Pointing to Florida’s decades-long fight with deadly citrus greening disease and damage from hurricanes, a major grower Monday announced it will “wind down” citrus operations and focus on more-profitable uses of its land.
Fort Myers-based Alico Inc. said it will not spend additional money on citrus operations after the current crop is harvested. It said about 3,460 acres of its citrus land will be managed by other operators through 2026.
“For over a century, Alico has been proud to be one of Florida’s leading citrus producers and a dedicated steward of its agricultural land, but we must now reluctantly adapt to changing environmental and economic realities,” John Kiernan, Alico’s president and chief executive officer, said in a prepared statement. “Our citrus production has declined approximately 73% over the last 10 years, despite significant investments in land, trees and citrus disease treatments, and the current harvest will likely be lower in volume than the previous season. The impact of Hurricanes Irma in 2017, Ian in 2022 and Milton in 2024 on our trees, already weakened from years of citrus greening disease, has led Alico to conclude that growing citrus is no longer economically viable for us in Florida.”
The announcement was another major blow to what has been one of Florida’s signature industries. At its peak, Florida produced 244 million boxes of oranges during the 1997-1998 season, according to Florida Citrus Mutual. During the 2023-2024 season, it produced 17.96 million boxes of oranges — and is forecast to produce 12 million boxes this season after Hurricane Milton barreled through groves.
In a U.S. Securities and Exchange Commission filing, Alico said its board on Friday approved reducing its workforce by up to 172 employees. Up to 135 employees will lose their jobs immediately, while up to 37 will be let go April 1, according to the filing.
An Alico news release Monday described the changes as a “strategic transformation to become a diversified land company.” It said the company owns 53,371 acres of land in eight Florida counties and about 48,700 acres of oil, gas and mineral rights.
Though it will exit the citrus business, Alico said about 75 percent of its land is expected to remain tied to agriculture and that about 10 percent could be targeted for development within five years.
“Alico expects to maintain its commitment to the Florida agriculture industry through diversified farming operations on nearly all its land holdings following this citrus production transition,” the news release said. “Alico also expects to entitle certain parcels of its land for commercial and residential development. The company believes these strategic decisions improve its ability to provide investors with a greater return on capital that includes the benefits and stability of a conventional agriculture investment, with the optionality that comes with active land management.”
Also, the Securities and Exchange Commission filing said Alico on Friday notified the juice maker Tropicana that it planned to stop production on groves that were part of a contract between the companies. The filing said that “if Tropicana consents, its purchase obligations under the agreement with respect to such acreage are expected to conclude upon the completion of the 2024/2025 crop year.”
During a call Monday with investment analysts, Kiernan said the 3,460 acres that will be managed by other operators will remain under contract with Tropicana through 2026.
Citrus production was already expected to decrease during the 2024-2025 season, but projections became even more bleak after Hurricane Milton made landfall in October in Sarasota County and moved through citrus-growing areas as it crossed the state.
In a quarterly financial report issued Dec. 2, Alico said Milton “impacted most of our citrus groves with sustained hurricane or tropical storm force winds for varying durations of time. The company believes that our groves sustained minimal tree damage; however, there was measurable fruit drop from trees in our northern groves, particularly in Polk and Hardee counties.”
The quarterly report said Alico harvested about 3.1 million boxes of fruit during the fiscal year that ended Sept. 30, a timeframe similar to the 2023-2024 citrus season.
–Jim Saunders, News Service of Florida
Michael J Cocchiola says
Bad for Florida and good for Mexico, I expect.
Jeff M says
Sad thing to see the industry Florida was so known for fade away. I bought oranges last night and they were from California. Hope that disease never decimates their citrus industry.
Billy says
Yes, Florida is no longer known for citrus. It is known for housing development a concrete paradise. There are no more woodlands to speak of. Everything has been bulldozed over and building swamps and sinkholes and people are lining up to get in. Lol.
Endless dark money says
lol but the elected officials don’t “believe” in climate change and are paid well not to. Who needs a habitat to survive? I bet the conman with nuclear codes has a plan (end the epa and free pollution passes for billionaire friends. hahahahaha.
Smarty Plants says
Brazil too.
DaleL says
Relying on a single crop is always a risk. There are other tree crops which can be grown for a profit in Florida. If citrus groves were separated from each other by alternative tree groves, it would be harder for the Asian citrus psyllid (vector insect) to transmit citrus greening from one citrus grove to another.
Alternative trees include avocados and macadamias. I have a couple of macadamia trees as yard trees. They survived the 25 degree freeze of December 25, 2022 with minimal damage. I also have a couple of avocados. They didn’t fair as well with the 25 degrees, but they have come back strong. Olive trees are another possibility.
A few of comments on macadamia trees: 1. The trees are not available at locally. I had to purchase mine (“mail order”) from a nursery near Miami. 2. Squirrels absolutely love macadamia nuts. They will strip the trees before the nuts are ready to be harvested. 3. The leaves are evergreen and spiky like holly.
Brian says
Having been in the citrus business on a much smaller scale this makes me sad. I have watched groves I help plan and work be bulldozed out, watched my trees die due to the freeze in 1983 and the trees die from diseases. I realize it is time for this southern boy to move on. I am a dying breed, in the way of progress. All y’all that stay in this state can have it. I will miss it and the way it used to be. Enjoy your paradise.
Nephew Of Uncle Sam says
Few more years might as well take that orange off the vehicle tag at this rate.
Jack says
Florida is now known for strip malls, housing developments, car washes, and storage buildings.
Laurel says
DaleL: True. Leechees can be grown in south Florida as well. However, Florida’s oranges are the sweetest. The real culprit here is developing subdivisions.
Jeff says
California. I bought some navel oranges yesterday in Publix – California grown.
Atwp says
Anything that will hurt the Republican controlled state of Florida makes me happy.
Laurel says
Nephew: And put a reference to Margaritaville on it.
DaleL says
Subdivisions do sprawl and take agricultural land. Citrus greening is so serious because it takes years for a citrus tree to become productive. Controlling the spread of citrus greening requires controlling the vector insect (Asian citrus psyllid). This keeps the bacteria from spreading from one citrus grove to another. Separating the groves with alternative crops, including tree crops, will help.
Subdivisions have another risk to citrus groves. Homeowners frequently plant citrus trees. These trees are typically not inspected for disease once they are planted. Diseased citrus trees on residential properties can result in hidden disease reservoirs.
Laurel says
DaleL: Again, you are correct. However, while living in south Florida during the height of the epidemic, I wondered why Asplundh trucks, full of cut citrus trees, branches and leaves, traveled north with leaves flying off the cuttings from the backs of their trucks, into the neighborhoods they passed. Seems they should have started north, and worked their way south. Didn’t seem right. Nearly all the citrus groves are sprawling, housing subdivisions now.
Laurel says
I think it’s maybe not good to wish ill.
Jeff says
Kind of like “Orange” County, California. Nothing stays the same.