Alico to end cattle operations

Alico, Inc., based in Ft. Myers, FL, announced its Alico 2.0 Modernization Program on Nov. 16 as part of its aggressive plan to improve its operational efficiencies and optimize its asset returns. As part of the transformation the company decided to divest assets that generated low rates of return and shut down parts of its operations that were not profitable. This quarter, Alico will cease its direct cattle operations at Alico Ranch. The company press release stated, “The ranch has been a landholding for us for generations, but, even when profitable, ranch operations generated a minimal rate of return on capital. Alico will continue to own the property and still conduct its long-term water disbursement program and wildlife management programs, but it will lease the ranch to a third-party operator instead of conducting its own cattle operations. All of these decisions are intended to enable additional investment in the citrus business and redeployment of capital elsewhere.” Alico’s website lists the herd at approximately 9,000 head counting cows and breeding bulls. In 2016, Alico was the 14th largest cow-calf ranch in the U.S., according to data from CattleFax.