHUVRQ DQG SHU DJJUHJDWH OLPLW Directors and Officers Liability and Employment Practices Liability ± LQVXUHG E\ *UHDW $PHULFDQ ,QVXUDQFH &RPSDQ\ ± &RYHUDJH LV DJJUHJDWH OLPLW ZLWK D UHWHQWLRQ Employed Lawyers Professional Liability ± LQVXUHG E\ )HGHUDO ,QVXUDQFH &RPSDQ\ ± &RYHUDJH LV DJJUHJDWH OLPLW ZLWK D UHWHQWLRQ Fiduciary Liability ± LQVXUHG E\ 8 6 6SHFLDOW\ ,QVXUDQFH &RPSDQ\ ± &RYHUDJH LV HDFK FODLP DQG LQ DJJUHJDWH VXEMHFW WR D GHGXFWLEOH Media Content/Network Security and Privacy ± LQVXUHG E\ /OR\GV RI /RQGRQ ± &RYHUDJH LV HDFK FODLP DQG LQ DJJUHJDWH ZLWK D VHOI LQVXUDQFH UHWHQWLRQ IRU HDFK ORVV Foreign Liability ± LQVXUHG E\ )LUHPDQ¶V )XQG ,QVXUDQFH &RPSDQ\ ± *HQHUDO DJJUHJDWH FRYHUDJH LV DQG IRU HDFK RFFXUUHQFH International Business Auto ± LQVXUHG E\ )LUHPDQ¶V )XQG ,QVXUDQFH ± &RYHUDJH LV KLUHG RU QRQ RZQHG DXWR OLDELOLW\ DQG PHGLFDO SD\PHQW HDFK SHUVRQ DFFLGHQW International Foreign Voluntary Workers’ Compensation and Employer Liability ± LQVXUHG E\ )LUHPDQ¶V )XQG ,QVXUDQFH &RPSDQ\ ± &RYHUDJH LV SHU RFFXUUHQFH Workers’ Compensation Coverage ± LQVXUHG E\ +DUWIRUG &DVXDOW\ ,QVXUDQFH &RPSDQ\ ± &RYHUDJH LV SHU RFFXUUHQFH $GHTXDF\ RI 3URWHFWLRQ 'XULQJ WKH SDVW WKUHH ILVFDO FODLPV \HDUV QRQH RI WKH DERYH SURJUDPV RI SURWHFWLRQ KDYH KDG VHWWOHPHQWV RU MXGJPHQWV WKDW H[FHHGHG LQVXUHG FRYHUDJH 7KHUH KDYH EHHQ QR VLJQLILFDQW FKDQJHV LQ LQVXUDQFH FRYHUDJH GXULQJ ILVFDO \HDU G

Employee Retirement Plans 7KH %RDUG RI 'LUHFWRUV RI WKH &RPPLVVLRQ LPSOHPHQWHG D GHILQHG FRQWULEXWLRQ SODQ &DOLIRUQLD $YRFDGR &RPPLVVLRQ 3URILW 6KDULQJ 3ODQ 363 DGPLQLVWHUHG E\ ³7KH 5HWLUHPHQW 3ODQ &RPSDQ\ ´ IRU HOLJLEOH &RPPLVVLRQ HPSOR\HHV HIIHFWLYH 1RYHPEHU 7KH &RPPLVVLRQ¶V SD\UROO IRU WKH HOHYHQ HPSOR\HHV HOLJLEOH WR SDUWLFLSDWH LQ WKH 363 IRU WKH SODQ \HDU HQGHG 2FWREHU ZDV 7RWDO SD\UROO IRU WKH WZHOYH HPSOR\HHV HOLJLEOH WR SDUWLFLSDWH LQ WKH 363 IRU WKH SODQ \HDU HQGHG 2FWREHU ZDV 7RWDO FRQWULEXWLRQV IRU WKH \HDUV HQGHG 2FWREHU DQG ZHUH DQG UHVSHFWLYHO\

