Company Overview

Land O’lakes is an agriculture company, operating in industry segments such as Feed and animal nutrition, Agrochemicals and seeds. The company has been focussing on a number of fast growing markets in these industry segments for its medium to long term growth. Land O’lakes operates in markets such as Plant breeding and CRISPR plants market (growing at 14% CAGR), Probiotics in Animal Feed market (8.8% CAGR), Animal Micronutrients market (8.7% CAGR), Animal Intestinal health market (8% CAGR) and Phytogenic Feed additives market (7.8% CAGR).
Land O’lakes also operates in mature markets such as Seeds market ($59 billion global market in 2020), hybrid seeds market ($23.6 billion market) and feed premix market ($22.93 billion market).

Land O’Lakes High Growth Opportunities across Industry Segments

Top Hot bets of Land O’Lakes in Feed and Animal Nutrition Industry

• Animal Intestinal Health Market – $3.13 billion market globally, growing at 8% CAGR
• Liquid milk replacers market - $0.2 billion market globally, growing at 5.3% CAGR
• Phytogenetic feed additives market - $0.75 billion market globally, growing at 7.8% CAGR
• Feed Premix market – $22.9 billion market globally, growing at 6.2% CAGR

Top Hot bets of Land O’Lakes in Seeds Industry

• Plant Breeding and CRISPR plants market - $9.87 billion market globally, growing at 14% CAGR
• Hybrid Seeds market - $23.66 billion market globally, growing at 6.7% CAGR
• Seed market - $59.16 billion market globally, growing at 6.6% CAGR

Top Hot bets of Land O’Lakes in Agrochemicals Industry

• Agricultural micronutrients market - $3.5 billion market globally, growing at 8.7% CAGR
• Herbicides safeners market - $.98 billion market, growing at 7.2% CAGR

Potential Growth Opportunities for Land O’Lakes

The most promising adjacent market opportunities for Land O’lakes to potentially exploit for long term revenue growth are –

• Molecular breeding market with a global market opportunity size of $5.4 billion by 2025, growing at 17.1% CAGR
• Biopesticides market with a global market opportunity of $8.5 billion by 2025, growing at 14.7%
• Seed treatment market with a global opportunity size of $11.3 billion by 2025, growing at 12.1% five year CAGR
• Insecticides seed treatment market with a global market size of $6.95 billion by 2025
• Agrigenomics market  with a market potential of $4.83 billion by 2025 at a CAGR of 9.7%

Land O’Lakes VS Corteva

Corteva is one of the closest competitors of Land O’Lakes. Both the companies compete aggressively in a number of markets such as Seeds market, Feed Premix market, Forage Seeds market, Agricultural micronutrients market and Acquatic Herbicides market.

Land O’lakes has also been focussing on a number of high growth markets where Corteva does not operate in. These include Probiotic in Animal feed market, Animal Intestinal health market, Phytogenic feed additives market, Milk replacers market and Cheese powder market. All of these markets have been growing at more than 2x the industry average.

Corteva has been investing in a number of high growth markets which can present potential medium to long term growth opportunities for Land O’Lakes. These include AI in agriculture market ($3bn market opportunity by 2025, growing at 25% CAGR), Molecular breeding market ($5.4 bn market by 2025, growing at 17.1% CAGR), Agricultural Pheromones market ($5.25bn market by 2025, growing at 16% CAGR) and Bioinsecticides market ($4.6 bn market opportunity with a growth rate of 15.8%). Together these markets represent a potential market opportunity of over $18bn by 2025.

Strategies following by Land O’lakes in Probiotics in Animal feed Market

KEY STRENGTHS/RIGHT TO WIN
Land O’Lakes has a significant presence outside its domestic market in Europe. Development of new products and increase in sales in some categories of the probiotics in animal feed market have mostly been due to health issues, as the behavior of consumers suggests that they prefer quality feed. This trend has led to the improvement in the performance of the probiotics market generally, in comparison to other product options offered by Land O’Lakes.

STRATEGIC CHOICES MADE
Land O’ Lakes is involved in the probiotics for animal feed business through its subsidiary, Purina Mills, LLC (US). It is the largest manufacturer of animal feed products in the US. The company went through agreement, acquisition, and investment strategies for growth in this market. For instance, it acquired Southern States Cooperatives Incorporated’s (US) feed business and investment of USD 2.4 million to boost the production capacity of its Iowa-based plant.

WEAKNESSES AND COMPETITIVE THREATS
The current strategies adopted by other key players, such as Alltech (US) and Lallemand (US), have a competitive edge over other companies, which has a scope of capturing a larger market share. Therefore the company has a threat from various companies.

Strategies following by Land O’lakes in Hybrid Seeds Market

Land O’Lakes has a strong product portfolio and a broad customer base in the US. The company is currently focusing on inorganic growth strategies, such as expansion to expand globally. For instance, in 2017, WinField United expanded in North America by launching WinField United Canada (Canada) to enter the growing Canadian agriculture business. The company has a high focus on seed R&D and an efficient team working on five research centers of WinField United. These centers include Answer Plot Shared Operations Center, WinField United Innovation Center, Forage Genetics International Research Labs, SureTech Laboratories, and Solum Labs. Through these centers, the company caters to the innovative product demands from clients and sustains itself with a high market share.

Strategies following by Land O’lakes in Feed Premix Market

KEY STRENGTHS/RIGHT TO WIN

The company has a strong footprint in the North American feed premix market. In combination with its wholly-owned subsidiary, Purina Mills, LLC, is among the leading feed companies in North America. It has an animal nutrition R & D facility in the US, which is among the premier facilities in North America; the facility provides products and services to feed manufacturers. The company’s research team develops new ideas for a wide range of livestock and companion animals. Thus, with an impressive R&D base, the growth of the company in the feed premix market looks promising in the years to come.

STRATEGIC CHOICES MADE

Land O’Lakes currently leverages the capabilities and proprietary products of its subsidiary businesses Purina Animal Nutrition and United crop protection to help improve dairy productivity in China.

WEAKNESSES AND COMPETITIVE THREATS

Land O'Lakes, Inc., one of America's premier agribusiness and food companies, is a member-owned cooperative with industry-leading operations that span the spectrum from agricultural production to consumer foods.