Land O’Lakes net earnings up in first quarter
Subsidiary Winfield enters supply agreement with Southern States Cooperative
Land O’Lakes Inc. reported net earnings of $104 million for the first quarter of 2016, up from $99 million in 2015.
“Coming off of a record year in 2015, performance remains strong in the first quarter of 2016 despite continued challenging market conditions,” stated Chris Policinski, Land O’Lakes president and CEO. “Building on our strategy and momentum, we continue to invest in core growth, new markets and step up our innovation. In an environment of increasing industry consolidation, we are expanding our presence and capabilities to provide value to our farmer-owners to help them compete in this great growth industry.”
Deal with Southern States Cooperative
Land O’Lakes Winfield US (Winfield United Suppliers) recently signed a letter of intent to enter into a supply agreement with Southern States Cooperative Inc. With the agreement, Winfield US will exclusively provide a majority of crop inputs requirements to Southern States’ network of 1,200 retail locations located in the Eastern U.S. beginning in crop year 2017. This agreement will bring the WinField portfolio of products, including WinField seed, seed treatments, adjuvants, micronutrients and plant growth regulators, to a new customer base.
Overall first quarter results in Crop Inputs, which includes the WinField and United Suppliers branded portfolios, were affected by lower volumes across their seed and crop protection products.
First quarter results for Feed include strong performances in large animal feed driven by strong margins within formula feed and milk replacer products.