We initiate coverage on Costa Group, the largest fruit & vegetable grower in Australia. The company produces mushrooms, citrus, berries, avocados and tomatoes. The key determinant of earnings over the next three years will be price realisation across its domestic and international markets. We expect pricing has stabilised in Australia, but we are cautious about blueberry pricing in China and Morocco in the next 12 months. The company has a promising path for earnings growth over the next three years given increased citrus exports, its tomato glasshouse expansion and hectare growth in China.