LA BELLE, FL -- Alico, Inc., one of the South's best-known agribusiness
in Central and Southwest Florida, and with approximately 136,500 acres in
real estate holdings, was informed on August 31, 2005, by the Florida
Agriculture and Consumer Services that citrus canker was confirmed in
Knowles-Thomas grove located in Hendry County, Florida. Citrus canker is a
highly contagious bacterial disease of citrus that causes premature leaf and
fruit drop. Citrus canker causes no threat to humans, animals or plant life
other than citrus. In order to eradicate the disease, infected and exposed
trees within 1900 feet of the canker find, must be removed and destroyed in
accordance with Florida law.
John R. Alexander, Chairman and CEO of Alico, Inc. said, "This is the
second canker find in our groves this year. We recently hired two canker
inspectors so that we can discover the disease early if present, thereby
minimizing the loss. This find was discovered by our in-house inspectors.
The find is expected to impact approximately 350 acres of this grove
The earlier find this year affected approximately 150 acres of a grove in
County, Florida." This find, coupled with the earlier find, affects
approximately 4.50% of the Company's 11,147 producing citrus acres. All of
trees in this grove are covered under the Federal Crop Insurance program. A
net loss of approximately $960 thousand, consisting of tree development
and inventoried costs, will be recorded in the fourth quarter of fiscal
Reimbursements to be received from this insurance coverage are expected to
cover approximately 62% of the loss.
Additionally under the Florida Canker Eradication Program, citrus may
be replanted on the property until it has been determined that the property
has been canker free for two years. In light of this, the Company is
evaluating the property for its best future use. The Knowles-Thomas grove is
not contiguous to other Company groves.