Alico: Increased Citrus Prices Expected to Continue

Tacy Calliesfinancial, Industry News Release

© Florida Department of Citrus

Alico, Inc., one of Florida’s largest citrus producers, announced financial results for the fiscal quarter ending Dec. 31. Some highlights regarding the company’s citrus operation follow.

For the quarter, Alico Citrus harvested approximately 0.8 million boxes of fruit, a decrease of 14.6 percent from the first quarter of the prior fiscal year. The decrease was principally related to there being less fruit available on the citrus trees as well as greater fruit drop in the current harvest season compared to the prior harvest season.

However, as anticipated, the company has seen an increase in the price per pound solids from $1.87 to $2.25. A significant reason for this improvement is increased consumption of not-from-concentrate orange juice by retail consumers since March 2020, as evidenced by published Nielsen data. This decreased the inventory supply levels at Florida citrus juice processors. Based on the latest published Nielsen data for the 12-week period ended Dec. 26, consumption of not-from-concentrate orange juice by retail consumers increased by 14 percent, compared to the same period in the prior year.

The company experienced an overall decrease in pound solids per box, which was 5.26 for the fiscal quarter ending Dec. 31, compared to 5.52 for the fiscal quarter ended Dec. 31, 2019.

“As we have commenced the fiscal year 2021 harvest season, Alico has seen, along with the entire Florida citrus industry, a decrease in processed box production of the early and mid-season crop, as compared to the same period last year,” said John Kiernan, Alico president and chief executive officer. “The latest published U.S Department of Agriculture (USDA) citrus forecast report estimates an approximate 33 percent decline of the early and mid-season crop for the current harvest season, as compared to the prior year. Because of its comprehensive grove management program, Alico believes its percentage decline in early and mid-season crops will be substantially lower than the USDA’s estimate.”

Kiernan added, “We are encouraged by the continued increased consumption of not-from-concentrate orange juice by retail consumers. Since March 2020 we have seen double-digit growth in consumption, which, along with tighter supply, has significantly improved market prices for early and mid-season fruit over the previous year. Alico is confident this will continue with Valencia market pricing for this season.”

The company’s harvesting activities to date have not been impacted by the coronavirus pandemic, and there have been no disruptions in delivering fruit to the processors. Additionally, to date, the company has not experienced any material challenges to its operations from COVID-19.

See the full Alico report here.

Source: Alico, Inc.

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