Calavo Growers Inc

ITEM 1A. RISK FACTORS

The risk factors, set forth below, update the For a discussion of our risk factors in, see Part I, Item 1A Risk Factors of our Annual Report on Form 10-K for the year ended October 31, 2024. In addition to the risk factors below, you should carefully consider the risk factors discussed in our most recent Form 10-K report, which could materially affect , as supplemented by our business, financial position, results of operations, and the trading price of our common stock. The risks and uncertainties that we face are not limited to those set forth below and/or in the 2024 Quarterly Report on Form 10-K. Additional risks and uncertainties not presently known to us or that we currentQ for the quarterly believe to be immaterial may also adversely affect our business and the trading price of our common stock.

Tariffs on Imported Goods Could Materially Impact Our Business, Financial Condition, and Results of Operations

period ended January 31, 2025. The U.S. governmentre has in the past imposed, and may in the future impose, tariffs on imported agricultural products, including avocados, tove been no matoes and guacamole, which could significantly impact our costs and profitability. If tariffs or other trade restrictions are enacted, reimposed, or increased on produce imported erial changes from Mexico or other key sourcing regions, the price we pay for raw materials could rise sharply, increasing our cost of goods sold and reducing our margins.

Additionally, tariffs could impact supply chain reliability, disrupt established sourcing strategies, and result in increased operational complexity. Higher costs due to tariffs will generally lead to price increases for our products, potentially reducing consumer demand and impacting our competitive position in the market. Furthermore, retaliatory tariffs or trade restrictions from foreign governments could adversely affect our ability to export products and expand internationally.

The uncertainty surrounding trade policies and international relations may lead to volatility in the pricing and availability of fresh produce, which could have a material adverse effect on our business, financial condition, and results of operations.

The Spread of the Avocado Seed Weevil Could Disrupt Our Supply Ch risk factors set forth in such Annual Report on Form 10-K and Quarterly Report on Form 10-Q. However, the risks and uncertain and Adversely Impact Our Business

The avocado seed weevil, an invasive pest, has been reported in Mexican avocado-producing regions, posing a significant threat to fruit quality and overall yield. During our first fiscal quarter of 2025, one of our packinghouses temporarily paused its operations dueties that we face are not limited to the detection of a small number of avocado weevils in a pre-production area. After completing remedial measures, including those described below, the affected packinghouse was re-certified by the relevant authorities and resumed normose set forth in such Annual operations.

In the future, an infestation of avocado weevils in key growing regions, could lead to increased crop losses, reduced availability of high-quality avocados, and higher costs associated with pest management and mitigation efforts.

Regulatory responses, such as quarantine measures or restrictions on avocado imports from affected regions, could disrupt our supply chain, limit our sourcing options,Report on Form 10-K and Quarterly Report on Form 10-Q. Additional risks and reduce the volume of avocados available for sale. The implementation of such measures may also increase logistical complexities, delay shipments, and introduce additional compliance costs.

26uncertainties not

27

A severe outbreak of the avocado seed weevil could result in reduced supppresently and higher procurement costs, ultimately impacting our ability to meet consumer demand and maintain product quality standards. Any sustained disruption caused by this pest could materially and adversely affect our business, financial condition, and results of operations.

Further, Mexican avocado packinghouses must adhere to stringent regulations to prevent the contamination of avocados by pests such as the avocado seed weevil. These regulations are enforced by both Mexican authorities and the U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) to ensure that exported avocados meet safety standards and do not introduce pests into the United States.

Among other requirements, orchards aknown to us or that we currently believe to be immaterial may also adversely affect our business and packinghouses are subject to certification and registration by Mexican plant health authorities. Failure to comply with these regulatory requirements may result in immediate suspension of the orchard or packinghouse from the export program to the United States until such requirements are satisfied. Additionally, repeated failures to satisfy such requirements may result in Mexican authorities or APHIS reevaluating the effectiveness of existing pest management and inspectithe trading price of our common protocols, potentially leading to more stringent measures or restrictions.

27

stock.