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Alico Inc. Halts Citrus Operations in Fort Myers

Abandoned Citrus Grove

News Summary

Alico Inc., a leading citrus grower in Fort Myers, Florida, has announced the cessation of its citrus operations due to economic challenges and environmental issues. After battling citrus greening disease and hurricanes, Alico’s citrus production has drastically decreased by 73% over the past decade. The decision will impact approximately 172 employees, as the company transitions to focus on diversified land management. As Alico shifts away from its citrus legacy, the future remains uncertain for Florida’s broader citrus industry, which continues to face significant challenges.

Fort Myers, Florida: Alico Inc. Calls It Quits on Citrus Operations

In a significant shift that ripples through the agriculture landscape, Alico Inc., a prominent citrus grower located in the heart of Fort Myers, has decided to wind down its citrus operations due to mounting economic pressures and ongoing environmental adversities. After years of wrestling with the treasures and troubles of citrus farming, this major player is shifting gears to focus on land uses that promise better profitability.

The Heart of the Matter: Disease and Disaster

This decision is not one made in haste; it follows a long and arduous battle against the notorious citrus greening disease, coupled with the devastating blow dealt by hurricanes that have wreaked havoc on Florida’s citrus groves. To top it all off, Alico’s citrus production has plummeted—by a staggering 73% over the past decade. The current crop season is expected to yield even less than before, prompting the company to announce no further investments in citrus farming once this yield is reaped.

Hurricanes Take Their Toll

Witnessing the destruction these hurricanes have caused, it’s hard not to feel a twinge of sympathy for the industry. Hurricanes Irma, Ian, and Milton have severely damaged Alico’s citrus trees, already weakened by disease. As of now, the company controls roughly 3,460 acres of citrus land, which will be managed by other operators until the end of 2026—time to let someone else take on the challenge.

The citrus scene in Florida has drastically changed over the years. To truly grasp the magnitude of the decline, think back to the 1997-1998 season when a whopping 244 million boxes of oranges were produced. Compare that to the projected 12 million boxes expected for the 2024-2025 season, and it’s clear that the landscape has transformed drastically.

The Human Cost of Change

As the company transitions away from citrus, it is not just an operational overhaul; it’s a personal one too. Up to 172 employees will face the unfortunate reality of layoffs. Of these, 135 will see immediate changes, while the remaining 37 will be let go by April 1. This decision underscores the challenging economic situation and illustrates how deeply intertwined agriculture and livelihoods can be.

A Bright New Beginning?

Despite these challenges, Alico is not throwing in the towel; instead, it’s setting a new course. The company plans to metamorphose into a diversified land management company, retaining roughly 75% of its land dedicated to agriculture while eyeing about 10% for potential development ventures. The aim is to enhance returns for investors by not only relying on traditional farming but also on varied land management strategies.

Moreover, Alico has already informed Tropicana that it will halt production on groves contractually tied to them, effective after the 2024-2025 crop year wraps up. This will allow Alico to concentrate fully on its new vision.

The Broader Citrus Industry: Still Under Siege

As Alico steers away from its citrus legacy, one can only wonder what the future holds for the larger citrus industry in Florida. It’s a time of change, and, while the past might be behind us, there’s always hope for new opportunities on the horizon.