Alico Inc. reported it had reduced orange production and lower pound solids per box during the six months that ended March 31. However, the company received higher prices per pound solids.
For the period, Alico Citrus harvested approximately 4.1 million boxes of fruit, a decrease of 10.3% from the same period of the prior fiscal year. The decrease is principally related to fewer pieces of fruit available on the citrus trees as well as greater fruit drop. In late January, almost all of the company’s groves were impacted by a significant freeze that adversely affected the 2021–22 Florida Valencia crop. The early and mid-season crop was substantially harvested before the freeze. There does not appear to be long-term measurable damage to the company’s citrus trees.
Alico experienced an overall decrease in the blended average pound solids per box, which was 5.13 for the six months ended March 31, 2022, compared to 5.54 for the six months ended March 31, 2021. The decline is partially due to the company accelerating the harvesting of its Valencia crop due to the freeze.
The company realized an increase in the price per pound solid of 11.2% for the six months ended March 31, 2022, as compared to the same period in the prior year. It received $2.56 per pound solids for its early- and midseason orange crop, versus $2.28 the year before. It received $2.64 for Valencia oranges, versus $2.40 the prior year.
“The current citrus harvest season has been a disappointing one for Alico, as well as for the entire industry in Florida,” said John Kiernan, Alico president and CEO. “The USDA is currently forecasting a 33.9% decline in the current year Valencia crop, as compared to the same period in the prior year, with a significant portion of the decline being attributed to the freeze event. We are anticipating our decline to be approximately 12–15%.”
Alico also reported that it executed a three-year option agreement to sell approximately 899 citrus acres for $11,500 per acre.
Source: Alico Inc.
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