Alico, Inc. announced that it entered into a new three-year agreement with its largest customer, Tropicana Brands Group (Tropicana), to supply citrus fruit. The agreement is effective June 5, 2024, through July 31, 2027.
This supply agreement succeeds existing agreements that are set to expire at the end of July 2024. This agreement effectively sells the citrus fruit grown on approximately 65% of Alico’s currently planted acres to Tropicana. The fruit will be sold at prices per pound solids that are approximately 33% to 50% higher over the term of the contract than the average price for all the citrus fruit sold to Tropicana last season. Alico has another supply contract with Tropicana that remains in effect through the 2024–25 harvest season.
Alico President and Chief Executive Officer John Kiernan said, “We are pleased to announce that we have extended our relationship with our largest customer for three additional years. Alico is proud of the successful business relationship we have been able to develop with Tropicana Brands over the past decade and we are both committed to meeting the challenges facing the Florida citrus industry together with near-term patience and long-term focus. This new supply agreement, in addition to our other continuing agreement, commit the majority of our citrus fruit at more certain pricing provisions over the next several seasons.”
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations.
Last month, Alico expressed frustration with its recent citrus production levels. Learn more here.
Source: Alico
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