Alico, Inc.’s Citrus Division harvested more fruit in the three months and nine months ended June 30 than during the same periods in the prior fiscal year. Harvests for the three-month and nine-month periods were approximately 0.8 million and 3.1 million boxes, respectively, compared to 0.4 million boxes and 2.7 million boxes, respectively, in the prior fiscal year.
POUND SOLIDS AND PRICES
For the nine months ended June 30, pound solids produced were up 17% for early and midseason (early/mids) oranges and 7.6% for Valencias, compared to last season. But pound solids per box were down 4% for early/mids and down 3.1% for Valencias.
For the nine-month period, Alico realized an increase in the price per pound solids of 3.8% for early/mids and 4.1% for Valencias compared to the prior season. That was a result of more favorable pricing in one of its contracts with Tropicana. Alico’s average realized/blended price per pound solids for the nine-month period increased 3.9% compared to the same period of the prior year. As a result of a new contract with Tropicana, the company expects prices per pound solid will increase more significantly next year.
IN RECOVERY
Alico expects it may take another season, or more, for its groves to fully recover to pre-Hurricane Ian production levels.
John Kiernan, Alico president and chief executive officer, said fruit quality was poor at the beginning of the early/mid and Valencia crop harvests but improved. “However, the rate of fruit drop accelerated during both harvests,” he stated.
REASONS FOR OPTIMISM
“We have several reasons to be more optimistic about our production next season,” Kiernan said. “First, since 2017, Alico has planted 2.2 million trees, and nearly all of them are now producing fruit. Second, Alico began treating its citrus trees in January 2023 with an OTC (oxytetracycline) product via trunk injection as a citrus greening therapy.
“In 2023, we were able to treat over 35% of our producing trees with OTC, and in 2024, we treated approximately 4.5 million producing trees … We remain cautiously optimistic that being another year removed from the hurricane, along with the combination of a second round of injections for previously treated trees and a first round of injections for trees that were not treated in 2023, will show more significant improvements, not just in yield, but also in reduced fruit drop.”
PUTNAM TO BE CHAIRMAN
Alico announced that Adam Putnam, former Florida agriculture commissioner and Congress member, will become chairman of the board in 2025.
Putnam has served on the Alico board of directors since August 2020 and has served as chief executive officer of Ducks Unlimited since April 2019.
Putnam will succeed George Brokaw, who has served as chairman since February 2022 and as a director since November 2013. Brokaw will remain a director.
See the full Alico news release about company results through June 30 here.
Source: Alico
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