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 1RWHV WR %DVLF )LQDQFLDO 6WDWHPHQWV &RQWLQXHG 2FWREHU DQG 7KH &RPPLVVLRQ PD\ PDNH DQQXDO GLVFUHWLRQDU\ FRQWULEXWLRQV DV GHWHUPLQHG E\ WKH 3UHVLGHQW WR WKH 363 :LWK D IHZ H[FHSWLRQV HDFK HOLJLEOH HPSOR\HH UHFHLYHG DQ DOORFDWLRQ RI RI FRPSHQVDWLRQ XS WR D PD[LPXP RI IRU WKH SODQ \HDU HQGHG 2FWREHU DQG IRU WKH SODQ \HDU HQGHG 2FWREHU 7R UHFHLYH DQ DOORFDWLRQ HDFK HPSOR\HH PXVW PHHW D PLQLPXP VHUYLFH UHTXLUHPHQW RI RQH \HDU DQG PXVW EH FUHGLWHG ZLWK DW OHDVW KRXUV RI VHUYLFH (e)

Operating Leases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

California Avocado Commission

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

2IILFH 6SDFHV

3ULQWHUV

3RVWDJH 0DFKLQH

$ODUP 6\VWHP

3LQH 7UHH 5DQFK

7RWDO

2021 Annual Report

6833/(0(17$5< ,1)250$7,21

California Avocado Commission

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

)LQDO %XGJHW

9DULDQFH 3RVLWLYH $FWXDO 1HJDWLYH $FWXDO

([SHQVHV 1RQFXUUHQW DVVHWV 0DUNHWLQJ &DSLWDO DVVHWV EHLQJ GHSUHFLDWHG QHW &RQVXPHU PDUNHWLQJ 0HUFKDQGLVLQJ 7RWDO DVVHWV )RRGVHUYLFH &RQVXPHU 7UDGH /LYLQJ :HOO &XUUHQW OLDELOLWLHV &RQVXPHU SXEOLF UHODWLRQV $FFRXQWV SD\DEOH DQG DFFUXHG OLDELOLWLHV 0HUFKDQGLVH 6KRS $FFRXQWV SD\DEOH DQG DFFUXHG OLDELOLWLHV 0DUNHWLQJ DFWLYLWLHV VXSSRUW

2WKHU LQFRPH

7RWDO FXUUHQW DVVHWV 7RWDO UHYHQXHV

SD\DEOH IURP UHVWULFWHG DVVHWV )LGXFLDU\ OLDELOLWLHV DPRXQWV KHOG IRU $,3 1RQ PDUNHWLQJ SURJUDPV 'HSRVLWV ,QGXVWU\ DIIDLUV &RPSHQVDWHG DEVHQFHV GXH ZLWKLQ RQH \HDU 3URGXFWLRQ UHVHDUFK 7RWDO PDUNHWLQJ

*UDQW H[SHQVHV 7RWDO FXUUHQW OLDELOLWLHV 7RWDO QRQ PDUNHWLQJ SURJUDPV 1RQFXUUHQW OLDELOLWLHV

&RPSHQVDWHG DEVHQFHV GXH LQ PRUH WKDQ RQH \HDU $GPLQLVWUDWLRQ $GPLQLVWUDWLRQ 7RWDO QRQFXUUHQW OLDELOLWLHV ,QIRUPDWLRQ V\VWHPV 'HSUHFLDWLRQ 7RWDO OLDELOLWLHV 7RWDO DGPLQLVWUDWLRQ

1HW SRVLWLRQ 7RWDO H[SHQVHV 1HW LQYHVWPHQW LQ FDSLWDO DVVHWV &KDQJH LQ QHW SRVLWLRQ 5HVWULFWHG IRU PDUNHWLQJ 1HW SRVLWLRQ EHJLQQLQJ RI \HDU 8QUHVWULFWHG 1HW SRVLWLRQ HQGLQJ RI \HDU

1HW SRVLWLRQ

6HH DFFRPSDQ\LQJ QRWHV WR EDVLF ILQDQFLDO VWDWHPHQWV

6HH DFFRPSDQ\LQJ QRWH WR VXSSOHPHQWDU\ LQIRUPDWLRQ

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 1RWH WR 6XSSOHPHQWDU\ ,QIRUPDWLRQ 2FWREHU DQG

%8'*(7$5< ,1)250$7,21 (a)

Budgets and Budgetary Accounting:

