DFA 25th Anniversary Book

25 years BETTER TOGETHER:

OF DAIRY FARMERS OF AMERICA

Kansas City, Kansas Published 2023 © 2023 Dairy Farmers of America, Inc.

Cover: Niels, Emma, Ingrid, Arne, Lisa, Anthony van Dieden | DFA farmer-owner family | Winnsboro, Texas

Better Together: 25 Years of Dairy Farmers of America HO NO R T HE PAS T, C E L E B R AT E T HE PR E S E N T AND C O NT I NUE TO M OV E DAI RY F O RWAR D TO GE T H E R

Scott Vieth Dairy | Windthorst, Texas

Contents FOREWORD

IV

CHAPTER ONE: A SHARED VISION

10

CHAPTER TWO: GOVERNING THE COOPERATIVE

20

CHAPTER THREE: BRINGING VALUE FOR 25 YEARS

32

THROUGH MILK MARKETING

34

THROUGH COMMERCIAL INVESTMENTS

38

THROUGH SERVICES FOR FARMER-OWNERS

64

THROUGH POLITICAL ACTION

70

CHAPTER FOUR: LOOKING TOWARD THE FUTURE

78

CONCLUSION

96

DAIRY FARMERS OF AMERICA | III

FOREWORD

Celebrating the Past If I’ve learned anything over the past 25 years, it’s that people matter most.

At Dairy Farmers of America (DFA), people have always been at the heart of who we are as an organization.

Cooperative provides value has evolved over the last 25 years, what has always remained the same is our focus on our farmer-owners. They are the heart of all we do.

DFA was formed by dairy farmers to support their fellow dairy farmers.

I remember the days in the 1990s before DFA was founded. With declining milk prices and strong and expanding competitors, it was a tough time for dairy farmers, myself included. I was a board member for Mid-America Dairymen, Inc., and I recall the anticipation (and some apprehension) that was beginning to stir among my colleagues, neighbors and friends as talks began about a national cooperative focused on delivering value to dairy farmers.

Today’s successes are made possible thanks to our people — our dedicated farmer-leaders and passionate employees working together for the good of all our farmer-owners.

In 1998, that vision for a better future became a reality. But nobody knew yet if it would succeed. We had hope that it would, but there was some fear too. Over the years, many people invested their time, passion and lives into this new venture, and I’m proud to have watched our Cooperative not only succeed — but thrive; I’m proud to say I’ve been a farmer-owner and Board member since DFA’s inception.

DFA has changed dramatically in 25 years. The scope of our manufacturing facilities and our commercial investments has grown; our farm services have evolved and improved; and our employee base has expanded. While how our

IV | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

I hope you enjoy reading about the people of DFA in the coming pages. Their reflections, perspectives and voices tell the story of DFA — where we came from, where we are and where we’re going in the future.

RA NDY MOONEY C HAI RMAN O F THE B OA R D DAI RY FARMERS OF A MER I CA

Randy Mooney, chairman of DFA’s Board of Directors and a DFA farmer-owner in Rogersville, Mo., spoke at a DFA employee conference Sept. 27, 2022, in Kansas City, Mo.

Randy Mooney | DFA farmer-owner | Rogersville, Mo. DAIRY FARMERS OF AMERICA | V

Dean McMillan and Johan de Boer | Farm employee and DFA farmer-owner | Dublin, Texas

CHAPTER ONE

A Shared Vision AT THE TURN OF THE 21ST CENTURY, DAIRY FARMERS HAD A VISION — A VISION WHERE THEY COULD DO MORE TOGETHER THAN THEY COULD APART. ALTHOUGH THAT VISION WASN’T FULLY FORMED YET, IT WOULD SOON BECOME DAIRY FARMERS OF AMERICA (DFA).

The 1990s were a time of change for the dairy industry and the world. The number of dairy farms in the United States was declining, cow herds were growing and milk production was increasing. Milk processing plants were consolidating, creating larger regional dairy facilities.

The increase in scale placed larger demands for quality and efficiency on dairy farmers and the cooperatives that were marketing their milk. At the same time, consumer preferences for dairy products were changing, with a growing desire for organic, all-natural, low-fat and conveniently packaged products. Meanwhile, international trade agreements promised opportunities for those who had the resources to develop and serve emerging markets.

For decades, dairy farmers had recognized the power of cooperative organization, forming regional cooperatives to market their milk and handle the logistics of transporting milk from the farm to the processing plant.

But even those organizations were struggling to help their farmer-owners with all the issues they faced.

was give us some control over the products that we made out of our milk. It gave us some control, all the way from the cow to the consumer, and we couldn’t have done that as well with a regional-type co-op.”

With the rapid changes in processing technology and market dynamics toward the end of the 20th century, it became increasingly clear that more collaboration would be necessary to navigate this shifting landscape.

“The processing industry had gotten so big and so powerful that we had to be able to sit across the table from them, and we couldn’t do that as four or five organizations,” says Donald Schriver, former chief executive officer of Milk Marketing, Inc., and a founding executive vice president of DFA, who oversaw communications, member relations and government affairs. “We needed to do it as one.”

“The industry was consolidating around us,” says Neil Hoff, a DFA farmer-owner in Windthorst, Texas, and DFA Board director. “We saw the need for early integrating and trying to do more on a national scope. What that did

Leaders of the four regional cooperatives that merged to form DFA. From left to right: Herman Brubaker, chairman of Milk Marketing, Inc.; Tom Camerlo, chairman of Western Dairymen Cooperative, Inc.; Carl Baumann, chairman of Mid-America Dairymen, Inc.; and Charles Beckendorf, chairman of Associated Milk Producers, Inc. Southern Region.

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THE CAPPER-VOLSTEAD ACT Historically, farmers weren’t always allowed to work together by forming cooperatives. While farmer-owned cooperatives have been in existence since the early 1800s, the Capper-Volstead Act, passed in 1922, gave farmers and ranchers the legal right to join together in a cooperative, and it provides them with limited antitrust exemption to conduct joint marketing activities. Although passed more than 70 years prior to DFA’s formation, this act laid the foundation for what would be DFA’s business structure.

A SHARED VISION | 11

Coming together for the good of all From 1996 to 1998, the dairy farmer chairmen of the nation’s four leading milk marketing cooperatives came together to discuss how they could work together for a better future for their dairy farmers.

The four cooperatives were Associated Milk Producers, Inc. (AMPI) Southern Region, Mid-America Dairymen, Inc. (Mid-Am), Milk Marketing, Inc. (MMI) and Western Dairymen Cooperative, Inc. (WDCI).

At the time, AMPI operated through two regional co-ops, North Central, headquartered in New Ulm, Minn., and Southern, headquartered in Arlington, Texas. AMPI Southern Region merged with the other cooperatives to form DFA. AMPI North Central Region still operates today.

“The discussion of consolidating the four cooperatives began with the four chairmen getting together and being concerned about their members’ financial and economic well-being,” says Carl Baumann, former chairman of Mid-Am and retired DFA Board director. “We asked ourselves, ‘How can we help our members collectively as one cooperative?’”

Recognizing the benefits of pooling their resources and the potential strength of a national presence, the idea for a national dairy cooperative, which would eventually be DFA, was born.

and our job on the management side was to make sure we did as much as we could for them, for their livelihood.”

