Challenges and Controversies Around Land O’ Lakes Cooperative Model

Land O’ Lakes, a dairy cooperative based in the United States, has come under scrutiny for its corporate model and involvement in price-fixing settlements totaling $297 million in dairy and poultry sectors. This cooperative, originally founded in 1921 by 320 small creameries in Minnesota, was created to enhance the quality of butter and improve marketing practices for dairy farmers.

CEO Beth Ford recently highlighted the challenges facing the agricultural sector, noting a 25% drop in farm income from 2022 to 2024, with 2025 median farm income projected at -$328. She emphasized the aging farmer population, with more over 75 than under 35, as a significant concern.

Despite these issues, Land O’ Lakes has been involved in strategic partnerships, such as with Fonterra, the world's largest dairy exporter. However, such moves have not alleviated the financial struggles of US dairy farmers. The cooperative's consolidation model is criticized for reducing competition, impacting both producers and consumers negatively.

Moreover, Land O’ Lakes has faced legal challenges due to its business practices. The involvement in price-fixing scandals contrasts with its supposed mission to support small-scale producers. The cooperative's growth strategy has led to concerns that it operates more like a corporation than a traditional cooperative.

Ford's resignation from BlackRock's board, an investment firm with significant holdings in farmland, further complicates the narrative surrounding Land O’ Lakes' commitment to farmer welfare. These developments raise questions about the cooperative's alignment with its founding principles.