Land O'Lakes Board Chairman Outlines Cooperative Obligations, Member Responsibilities

MINNEAPOLIS, Feb. 24 /PRNewswire/ -- In today's challenging economic environment, it is essential that cooperatives aggressively pursue member interests in the economic, political and social arenas, Land O'Lakes Chairman of the Board Pete Kappelman today told delegates and visitors at the national food and agricultural cooperative's 89th Annual Meeting in Minneapolis.

"This past year has been difficult and stressful across the economy, and agriculture has been no exception," Kappelman told an audience of approximately 1,000 gathered at the Minneapolis Hilton.  "Within this environment, Land O'Lakes has worked to drive performance, generate member returns and address member interests."

Creating Economic Value

Kappelman said he was particularly pleased by the cooperative's strong financial performance ($209 million in net earnings), despite a weak economy, and record cash returned to members ($108 million), which is particularly important in difficult times.

The board chairman also referred to Land O'Lakes' multi-faceted approach to generating economic value for members.  "On the dairy side of our business, it starts with preserving market access and providing a competitive pay price for member milk," he said.  "But it goes much further ... our cooperative also works, on the Value Added side of the dairy business, to add value to member milk.  This enables members to capture greater value from the marketplace, leveraging Land O'Lakes' brand strength, innovation and marketing expertise to drive earnings and member returns."

Kappelman noted that Land O'Lakes delivers programs and services designed to create value for members, citing the cooperative's risk management offerings, which generated approximately $40 million in additional income for participating producers in 2009.  He also cited the work of in-the-field Milk Production Specialists, who assist members in improving on-farm quality, productivity and profitability.

On the agriculture inputs side of the business, Kappelman continued, the cooperative generates value for members by developing and delivering agricultural inputs, services, technologies and insights that contribute to producer productivity and profitability.  This helps member (local) cooperatives create a competitive edge and grow their businesses.

As an example, he cited the unique Answer Plot™ program, which provides personalized insight into crop production products and practices; the work of the cooperative's Livestock and Crop Production Specialists; and expanding Business Development Services placement, training and consulting programs for local cooperatives.

Advocacy for Member Interests

The board chairman added that, in 2009's difficult economy and depressed agricultural marketplace, Land O'Lakes enhanced its advocacy efforts on behalf of members.

"On the political and policy-making front, our cooperative continued – and expanded – its efforts to advocate for member interests in Washington D.C. and state capitols across our membership area.  The issues spanned the spectrum of agriculture, from farm income security to trade promotion to environmental regulation," Kappelman said.

On the federal level, among the successful outcomes were passage of a $350 million dollar dairy aid package; increased price supports for cheese and non-fat dry milk; expanded pork purchases for school feeding programs; and increased awareness of the potential impact of Cap-and-Trade legislation on producers and cooperatives.

Land O'Lakes also promoted member interests by participating with a range of industry groups, Kappelman said, citing the National Milk Producers Federation, National Feed and Grain Association, the Ag Retailers Association, CropLife America, the National Council of Farmer Cooperatives and the Grocery Manufacturers Association.

"The most critical aspect of advocacy is making our collective voices heard.  And members set the course, with our member-approved Policies and Resolutions providing direction for our advocacy work," Kappelman added.

Social Programs

Kappelman closed his remarks by discussing Land O'Lakes' corporate social responsibility activities, including the Land O'Lakes Foundation's Feeding Our Communities initiative.  This direct and matching grants program, launched in 2009, is intended to generate up to $1 million for rural hunger relief efforts.  As of mid-February, 2010, Feeding Our Communities had generated more than $400,000 for nearly 200 rural hunger relief programs in 24 states.

This effort is part of the Land O'Lakes Foundation grants programs, which in 2009 contributed more than $1.6 million through 860 grants to improve the quality of life in 29 states.

Land O'Lakes, Inc. (www.landolakesinc.com) is a national, farmer-owned food and agricultural cooperative with annual sales of $10 billion. Land O'Lakes does business in all 50 states and more than 60 countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the United States; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and ranchers with an extensive line of agricultural supplies (feed, seed, and crop protection products) and services.  Land O'Lakes also provides agricultural assistance and technical training in more than 25 developing nations.

SOURCE Land O'Lakes, Inc.