During discussions, everyone agreed that Gary Hanman, chief executive officer of Mid-Am, would be the CEO of the new venture. Gary had a solid reputation throughout the dairy industry.

“Gary was an evangelist as it relates to the dairy cooperatives,” says John Wilson, retired chief fluid marketing officer at DFA. “He was great at going out and having meetings with farmers on their own turf.

And he got good buy-in from members.”

Randy Mooney, chairman of DFA’s Board of Directors and a DFA farmer-owner in Rogersville, Mo., agrees.

“Gary was probably the only person in the country who could have brought dairy farmers together to form Dairy Farmers of America,” he says. “He was a real dynamic guy. He was a visionary.”

It was also agreed that Herman Brubaker, chairman of the board of directors at MMI, would be the first chairman of the new Board of Directors, and the other presidents of the regional cooperatives would also play leading roles in the new organization.

“One of the key things about cooperatives is, they are people organizations,” Schriver says. “The farmers are key. It’s their organization; they own it, Top: On Sept. 9, 1997, the four dairy producer chairmen voted to present the terms of forming one cooperative to their memberships. From left to right: Herman Brubaker, chairman of Milk Marketing, Inc. (MMI); Tom Camerlo, chairman of Western Dairymen Cooperative, Inc. (WDCI); Carl Baumann, chairman of Mid-America Dairymen, Inc. (Mid-Am); and Charles Beckendorf, chairman of Associated Milk Producers, Inc. (AMPI) Southern Region.

Bottom: Gary Hanman, chief executive officer of Mid-Am, speaks at an early Project Vision meeting.

12 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

“

One of the key things about cooperatives is, they are people organizations.

The farmers are key. It’s their organization; they own it, and our job on the management side was to make sure we did as much as we could for them, for their livelihood.

D O NA LD S CHR I V E R

FORMER CHIEF EXECUTIVE OFFICER, MILK MARKETING, INC. A FOUNDING EXECUTIVE VICE PRESIDENT, DFA

A SHARED VISION | 13

The only way to celebrate the formation of DFA was with tall glasses of milk.

Top row: Greg Yando, chief executive officer of Western Dairymen Cooperative, Inc. (WDCI); Donald Schriver, chief executive officer of Milk Marketing, Inc. (MMI); Gary Hanman, chief executive officer of Mid-America Dairymen, Inc.; (Mid-Am); and Noble Anderson, chief executive officer of Associated Milk Producers, Inc. (AMPI) Southern Region.

Bottom row: Tom Camerlo, chairman of WDCI; Herman Brubaker, chairman of MMI; Carl Baumann, chairman of Mid-Am; and Charles Beckendorf, chairman of AMPI Southern Region.

14 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

Putting a vision on paper A steering committee met to hammer out the benefits of coming together and to create guiding principles that would help direct the new dairy Cooperative.

“We took the best ideas, the best practices from each of the co-ops that came in. Basically, we put together a new co-op,” Hoff says. “There were no sacred cows. Everything was there to be voted on and to be agreed upon by the participants that were coming in.”

The vision for the new organization — one that aimed to empower dairy farmers with access to stable milk markets, pay them a competitive price and enable them to reap the benefits of their hard work — was starting to form. Along with providing indispensable services to help farmer-owners improve the profitability of their farms, the Cooperative would offer a gateway to cutting-edge advancements in the industry and provide greater access to rapidly expanding global markets. By helping dairy farmers stay competitive in emerging markets, the Cooperative would be setting them up for long-term success.

Our goal is to become larger and more efficient in the marketplace and smaller and more responsive in the field.

TOM CAMERLO LATE PRESIDENT, WESTERN DAIRYMEN COOPERATIVE, INC. DFA CHAIRMAN OF THE BOARD

strength throughout the marketplace. Three, it gives our dairy farmers a larger share of the consumer dollar and the opportunity to increase our percentage of that share. And four, it allows us to become global marketers. Our goal is to become larger and more efficient in the marketplace and smaller and more responsive in the field.”

The organization needed a new headquarters to serve the whole country, so the founders chose Kansas City, Mo., because of its central geographic location.

“We had to come up with a new name. We had to come up with a new logo. We had to come up with a new location, which was a tough thing to do,” Schriver says.

A public relations firm suggested names for the new venture, but none felt right.

“One of them was, like, Dairy Quest or Quest of American Dairy Farmers or something,” says Larry Purdom, retired DFA Board director. “I said, ‘I could come up with a better name than that.’ And he [Gary Hanman] challenged me, and I said, ‘Well, Dairy Farmers of America, DFA.’ The committee immediately voted. They liked it, and that was the new name of our organization.”

A bold and ambitious dream was shared with the farmerowners of the four regional cooperatives. This dream, known as Project Vision, ignited the spark that was to become a grand vision. Informational meetings were held across the country as the vision took root and grew.

Fast forward to New Year’s Day 1998 and the seemingly impossible had become real. DFA was born.

“The new organization gives us four things,” the late Tom Camerlo, president of WDCI, and chairman of DFA’s Board of Directors, following Herman Brubaker, said at the time. “One, it allows our new cooperative to become a least-cost operator. Two, it expands our marketing

A SHARED VISION | 15

BENEFITS OF COMING TOGETHER These opportunities were shared with dairy farmer-members in Project Vision, DFA’s founding document: • C ost-effective marketing and movement of milk • G lobal market opportunities • A ccess to branded and value-added markets • E xpanded product manufacturing capabilities • A ccess to a wider range of services and programs • Greater long-term value and returns • Unity to dairy farmers nationwide • Research and development

Celebrating the formation of DFA. From left to right: Tom Camerlo, chairman of Western Dairymen Cooperative, Inc.; Herman Brubaker, chairman of Milk Marketing, Inc.; Carl Baumann, chairman of Mid-America Dairymen, Inc.; and Charles Beckendorf, chairman of Associated Milk Producers, Inc. Southern Region.

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FOUR SUCCESSFUL COOPERATIVES, ONE SHARED VISION These regional milk marketing cooperatives merged to form DFA:

Associated Milk Producers, Inc. Southern Region Formed: 1969 Headquartered: Arlington, Texas

Mid-America Dairymen, Inc. Formed: 1968 Headquartered: Springfield, Mo.

Milk Marketing, Inc. Formed: 1978 Headquartered: Strongsville, Ohio

Western Dairymen Cooperative, Inc. Formed: 1987 Headquartered: Salt Lake City, Utah, and Thornton, Colo.

A SHARED VISION | 17

CHAPTER TWO

Governing the Cooperative

FROM THE BEGINNING, EVERY ONE OF DFA’S FARMER-OWNERS HAS HAD A SAY IN THE DECISIONS BEING MADE IN THE COOPERATIVE. FROM THE LOCAL LEVEL TO THE NATIONAL, OUR GRASSROOTS GOVERNANCE PROCESS ENSURES THAT WE’RE IMPLEMENTING POLICIES AND FOCUSING ON ISSUES THAT MATTER TO OUR FARMER-OWNERS. WE ARE PROUDLY OWNED BY, GOVERNED BY AND HERE FOR DAIRY FARMERS. From day one, DFA was driven by dairy farmers, for the good of dairy farmers — and structured to give dairy farmers a voice and a say in the Cooperative they built.

