A major citrus company in Florida has announced its decision to cease operations, citing significant challenges from natural disasters and persistent diseases.
Alico Inc., a prominent agricultural grower based in Fort Myers, Florida, has declared the termination of its citrus operations, a substantial shift reflecting severe challenges within the industry. This decision arrives as Florida’s citrus crops grapple with the aftermath of repeated hurricanes and a persistent tree disease known as citrus greening.
The company, which oversees approximately 53,371 acres across eight counties, plans to transition about 3,400 acres of its citrus groves to third-party caretakers after the current harvest season. This arrangement will persist until 2026, during which Alico will also explore alternative uses for a quarter of its land holdings, including potential commercial or residential developments.
According to John Kiernan, Alico’s President and CEO, the decision was prompted by a dramatic 73% decline in citrus production over the past decade. He noted that the devastation from hurricanes Irma in 2017, Ian in 2022, and Milton in 2024 had compounded the ongoing struggles caused by citrus greening. “The cumulative impact of these challenges has made citrus farming economically unfeasible for us,” stated Kiernan.
The move is expected to result in a workforce reduction, affecting up to 172 employees. Moreover, the company has informed juice producer Tropicana of its decision, as per documents filed with the U.S. Securities and Exchange Commission.
Florida, once a prominent leader in citrus production, has been seeing a steady decline in its output over the past two decades. Many growers have begun exploring alternative land uses in response to continuous threats from diseases and extreme weather conditions.
Recently, state agriculture officials projected a 20% decrease in Florida’s orange production for the 2024-2025 season compared to the previous year, largely due to damage from Hurricane Milton. The forecast suggests a potential yield of 12 million boxes, marking a 33% reduction from last season’s final figures.
These developments underline a challenging period for Florida’s citrus growers, forcing them to adapt and rethink their strategies amid a shifting agricultural landscape.
The end of Alico’s citrus operations symbolizes the broader struggles Florida’s citrus industry faces in overcoming environmental and disease-related challenges. As the state seeks solutions, the potential for land redevelopment offers a path forward for businesses looking to pivot in these times.
Source: Abcactionnews