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¶V EXGJHW PXVW EH DSSURYHG E\ WKH %RDUG RI 'LUHFWRUV

California Avocado Commission

&$/,)251,$ $92&$'2 &200,66,21 &RPELQLQJ 6WDWHPHQW RI 5HYHQXHV ([SHQVHV DQG &KDQJHV LQ 1HW 3RVLWLRQ )RU WKH <HDU (QGHG 2FWREHU

5HVWULFWHG

8QUHVWULFWHG

7RWDO

7RWDO RSHUDWLQJ H[SHQVHV

2SHUDWLQJ LQFRPH ORVV

1RQ RSHUDWLQJ UHYHQXHV H[SHQVHV ,QWHUHVW LQFRPH H[SHQVH 2WKHU LQFRPH

7RWDO QRQRSHUDWLQJ UHYHQXHV

1HW SRVLWLRQ EHJLQQLQJ RI \HDU

1HW SRVLWLRQ HQGLQJ RI \HDU

2SHUDWLQJ UHYHQXHV $VVHVVPHQW UHYHQXH +$% UHEDWH DVVHVVPHQW UHYHQXH UHVWULFWHG $GPLQLVWUDWLYH DQG DFFRXQWLQJ IHHV 2WKHU RSHUDWLQJ UHYHQXHV 7RWDO RSHUDWLQJ UHYHQXHV 2SHUDWLQJ H[SHQVHV 0DUNHWLQJ 1RQPDUNHWLQJ SURJUDPV $GPLQLVWUDWLRQ

&KDQJH LQ QHW SRVLWLRQ

2021 Annual Report

&$/,)251,$ $92&$'2 &200,66,21 6FKHGXOH RI 3URJUDP ([SHQVHV )RU WKH <HDU (QGHG 2FWREHU

5HVWULFWHG

%XGJHW

&DOLIRUQLD $YRFDGR 9LGHR 'LVWULEXWLRQ 5HEDWH *ROLQ &DOLIRUQLD $YRFDGR 0RQWK 5HEDWH *ROLQ 1HZV %XUHDX 5HEDWH *ROLQ 0HGLD 7UDFNLQJ 5HSRUWLQJ 5HEDWH *ROLQ :HEVLWH &RQWULEXWRUV 6RFLDO 6XSSRUW 5HEDWH *ROLQ 3URJUDP $GPLQLVWUDWLRQ )HHV 5HEDWH *ROLQ 3URJUDP $GPLQLVWUDWLRQ )HHV 5HEDWH *ROLQ 6XEWRWDO &RQVXPHU 3XEOLF 5HODWLRQV

7UDGH $GYHUWLVLQJ 0HGLD 5HEDWH )XVLRQ 7UDGH $GYHUWLVLQJ 3URGXFWLRQ 5HEDWH )XVLRQ &RQYHQWLRQV 5HEDWH %RRWK 6WRUDJH 5HEDWH .H\ $FFRXQW &RYHUDJH 0: 6( $QGHUVRQ 5HEDWH .H\ $FFRXQW &RYHUDJH :HVW %HFNHU 5HEDWH 3UHPLXPV 5HEDWH 326 0DWHULDOV 5HEDWH 6XEWRWDO 0HUFKDQGLVLQJ

)RRGVHUYLFH (YHQWV 5HEDWH .& &KDLQ 3URPRWLRQV 5HEDWH .& 6XEWRWDO )RRGVHUYLFH

7RWDO 0DUNHWLQJ

7RWDO 3URJUDP ([SHQVHV

0DUNHWLQJ 3URJUDPV 0HGLD 5HEDWH 0XOOHQ 3URJUDP $GPLQLVWUDWLRQ )HHV 5HEDWH 0XOOHQ :HEVLWH %ORJ 0XOOHQ 6XEWRWDO &RQVXPHU $GYHUWLVLQJ