“The company that we’re putting together as a cooperative is going to be owned by farmers, run by farmers, financed by farmers and directed by farmers,” Gary Hanman, retired DFA president and chief executive officer, said at the time of DFA’s formation. “So, we are an extension of the farmer’s barnyard gate. Our governance structure will let the individual farmer’s voice be heard all the way up through the various organizational structures. That will give him, or her, an opportunity to guide and direct this company.”

That philosophy has not changed in 25 years.

“One of the unique things about DFA is that — and this still is the guiding principle today — the farmers are the most important. The dairy farmer-members are the ones that are — and should be — driving the organization,” says Jeff Raney, a DFA farmer-owner in Adamsville, Pa., DFA Board director, chairman of DFA’s Mideast Area Council and member of DFA’s Executive Committee. “They’re the most important, and that’s where we need to focus on making sure that the dairy farmers do well, and I think that culture and that thought process continues to make DFA the successful co-op that it is today.”

An early Project Vision meeting provided updates to farmermembers about the benefits of consolidating the four regional cooperatives — Associated Milk Producers, Inc. Southern Region, Mid-America Dairymen, Inc., Milk Marketing, Inc. and Western Dairymen Cooperative, Inc. — to form DFA.

20 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

GOVERNING THE COOPER ATIVE | 21

“

One of the unique things about DFA is that — and this still is the guiding principle today — the farmers are the most important.

JE F F R A NE Y

DFA FARMER-OWNER, ADAMSVILLE, PA. DFA BOARD DIRECTOR; CHAIRMAN, DFA’S MIDEAST AREA COUNCIL; MEMBER, DFA EXECUTIVE COMMITTEE

22 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

David Geisler, retired internal legal counsel for DFA, recalls the hard work employees put in during his tenure on behalf of the farmer-owners: “We all believed that we were there to serve dairy farmers and to try to reduce their costs and enhance the milk check money they got from DFA.” To ensure that farmer-owners remain at the center of the Cooperative, our founding farmer-leaders developed a grassroots governance system that gives every DFA farmer-owner a voice.

“As we started to organize DFA’s structure, during that year-long discussion, we had discussions with our farmers about the structure, how their voices would be heard,” Hanman says. “Instead of getting somebody from the town to come into the country, we wanted to take the country to the town. But we wanted to do that in a cooperative way, and to do that, we set up this whole system of councils, so they had a representative close to their farm and had some say in what happened at various levels of the contact they’d have to this new company.”

Discussions included how the governance structure would be set up to turn voices into votes.

“I was on the membership committee at the beginning, and we came up with a formula to determine how representation was going to be on the Board, based on milk produced and number of members,” says Ed Schoen, retired DFA Board director. “I think it was really forward-thinking how we did it. At the beginning though, we took all of the board members from all of the founding organizations, and they were all a part of those first meetings. They were each given a one-, two-, or three-year term, and as we aged out,

the Board came down to the number that you have now. But we started with over 100 members in that first meeting.”

Herman Brubaker, chairman of the board of directors at Milk Marketing, Inc., was the first-ever chairman of DFA’s Board of Directors. Tom Camerlo, who had served on DFA’s Board of Directors since the Cooperative’s inception, succeeded him in 2003.

Camerlo was widely recognized for his vision of putting U.S. dairy on the global map. He held the position until his death in 2009. Randy Mooney, a DFA farmer-owner in Rogersville, Mo., succeeded him in 2010 and has held the position ever since.

DFA’s Board of Directors currently consists of 48 members who work with the management team to develop and drive DFA’s strategy, weigh in on a number of matters impacting the Cooperative and communicate with the wider DFA farmer-ownership.

“My role is to support the farmers and make sure that our farmers are looked after — that they are thought of in the best way for their milk check, and I’ve got to make sure that, as a Cooperative, we do that,” says Brian Rexing, a DFA farmer-owner in Fort Branch, Ind., second vice chairman of DFA’s Board of Directors, chairman of DFA’s Southeast Area Council and member of DFA’s Executive Committee. “The day-to-day operations, we don’t necessarily get involved with. That’s not our responsibility. We learn about the day-to-day operations, and we’ve got great people working for us that we put a lot of trust in.

The Board and management work well together and hold each other accountable.”

Top: Gary Hanman (left) and Herman Brubaker (right) became the first chief executive officer and chairman of the Board for DFA. Bottom: From left to right: Greg Yando, chief executive officer of Western Dairymen Cooperative, Inc.; Donald Schriver, chief executive officer of Milk Marketing, Inc.; Gary Hanman, chief executive officer of Mid-America Dairymen, Inc.; and Noble Anderson, chief executive officer of Associated Milk Producers, Inc. Southern Region.

GOVERNING THE COOPER ATIVE | 23

LEADING THE WAY Following Gary Hanman’s retirement, Rick Smith became the second-ever president and chief executive officer of DFA in 2006 and was tasked with building on the vision that brought dairy farmers together in 1998 to form the Cooperative.

“I give Rick a lot of credit for getting us past some of the less-than-positive things that happened in the early 2000s,” says John Wilson, retired chief fluid marketing officer at DFA. “He changed the culture of the organization, and he made it what it is today.”

Under Rick Smith’s leadership, the Cooperative executed several strategic initiatives designed to bring farmer-owners increased value, expand our global footprint and grow our commercial businesses.

“Rick is a very special kind of a person that could relate to producers. Not all co-op managers can.

They act more like ‘corporate’. It’s a fine line that you have to tread there,” says George Mertens, retired DFA Board director.

In July 2022, Dennis Rodenbaugh took over from Smith as DFA’s third president and chief executive officer. He joined the organization in 2007 and served in numerous leadership roles since then.

“Dennis embodies the values of DFA,” Smith said at the time the succession was announced. “He is an integrity-based leader with a passion for bringing value to our farmer-owners. We are confident he will help navigate the organization into its next chapter successfully.”

GARY HANMAN

RETIRED DFA PRESIDENT AND CHIEF EXECUTIVE OFFICER

24 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

RI CK S M I T H

RETIRED DFA PRESIDENT AND CHIEF EXECUTIVE OFFICER

Getting involved Through DFA’s governance structure, there are hundreds of positions for farmer-owners to get involved in their respective districts and Areas, such as delegate, Area Council member, Area Resolutions committee member and Corporate Resolutions committee member.

DFA is only as strong as the farmer-leaders using their voices to guide the Cooperative, and that means identifying and investing in the next generation of farmer-leaders.

“We provided a lot of opportunities for a lot of people,” Schoen says. “The future is for those who can provide vision for the industry. Ideas that I hadn’t even thought of are being worked on today and will be part of the industry and the business for years to come.”

When our farmer-owners are engaged in leadership roles, they help direct their own futures, the future of their Cooperative and the future of the dairy industry.

In addition to the opportunities available through our governance structure, DFA invests in future leaders through leadership development programs such as our Young Cooperator and Emerging Leaders programs.

OUR GRASSROOTS GOVERNANCE DFA is organized into seven geographic Areas. Each Area has a Council, made up of elected farmer-leaders who discuss regional milk marketing issues and provide advice to the Board on matters in that Area, as well as other responsibilities delegated by the Board. From these regional councils, farmer-leaders are elected to DFA’s Board of Directors. Representation on the Board is determined by a formula factoring in milk production and number of DFA farms in the Area.

