By Colin Kellaher

Alico said it is winding down its citrus operations and cutting the bulk of its workforce, citing increasing financial challenges from several seasons of citrus greening disease and environmental challenges.

The Fort Myers, Fla., company on Monday said it plans to focus on its long-term diversified land-usage and real-estate development strategy, adding that it won't invest further in its citrus operations after the current crop is harvested this year.

Alico, which has about 200 employees according to data from FactSet, said it is cutting up to 172 employees, including 135 effective immediately.

Alico owns nearly 53,400 acres of land across eight counties in Florida, along with about 48,700 acres of oil, gas and mineral rights in the state.

Alico said its citrus production is down about 73% over the last decade, and that its current harvest will likely come in below last year's levels. The company said hurricanes Irma, Ian and Milton have wrought havoc on its trees, and it has concluded that growing citrus is no longer economically viable in Florida.

Alico said it will focus on profitable non-citrus agricultural opportunities and entitlement work to achieve the highest and best use for all properties in its real-estate portfolio.

The company said it believes its current landholdings could be worth $650 million to $750 million, with 75% of its acreage valued for agriculture use.

Alico shares were recently up 8.3% to $28.50 in premarket trading.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 06, 2025 08:10 ET (13:10 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.