Land O'Lakes annual report, filed this week with the Securities and Exchange Commission leaves no doubt the agricultural conglomerate is seeking to shed its Moark layers division.
"It is critical that we bring very disciplined management to this business, as we respond to cyclical egg markets. We also will continue to explore options for strategically repositioning this non-core business, with a short-term focus on enabling the business to grow, while minimizing Land O’Lakes capital use and risk."
The "repositioning" is a euphemism for putting the division on the market.
"We remain intensely focused on eliminating the distraction of non-core, non-strategic and underperforming assets," the annual report said. "This, in turn, will enable us to better invest our time and resources in those core businesses where we can compete, win and deliver the highest levels of value to customers and member-owners.
Any doubt about the decision was removed in the business section of today's St. Paul Pioneer Press, which reported on Land O'Lakes annual meeting at the Minneapolis Convention Center.
"Land O'Lakes will focus its future on four core areas — dairy foods, feed, seed and agronomy — and intends to exit areas where it does not hold a leading position, particularly its egg-laying venture MoArk, company officials said at Land O'Lakes' annual meeting Wednesday. 'I'm a believer in fewer but bigger things," said Land O'Lakes' new president and chief executive, Chris Policinski."
It remains to be seen if this will have any affect on the proposed expansion of Moark's Neosho facilities.