D E N N I S R O D ENBAU GH

DFA PRESIDENT AND CHIEF EXECUTIVE OFFICER

RANDY MOONEY

DFA CHAIRMAN OF THE BOARD

GOVERNING THE COOPER ATIVE | 25

YOUNG COOPERATOR (YC) PROGRAM Provides dairy farmers, aged 45 or younger, with personal and professional growth opportunities and ways to get involved with DFA and the dairy industry through events and networking.

“

The [Young Cooperator] program got me to where I am today. It exposed me to people dairying differently than I was doing it. By learning new ways, I felt like we could be successful, still be involved in our community and raise a family. That’s the path that I ended up choosing.

B R I A N R E XI NG

DFA FARMER-OWNER, FORT BRANCH, IND. SECOND VICE CHAIRMAN, DFA’S BOARD OF DIRECTORS; CHAIRMAN, DFA’S SOUTHEAST AREA COUNCIL; MEMBER, DFA EXECUTIVE COMMITTEE

DFA young cooperators and DFA employees in front of the White House during National Milk Producers Federation’s annual Young Cooperators Dairy Policy and Legislative Forum in Washington, D.C., in June 2023.

26 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

EMERGING LEADERS (EL) PROGRAM A more formal, two-year curriculum designed to develop future leaders of DFA and the industry as a whole.

“

While reflecting on the experiences of the [Emerging Leaders] program, I keep coming back to the word opportunity. When I was younger and knew exactly what I was going to do (farming), it was easy to overlook the importance of learning certain skills, building relationships and seeing the bigger picture beyond the barnyard. Getting involved in the co-op through Emerging Leaders, the YC program and the governance process has helped fill in these gaps in my limited time away from the farm.

D U S T I N B R U NN

DFA FARMER-OWNER, BEAVER DAM, WIS. The majority of DFA’s fourth class of Emerging Leaders, along with DFA employees, at their final meeting focused on the Cooperative’s Dairy Brands Division in Dallas, Texas, in July 2023.

GOVERNING THE COOPER ATIVE | 27

Diverse operations, varied perspectives As a microcosm of the U.S. dairy industry, DFA’s farmerowners provide wide perspectives and insights, which help the Cooperative lead with farmers’ interests top of mind.

“That’s one of the things that gives DFA strength — our diversity. We don’t all farm the same way and look at it the same way,” Raney says. “There’s a very diverse group from very, very large to very, very small, and to have all those groups — all those voices — in the room when you’re having a conversation about a policy or what we should do, you get a very good representative voice across the country of how it gets looked at when we make a decision. If it’s the best for farmers, we go for it.”

DFA has always defended our farmer-owners’ opportunity to dairy in the way they choose. Through a strong Cooperative led by our farmer-owners, they can remain independent. They can avoid being pushed into contract farming models like the poultry and pork industries, where someone else makes all the decisions, owns the processing and market assets and inevitably eliminates diversity and independence.

Speaking of his poultry business, Jerrel Heatwole, a DFA farmer-owner in Greenwood, Del., treasurer of DFA’s Board of Directors, chairman of DFA’s Northeast Area Council and member of DFA’s Executive Committee, says, “I have no control over any of that, where with dairy, dairy farmers still have control over their dairies, and we come together in marketing the product. That’s the difference.”

DFA farmer-owners served as elected delegates sharing their voices during the resolutions process of DFA’s Annual Meeting, March 20–23, 2023, in Kansas City, Mo.

DFA employees and farmer-owner | Kansas City, Mo. 28 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

COMMITTED TO THE FUTURE As the dairy industry and the world rapidly changes around us, what won’t change is the foundation of our Cooperative that gives every farmer-owner a voice. We are owned by, governed by and here for dairy farmers — yesterday, today and tomorrow.

Todd Tubergen | DFA farmer-owner | Ionia, Mich.

GOVERNING THE COOPER ATIVE | 29

Charles Krause | DFA farmer-owner | Buffalo, Minn.

Cindy Heins | DFA farmer-owner | Higginsville, Mo.

CHAPTER THREE

Bringing Value for 25 Years

DFA’S FARMER-OWNERS ARE PERSONALLY INVESTED IN EVERY STEP WE TAKE AS AN ORGANIZATION — IT’S THEIR LIVELIHOOD. FROM THE BEGINNING TO TODAY, OUR COOPERATIVE — OWNED AND GOVERNED BY OUR FARMER-OWNERS — WORKS TO BRING THEM VALUE IN ALL THAT WE DO. “From driving milk marketing efficiencies, expanding member services, enhancing our farmer-owners’ milk markets, investing in food and beverage manufacturing assets and growing our global presence, we are and will always be dedicated to working alongside our farmer-owners to make choices and investments that bring them value and ensure their right to farm, for generations to come,” says Dennis Rodenbaugh, president and chief executive officer of DFA.

2011 GROWING THROUGH THE YEARS After coming together for the benefit of dairy farmers, DFA’s early years were spent building financial strength for the Cooperative, including consolidating plant operations and divesting of assets that didn’t serve our farmer-owners’ needs.

Starting in 2009, we shifted to focus on growth.

This timeline provides a few highlights of our growth over the years.

Acquired Kemps® to re-invest in fluid milk processing facilities

Acquired Berkshire Dairy and Food Products to strategically grow our ingredients business

2009

2014

Opened the DFA plant in Fallon, Nev., — our first plant built from the ground up — to produce dairy ingredients in high demand by global customers

Merged with Dairylea Cooperative Inc., a 100-year-old cooperative and longtime partner in the Northeast, to create efficiencies. Dairylea was a member cooperative of DFA since 2002

Became the largest investor in Newtrient™, an entity formed in July 2015 by Dairy Management Inc., National Milk Producers Federation and 12 cooperatives to reduce the environmental footprint of U.S. dairy and make it economically viable to do so

2015 32 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

2017

20 2 0

2019 Built a state-of-the-art facility in Garden City, Kan., to support milk production in the region and meet global demand

Acquired sole ownership of DairiConcepts® to expand our development of specialty dairy powders

2 0 16

The Creamery, our retail and experiential store in Beaver, Utah, opened its doors in November

2018

Acquired a substantial portion of Dean® Foods Company’s assets after the company filed bankruptcy, doubling our number of processing facilities, brands and employees overnight

Acquired the remaining stake of Stremicks Heritage Foods™ to strengthen our investment in extended shelf-life (ESL) and aseptic processing facilities

Merged with St. Albans Cooperative Creamery to continue to invest in the strong dairy farming history in the Northeast.

St. Albans was a member cooperative of DFA since 2003

2022

Acquired two plants from SmithFoods that became part of our Dairy Brands Division as Richmond Beverage Solutions in Richmond, Ind., and Pacific Dairy Solutions in Pacific, Mo., growing our customer base and expanding our aseptic and ESL capabilities

Invested in Mana Agro, a trading company that handles business around North Africa and the Middle East, to further our presence in emerging international markets

BRINGING VALUE FOR 25 YE ARS | 33

C H A P T E R T H R E E : B R I N G I N G VA LU E

Through Milk Marketing

Unlike many commodities, such as wheat or corn, milk is highly perishable. Dairy farmers can’t just store it and save it for a rainy day.

“We needed something like a co-op that we could depend on, so the farmers will get their milk checks every two weeks, and that’s what we’ve done,” says Larry Purdom, retired DFA Board director.

