Summary:
Alico Inc., a major citrus producer in Florida, has announced a strategic shift away from citrus farming due to economic challenges. CEO John Kiernan explained that the decision was driven by the impact of Hurricane Irma in 2017 and the persistent citrus greening disease, which have significantly reduced profitability. The company plans to diversify its land usage, with about 75% of its 53,000 acres remaining in agriculture for alternative crops such as sod, sugar cane, vegetables, and cattle farming, while 25% will be considered for commercial or residential development.
This transition will result in the layoff of 172 workers, though Alico plans to provide severance pay and job search assistance to eligible employees. Kiernan emphasized the company’s commitment to responsible land stewardship while balancing the need to generate returns for shareholders. Alico will continue citrus operations on about 3,500 acres of its most productive land for at least one more season, with the possibility of leasing to small-scale farmers in the future. The company is also exploring other revenue streams, including sand mining, as it adapts to changing market conditions and environmental challenges