Food distributor Organically Grown Co. has taken a step into vertical integration with the acquisition of a historic California citrus ranch.

The Portland company bought Johansen Ranch in Orland, California. The 77-acre ranch grows premium organic Satsuma and Clementine mandarins in what is the northern-most citrus growing region in North America, the company said in a news release.

This is the first time OGC, which is a large distributor of organic produce, has ventured into farming. However, CEO Brenna Davis said at this point it doesn’t signal a big strategic shift for the company.

This deal was an opportunity to save a trusted supplier.

OGC has worked with owners Rich and Mila Johansen for 40 years, and the couple was looking to retire. Rich Johansen approached OGC about options last year.

“Citrus is so important to us and to our customers,” said Davis, adding that Johansen Satsuma’s are iconic and have a devoted following. “We wanted to preserve the supply chain. And we learned that there was the potential that (the ranch) could be replaced with conventional almonds. We wanted to preserve the ranch.”

Johansen’s grandfather started the ranch in 1910 with plants brought from Japan. The ranch has become an important element in the organic movement, said Davis.

The ranch will be a separate business under the OGC umbrella. The existing staff and ranch manager will continue to run the operation, said Davis.

Prior to this deal OGC wasn’t in the business of farming but it works closely with its growers collaborating on growing plans and helping those farms be successful.

“OGC was the natural choice,” said Johansen in a written statement. “I’ve worked with them for decades, and I trust their commitment to preserving our land and our values.”

Terms of the deal were not disclosed, but Davis said the company funded it internally. OGC is owned by a Perpetual Purpose Trust and within its trust agreement is a directive to advance sustainable and inspire the growth of the organic agriculture movement.

The deal aligns with those core values of the trust, said Davis.

“At OGC, we believe protecting farmland and supporting the next generation of organic agriculture is essential to the future of food,” Davis said in a written statement. “This partnership with Johansen Ranch honors Rich’s incredible legacy while ensuring that the farm continues to thrive and provide high-quality organic citrus to our customers. It’s an investment in the land, the people and the organic movement.”