Limoneira Announces Joint Venture with Agromin for Major Expansion of Organic Recycling Facility
Limoneira (LMNR) announced a 50/50 joint venture with Agromin , California's largest organics waste recycler, to expand their organic waste recycling program. The venture will transform their existing 15-acre green waste composting facility at Limoneira Ranch in Santa Paula into a 70-acre commercial-scale facility processing both green and food waste.
The expanded facility is projected to generate significant returns with first-year EBITDA of $5.0 million, shared equally between partners, growing to $9.0 million annually over ten years. Limoneira will lease the site to the joint venture for approximately $0.6 million annually.
The project, scheduled to begin construction in fiscal year 2025 with completion phases in 2026, received a $10.0 million grant from California's CalRecycle Organics Grant Program. Once operational, the facility will process approximately 295,000 tons of organic waste yearly, supporting sustainable farming through improved soil health and water conservation.
Limoneira (LMNR) ha annunciato una joint venture 50/50 con Agromin, il più grande riciclatore di rifiuti organici della California, per espandere il loro programma di riciclaggio dei rifiuti organici. La joint venture trasformerà il loro attuale impianto di compostaggio di rifiuti verdi di 15 acri presso Limoneira Ranch a Santa Paula in un impianto commerciale di 70 acri che tratterà sia rifiuti verdi che alimentari.
Si prevede che l'impianto ampliato genererà ritorni significativi con un EBITDA del primo anno di 5,0 milioni di dollari, condivisi equamente tra i partner, che crescerà fino a 9,0 milioni di dollari all'anno nel corso di dieci anni. Limoneira affitterà il sito alla joint venture per circa 0,6 milioni di dollari all'anno.
Il progetto, previsto per iniziare la costruzione nell'anno fiscale 2025 con fasi di completamento nel 2026, ha ricevuto un finanziamento di 10,0 milioni di dollari dal Programma di Sovvenzioni per Organici di CalRecycle della California. Una volta operativo, l'impianto tratterà circa 295.000 tonnellate di rifiuti organici all'anno, supportando l'agricoltura sostenibile attraverso il miglioramento della salute del suolo e la conservazione dell'acqua.
Limoneira (LMNR) anunció una empresa conjunta 50/50 con Agromin, el mayor reciclador de residuos orgánicos de California, para expandir su programa de reciclaje de residuos orgánicos. La empresa conjunta transformará su actual instalación de compostaje de residuos verdes de 15 acres en Limoneira Ranch en Santa Paula en una instalación comercial de 70 acres que procesará tanto residuos verdes como alimentarios.
Se proyecta que la instalación ampliada genere retornos significativos con un EBITDA del primer año de 5,0 millones de dólares, compartido equitativamente entre los socios, que crecerá hasta 9,0 millones de dólares anuales durante diez años. Limoneira arrendará el sitio a la empresa conjunta por aproximadamente 0,6 millones de dólares anuales.
El proyecto, programado para comenzar la construcción en el año fiscal 2025 con fases de finalización en 2026, recibió una subvención de 10,0 millones de dólares del Programa de Subvenciones de Organicos de CalRecycle de California. Una vez operativo, la instalación procesará aproximadamente 295,000 toneladas de residuos orgánicos anualmente, apoyando la agricultura sostenible a través de la mejora de la salud del suelo y la conservación del agua.
Limoneira (LMNR)는 캘리포니아 최대의 유기물 폐기물 재활용업체인 Agromin과 50/50 합작 투자를 발표하여 유기물 폐기물 재활용 프로그램을 확장할 예정입니다. 이 합작 투자로 Limoneira Ranch의 15에이커 규모의 녹색 폐기물 퇴비화 시설을 70에이커 규모의 상업 시설로 전환하여 녹색 폐기물과 음식 폐기물을 모두 처리할 것입니다.
확장된 시설은 첫 해 EBITDA 500만 달러의 상당한 수익을 창출할 것으로 예상되며, 이는 파트너 간에 균등하게 나누어지며, 10년 동안 연간 900만 달러로 증가할 것입니다. Limoneira는 연간 약 60만 달러에 합작 투자에 부지를 임대할 것입니다.
2025 회계연도에 건설이 시작될 예정인 이 프로젝트는 2026년에 완료 단계에 들어갈 예정이며, 캘리포니아의 CalRecycle 유기물 보조금 프로그램으로부터 1000만 달러의 보조금을 받았습니다. 운영이 시작되면 이 시설은 매년 약 29만 5000톤의 유기물 폐기물을 처리하여 토양 건강과 물 보존을 통해 지속 가능한 농업을 지원할 것입니다.
Limoneira (LMNR) a annoncé un partenariat 50/50 avec Agromin, le plus grand recycleur de déchets organiques de Californie, pour étendre leur programme de recyclage des déchets organiques. Ce partenariat transformera leur installation actuelle de compostage de déchets verts de 15 acres à Limoneira Ranch à Santa Paula en une installation commerciale de 70 acres traitant à la fois des déchets verts et alimentaires.
L'installation agrandie devrait générer des retours significatifs avec un EBITDA de la première année de 5,0 millions de dollars, partagé également entre les partenaires, et atteignant 9,0 millions de dollars par an au cours de dix ans. Limoneira louera le site au partenariat pour environ 0,6 million de dollars par an.
Le projet, dont la construction est prévue pour commencer en 2025 avec des phases d'achèvement en 2026, a reçu une subvention de 10,0 millions de dollars du programme de subventions pour les organiques de CalRecycle de Californie. Une fois opérationnelle, l'installation traitera environ 295 000 tonnes de déchets organiques par an, soutenant l'agriculture durable grâce à une meilleure santé des sols et à la conservation de l'eau.
