A significant citrus grower in Florida has announced its decision to halt citrus production, citing ongoing challenges stemming from tree diseases and recent hurricanes. This announcement came from Alico Inc. earlier this week, revealing their intent to phase out citrus operations following the harvest of the current crop later this year.
Alico Inc., located in Fort Myers, possesses over 53,371 acres of land across eight Florida counties, alongside rights to 48,700 acres for oil, gas, and mineral extraction. Following this transition, approximately 3,400 acres of citrus land will be overseen by external caretakers for an additional year, extending through 2026. Moreover, the company is contemplating developing about a quarter of its land for either commercial or residential purposes in both the short and long term.
The company has reported a staggering 73% decrease in its citrus production over the last decade, primarily due to the effects of Hurricanes Irma in 2017, Ian in 2022, and Milton in 2024, which severely impacted trees that were already struggling due to citrus greening disease. John Kiernan, Alico’s president and CEO, remarked that these compounded issues have led to the conclusion that citrus farming is no longer financially sustainable for the company within Florida.
As part of its restructuring process, Alico anticipates a workforce reduction that may affect up to 172 employees. The company has communicated this strategic shift to juice manufacturer Tropicana in compliance with U.S. Securities and Exchange Commission regulations.
The citrus industry in Florida has experienced a significant downturn over the past twenty years, primarily driven by debilitating citrus diseases. In light of these challenges, many growers are actively exploring alternative land uses. Recently, agriculture officials reported a 20% reduction in Florida’s orange production forecast for the 2024-2025 season compared to the previous estimate from October. This forecast, predicting around 12 million boxes, represents a reduction of 33% compared to the previous year’s total production, reflecting the ongoing impacts of Hurricane Milton.
