Alico, Inc. Reports Minimal Impact from Hurricane Milton
FORT MYERS, Fla. — Alico, Inc. has reported that its citrus groves received only minimal damage from Hurricane Milton, which recently passed through Florida. The well-being of our dedicated workforce remains our top priority, and thankfully, all of our approximately 197 employees are safe and healthy.
Preparedness and Recovery
Reflecting on past experiences with severe storms, especially Hurricane Irma in 2017 and Hurricane Ian in 2022, Alico implemented robust disaster protocols that prepared us for this event. These measures, alongside our committed team, have played a crucial role in limiting damage across our operations.
Initial Damage Assessments
Our extensive citrus groves, spanning around 48,000 acres, faced the challenges posed by hurricane-force winds. Early evaluations suggest a noticeable loss of fruit from our northern groves, particularly in Polk and Hardee County. However, our inspections indicate that the majority of trees in our groves remain intact, leading us to believe that any impact on our production is likely to be temporary.
Storm Impacts on Infrastructure
Aside from the challenges in our groves, Alico's headquarters and facilities did not suffer significant flooding or damage. Our office in Fort Myers remained unscathed, allowing us to maintain operational continuity during recovery efforts.
Citrus Supply and Insurance Coverage
Alico is committed to meeting its citrus supply agreements with partners such as Tropicana and Florida's Natural during the upcoming harvest season. Despite the storm's impact, we aim to fulfill our contracts for quality citrus fruit.
Insurance Strategy and Support
We maintain comprehensive crop insurance for our groves, ensuring coverage for potential losses due to catastrophic events. While preliminary assessments show that no significant damage warrants insurance claims, we remain vigilant and will work closely with industry organizations like Florida Citrus Mutual to explore all available support for recovery.
Financial Stability and Future Outlook
In the face of this recent storm, Alico has strengthened its financial position. As recently announced, we amended our Credit Agreement, significantly increasing our borrowing capacity from $25 million to $95 million, extending our revolving line of credit's maturity to 2034. This strategic move enhances our capability to manage our operations effectively during recovery.
About Alico, Inc.
Alico, Inc. is recognized as one of America’s leading citrus producers, operating two main divisions: Alico Citrus, and Land Management and Other Operations. As we move forward, Alico remains focused on contributing positively to the citrus industry while ensuring the safety and well-being of our workforce.
Frequently Asked Questions
1. What was the extent of damage caused by Hurricane Milton to Alico's operations?
Initial reports indicate minimal damage to Alico's groves, with most trees remaining intact, although some fruit drop has been observed in specific areas.
2. How is Alico supporting its employees following the hurricane?
Alico is committed to ensuring the well-being of its employees, with no reported casualties during the storm.
3. What are Alico's plans for the upcoming citrus harvest season?
The company plans to fulfill its citrus supply contracts with partners like Tropicana, focusing on maintaining quality amidst recovery efforts.
4. What financial steps has Alico taken to improve its stability?
Alico has amended its Credit Agreement to increase its borrowing capacity and extended the maturity of its revolving credit facility, enhancing its financial flexibility.
5. Is Alico seeking assistance from government agencies?
Yes, Alico plans to collaborate with Florida Citrus Mutual and other agencies to explore available federal, state, and local assistance programs for recovery.
