Land O’Lakes Inc., Arden Hills, Minn., reported third-quarter net earnings attributable to the cooperative of $11.7 million on net sales $2.98 billion, down from the year-ago $25.8 million and $3.21 billion, respectively. Nine-month earnings for the period ending Sept. 30, 2019, were $150.4 million on sales of $10.3 billion, down from the year-ago $208.8 million and $11.34 billion, respectively.
“In the context of global economic headwinds, catastrophic weather, and increasing uncertainty about the future of rural America, Land O’Lakes has turned to demand creation, digital platform development, and an aggressive focus on customer segmentation to support strong sales,” said Beth Ford, Land O’Lakes President and CEO. “Maintaining and expanding our market position, and advocating for the American farmer, remain key focuses for our cooperative into the fourth quarter and beyond.”
The cooperative said its Crop Inputs segment benefited from recent cost reductions, which helped to offset the impact of a compressed planting season resulting in fewer planted acres and lower sales of crop protection products.
Earnings in Dairy Foods were down for the quarter as a result of lower margins within the retail segment, higher costs related to the expansion of the Kiel, Wisc., facility, and margin compression in global dairy ingredients driven by higher input costs. Performance in Animal Nutrition was lower due to increased forage availability in the Southwest, which impacted demand.