California Avocado Commission

,QGHSHQGHQW $XGLWRU¶V 5HSRUW RQ ,QWHUQDO &RQWURO 2YHU )LQDQFLDO 5HSRUWLQJ DQG RQ &RPSOLDQFH DQG 2WKHU 0DWWHUV %DVHG RQ DQ $XGLW RI )LQDQFLDO 6WDWHPHQWV 3HUIRUPHG LQ $FFRUGDQFH ZLWK Government Auditing Standards ,QGHSHQGHQW $XGLWRU¶V 5HSRUW RQ ,QWHUQDO &RQWURO 2YHU )LQDQFLDO 5HSRUWLQJ DQG RQ &RPSOLDQFH DQG 2WKHU 0DWWHUV %DVHG RQ DQ $XGLW RI )LQDQFLDO 6WDWHPHQWV 3HUIRUPHG LQ $FFRUGDQFH ZLWK Government Auditing Standards %RDUG RI 'LUHFWRUV &DOLIRUQLD $YRFDGR &RPPLVVLRQ %RDUG RI 'LUHFWRUV ,UYLQH &DOLIRUQLD &DOLIRUQLD $YRFDGR &RPPLVVLRQ ,UYLQH &DOLIRUQLD :H KDYH KDYH DXGLWHG DXGLWHG LQ LQ DFFRUGDQFH DFFRUGDQFH ZLWK ZLWK WKH WKH DXGLWLQJ DXGLWLQJ VWDQGDUGV VWDQGDUGV JHQHUDOO\ JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI :H $PHULFD DQG DQG WKH WKH VWDQGDUGV VWDQGDUGV DSSOLFDEOH DSSOLFDEOH WR WR ILQDQFLDO ILQDQFLDO DXGLWV DXGLWV FRQWDLQHG FRQWDLQHG LQ LQ Government Government Auditing Auditing Standards Standards $PHULFD LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV WKH ILQDQFLDO VWDWHPHQWV RI WKH &DOLIRUQLD LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV WKH ILQDQFLDO VWDWHPHQWV RI WKH &DOLIRUQLD $YRFDGR &RPPLVVLRQ &RPPLVVLRQ &RPPLVVLRQ &RPPLVVLRQ DV DV RI RI DQG DQG IRU IRU WKH WKH \HDU \HDU HQGHG HQGHG 2FWREHU 2FWREHU DQG DQG WKH WKH UHODWHG UHODWHG $YRFDGR QRWHV WR WKH ILQDQFLDO VWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVH WKH &RPPLVVLRQ¶V EDVLF ILQDQFLDO QRWHV WR WKH ILQDQFLDO VWDWHPHQWV ZKLFK FROOHFWLYHO\ FRPSULVH WKH &RPPLVVLRQ¶V EDVLF ILQDQFLDO VWDWHPHQWV DQG KDYH LVVXHG RXU UHSRUW WKHUHRQ GDWHG -DQXDU\ VWDWHPHQWV DQG KDYH LVVXHG RXU UHSRUW WKHUHRQ GDWHG -DQXDU\ ,QWHUQDO &RQWURO 2YHU )LQDQFLDO 5HSRUWLQJ ,QWHUQDO &RQWURO 2YHU )LQDQFLDO 5HSRUWLQJ ,Q SODQQLQJ SODQQLQJ DQG DQG SHUIRUPLQJ SHUIRUPLQJ RXU RXU DXGLW DXGLW RI RI WKH WKH ILQDQFLDO ILQDQFLDO VWDWHPHQWV VWDWHPHQWV ZH ZH FRQVLGHUHG FRQVLGHUHG WKH WKH &RPPLVVLRQ¶V &RPPLVVLRQ¶V ,Q LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ LQWHUQDO FRQWURO DV D EDVLV IRU GHVLJQLQJ DXGLW SURFHGXUHV WKDW LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ LQWHUQDO FRQWURO DV D EDVLV IRU GHVLJQLQJ DXGLW SURFHGXUHV WKDW DUH DSSURSULDWH DSSURSULDWH LQ LQ WKH WKH FLUFXPVWDQFHV FLUFXPVWDQFHV IRU IRU WKH WKH SXUSRVH SXUSRVH RI RI H[SUHVVLQJ H[SUHVVLQJ RXU RXU RSLQLRQ RSLQLRQ RQ RQ WKH WKH ILQDQFLDO ILQDQFLDO DUH VWDWHPHQWV EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH &RPPLVVLRQ¶V VWDWHPHQWV EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO FRQWURO $FFRUGLQJO\ $FFRUGLQJO\ ZH ZH GR GR QRW QRW H[SUHVV H[SUHVV DQ DQ RSLQLRQ RSLQLRQ RQ RQ WKH WKH HIIHFWLYHQHVV HIIHFWLYHQHVV RI RI WKH WKH &RPPLVVLRQ¶V &RPPLVVLRQ¶V LQWHUQDO LQWHUQDO FRQWURO LQWHUQDO FRQWURO $ deficiency deficiency in in internal internal control control H[LVWV H[LVWV ZKHQ ZKHQ WKH WKH GHVLJQ GHVLJQ RU RU RSHUDWLRQ RSHUDWLRQ RI RI D D FRQWURO FRQWURO GRHV GRHV QRW QRW DOORZ DOORZ $ PDQDJHPHQW RU RU HPSOR\HHV HPSOR\HHV LQ LQ WKH WKH QRUPDO QRUPDO FRXUVH FRXUVH RI RI SHUIRUPLQJ SHUIRUPLQJ WKHLU WKHLU DVVLJQHG DVVLJQHG IXQFWLRQV IXQFWLRQV WR WR SUHYHQW SUHYHQW RU RU PDQDJHPHQW GHWHFW DQG DQG FRUUHFW FRUUHFW PLVVWDWHPHQWV PLVVWDWHPHQWV RQ RQ D D WLPHO\ WLPHO\ EDVLV EDVLV $ $ material material weakness weakness LV LV D D GHILFLHQF\ GHILFLHQF\ RU RU D D GHWHFW FRPELQDWLRQ RI GHILFLHQFLHV LQ LQWHUQDO FRQWURO VXFK WKDW WKHUH LV D UHDVRQDEOH SRVVLELOLW\ WKDW D PDWHULDO FRPELQDWLRQ RI GHILFLHQFLHV LQ LQWHUQDO FRQWURO VXFK WKDW WKHUH LV D UHDVRQDEOH SRVVLELOLW\ WKDW D PDWHULDO PLVVWDWHPHQW RI RI WKH WKH HQWLW\¶V HQWLW\¶V ILQDQFLDO ILQDQFLDO VWDWHPHQWV VWDWHPHQWV ZLOO ZLOO QRW QRW EH EH SUHYHQWHG SUHYHQWHG RU RU GHWHFWHG GHWHFWHG DQG DQG FRUUHFWHG FRUUHFWHG RQ RQ D D PLVVWDWHPHQW WLPHO\ EDVLV $ significant deficiency LV D GHILFLHQF\ RU D FRPELQDWLRQ RI GHILFLHQFLHV LQ LQWHUQDO FRQWURO WLPHO\ EDVLV $ significant deficiency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