DFA was formed to find markets for every ounce of milk our farmer-owners produce. In 1999, that was a big challenge — our farmer-owners produced more than 42 billion pounds of milk that year, which equated to 26% of the country’s supply.

Today, that number tops 56 billion pounds annually, and we still do what we did then: maximize the value of every drop.

One of the biggest advantages of being a DFA member is marketing, I don’t have to worry about finding a market.

And I don’t have to worry about negotiating a contract.

RUSSELL SMILEY DFA FARMER-OWNER, MIDDLETOWN, N.Y.

“One of the biggest advantages of being a DFA member is marketing,” says Russell Smiley, a DFA farmer-owner in Middletown, N.Y. “I don’t have to worry about finding a market. And I don’t have to worry about negotiating a contract.”

Brian Hardy, retired DFA Board director, says, “The goal, the purpose, of DFA is all about marketing members’ milk at the highest return that we can.”

From the beginning, we aggressively worked to source markets to maximize milk checks for our farmer-owners.

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“It was an exciting time to reach out and get with others of the co-op world and help to have a bigger footprint in the marketing of milk for the benefit of their membership,” says Tom Croner, retired secretary/treasurer of DFA’s Board of Directors and chairman of DFA’s Mideast Area Council.

Finding a home for our farmer-owners’ milk is what DFA does best — from the logistics of transporting the milk to making sure it gets used in one of our farmer-owned processing plants or by supplying our customers.

“Our credo has always been to look out for our farmer-owners and make sure that they are taken care of,” says Pete Olsen, a DFA farmer-owner in Fallon, Nev., and DFA Board director.

“At the end of the day, everyone wakes up the next morning and is able to keep farming, if that’s what they want to do.

That’s been our prime motivation — to protect our farmerowners and their markets.”

Richard Haines, a DFA farmer-owner in Stockport, Ohio, feels the same.

“DFA guarantees us a market for our milk,” he says. “We aren’t out here sitting in the open saying, ‘Who’s going to take our milk tomorrow?’ The milk will be marketed someplace.”

That is DFA’s lasting legacy and one our farmer-leaders and management have worked to uphold.

“DFA starts with its dairy farmers. Without them, there is no cooperative,” Rick Smith, retired DFA president and chief executive officer, said when he took the helm in 2006.

“We want our commitment to members to be our paramount goal. We want every person associated with DFA to be keenly aware of why DFA exists. We get measured monthly by the milk check. We want to make sure that in all areas where we do business, we are competitive and bring value to the member.”

Finding a home for our farmer-owners’ milk is what DFA does best — from the logistics of transporting the milk to making sure it gets used in one of our farmer-owned processing plants or by supplying our customers.

Since the early days, the core of DFA has always been providing a home for our farmer-owners’ milk.

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FARM TO TABLE DFA has always supported — and will always support — each of our farmer-owners by finding a home for their milk. From pickup to transporting to processing, we move milk from farm to tables everywhere.

Isidro Alves | DFA farmer-owner | Fallon, Nev.

Linn Willow Creek Dairy | Linn, Kan.

DFA employees | Garden City, Kan.

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Through Commercial Investments

Our founding farmer-leaders were clear that they wanted a hand in controlling their own destiny by investing in dairy processing themselves — to turn that milk into delicious and nutritious products for consumers to enjoy. All four of DFA’s predecessor cooperatives were already invested in processing plants, but combining these assets created potential to reach consumers across the nation and around the world, rather than just regionally.

Similarly, Olsen says, “It’s hard to discuss profits or lack of profits when you don’t own a plant or you don’t have a place to ship your milk. Just like a dairy without a milk plant is not going to be a dairy for long, a milk plant without milk isn’t going to last either.”

It’s a mutually beneficial relationship, and DFA’s farmerowners lead the way in ensuring our Cooperative puts a priority on making investments for the future.

“The more diversified portfolio of products we can offer to the marketplace, the closer we can be to the consumer and the more profits we can generate for our farmer-owners,” says Ed Schoen, retired DFA Board director.

A manufacturing plant originally owned by Mid-America Dairymen, Inc., one of the four predecessor cooperatives that formed DFA.

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The DFA plant in Winnsboro, Texas, in the 1990s features a new DFA sign.

“

The more diversified portfolio of products we can offer to the marketplace, the closer we can be to the consumer and the more profits we can generate for our farmer-owners.

E D S CHO E N

RETIRED DFA BOARD DIRECTOR

Today, the DFA plant in Zumbrota, Minn., produces a range of dairy products, including specialty powders, and is home to a specialty dairy powder drying tower with a capacity of 24.5 million pounds per year. The drying tower was part of a massive expansion project that was completed in 2022 and added 86,000 square feet, including new load-out bays and a wastewater treatment plant.

The DFA plant in Cass City, Mich., produces cream, condensed whole milk and condensed skim milk.

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Manufacturing products consumers love Through the years, our processing capabilities have grown to more than 80 facilities producing a wide range of dairy products, including fluid milk, cheese, butter, ice cream, dairy ingredients and more, supported by beloved national and regional brands throughout the United States. Maintaining a diverse portfolio of processing facilities enables us to adapt to changes in the marketplace to keep up with milk demand across the country.

“Cheese prices don’t always do well at the same time as fluid milk or in the same way milk powder prices might do well,” says Jeff Raney, a DFA farmer-owner in Adamsville, Pa., chairman of DFA’s Mideast Area Council and member of DFA’s Executive Committee.

He also credits the acumen of DFA’s employees and leaders for investing in DFA’s network of processing facilities for the benefit of DFA’s farmer-owners.

“We have been fortunate to have the best dairy people in any part of the world evaluating opportunities for us to get involved,” he says. “That gives us, as dairy farmers, confidence that we are getting accurate information to guide decisions.”

An example of a strategic investment happened in the mid-1990s when bottled coffee drinks were first entering the market. Mid-America Dairymen, Inc., a predecessor cooperative of DFA, developed a relationship with Starbucks® and PepsiCo that’s still ongoing today. The North American Coffee Partnership (NACP) was started between Starbucks and PepsiCo in 1994 to market cold, ready-to-drink coffee products under the Starbucks name and using the PepsiCo distribution network. The companies came to us for help figuring out how to put a dairy-based product on the shelf that didn’t require refrigeration. The goal was to target these products to grocery stores, convenience stores and other outlets. The joint venture’s first bottled product, Starbucks Frappuccino®, which launched in 1996, quickly created a new category — one that exploded in popularity at the time and continues to grow today.

As consumers’ tastes and preferences have changed over the years, we have changed our approach to investing based on that, as well as other factors.

“At various points in history, we have acquired diverse businesses that match to our strategic priorities, fit consumers’ needs, meet global market requirements or expand value-added capabilities, and we have not been afraid to sell assets and businesses as our strategy evolved,” says Randy Mooney, chairman of DFA’s Board of Directors and a DFA farmer-owner in Rogersville, Mo. “It has never been simply about owning stainless steel — it’s about creating value for producers.”

Restructuring activity was taking place in the dairy processing industry in the early 2000s, and DFA made investments and divestitures to ensure the best outlets for our farmer-owners’ milk. We sold our business interests in a fluid milk joint venture, Suiza Dairy Group, in 2001 and watched it become the nation’s leading dairy processor with the acquisition of Dean® Foods Company and operating under the Dean Foods name. Then, we became the supplier of choice for Dean Food’s national network of plants.

