Land O'Lakes said Tuesday its profit grew 11% last year as dairy demand remained high even as the cooperative coped with higher costs and logistics challenges.
Profit rose 11% at Land O'Lakes as dairy products stayed popular last year
The cooperative said supply chain and inflation issues eroded some of its profit growth.
March 1, 2022 at 10:30PM
The Arden Hills-based cooperative, one of the nation's largest, said it earned $295 million, the most since 2017. Revenue was $16 billion, up more than 14%.
"We move into our next 100 years with confidence for the future, our business positioned for the long-term, continuing to serve our members and advocate for their communities," Beth Ford, the company's chief executive, said in a statement.
Best known for its butter and other consumer brands, Land O'Lakes makes most of its money through crop inputs and services and animal nutrition.
Retail volume in its dairy foods business remained higher than it was before the pandemic began to change consumer shopping and eating habits two years ago. But Land O'Lakes earned less from dairy than it did in 2020 because of higher supply chain costs.
Land O Lakes experienced a 29% jump in profit in 2020, helped by higher commodity prices.
In 1921, more than 300 dairy farmers came together to form Land O'Lakes to market their milk. The cooperative today is owned by more than 3,000 producers, retailers and smaller co-ops.
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