Macias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618

www.mgocpa.com

Macias Gini & O’Connell LLP 111 Pacifica, Suite 300 Irvine, CA 92618

www.mgocpa.com

2021 Annual Report

&RPSOLDQFH DQG 2WKHU 0DWWHUV $V SDUW RI REWDLQLQJ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU WKH &RPPLVVLRQ¶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overnment Auditing Standards 3XUSRVH RI WKLV 5HSRUW 7KH SXUSRVH RI WKLV UHSRUW LV VROHO\ WR GHVFULEH WKH VFRSH RI RXU WHVWLQJ RI LQWHUQDO FRQWURO DQG FRPSOLDQFH DQG WKH UHVXOWV RI WKDW WHVWLQJ DQG QRW WR SURYLGH DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO RU RQ FRPSOLDQFH 7KLV UHSRUW LV DQ LQWHJUDO SDUW RI DQ DXGLW SHUIRUPHG LQ DFFRUGDQFH ZLWK Government Auditing Standards LQ FRQVLGHULQJ WKH &RPPLVVLRQ¶V LQWHUQDO FRQWURO DQG FRPSOLDQFH $FFRUGLQJO\ WKLV UHSRUW LV QRW VXLWDEOH IRU DQ\ RWKHU SXUSRVH

,UYLQH &DOLIRUQLD -DQXDU\

California Avocado Commission

Industry Statistical Data

2021 Annual Report

2021 ANNUAL REPORT California Avocado Commission 12 Mauchly, Suite L Irvine, CA 92618 949.341.1955 CaliforniaAvocadoGrowers.com CaliforniaAvocado.com Shop.CaliforniaAvocado.com

2021 CAC Annual Report

Articles inside

PRESIDENT’S LETTER

CHAIRMAN’S LETTER