Land O'Lakes churned up its dairy profits last year as big bets on cheese and America's rediscovered love of butter fueled one of the segment's best years on record.
The nation's leading dairy cooperative, headquartered in Arden Hills, reported $64 million in pre-tax profits for its dairy foods business, a 33% increase from the prior year.
Dairy case cheese offerings at grocery stores, effective advertising and overall "favorable market conditions" boosted the business, according to the Land O'Lakes annual report.
Land O'Lakes is the top-selling branded butter in the U.S.
The co-op, which touches half of America's harvested acres through its crop inputs and animal nutrition businesses, has not been immune to the broader downturn in agriculture, however. Profits for the WinField United crop inputs business declined 28% to $166 million last year.
The co-op blamed lower grain prices and retailers drawing down inventory for the decline.
"U.S. farmers and agricultural businesses are navigating a complex landscape today," Bill Pieper, Land O'Lakes chief financial officer, wrote in an email. "When you look at market dynamics, growth ambition isn't always neatly 'up and to the right.' And growth is supported by strong enterprise performance, to make investments in the future."
Investments in data and technology led to more efficiency and product launches last year, the company said.
"We accelerated our ability to deliver data-driven innovation — products, services and market insights," CEO Beth Ford and board Chair Rick Brand wrote in the co-op's annual report.
The Purina animal nutrition business recovered from last year's $3 million loss after launching a transformation that brought profits up to $34 million in 2024.
Total profits for 2024 fell 6% to $238 million as revenue dropped 3% to $16.2 billion.
"We delivered strong 2024 performance, which we are proud to share with our member-owners," Pieper wrote.
Land O'Lakes counts 1,193 dairy producers, 514 ag producers and 873 ag retailers among its member-owners.
The cooperative returned $164 million in cash to its members last year, a decline from the $179 million in patronage in 2023.
Amid an escalating global trade war that threatens market access for farmers, Land O'Lakes intends to continue advocating for agriculture's needs.
Ford is also chair of the Business Roundtable's immigration committee this year.
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