Alico, Inc. has reported minimal tree damage from Hurricane Milton, which struck Florida last week. The company expressed gratitude that all 197 employees remained safe during the storm. While the full extent of the impact on Alico’s assets and operations is still being evaluated, the company believes that lessons learned over the past century, including experiences with Hurricanes Irma in 2017 and Ian in 2022, enabled them to be better prepared and to begin recovery efforts quickly. The company’s disaster protocols, skilled workforce, and experienced management played key roles in limiting the damage.
The company’s 48,000 acres of citrus groves, spread across Charlotte, Collier, DeSoto, Hardee, Hendry, Highlands, and Polk Counties, were affected by hurricane or tropical storm-force winds of varying durations. While field assessments are ongoing, early observations noted a measurable drop in fruit from trees in the northern groves, particularly in Polk and Hardee Counties. The extent of the fruit loss will be formally assessed by the company’s staff and insurance partners over the coming weeks. However, initial inspections indicate that nearly all trees remain intact, suggesting that the impact will primarily affect this season’s production rather than long-term yields.
No significant flooding was reported on Alico’s properties, and the company’s leased headquarters in Ft. Myers, Lee County, as well as other properties and equipment, sustained no material damage.
Alico maintains crop insurance for catastrophic events across its groves. While all groves were impacted, none may have experienced sufficient damage to warrant insurance claims for catastrophic loss of trees. The company plans to collaborate with Florida Citrus Mutual, the citrus industry trade group, and government agencies to explore potential federal relief funds and seek assistance from federal, state, or local programs.
Despite the storm’s impact, Alico will continue to supply citrus fruit to Tropicana, Peace River, and Florida’s Natural under existing contracts during the upcoming harvest season.
Alico has also strengthened its financial position in recent years. Effective September 17, 2024, the company amended its Credit Agreement with Metropolitan Life Insurance Company and New England Life Insurance Company, increasing the borrowing capacity under the revolving line of credit from $25 million to $95 million and extending the maturity date to May 1, 2034. Most of Alico’s long-term debt does not require principal payments until 2029.
