I still have a hard time understanding why Moark is planning such a large expansion at its Neosho plant at a time when the egg industry is on the downswing.
As I pointed out in the May 30 Turner Report, Moark parent company Land O'Lakes, did not exactly have an optimistic outlook for the industry in its May 13 quarterly filing with the Securities and Exchange Commission.
That filing noted that egg prices were down from $1.21 a dozen to 74 cents for the three months ending March 31. That doesn't mean that the egg business won't rebound, but apparently Land O'Lakes is not counting on that happening.
"We believe that egg market prices will remain depressed through the remainder of 2005 due to excess capacity in the industry and the diminishing popularity of high-protein diets."
So why the gigantic local expansion plans?
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