Alico Inc. has declared its intention to cease its citrus-growing activities in Florida, following the harvest of the current crop. This decision comes in response to the challenges posed by a series of hurricanes and persistent tree diseases. The company, based in Fort Myers, will transition approximately 3,400 citrus acres to be managed by third-party caretakers until 2026.
With a portfolio of 53,371 acres across eight counties in Florida, Alico also holds 48,700 acres of oil, gas, and mineral rights within the state. The company plans to repurpose a quarter of its land holdings for commercial or residential development projects. This strategic shift is attributed to a 73% decline in citrus production over the last decade, exacerbated by Hurricanes Irma, Ian, and Milton, alongside the detrimental effects of citrus greening disease. "The impact of Hurricanes Irma in 2017, Ian in 2022, and Milton in 2024 on trees already weakened from years of citrus greening disease have led Alico to conclude that growing citrus is no longer economically viable for us in Florida," stated John Kiernan, President and CEO of Alico.
The company anticipates a workforce reduction of up to 172 employees and has communicated its decision to Tropicana, as per a U.S. Securities and Exchange Commission filing. This move reflects the broader trend of declining citrus production in Florida over the past two decades, driven by disease and the search for alternative land uses. Recent forecasts predict a 20% decrease in Florida's orange production for the 2024-2025 season from the previous October, marking a 33% drop from last season's final output.
Source: Insurance Journal