Archive For The “News” Category
Alico, Inc., of Fort Myers, FL has announced a strategic transformation to become a diversified land company with each of its properties now expected to create profitable agricultural revenue opportunities that are not citrus-related until the Highest and Best Use (“HBU”) for these acres can be realized, according to a press release.
Alico owns approximately 53,371 acres of land across eight counties in Florida, as well as approximately 48,700 acres of oil, gas and mineral rights in the state. Alico Citrus, which holds the Company’s citrus production operations, has faced increasing financial challenges from citrus greening disease and environmental factors for many seasons.
The Company has decided to not spend further capital on its citrus operations after the current crop is harvested in 2025. It will focus its resources on creating new opportunities for profitable growth while also acting prudently on behalf of shareholders.
Alico expects to maintain its commitment to the Florida agriculture industry through diversified farming operations on nearly all its land holdings following this citrus production transition. Alico also expects to entitle certain parcels of its land for commercial and residential development. The Company believes these strategic decisions improve its ability to provide investors with a greater return on capital that includes the benefits and stability of a conventional agriculture investment, with the optionality that comes with active land management.
“For over a century, Alico has been proud to be one of Florida’s leading citrus producers and a dedicated steward of its agricultural land, but we must now reluctantly adapt to changing environmental and economic realities. Our citrus production has declined approximately 73% over the last ten 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.
“The impact of Hurricanes Irma in 2017, Ian in 2022 and Milton in 2024 on our trees, already weakened from years of citrus greening disease, has led Alico to conclude that growing citrus is no longer economically viable for us in Florida,” said John Kiernan, Alico’s President and Chief Executive Officer.
“This difficult decision is expected to provide Alico with a more stable future while maintaining our deep roots in agriculture by meaningfully reducing our working capital requirements for annual citrus production, reducing financial volatility and allowing the Company to focus on profitable non-citrus agricultural opportunities and entitlement work to achieve the HBU for all properties in our real estate portfolio.”
Alico plans to wind down Alico Citrus’ primary operations, which will include reducing most of its citrus production workforce effective immediately. The Company expects that approximately 3,460 citrus acres will be managed by third-party caretakers for another season through 2026.
Mr. Kiernan continued, “This strategic transformation is expected to provide Alico with a more stable future while maintaining our deep roots in agriculture. We recognize the personal impact this decision has on our valued employees and the Company is supporting them through this transition. Through these operational changes, Alico will remain a responsible corporate citizen and steward of both our land and communities, just as we have done for more than 125 years. For decades, while maintaining its agriculture leadership, Alico has opportunistically sold land in Florida for responsible purposes that benefit both the local communities and our shareholders, such as the approximately 40,000 acres of the Alico Ranch that were sold to the State of Florida since 2017 and the 760 acres of land donated in 1992 to establish Florida Gulf Coast University. 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. Alico thanks our entire Alico Citrus team for their unwavering dedication, hard work, and perseverance. 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.”
Under this new strategy, Alico:
- Expects to recognize positive cash flow for the remainder of the current fiscal year once land sales that have already been negotiated close, severance and restructuring costs are realized, and harvesting activities conclude.
- Anticipates that cash reserves at the end of the 2025 fiscal year will be sufficient to meet future operating expenses for at least two additional years without any additional land sales being required.
- Estimates that approximately 75% of its current land holdings are likely to remain agriculturally focused for the foreseeable future.
- Expects that approximately 25% of its land holdings have near- and long-term potential for commercial and residential development, with approximately 10% of its acres targeted for development within the next five years.
- Management estimates that the value of our current landholdings could be worth approximately $650 million to $750 million, with 75% of these acres valued for agriculture usage.
About Alico
Alico, Inc. currently operates two divisions: Alico Citrus, currently one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. While Alico Citrus will cease operations after the 2024/2025 harvest due to environmental and financial challenges, Alico remains committed to Florida’s agriculture industry, and will focus on its long-term diversified land usage and real estate development strategy. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
The recent California wildfires have left a haunting mark on our communities and hearts. At the Allen Lund Company, headquartered in La Cañada Flintridge, our employees experienced this devastation firsthand. Between the Palisades and Eaton fires, many of our team members (and family and friends) faced mandatory evacuations as the fires blazed through the surrounding cities, threatening homes, beloved restaurants, and landmarks that have long been central to our lives. Entire neighborhoods have been reduced to ash, and the impact is felt in every corner of our community. Families are displaced, cherished memories lost, and the collective sense of security is shaken.
Yet, amid the destruction, we’ve witnessed incredible resilience and humanity. Neighbors helping neighbors, first responders risking everything to save lives, and countless acts of kindness remind us of the strength within our community. The transportation and logistics industry plays a critical role in ensuring resources like food, water, and building materials reach those in need. Together, we are not just moving freight but helping rebuild lives.
