Land O’ Lakes, the third biggest egg producer in the U.S. is seeking to sell its egg subsidiary, Moark. Land O’ Lakes’ layer division has lost money for the past three consecutive years, losing $25.1 million before taxes in 2013 alone, as the egg sector experiences increasing volatility driven by animal rights and impending legislation designed to tighten regulations regarding chicken welfare within the next five years. California, the country’s fifth largest egg producing state has been the first enactor, requiring in-state egg producers and out-of-state producers that sell within the state to increase living space per hen to 116 square inches from the industry standard of 67 square inches by January 1st. Although Land O’ Lakes is a major player in the U.S. egg industry, the company’s egg division accounts for only a single-digit percentage of its $14.2 billion sales per year derived mostly from dairy foods, animal feed, and crop inputs. As of the end of 2013, Land O’ Lakes established a plan to divest itself of the western and Midwestern assets of Moark in separate transactions that are expected to take place in 2014. Although exiting production, Land O’ Lakes will remain a presence in the U.S. egg industry through its marketing joint venture with Eggland’s Best.
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