US farmers co-op Land O’Lakes has revealed it is looking to sell egg unit Moark.

In its annual report for 2013, Land O’Lakes said it had decided to “explore options to divest of this business”.

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The Land O’Lakes “layers” division, run by Moark, made a loss of US$25m in 2013, lower than the $39m loss it ran up in 2012.

Land O’Lakes said the unit faced “supply issues” and “high feed prices relative to egg prices” last year but insisted a focus on cost savings and efficiency had brought down losses. Sales reached $259m, 18% of the co-op’s $14.2bn revenues last year, which was a record for the company.

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