The current citrus harvest season “has been a challenging one for Alico,” the company stated in a late March press release. “In addition to a harvest season that was anticipated to produce less fruit than in the prior year, many of the state’s citrus groves, including Alico’s citrus groves, were impacted by a freeze event in late January 2022.”
Nearly all of Alico’s early and mid-season fruit, which comprises approximately 40% of its annual box production, had already been harvested and so was not materially impacted by the freeze, the company stated. It added, “Although the company’s Valencia harvest will be smaller this season as a result of the freeze, we are pleased that there does not appear to be long-term measurable damage to Alico’s trees.”
The company estimated it will have an 11% decrease in its annual citrus box production compared with the prior season. “Pricing for citrus has increased for the second consecutive year, and the company expects its pricing will approach, and may even reach, the ceiling prices on its long-term supply contracts with Tropicana this season,” it stated.
Alico reported that it has entered into a purchase option agreement with E.R. Jahna Industries, Inc. for the sale of approximately 899 acres of land at a price of approximately $11,500 per acre. The acreage consists of 340 net citrus acres, 130 acres of cane, 209 acres of pastureland and 220 support acres. Jahna has a three-year option to purchase the property, which expires in January 2025.
Alico is continuing with its citrus replanting program. It has planted approximately 1.5 million trees since the beginning of fiscal year 2018 through the end of fiscal year 2021. The trees planted in 2018 are anticipated to start producing a meaningful amount of fruit commencing with the next harvest season in fiscal year 2023.
Source: Alico, Inc.
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