As we look to the future, we focus on coming together to heal and rebuild. The fires may have destroyed physical structures, but they cannot extinguish the spirit of our community. At the Allen Lund Company, we are committed to supporting our neighbors, customers, and team members as we navigate this recovery together. Whether through donations or simply showing up for one another, we know that unity is the foundation for rebuilding stronger than ever.
Between January and November of last year, Peruvian fresh blueberry exports set a new record.
Agraria reports for the first time, an agricultural product has surpassed the $2 billion mark in exports. Those exports totaled $2.1 billion in the first eleven months of 2024. This far surpassed the $1.72 billion reached during all of 2023. This signaled a return to the normal trend in the production of “blues” after weather related problems of the previous year.
This year, with stabilized production, the higher prices recorded after the 2023 shortage showed a downward trend, reaching levels closer to 2022.
In November 2024 alone, Peruvian fresh blueberry exports totaled 80,311 tons for $387 million, reflecting an increase of 106 percent in volume and 18 percent in value compared to what was reported in the same month of the previous year, although with a 43 percent drop in the average price, which stood at $4.82 per kilogram.
The Peruvian product reached 31 countries in November, of which the U.S. continued to be the main destination, with 41,269 tons exported for $190 million. This represented 49 percent of the monthly total with a 75 percent increase in volume, but a 10 percent drop in value compared to November 2023, when shipments reached $210 million.
The average price suffered a decrease of 48 percent, going from $8.92 in 2023 to $4.61 this year.
Among the main exporters to this market were Camposol S.A., with a 12 percent share, and Agrovisión Perú S.A.C., with 11 percent. In 2023, the leaders were Agrícola Cerro Prieto S.A. (13 percent) and Hortifrut – Perú S.A.C. (12 percent).
As for shipments, these were mostly sent by sea, where 41 percent of what was exported in November was through Euroandino Port Terminals, followed by DP World (28 percent), APM Terminals (25 percent) and the General San Martín Paracas Port Terminal (5 percent).
The remaining 1 percent was sent through Jorge Chávez International Airport.
Exports of Chilean avocados to all destinations will rise about 30% in the 2024-25 marketing year, the USDA reports.
In its annual report on Chilean avocados, the USDA Foreign Agricultural Service said due to favorable climatic conditions in the country, avocado production is expected to total 200,000 metric tons in the marketing year from July 2024 to June 2025, a 33.3% increase from the previous season.
The report forecasts Chilean avocado exports in the marketing year 2024-25 at 116,000 metric tons, a 29.8% jump compared with 2023-24.
Chile harvests avocados year-round, but peak export months are typically October and November.
Chile’s avocado area planted in 2024-25 will top 81,000 acres in 2024-25, a 1% gain from 2023-24, according to the USDA. The planted area spans from the Coquimbo region in the northern part of Chile to the O’Higgins region in the central-south part of the country, the report said.
Hass is the main avocado variety produced in Chile, however, hass is sensitive to frost and excessive soil humidity, which limits its cultivation to hillsides and well-drained soils, the report said. Other avocado varieties produced in Chile in smaller quantities include edranol, negra de la cruz, fuerte and bacon.
In 2023-24, Chile’s top export market for avocado was the Netherlands, followed by Spain and the United Kingdom. Buying 4,800 metric tons, the U.S. ranked eighth as a market for Chilean avocados in 2023-24, the report said.
So far in the 2024-25 marketing year, the USDA Market News Service reports that U.S. imports of Chilean avocados topped 5,290 metric tons through early December, up 19% from the same time a year ago.
Peru became the third-largest exporter of Brazil nuts—also known as Amazon nuts—last year, following Bolivia and Germany, according to the Global Economy and Business Research Center of the Exporters Association (CIEN-ADEX).
Peruvian shipments totaled $30 million in 2023, accounting for 12.4% of the global total, despite a 17.8% drop in demand. Bolivia ranked first with a 47.5% share of shipments ($115.4 million), while Germany, acting as a re-exporting country, took second place with 14.8% ($36 million).
The CIEN-ADEX commercial report indicated the global Brazil nut market shrank by 28.8% in 2023, with a total value of $229 million.
Germany solidified its position as the world’s largest importer, accounting for 17.2% of all imports ($39.5 million), followed by the United States ($37.7 million) and the United Kingdom ($21.5 million).
Between 2019 and 2023, shipments decreased by an average of 3.2% due to excess stock in key destinations and changing consumption trends, which led to reduced demand and falling prices.
Claudia Solano Oré, manager of agroexports at the trade association, highlighted the recovery of Peru’s Brazil nut industry, noting that exports totaled $34.6 million between January and October 2024, reflecting a 29% increase compared to the same period in 2023 ($26.8 million).
“As of October, exports have already surpassed the total recorded for the entire previous year,” she added.
Solano also emphasized the importance of signing phytosanitary protocols by the Ministry of Agrarian Development and Irrigation to initiate exports of Brazil nuts and other products to China, a market expected to grow in importance with the opening of the Chancay mega-port.
