Lower citrus prices squeeze grower

FORT MYERS — Agriculture company Alico says lower volumes and lower prices for its citrus contributed to a drop in revenues and profits in the third quarter.

Alico, which owns nearly 131,000 acres in five counties, reported net income of $4.1 million on revenues of $35.2 million in the quarter ending June 30. That compares with net income of $9.6 million on revenues of $40.4 million in the same quarter one year ago.

“The declines were driven by weather conditions, horticultural changes and higher than average premature fruit drop in certain blocks of our groves,” says JD Alexander, Fort Myers-based Alico's president and CEO, in a statement.

However, Alexander says he's confident that the next citrus season will be more fruitful. “The conditions for the 2013 growing season have been favorable thus far, and if this trend continues we feel we are well positioned for the upcoming citrus season.”

The downturn in citrus was somewhat offset by improved conditions for sugarcane production. “Our sugarcane segment finished its harvest in the third quarter and significantly outperformed the prior year by approximately $2 million in gross profit,” Alexander says in the statement.