TALLAHASSEE — Pointing to Florida’s decades-long combat with lethal citrus greening illness and harm from hurricanes, a significant grower Monday introduced it’ll “wind down” citrus operations and give attention to more-profitable makes use of of its land.
Fort Myers-based Alico Inc. mentioned it won’t spend further cash on citrus operations after the present crop is harvested. It mentioned about 3,460 acres of its citrus land might be managed by different operators by 2026.
“For over a century, Alico has been proud to be one in every of Florida’s main citrus producers and a devoted steward of its agricultural land, however we should now reluctantly adapt to altering environmental and financial realities,” John Kiernan, Alico’s president and chief government officer, mentioned in a ready assertion. “Our citrus manufacturing has declined roughly 73% during the last 10 years, regardless of important investments in land, bushes and citrus illness therapies, and the present harvest will doubtless be decrease in quantity than the earlier season. The affect of Hurricanes Irma in 2017, Ian in 2022 and Milton in 2024 on our bushes, already weakened from years of citrus greening illness, has led Alico to conclude that rising citrus is now not economically viable for us in Florida.”
The announcement was one other main blow to what has been one in every of Florida’s signature industries. At its peak, Florida produced 244 million packing containers of oranges through the 1997-1998 season, in response to Florida Citrus Mutual. Throughout the 2023-2024 season, it produced 17.96 million packing containers of oranges — and is forecast to supply 12 million packing containers this season after Hurricane Milton barreled by groves.
In a U.S. Securities and Trade Fee submitting, Alico mentioned its board on Friday authorized lowering its workforce by as much as 172 staff. As much as 135 staff will lose their jobs instantly, whereas as much as 37 might be let go April 1, in response to the submitting.
An Alico information launch Monday described the adjustments as a “strategic transformation to turn into a diversified land firm.” It mentioned the corporate owns 53,371 acres of land in eight Florida counties and about 48,700 acres of oil, fuel and mineral rights.
Although it’ll exit the citrus enterprise, Alico mentioned about 75 % of its land is predicted to stay tied to agriculture and that about 10 % may very well be focused for improvement inside 5 years.
“Alico expects to keep up its dedication to the Florida agriculture business by diversified farming operations on practically all its land holdings following this citrus manufacturing transition,” the information launch mentioned. “Alico additionally expects to entitle sure parcels of its land for industrial and residential improvement. The corporate believes these strategic selections enhance its skill to supply buyers with a better return on capital that features the advantages and stability of a traditional agriculture funding, with the optionality that comes with energetic land administration.”
Additionally, the Securities and Trade Fee submitting mentioned Alico on Friday notified the juice maker Tropicana that it deliberate to cease manufacturing on groves that had been a part of a contract between the businesses. The submitting mentioned that “if Tropicana consents, its buy obligations below the settlement with respect to such acreage are anticipated to conclude upon the completion of the 2024/2025 crop 12 months.”
Throughout a name Monday with funding analysts, Kiernan mentioned the three,460 acres that might be managed by different operators will stay below contract with Tropicana by 2026.
Citrus manufacturing was already anticipated to lower through the 2024-2025 season, however projections grew to become much more bleak after Hurricane Milton made landfall in October in Sarasota County and moved by citrus-growing areas because it crossed the state.
In a quarterly monetary report issued Dec. 2, Alico mentioned Milton “impacted most of our citrus groves with sustained hurricane or tropical storm pressure winds for various durations of time. The corporate believes that our groves sustained minimal tree harm; nevertheless, there was measurable fruit drop from bushes in our northern groves, notably in Polk and Hardee counties.”
The quarterly report mentioned Alico harvested about 3.1 million packing containers of fruit through the fiscal 12 months that ended Sept. 30, a timeframe just like the 2023-2024 citrus season.