Limoneira's Comment on Competitors and Industry Peers
Agribusiness Division
With agricultural operations dating back to 1893, we are one of California’s
oldest citrus growers and one of the largest growers of lemons and avocados
in the United States. Consequently, we have developed significant experience
with a variety of crops, mainly lemons, avocados and oranges. The following
is a brief list of what we believe are our significant competitive strengths
with respect to our agribusiness division, which includes our lemon operations
and other agribusiness reportable segments unless otherwise noted:
Our agricultural properties in Ventura County are located near the Pacific Ocean,
which provides an ideal environment for growing lemons, avocados and row crops.
Our agricultural properties in Tulare County, which is in the San Joaquin Valley
in Central California, and in Yuma, Arizona, are also located in areas that
are well-suited for growing citrus crops.
Historically, a higher percentage of our crops go to the fresh market, which
is commonly referred to as fresh utilization, than that of other growers and
packers with which we compete.
·
We have contiguous and nearby land resources that permit us to efficiently use
our agricultural land and resources.
In all but one of our properties, we are not dependent on State or Federal water
projects to support our agribusiness or real estate development operations.
We own approximately 90% of our agricultural land and take a long view on our
fruit production practices.
A significant amount of our agribusiness property was acquired many years ago,
which results in a low cost basis and associated expenses.
We have a well-trained and retentive labor force with many employees remaining
with us for more than 30 years.
In our lemon operations segment, our integrated business model with respect
to growing, packing, marketing and selling lemons allows us to better serve
our customers.
Our lemon packing operations provide marketing opportunities with other citrus
companies and their respective products.
Since 2010, we have achieved and maintained GLOBALGAP Certification by successfully
demonstrating our adherence to specific GLOBALGAP standards. GLOBALGAP is an
internationally recognized set of farm standards dedicated to “Good Agricultural
Practices” or GAP. We believe that GLOBALGAP Certification differentiates
us from our competitors and serves as reassurance to consumers and retailers
that food reaches acceptable levels of safety and quality, and has been produced
sustainably, respecting the health, safety and welfare of workers and the environment,
and in consideration of animal welfare issues.
·
We have made investments in ground-based solar projects that provide us with
tangible and intangible non-revenue generating benefits. The electricity generated
by these investments provides us with a significant portion of the electricity
required to operate our packinghouse and cold storage facilities located in
Santa Paula, California and provides a significant portion of the electricity
required to operate four deep-water well pumps at one of our ranches in Tulare
County. Additionally, these investments support our sustainable agricultural
practices, reduce our dependence on fossil-based electricity generation and
lower our carbon footprint. Moreover, electricity that we generate and do not
use is conveyed seamlessly back to the investor-owned utilities operating in
these two markets. Finally, over time, we expect that our customers and the
end consumers of our fruit will value the investments that we have made in renewable
energy as a part of our farming and packing operations, which we believe may
help us differentiate our products from similar commodities.
· We have made various other investments in water rights and mutual water
companies. We own shares in the following mutual water companies: Farmers Irrigation
Co., Canyon Irrigation Co., San Cayetano Mutual Water Co., Middle Road Mutual
Water Co. and Pioneer Water Company, Inc. In 2007, we acquired additional water
rights in the adjudicated Santa Paula Basin (aquifer) and in September 2013
we acquired water rights in the YMIDD with our acquisition of Associated Citrus
Packers, Inc. (“Associated”).
Rental Operations Division
With respect to our rental operations division, we believe our competitive advantages
are as follows:
Our housing and land rentals provide a consistent, dependable source of cash
flow that helps to counter the volatility typically associated with an agricultural
business.
Our housing rental business allows us to offer a unique benefit to our employees,
which in turn helps to provide us with a dependable, long-term employee base.
Our leased land business allows us to partner with other agricultural producers
that can serve as a profitable alternative to under-producing tree crop acreage.
Our organic recycling tenant provides us with a low cost, environmentally friendly
solution to weed and erosion control.
Real Estate Development Division
With respect to our real estate development division, we believe our competitive
advantages are as follows:
Our real estate development activities are primarily focused in coastal areas
north of Los Angeles and south of Santa Maria, which we believe have desirable
climates for lifestyle families, retirees and athletic and sports enthusiasts.
We have entitlements to build approximately 1,500 residential units in our East
Area I (Santa Paula Gateway) development and approximately 300 residential units
in our Santa Maria properties.
We have partnered with an experienced and financially strong land developer
for our East Area I residential master plan development.
Several of our agricultural and real estate investment properties are unique
and carry longer term development potential.
Our East Area II property has approximately 30 acres of land commercially zoned,
which is adjacent to our East Area I property. Our Santa Maria properties have
approximately 3 acres zoned for mixed use retail, commercial and light manufacturing.
The agribusiness division crop markets, including those in which our lemon
operations and other agribusiness segments operate, are intensely competitive,
but no single producer has any significant market power over any market segments,
as is consistent with the production of most agricultural commodities. Generally,
there are a large number of global producers that sell through joint marketing
organizations and cooperatives. Fruit is also sold to independent packers, both
public and private, who then sell to their own customer base. Customers are
typically large retail chains, food service companies, industrial manufacturers
and distributors who sell and deliver to smaller customers in local markets
throughout the world. In the purest sense, our largest competitors in our agribusiness
division are other citrus and avocado producers in California, Mexico, Chile,
Argentina and Florida, a number of which are members of cooperatives such as
Sunkist or have selling relationships with Calavo similar to that of Limoneira.
We also compete with other fruits and vegetables for the share of consumer expenditures
devoted to fresh fruit and vegetables: apples, pears, melons, pineapples and
other tropical fruit.
Overall company Market Share Q4 2023 |
*Market share is calculated based on total revenue.
Who are Limoneira Company's Competitors?
Alico Inc Share Performance
-5.76%
This Year
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Alico Inc
Profile
Alico Inc is an agricultural-focused company that primarily engages in the cultivation and sale of citrus and sugarcane crops. They generate revenue through the production and distribution of their agricultural products to various markets.
More about Alico Inc 's Market Share
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Calavo Growers Inc Share Performance
-2.80%
Over The Past 5 Days
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Calavo Growers Inc
Profile
Calavo Growers Inc operates under a business model focused on the production and distribution of fresh avocados and other fresh produce. They work with growers across different regions to ensure a consistent supply and maintain relationships with customers in both retail and foodservice sectors. Additionally, Calavo Growers has expanded its business through acquisitions and partnerships to diversify its product portfolio and global presence.
More about Calavo Growers Inc's Market Share
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Fresh Del Monte Produce Inc Share Performance
+0.86%
This Quarter
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Fresh Del Monte Produce Inc
Profile
Fresh Del Monte Produce Inc operates as a global producer and distributor of fresh fruits and vegetables, offering a wide range of produce to customers worldwide through its extensive supply chain network. The company focuses on delivering high-quality, fresh and healthy produce while consistently implementing sustainable practices in its farming, harvesting, and distribution processes.
More about Fresh Del Monte Produce Inc's Market Share
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Mission Produce Inc Share Performance
+10.84%
One Year
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Mission Produce Inc
Profile
Mission Produce Inc is a vertically integrated company that specializes in the production, sourcing, and distribution of avocados. They have an extensive global supply chain network and expertise in every stage of the avocado business, from farming and harvesting to packing and shipping.
More about Mission Produce Inc 's Market Share
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