The commodity reached 46 countries. South Korea led the ranking with $9.66 million, reflecting a 21.8% increase and accounting for 27.9% of the total. The United States followed with $7.78 million, a 23.5% rise, representing 22.5% of total exports.
The top ten destinations also included Spain, Germany, New Zealand, Turkey, Lithuania, the Netherlands, the United Kingdom, and Greece. For the first time, exports were made to Belarus, Croatia, Uruguay, and Guatemala.
U.S. fresh potato exports to Mexico continue to soar, according to a USDA report.
From the period October 2023 to September 2024, the USDA reported U.S. fresh potato sales to Mexico were $134.9 million, or about 41% of the value of total U.S. fresh potato exports for the period.
Total U.S. fresh potato exports for the period were down 1% in value but up 2% in volume, according to the USDA.
The volume of U.S. fresh potatoes sent to Mexico was up 55% for the October through September period, while the value of U.S. potato exports to Mexico was up 21%.
Canada was the second-largest market for U.S. potatoes, claiming $68 million of U.S. potatoes, down 32% in value from the previous year.
The following are the top export markets for U.S. potato exports for October 2023 through September 2024, with percentage change in value compared with a year ago:
- Mexico — $331.9 million, up 21%.
- Canada — $68 million, down 32%.
- Japan — $19.3 million, down 8%.
- Taiwan — $15.1 million, down 12%.
- Honduras — $15.1 million, down 8%.
- South Korea — $15.1 million, down 16%.
- Dominican Republic — $13.5 million, up 106%.
- Philippines — $12.2 million, up 24%.
- Guatemala — $9.9 million, up 74%.
- Malaysia — $4.8 million, up 16%.
- The Bahamas — $3.4 million, up 15%.
- Costa Rica — $3.1 million, up 19%.
- Singapore — $2.6 million, down 3%.
U.S. imports of Mexican fresh tomato value rose 10% in 2023, while the quantity imported rose 1%.
USDA trade numbers show Mexico accounted for 91% of total U.S. fresh tomato imports in 2023, the same as 2022 and up slightly from 90% in 2021, according to USDA trade numbers.
The 2023 value of U.S. imports of Mexican tomatoes totaled $2.71 billion, up 10% from $2.48 billion in 2022 and up 14% from 2021.
The volume of U.S. imports of Mexican tomatoes totaled 1.82 million metric tons in 2023, up 1% from 2022, up 4% from 2021 and up 8% from 2020.
The average shipping point price for Mexican tomato crossings through California, Arizona and Texas was $14.46 per carton in 2023, down 12% from $16.37 per carton in 2022 but up 11% from $12.98 per carton in 2021.
We want to wish everyone a very merry Christmas and a happy New Year. 2024 has been a constant reminder of how special and challenging produce trucking and perishable hauling can be. We continue to strive providing valuable information and look forward to serving you in the coming year.
Here is wishing you, your friends and family, happiness and health as we reflect on our reasons to be thankful.
Bill Martin
On Saturday, December 14th, the Allen Lund Company coordinated logistics for the delivery of donated food and joined volunteers to assemble and distribute grocery bags.
“20 years is a big commitment, and that’s how long the Allen Lund Company has supported Navidad en el Barrio. It started with a few trucks moving donations. Now, we coordinate almost all the donated food, plus provide the logistics to the warehouse. We even organize volunteers at several locations on Saturday, December 14th, to assemble and hand out the grocery bags to thousands of the most in-need families in Southern California thanks to the generous donations of many individuals and companies,” said Nora Trueblood, Director of Marketing and Communications at ALC.
“At Allen Lund Company, logistics is what we do best – but our favorite logistics services are those done to help others through our ‘Acts of Kindness’. For 20 years now, we have been working with great organizations, including Catholic Charities, St. Vincent De Paul, Navidad en el Barrio, many customers, and our employees who volunteer to build and distribute tens of thousands of grocery bags full of much-needed food for members of the community. As a member of the Catholic Charities board, I see firsthand how this labor of love impacts the families and strengthens all involved in this wide-ranging endeavor. We look forward to many more years of putting the ‘Happy’ in Happy Holidays,” said Kenny Lund, Executive Vice President of ALC Logistics.
We couldn’t have done it without you. A heartfelt thank you to all our donors:
Cacique | Coca-Cola | Costco | Faribault Foods | The Farmlink Project | Grimmway Farms | Minute Maid | Mission Produce Inc. | Mother’s Nutritional Center | Northgate Market | Penske | PepsiCo | Randall Foods | R.W. Zant | The Salvation Army | Taylor Farms | Wada Farms | WM Ground Beef | Wonderful Citrus
We are grateful for your support and are making a real difference together. Here’s to many more years of spreading holiday cheer!
*****
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| Since 2004, the Allen Lund Company has supported the efforts of Navidad en el Barrio. Established in 1972 by former NFL player Danny Villanueva, local Hispanic radio, and students from UCLA, the organization is dedicated to helping underserved families around the Los Angeles area by providing the makings for a Christmas dinner. |