January 11, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Doubling down on its commitment to Florida citrus, integrated fresh citrus company IMG Citrus, a subsidiary of IMG Enterprises, has acquired the assets of J&J Fresh Produce including 1,000 acres of farmland in the Delta Farms water district and a new 185,000 square-foot cold storage and packaging facility, in Vero Beach. 

Despite the Florida citrus industry facing recent headwinds due to the ravages of Huanglongbing, a bacterial disease also known as citrus greening, IMG Citrus has significantly expanded its farmland holdings in the state rather quickly. 

In 2019 it announced the acquisition of 4,000 acres of grapefruit groves in St. Lucie County for $31 million – a deal that expanded its acreage by 75 percent at the time. Then, in 2021, the company acquired 2,500 acres of groves through a deal that expanded its acreage by another 27 percent, landing at 11,387 acres. 

“We are passionate about Florida citrus. Florida produces the best-tasting grapefruit in the world, and our customers are passionate about the product. This is what gives us the confidence to invest in challenging times,” explained Melanie Ressler, co-CEO, IMG Enterprises.

Strategically located a few hours north of Port Everglades and the Port of Miami, IMG Citrus’ newly acquired cold storage facility includes state-of-the-art refrigeration technology, 3,000 pallet positions, 20 dock doors, and has the potential for future expansion – fitting well into IMG Citrus’ strategy of supply chain integration.

“This is an exciting acquisition and a key component of our growth strategy,” said Ressler. “We have been replanting citrus in Florida for the past decade while developing a summer citrus import program with strategic partners in South America.”

“We have outgrown our existing facilities, and this acquisition will allow us to continue our growth trajectory while significantly strengthening our supply chain and logistics capabilities.” 

CUPS

In 2021, IMG Citrus planted its first Citrus Under Protective Screen (CUPS) project – a controlled environment created to allow for production in a greening-free environment, explained the company.

Beyond providing protection from this insidious pest-borne disease, CUPS also reduces wind scarring, promotes more vigorous tree growth, results in larger fruit size, and fosters new opportunities for automation in production and harvesting. 

“We are encouraged by what we are seeing from our trees in CUPS,” said Ressler, “and we plan to expand the CUPS program over the coming years to further increase supply and diversify production risk.”

Currently, however, the majority of IMG Citrus’ acreage is in traditional open-air groves, which the company noted it is also still investing in.

The company has integrated the use of tree protector bags, irrigation automation, intelligent sprayers, cover crops, composting, beneficial microbes, and has taken measures to reduce the use of synthetic fertilizers and chemicals that are harmful to soil and plant health.

At the same time, it has undertaken an aggressive planting program under which has been planted more than 100,000 trees per year, positioning the company as being able to maintain profitable yields while supplying the global market with high-quality citrus crops.

Import Business

In addition to these efforts, IMG Citrus has also embarked on a year-round strategy through the development of imports from South America.

Started in 2017, the company’s import business has grown to now exceed 1.1 million cartons per year, with expectations of continued growth as it boosts its cold storage and distribution capacities.

“Our customers want citrus year-round, and they trust us to provide solutions in this category,” said Ressler.”We saw an opportunity to meet their needs and utilize our packing house and cold storage facilities in the summer with imported fruit from Peru and Chile.”

“We are excited about the potential for this new facility to support our growth and strengthen our position as a leading provider of fresh citrus,” she continued.  “We are committed to delivering the highest quality products to our customers and this acquisition allows us to continue to do so.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.