Limoneira (LMNR) gab eine 50/50-Joint Venture mit Agromin, dem größten Recyclingunternehmen für organische Abfälle in Kalifornien, bekannt, um ihr Programm zur Wiederverwertung organischer Abfälle auszubauen. Das Joint Venture wird ihre bestehende 15 Hektar große Kompostieranlage für Grünabfälle auf dem Limoneira Ranch in Santa Paula in eine 70 Hektar große kommerzielle Anlage umwandeln, die sowohl Grün- als auch Lebensmittelabfälle verarbeitet.
Die erweiterte Anlage wird voraussichtlich erhebliche Erträge mit einem EBITDA im ersten Jahr von 5,0 Millionen Dollar generieren, das gleichmäßig zwischen den Partnern aufgeteilt wird und über zehn Jahre auf 9,0 Millionen Dollar jährlich ansteigt. Limoneira wird das Gelände für etwa 0,6 Millionen Dollar jährlich an das Joint Venture vermieten.
Das Projekt, dessen Bau im Geschäftsjahr 2025 beginnen und 2026 abgeschlossen werden soll, erhielt einen Zuschuss von 10,0 Millionen Dollar aus dem CalRecycle-Organik-Zuschussprogramm von Kalifornien. Nach der Inbetriebnahme wird die Anlage jährlich etwa 295.000 Tonnen organische Abfälle verarbeiten, was die nachhaltige Landwirtschaft durch verbesserte Bodengesundheit und Wasserschutz unterstützt.
- Joint venture expected to generate $5.0M first-year EBITDA, growing to $9.0M annually over 10 years
- Secured $10.0M state grant funding for facility expansion
- Additional $0.6M annual revenue from facility land lease
- Significant expansion from 15 to 70 acres increases processing capacity to 295,000 tons annually
- Project completion not expected until 2026
- 15-year planning and permitting process indicates regulatory complexity
Insights
This joint venture represents a significant financial opportunity for Limoneira beyond its core citrus business. The projected financial impact is substantial relative to Limoneira's
- First-year EBITDA contribution of
$2.5M to Limoneira (50% of$5M total) - Growing to
$4.5M annually over 10 years (50% of$9M ) - Additional
$0.6M annual lease income
The
What's particularly valuable is the recurring revenue nature of waste management contracts in California, where regulatory mandates (SB 1383) require municipalities to divert organic waste from landfills. This creates stable demand less subject to seasonal or commodity price fluctuations that affect Limoneira's core business.
The expansion from green waste to include food waste processing is strategically significant, as food waste typically commands higher processing fees. With 295,000 tons of annual processing capacity, this positions Limoneira/Agromin as a major player in California's organic waste infrastructure.
This joint venture represents a textbook example of circular economy implementation in agriculture. Limoneira is simultaneously addressing California's waste management crisis while enhancing its agricultural operations through several mechanisms:
- Improved soil structure and organic content from compost application
- Enhanced water retention in soil (critical in drought-prone California)
- Reduced dependence on synthetic fertilizers
- Prevention of soil erosion through mulch application
The timing aligns perfectly with California's SB 1383, which mandates
The environmental benefits extend beyond Limoneira's operations. By processing 295,000 tons of organic waste annually, the facility will significantly reduce methane emissions (a potent greenhouse gas) that would otherwise occur in landfills. The
The 15-year permitting process demonstrates both Limoneira's long-term strategic planning and the competitive moat created by California's complex regulatory environment. Few agricultural operators possess the permitting expertise, land assets, and operational experience to replicate this model quickly.
Joint venture to transform green waste and food waste into agricultural benefits while generating expected substantial EBITDA for both partners
Upon completion, the expanded facility is projected to generate substantial financial returns for both partners, with first-year EBITDA contribution projected at approximately
Harold Edwards, President and Chief Executive Officer of Limoneira Company, stated, “This 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
Limoneira’s 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—all 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
About Limoneira Company
Limoneira Company, a 132-year-old international agribusiness headquartered in
About Agromin
Agromin, headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira’s current expectations about future events and can be identified by terms such as “expect,” “may,” “anticipate,” "plans", “intend,” “should be,” “will be,” “is likely to,” “strive to,” and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Limoneira cautions you against relying on any of these forward-looking statements. Factors that may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: success in executing the Company’s business plans and strategies, including the implementation of the joint venture with Agromin; the ability of Limoneira and Agromin to generate the expected financial returns of the joint venture; the possibility that the joint venture will not realize any additional value to our stockholders, and managing the risks in the foregoing; changes in laws, regulations, rules, quotas, tariffs and import laws; weather conditions that affect production, transportation, storage, import and export of fresh product; increased pressure from crop disease, insects and other pests; disruption of water supplies or changes in water allocations; disruption in the global supply chain; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest and currency exchange rates; availability of financing for land development activities; political changes and economic crises; international conflict; acts of terrorism; labor disruptions, strikes or work stoppages; loss of important intellectual property rights; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Limoneira’s SEC filings that are available on the SEC’s website at http://www.sec.gov. Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250408919897/en/
Investor:
John Mills
Managing Partner
ICR 646-277-1254
Source: Limoneira Company
FAQ
What is the expected EBITDA contribution from Limoneira's (LMNR) joint venture with Agromin?
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When will LMNR's expanded waste recycling facility begin construction and complete?
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