Dive Brief:
- Alico Inc, a major orange grower in the U.S., has announced its decision to exit the citrus industry due to the impact of hurricanes and plant diseases on its Florida production.
- The company, a supplier to Tropicana, will cease investing in its citrus operations after the current crop is harvested in 2025. Alico Citrus division will downsize its production workforce and outsource the management of close to 3,500 citrus acres.
- Alico plans to transition into a diversified land company, with intentions to sell or lease most of its acreage for farming operations and commercial/residential development.
Dive Insight:
The combination of hurricanes and citrus greening disease has severely affected orange output in Florida, once a dominant force in U.S. orange production.
Florida’s orange crop is projected to reach historic lows, with Hurricane Milton exacerbating the challenges posed by citrus greening disease.
Despite investing in disease treatments, Alico has experienced a significant decline in citrus production over the past decade. The company has determined that citrus farming in Florida is no longer financially viable.
Alico anticipates that 75% of its land will remain dedicated to agriculture, with the company owning extensive acreage in Florida as well as oil, gas, and mineral rights.
The high costs associated with citrus farming have led many industry players to reassess their investments. Limoneira, a California-based producer, has sold off acres of land to pay off debts and shift its focus to marketing and selling citrus products.