Alico, one of the oldest citrus producers in Florida, has announced it will cease operations, adding to the challenges facing the industry. The company, a major supplier for Tropicana, will not invest further in citrus production after the current crop is harvested in 2025, primarily due to environmental issues such as citrus greening and hurricanes.
Alico will also lay off most of its citrus production workforce while contracting with third-party caretakers to manage 3,460 citrus acres, which will be used to fulfill part of the company’s contract with Tropicana. Management believes it can unlock $650 – 750 million in enterprise value by developing its valuable land near Fort Myers and Tampa.
Over the past decade, Alico’s citrus production has declined by 73%. Florida’s citrus yields have also significantly decreased, dropping from over 41 million boxes of oranges in 2021 to less than 16 million boxes in 2022, largely due to Hurricane Ian. Farmers continue to face difficulties, and the effects of Hurricane Milton have compounded the situation. Current projections estimate only 12 million boxes of oranges for the current season.