That same year, DFA also became a 50% partner (and later owned a larger stake) in a new fluid milk joint venture, National Dairy Holdings based in Dallas, Texas. At the time, those two actions alone represented potential markets of 15 billion pounds of milk for DFA. In 2009 when those investments no longer aligned with our strategy, we divested of those plants. Starting in 2011, with the acquisition of Kemps®, a beloved dairy brand in the upper Midwest, we began once again investing in fluid milk processing, and later through other acquisitions, we invested in newer technology such as ultra-high temperature (UHT) processing and extended shelf-life (ESL) and aseptic packaging, to bring more value-added opportunities to our farmer-owners.

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The DFA plant in Springfield, Mo., originally a plant owned

by Mid-America Dairymen, Inc., a predecessor cooperative of DFA, produced a bottled dairy-based beverage called Smooth Moos.

The DFA plant in Winnsboro, Texas, was originally owned by Associated Milk Producers, Inc. Southern Region before DFA’s formation. Today, the plant produces a range of dairy products, including butter and buttermilk powder, as part of DFA’s Beverage and Dairy Foods Division.

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Today, the DFA plant in Springfield, Mo., uses two beverage production lines. The glass line produces Starbucks® Frappuccino® bottled beverages and the aluminum line produces Starbucks Doubleshot®, Starbucks Tripleshot™ and Starbucks Nitro in aluminum cans.

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OPPORTUNITIES IN ACTION Several plants in DFA’s Beverage and Dairy Foods Division are dedicated to the North American Coffee Partnership and produce dairy-based coffee beverages.

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AN INNOVATIVE APPROACH Since DFA’s formation, our farmer-owners have been focused on innovation, both on the farm and in the products they are invested in through their Cooperative.

DFA’s Innovation Center, located in Springfield, Mo., has been a hub for much of that product innovation and research and development ever since it was opened in 1993 by one of DFA’s predecessor cooperatives, Mid-America Dairymen, Inc. “A goal of the Innovation Center was to inform the public and consumers about our products and the unique nature of cooperatives, both as a business and the need for stability in agriculture,” says Edward Tilley, president of DFA’s Beverage and Dairy Foods Division. “It was a new and novel approach for a cooperative in the early ‘90s and continues to be even more relevant in 2023.”

DFA’s Innovation Center, which has undergone updates and remodeling over the years, is where lab technicians, food scientists, research and development experts and other professionals work with DFA’s brands and customers. Their main goal is to develop new flavors and products, while also reformulating existing product lines. With a test kitchen and pilot plant on-site, the space also allows DFA’s experts to build connections with our customers and to develop products driven by insights, collaboration and new technology.

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Top left: Aminta Castaneda, director of sales at DFA, handed out samples at the Dairy Discovery space in DFA’s Innovation Center, June 20, 2023. The newly renovated space is where our Innovation Center team cultivates connectivity with DFA customers.

Bottom left: A sample of dulce de leche concentrate, a new DFA product developed at DFA’s Innovation Center.

Middle left: DFA farmer-owners and DFA employees participate in a tour of the pilot plant at DFA’s Innovation Center, June 20, 2023. Products in development are tested in the pilot plant to simulate how they will be produced in DFA plants.

Middle right: A DFA employee slices a pizza to be reviewed for its cheese melt, stretchiness, mouthfeel and more in DFA’s Innovation Center.

Right: In the sensory room in DFA’s Innovation Center, specialized red lighting helps the taste tester review products without bias based on its color.

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DFA employees | City of Industry, Calif.

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Preserving markets, preserving futures Our strategic approach to investing in processing also allows us to manage market instability.

When Dean Foods, the nation’s largest dairy processor, encountered financial challenges and declared bankruptcy in November 2019, DFA was positioned to purchase a substantial portion of the company’s assets, with the acquisition finalizing in May 2020.

“Our biggest customer in 2019 was Dean Foods,” says Doug Nuttelman, a DFA farmer-owner in Stromsburg, Neb., DFA Board director, chairman of DFA’s Central Area Council and member of DFA’s Executive Committee. “When they filed for bankruptcy, it was a true threat to our milk markets.”

The purchase of these assets was critical to bring stable, secure milk markets to our farmer-owners and to dairy farmers across the country. It ensured milk markets remained open and limited disruption to the entire industry. The acquisition also preserved nearly 11,000 jobs and ensured fresh dairy continued to be available to consumers across the nation — all during a global pandemic.

“We had built a financially strong co-op,” Mooney says. “As a result, we were in a position to buy the bulk of the Dean Foods’ assets. These strategic moves were not made to make us bigger — they were made to create value for our producers.”

Overnight, our number of processing facilities, brands and employees doubled, creating logistical challenges, but ones our Cooperative successfully managed to ensure a financially stable future for our farmer-owners.

“We had — and we still have a lot of great people — good operators, milk people, finance people, that understand the business, understand the cycles and understand customer needs,” says Jerrel Heatwole, a DFA farmer-owner in Greenwood, Del., treasurer of DFA’s Board of Directors, chairman of DFA’s Northeast Area Council and member of DFA’s Executive Committee. “They were able to quickly get in and get us into a situation that was manageable and cash flow positive.”

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Bringing all the joys of dairy

*

*

Our farmer-owned brands connect family dairy farms to family tables. Over the years, our DFA-owned brands have evolved.

The number even doubled in 2020 with the acquisition of a substantial portion of Dean Foods’ assets. What hasn’t changed is consumers’ love for the familiar brands in their local grocery store and the commitment of our farmer-owners producing milk for consumers’ favorite dairy products.

®

*

*

®

Part of the farmer-owned brands of Dairy Farmers of America.

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*Trademark used under license.

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K&K Dairy | Westphalia, Mich.

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Partnering to create new demand TO SECURE MARKETS FOR OUR FARMER-OWNERS’ MILK AND PAY THEM A COMPETITIVE PRICE, WE MADE STRATEGIC PARTNERSHIPS, INVESTED IN PROCESSING PLANTS AND EMBARKED ON NEW VENTURES OVER THE YEARS. THE GOAL HAS BEEN TO PAVE THE WAY FOR MORE OPPORTUNITIES FOR OUR FARMER-OWNERS AND PROPEL THE DAIRY INDUSTRY FORWARD. “Bigness for bigness alone doesn’t solve any issues,” Schoen says. “But if you have quality people, and you draw upon the resources that you have, you have an opportunity to serve markets nationwide and to leverage all of the costsavings that you can achieve. You also have the opportunity to work with larger customers and put together networks, and put together opportunities to serve bigger markets with more product. It provides a lot of opportunity to look at different production, different opportunities to start generating the products that were needed on a worldwide basis. That’s something that none of us had the ability to do alone.”

In partnership with prestigious organizations like National Milk Producers Federation, U.S. Dairy Export Council, Dairy Management Inc., Global Dairy Platform, Innovation Center for U.S. Dairy and many others, we are forging ahead as a leader in the dynamic and ever-evolving dairy industry. By partnering with leading dairy companies, customers and cooperatives, we have been able to open new markets and deliver increased returns to our farmer-owners.

