Limoneira Acquires 760 Acres / Expects to Add Approximately 200,000 Cartons of Lemons in Fiscal Year 2014
Santa Paula-based Limoneira Company (NASDAQ: LMNR), a leading agribusiness firm specializing in lemons announced this week that it has completed the acquisition of approximately 760 acres of agricultural property near Porterville in Tulare County for $8.75 million cash.
This property consists of approximately 400 acres of productive lemon orchards and 360 acres primarily utilized for cattle grazing. The acquisition includes water assets and agricultural equipment and supplies. The firm says they plan to add more trees.
The addition of this property brings Limoneira’s owned and leased lemon holdings to over 1,000 acres in the San Joaquin Valley, total lemon acreage to approximately 3,400 acres in California and Arizona and over 10,000 acres of owned, leased or managed property in the two states.
The acquired lemon orchards are typically harvested and sold from November through March. Limoneira expects production of approximately 200,000 cartons of lemons for fiscal year 2014 and expects to produce in excess of 100,000 additional cartons of lemons in future years after certain orchard redevelopment on the property.
The company has an existing lemon orchard on Ave 116 near Porterville.The existing Porterville Ranch consists of approximately 669 acres. The company has approximately 650 acres of agricultural plantings on this property which consist of approximately 145 acres of lemons, 376 acres of Navel oranges, 27 acres of Valencia oranges, and 102 acres of specialty citrus and other crops.
They also own a Ducor Ranch of approximately 1,027 acres located about 50 miles north of Bakersfield, California. The company has approximately 974 acres of agricultural plantings on this property which consist of approximately 97 acres of lemons, 431 acres of Navel oranges, 168 acres of Valencia oranges and 278 of specialty citrus and other crops.
Limoneira expects to achieve annual production of approximately 300,000 to 350,000 cartons subsequent to new orchard redevelopment on the just purchased property.
Company is a leading producer of lemons, avocados, oranges, specialty citrus and other crops.The company has been in expansion mode announcing in September that it had bought Arizona’s Associated Citrus Packers Inc. for $18.6 million.
Lemons are a good bet for the company with the latest financial results showing revenue for the third quarter of fiscal year 2013 includes $19.1 million in lemon sales, compared to $15.5 million of lemon sales during the same period of fiscal year 2012, reflecting a larger number of cartons of fresh lemons sold, as well as higher average price per carton.
Sales of lemon by-products were similar compared to the same period last year. Avocado revenue increased to $7.7 million, compared to $5.5 million during the same period of the previous fiscal year, reflecting increased volume, partially offset by lower average price per pound. The Company recognized $1.5 million of orange revenue in the third quarter of fiscal year 2013 compared to $2.1 million of orange revenue in the same period of fiscal year 2012.