Land O'Lakes Celebrates 2012 Annual Meeting

MINNEAPOLIS, Feb. 29, 2012 /PRNewswire/ -- In 2011, Land O'Lakes achieved solid financial results, including its highest-ever net sales and second-highest net earnings, in a still challenging economy, leaders of the national food and agricultural cooperative told approximately 1,000 delegates and visitors gathered at the Hilton Minneapolis (Minn.) for Land O'Lakes' 91st Annual Meeting.

Financial Results

Land O'Lakes President and Chief Executive Officer (CEO) Chris Policinski highlighted 2011's financial results, including:

• Net sales of $12.8  billion, up from $11.1 billion in 2010 ... with record-high sales in Dairy Foods, Feed and Crop Inputs;
• Net earnings of $182 million, up from 2010's $178 million;
• $108 million in cash returned to members, the third consecutive year in which cash returned exceeded $100 million.

(Note:  For details on Land O'Lakes' overall financial results and business performance, see the "News and Publications" link at www.landolakesinc.com or Land O'Lakes February 23, 2012 news release.)

"Our 2011 results represent positive performance and ongoing business growth in what continues to an uncertain economy and volatile marketplace," Policinski said.  "Despite these challenges, over the past three years, Land O'Lakes has achieved our top three years in terms of net earnings and cash returned to members, and two of our top three years net sales totals."

Focus on Continued Growth

Policinski said Land O'Lakes remains focused on continuing its strong performance and growth trajectory, noting that agriculture and the food industry offer exciting opportunities going forward.

"Analysts estimate that feeding a growing global population – projected to expand from about 7 billion people today to more than 9 billion by 2050 – is going to demand a 70 percent increase food production," Policinski said.  "Given the strong productivity record of U.S. agriculture, that increasing demand translates into significant opportunity for well-positioned producers, processors and agribusinesses."

The cooperative CEO said Land O'Lakes is positioned to capitalize on that opportunity.

"For Land O'Lakes, this opportunity and our capability are closely aligned," he said, citing the cooperative's recent performance, strong balance sheet, and industry-leading brands and market positions.  Policinski also pointed to research and development capabilities, the cooperative's unique "farm-to-market" scope and global experience as catalysts for continued growth.

"Growth will not be without challenges," he added.  "Opportunity attracts competition and we expect competition -- both domestic and global -- to be aggressive," he said.  "However, we remain focused on delivering a level of performance and strategic growth that enables us to compete and win, generating enhanced value for members and customers."

Policinski added that Land O'Lakes' growth initiatives will focus on branded, value-added market segments; high-potential multi-national customers; emerging global markets; and innovation and insights that help producer-members and member-cooperatives grow their businesses.

During the meeting, Land O'Lakes Board Chairman Pete Kappelman affirmed Policinski's message of opportunity and growth, noting that: "In today's highly competitive, global economy, growth is imperative to success.  If we, as a system, are going to continue to create increasing levels of value for members, we must continue to grow our business ... and help our members grow theirs."

International Year of Cooperatives

During his remarks, Kappelman also acknowledged the United Nations' proclamation of 2012 as the International Year of Cooperatives, as well as the National Council of Farmer Cooperatives' designation of 2012 as the Year of the Farmer Cooperative.

The Land O'Lakes Chairman said cooperatives are "organizations that involve and empower members – enabling them to work together to identify and address problems, and create and capitalize on opportunities, with a collective impact individual members could not achieve on their own."

Kappelman provided some facts on the impact of cooperatives, noting that:

• Globally, cooperatives serve more than 1 billion members and support 100 million jobs;
• In the U.S., approximately 30,000 cooperatives serve 350 million members (with some individuals belonging to multiple cooperatives) in areas ranging from agriculture to energy to health care – supporting 2 million jobs; and
• America's nearly 3,000 agricultural cooperatives serve 2 million members, generating close to $200 billion in revenues and supporting approximately 250,000 jobs.

Citing those statistics, Kappelman told the audience: "As cooperators, we are part of something big and we are also part of something good."

The Chairman also lauded the work of Land O'Lakes International Development Division (IDD).  As a leader in international development for more than 30 years, the Land O'Lakes IDD team has leveraged cooperative insights to facilitate more than 260 economic development projects in nearly 80 developing nations.  IDD also has helped to establish 3,000 cooperatives along the way.

In closing, Kappelman added that as grassroots, democratic organizations, cooperative success depends on active, informed and involved members – and urged Land O'Lakes' membership to "continue to invest time and effort in building a bigger and better cooperative system."

Land O'Lakes, Inc. (www.landolakesinc.com) is a national, farmer-owned food and agricultural cooperative with annual sales of nearly $13 billion.  The nation's second-largest cooperative and number 218 on the Fortune 500, 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