Got it. Final question. I guess, maybe a follow-up on the comments. It was a contract, you mentioned that one of your Tropicana contract that has been extended to the 2024, 2025 season. Could you just walk us through maybe the laddering of the contracts when they expire at roughly the size of them, if you have that info at your finger tips? So apologize it’s a little different?
Perry Del Vecchio
Thanks, Gerry. As it relates to the contracts, this contract is one of the smaller contracts with Tropicana, the larger contracts do come up for expiration next year, at the end of next year’s harvest.
Gerard Sweeney
At the end of fiscal 2024, just…
Perry Del Vecchio
Yes.
Gerard Sweeney
Okay. Got it. And then historically, you have renewed them I would say, a good amount of time before the end of the harvest is that the way of looking at it?
John Kiernan
Yes. I mean, we typically will do it within a year of when the expiration comes out. And right now, we've been doing them on shorter durations, so the shorter-term contracts. And I anticipate in the middle of next season, we'll be negotiating to renew those contracts that are expiring at end of next season.
It would certainly be a huge problem for the company. Alico is the largest orange producer in the US, so it would seem that PAI Partners would have some trouble sourcing such a large amount of product in such a short period of time. And, on the August conference call management stated, "We have the majority of our fruit under contract for the 2023, 2024 harvest season and have extended one of our contracts with Tropicana through the 2024, 2025 harvest season with improved pricing. " The fact that Alico got improved pricing might suggest the relationship is strong.
How do you view the risk that the 2 contracts responsible for 80-90% of revs won't be renewed come 24?
Also from the August call:
Gerard Sweeney
Got it. Final question. I guess, maybe a follow-up on the comments. It was a contract, you mentioned that one of your Tropicana contract that has been extended to the 2024, 2025 season. Could you just walk us through maybe the laddering of the contracts when they expire at roughly the size of them, if you have that info at your finger tips? So apologize it’s a little different?
Perry Del Vecchio
Thanks, Gerry. As it relates to the contracts, this contract is one of the smaller contracts with Tropicana, the larger contracts do come up for expiration next year, at the end of next year’s harvest.
Gerard Sweeney
At the end of fiscal 2024, just…
Perry Del Vecchio
Yes.
Gerard Sweeney
Okay. Got it. And then historically, you have renewed them I would say, a good amount of time before the end of the harvest is that the way of looking at it?
John Kiernan
Yes. I mean, we typically will do it within a year of when the expiration comes out. And right now, we've been doing them on shorter durations, so the shorter-term contracts. And I anticipate in the middle of next season, we'll be negotiating to renew those contracts that are expiring at end of next season.
It would certainly be a huge problem for the company. Alico is the largest orange producer in the US, so it would seem that PAI Partners would have some trouble sourcing such a large amount of product in such a short period of time. And, on the August conference call management stated, "We have the majority of our fruit under contract for the 2023, 2024 harvest season and have extended one of our contracts with Tropicana through the 2024, 2025 harvest season with improved pricing. " The fact that Alico got improved pricing might suggest the relationship is strong.