Shrinking Yields and Economic Pressures Prompt Shift to Diversified Agriculture and Real Estate Ventures.

Alico, a major agricultural company that once ranked among the largest citrus producers in Florida, has announced its decision to leave the citrus industry in the face of mounting financial strains.

In a move that seeks to address years of declining output, Alico will cease allocating capital to its citrus operations after the 2025 harvest and pivot toward diversified farming ventures on most of its Florida land holdings.

The announcement, made on January 07, 2025, follows a significant production drop of 73% over the past decade, worsened by severe hurricanes and the pervasive threat of citrus greening disease.

According to a press release, Alico attributes much of its citrus sector’s financial challenges to huanglongbing, also known as citrus greening, alongside recurring hurricane damage.

The disease, which has weakened citrus trees throughout the state, heightened the negative effects of Hurricanes Irma in 2017, Ian in 2022, and Milton in 2024.

“Our citrus production has declined approximately 73% over the last 10 years, despite significant investments in land, trees and citrus disease treatments, and the current harvest will likely be lower in volume than the previous season.”

Alico President and CEO John Kiernan.

The company’s new strategy involves dedicating resources to alternative crops and real estate opportunities, signaling a shift from its longstanding ties to Florida’s storied citrus industry.

Alico owns roughly 53,371 acres spread across eight Florida counties and intends to protect its ongoing role in the state’s agricultural landscape by focusing on profitable farming operations not tied to citrus.

The company acknowledges that it has tried multiple measures to counter citrus greening, yet each season brought fresh obstacles, including the cost of disease control and recovery efforts after natural disasters.

As stated in the report, Alico is expected to wind down Alico Citrus’ main activities, including a substantial reduction in its citrus production workforce.

About 3,460 acres of citrus land will remain under a third party management agreement through 2026, ensuring a managed transition instead of an abrupt cessation.

Beyond agriculture, Alico plans to entitle certain parcels of land for commercial and residential development, an initiative the company believes will better align with investors’ expectations of capital returns.

Officials say these developmental prospects will help sustain the company’s long term profitability.

Despite the significant shift, Alico’s leadership emphasizes that the decision was not made lightly.

“We’ve explored all available options to restore our citrus operations to profitability, but the long term production trend and the cost needed to combat citrus greening disease no longer supports our expectations for a recovery,” Kiernan said.

He underscored the commitment to a balanced strategy that upholds Alico’s history in Florida’s agricultural sphere.

“Despite our collective efforts, Alico believes that this strategic decision is not only correct but essential. We remain committed to creating opportunities that will maintain our legacy of stewardship while also acting prudently on behalf of our shareholders, including working with local municipalities to develop plans that will benefit their Florida communities.”

While the move may disappoint those who regard Florida oranges as a cultural mainstay, the company asserts this transition will deliver a more stable business model, protecting both investors and local communities who rely on Alico’s continued activity.