Limoneira Company, a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, announced entering into a letter of intent to form a 50%/50% joint venture with Agromin Corporation, the largest organics waste recycler in California, to significantly expand their successful organic waste recycling program. The joint venture plans to expand from the existing 15-acre green waste composting facility at Limoneira Ranch in Santa Paula into a 70-acre, commercial-scale composting facility capable of processing both green waste and food waste.
Upon completion, the expanded facility is projected to generate substantial financial returns for both partners, with first-year EBITDA contribution projected at approximately $5.0 million to be shared equally between Limoneira and Agromin. Annual EBITDA contribution is expected to grow to $9.0 million over the next ten years, maintaining the same 50%/50% profit-sharing arrangement. The Company is planning to lease the 70-acre site to the joint venture for approximately $0.6 million annually, strengthening Limoneira鈥檚 rental operations business division.
Harold Edwards, President and Chief Executive Officer of Limoneira Company, stated, 鈥淭his partnership exemplifies our commitment to innovative, sustainable agricultural practices while creating additional value for our stakeholders. By expanding our collaboration with Agromin, we are not only addressing critical waste management challenges in California but also enhancing our agricultural operations by applying compost to improve soil health and increase water conservation.鈥�
Limoneira鈥檚 existing organic waste recycling program with Agromin has already proven highly successful, converting regional green waste into valuable mulch that Limoneira uses throughout its agricultural properties. The mulch helps prevent soil erosion, increases water conservation, reduces weed growth, and moderates soil temperatures鈥攁ll critical factors in sustainable farming operations. The expansion project, which is expected to begin construction in fiscal year 2025 and be completed in phases in 2026, received a significant boost from a $10.0 million grant provided by the State of California鈥檚 CalRecycle Organics Grant Program in December 2024. CalRecycle鈥檚 Organics Grant Program is a statewide effort to expand capacity and build new organic recycling facilities in California, aiming to lower overall greenhouse gas pollution. This funding will help support the complex transition from green waste processing to a fully permitted food waste composting operation鈥攁 process that required 15 years of planning and permitting. Once fully operational, the facility is expected to process approximately 295,000 tons of organic waste per year.