One example is our work with Leprino Foods®, a global dairy ingredients supplier, and a key collaborator with DFA. “Our relationship with Leprino dates back almost to the beginning of DFA,” says John Wilson, retired chief fluid marketing officer at DFA. “Not only are they a key customer, but they’ve been a collaborative partner, supporting our farmers and our communities.” Leprino Foods is currently the largest mozzarella cheese producer in the world and has global sales in more than 55 countries.

As the success of our partners grows, so does demand for milk from DFA farmer-owners. From the beginning, our founding farmer-leaders knew the importance of collaborating and learning from partners here at home and around the world.

“There was a major co-op in Holland, and we met with those producers several times. We looked at the research on what they were doing with whey, which was a byproduct of the cheesemaking process, and they were using it for yogurt products,” says Charles Beckendorf, retired DFA Board director. “They were using whey in so many different products, but here in the U.S., we dumped the whey. We didn’t think there was anything to do with it.

There was such a big market we didn’t realize. That was a big opportunity.”

By partnering with leading dairy companies, customers and cooperatives, we have been able to open new markets and deliver increased returns to our farmer-owners.

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Today, whey is just one of many products we are finding innovative uses for through our Ingredient Solutions Division. One example is DairiConcepts®, established in 2000 as a joint venture between DFA and Fonterra™, a New Zealand-based dairy cooperative, to develop and market value-added dairy ingredients and flavors to customers in North America and around the world. In 2016, we acquired 100% ownership of DairiConcepts.

Commissioned in 2005 and officially opened in 2006, Southwest Cheese Company was the first joint venture of its kind, pairing milk producers with cheese producers. Located in Clovis, N.M., Southwest Cheese is one of the largest cheese and whey manufacturing facilities in the world. At its founding, the plant was a partnership between Glanbia, a global nutrition company headquartered in Ireland and the number one U.S. producer of American-style cheddar cheese at the time, and the Greater Southwest Agency. The agency included DFA; Select Milk Producers Inc., a cooperative based in Dallas, Texas; Lone Star Milk Producers, a cooperative based in Texas; and Zia Milk Producers, a cooperative based in New Mexico.

“It’s exciting to see this partnership come to fruition,” Smith said at the time. “Not only has the plant created an important new market for milk in the region, but it has met the goal of maximizing market opportunities for the benefit of all the stakeholders.”

“The plant does really well for farmer-owners in DFA’s Mideast Area and gives us a natural hedge in the market,” Raney says. “Our network of plants and processing facilities across the country support each other, and ultimately benefit farmer-owners by bringing better returns.”

DFA began investing in ESL processing facilities dating back to the formation of DFA with a noncontrolling investment in Stremicks Heritage Foods™ and the acquisition of the remaining stake in 2019, and acquisitions of Cumberland Dairy in Bridgeton, N.J., in 2018; St. Paul Beverage Solutions in St. Paul, Minn., in 2019; Richmond Beverage Solutions in Richmond, Ind., and Pacific Dairy Solutions in Pacific, Mo., in 2022.

ESL processing, which extends the shelf life of milk, and aseptic processing, which makes milk shelf-stable, are a natural fit in DFA’s processing capabilities and support our vision of creating new demand by delivering all the possibilities of dairy.

“There is increasing consumer interest in ESL dairy products, and this acquisition aligns with our strategy to increase commercial investments and expand our ownership in this space,” Pat Panko, executive vice president of DFA and president of DFA’s beverage network, said at the time of the acquisition of Richmond Beverage Solutions and Pacific Dairy Solutions.

In 2020, another joint venture between DFA, Select Milk Producers and Glanbia resulted in the building of a cheese and whey processing plant in Michigan. The plant, known as MWC (Michigan) LLC, began operations in November 2020 and is said to be one of the most modern facilities of its kind in the United States.

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Southwest Cheese | Clovis, N.M. BRINGING VALUE FOR 25 YE ARS | 53

DFA plant | St. George, Utah

DFA plant | Dallas, Texas

DELIVERING ALL THE POSSIBILITIES OF DAIRY Thanks to strategic investments over the years, DFA has diversified processing capabilities to serve all kinds of customers and consumers — from processing fresh milk into gallon jugs to developing new food components to drying dairy powders to ship worldwide.

DFA plant | Turlock, Calif.

DFA plant | Fort Morgan, Colo.

DFA employees based at DFA’s Singapore office shared the possibilities of U.S. dairy with attendees at the Food and Hotel Asia – Food & Beverage Expo in September 2022.

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Establishing new ventures — globally and locally Outlined in Project Vision, our founding document, one of the objectives of creating the Cooperative was “building domestic and international opportunities that increase returns to dairy farmer members.”

“Dairy is a commodity that competes in the world market,” Croner says. “Once we came together, we were able to look for allies on other continents, and that was kind of a neat thing of itself.”

From the beginning, our founding farmer-leaders recognized opportunities for dairy existed outside U.S. borders.

The late Tom Camerlo, chairman of DFA’s Board of Directors from 2003–2009, was a visionary who saw the global opportunity for dairy before others. A committed advocate for advancing the global dairy market, he questioned conventional wisdom around dairy exporting at the time. His legacy in this is honored annually by U.S. Dairy Export Council through the Tom Camerlo “Exporter of the Year” award, recognizing dairy industry leaders for their significant contributions toward driving demand for U.S. dairy exports and improving global dairy consumption.

Olsen says that efforts to expand the Cooperative’s work globally have made a big impact for all our farmer-owners. He recalls in 2014 when DFA built our first processing plant from the ground up — a plant in Fallon, Nev., specifically to produce global products.

“The plant built in Fallon, Nev., was our first real foray beyond our neighbors that we border with — Mexico and Canada,” he says.

“The plant supplies domestic and global customers with quality dried dairy ingredients and has been providing a home for up to 2 million pounds of milk each day.”

Before constructing the facility, we searched for customers in the Far East. Now, the Cooperative is selling and shipping products all over the globe through our Ingredient Solutions Division.

farmer-owner in Johnson, Kan., first vice chairman of DFA’s Board of Directors, chairman of DFA’s Southwest Area Council and member of DFA’s Executive Committee, said at the time. “This plant allows us to trace the product from the time it leaves the farm as raw milk to the time it arrives at the store, which is important to many consumers today.”

In 2018, DFA opened an office in Singapore to bring our portfolio of high-quality dairy products made in the United States to the Southeast Asian market and to gain first-hand insights.

In 2018, DFA opened an office in Singapore to bring our portfolio of high-quality dairy products made in the United States to the Southeast Asian market and to gain first-hand insights. As part of those efforts to break into new international markets, we also invested in 2022 in Mana Agro, a trading company that operates in Dubai and handles business around North Africa and the Middle East.

As the world becomes more connected today, international opportunities continue to grow for DFA’s farmer-owners.

“There is so much opportunity for U.S. dairy in the global market,” says Alex Peterson, a DFA farmer-owner in Trenton, Mo., and member of DFA’s Central Area Council. “As a Cooperative, we have chosen to invest in being a key player in those markets. Our relationships with our global customers mean more opportunity for my milk and more return on my investment in DFA.”

To continue to meet rising demand for dairy internationally, DFA built our plant in Garden City, Kan., in 2017.

USA Cheese Guild photo

“We’re connecting our family farms to family tables in a truly sustainable and traceable way,” Dan Senestraro, a DFA BRINGING VALUE FOR 25 YE ARS | 57

“

There is so much opportunity for U.S. dairy in the global market.

As a Cooperative, we have chosen to invest in being a key player in those markets. Our relationships with our global customers mean more opportunity for my milk and more return on my investment in DFA. A LE X PE T E R S O N

DFA FARMER-OWNER, TRENTON, MO. MEMBER, DFA’S CENTRAL AREA COUNCIL

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DFA employees hosted the U.S. Dairy Export Council (USDEC) farmer mission, along with several of our farmer-owners, at DFA’s Singapore office in June 2023. From left to right: Julian Cardona, business manager at DFA based in Singapore; Larry Hancock, retired DFA Board director and a DFA farmer-owner in Muleshoe, Texas; Kate Fogler, a DFA farmer-owner in Exeter, Maine; Charles Krause, a DFA farmer-owner in Buffalo, Minn., and vice chairman of DFA’s Central Area Council; and Alex Peterson, a DFA farmer-owner in Trenton, Mo., and member of DFA’s Central Area Council.

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THE CREAMERY: A DAIRY DESTINATION Original store opened: 1952 The Creamery opened: 2018 Original store footprint: 2,600 square feet The Creamery store footprint: 11,250 square feet Location: Beaver, Utah Fun fact: 20,000 cars drive by per day Originally operating much like a convenience store, a retail store connected to what is now a DFA plant had been serving cheese and other dairy products to the Beaver, Utah, community since the 1950s.

Sixty-six years later, we remodeled and reimagined the existing store, opening a brand-new dairy destination called The Creamery to nourish visitors and connect consumers to family dairy farmers.

Visitors can shop dairy products and other Utah-produced goods, eat at a restaurant serving dairy-centric meals and desserts, and learn about dairy farming and the local DFA farmer-owners who own the store through an experiential room and displays. An addition completed in June 2020 features an ice cream parlor with hand-dipped, specialty ice cream. Located halfway between Salt Lake City, Utah, and Las Vegas, Nev., the store is a prime spot for road trippers to stop.

“We want visitors to leave The Creamery with new family memories and traditions, a deep appreciation for the dairy they consume, and stories and history about these family farms,” Dennis Rodenbaugh, president and chief executive officer of DFA, said at The Creamery’s opening.

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Top left: When guests enter the experiential room, a life-sized fiberglass Holstein named Lily, The Creamery’s mascot cow, greets them. Lily sits atop a platform, perfect for taking pictures, and she has milkable udders through a vacuum pump unit for guests to interact with.

Bottom left: Made fresh daily, The Creamery’s famous cheddar cheese curds also come in salsa, jalapeño and green onion flavors.

Middle: Located halfway between Salt Lake City, Utah, and Las Vegas, Nev., the store is a prime spot for road trippers to stop.

The Creamery | Beaver, Utah

Right: Before officially opening to the public Nov. 17, 2018, a ribbon-cutting ceremony took place at The Creamery the day prior. From left to right: Randy Mooney; chairman of DFA’s Board of Directors and a DFA farmer-owner in Rogersville, Mo.; Brian Hardy; retired DFA Board director; and Dennis Rodenbaugh, president and chief executive officer of DFA. BRINGING VALUE FOR 25 YE ARS | 61

INDULGENT COLD FOAM BASE

COMMITTED TO THE FUTURE During the last decade, opportunities for new and innovative uses for dairy have skyrocketed. Going forward, we remain committed to reimagining dairy products to meet consumer needs and maximizing value for all our farmer-owners’ milk.

SWEET AND SAVORY FLAVORED BUTTERS

INNOVATIVE DAIRY-BASED SEASONINGS

HIGH-PROTEIN SMOOTH COTTAGE CHEESE

C H A P T E R T H R E E : B R I N G I N G VA LU E

Through Services for Farmer-Owners

From the very beginning, our founding farmer-leaders wanted DFA to provide exceptional resources and services to bring our farmer-owners value — and to help them operate profitably. Project Vision, our founding document, even lists “access to a wider range of services and programs” as a benefit of coming together.

“We cared about that individual point of contact with the farmer,” Olsen says. “Thinking about what’s going to be best for that farmer, providing farm services … we wanted to look out for our farmer-owners.”

DFA formalized the services we offer to assist farmer-owners as our Farm Services Division.

These services are stand-alone businesses dedicated to creating opportunities for our farmerowners and developing solutions that help them run their operations more efficiently and profitably.

In 2008, DFA formalized the services we offer to assist farmer-owners as our Farm Services Division. These services are stand-alone businesses dedicated to creating opportunities for our farmer-owners and developing solutions that help them run their operations more efficiently and profitably.

Our farm services make use of the Cooperative’s membership numbers, providing assistance to our farmer-owners in cases where similar services from outside companies or vendors would not have been provided on the same terms for service and price. Some examples of areas where we have been able to help our farmer-owners with their businesses

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include price risk management, providing access to farm supplies and insurance coverage for health, life and workers’ compensation.

Although DFA has always offered additional services for our farmer-owners, we expanded our farm services nationwide in 2014 through a merger with Dairylea Cooperative Inc., a 100-year-old regional dairy cooperative based in the Northeast. Since 2002, Dairylea had been a member cooperative of DFA. The merger provided DFA farmer-owners with long-standing customer relationships in the Northeast marketplace, enhanced farm services and expanded access to capital to facilitate strategic growth.

“In many ways, a merger with DFA is simply a continuation of the working relationship that Dairylea has forged with DFA,” Smith said at the time.

Throughout the years, we have added to our farm services offerings to include resources and services when they are most beneficial to our farmer-owners. Today, more than one in five of our farmer-owners, representing more than half of our total milk production, use one or more of DFA’s farm services.

For example, when renewable energy options like solar panels and wind turbines became more readily available, the various programs and resources out there were difficult for our farmer-owners to navigate. So, we introduced DFA Energy in 2008 (originally called Dairy Energy Services), which provides farmer-owners with access to energy audits, renewable energy assistance and connections to valuable information on state and federal programs to help fund or offset the cost of new renewable energy systems.

Bud (Harold) Buxman | DFA farmer-owner | Greeley, Colo.

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OFFERING ON-FARM SUPPORT

Chuck Feldpausch | DFA farmer-owner | Greeley, Colo.

Today’s services include: • DFA Farm Supplies • DFA Financing • DFA Insurance • DFA Risk Management • DFA Energy • DFA Grazing

Perazzo Brothers Dairy | Fallon, Nev.

Christie and George Hunt Jr. | DFA farmer-owners | Orange, Mass.

Providing our farmer-owners’ value-added services has been a goal for the Cooperative from the beginning.

Formalized through what’s now known as DFA’s Farm Services Division, we have been offering farm services to support every aspect of a dairy operation for 25 years.

Since land is the limiting factor

We use DFA Farm Supplies because

DFA Risk Management’s

where we’re at, we had to find other ways to support our family.

of the excellent customer service and savings on the products we order.

programs have provided more stable prices during

Solar energy has helped us do this.

ever-changing markets.

GEORGE HUNT JR.,

DAVID PERAZZO

CHUCK FELDPAUSCH

DFA FARMER-OWNER, ORANGE, MASS.

DFA FARMER-OWNER, FALLON, NEV.

DFA FARMER-OWNER, GREELEY, COLO.

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TV Dairy | Fort Lupton, Colo.

Doug Harbach | DFA farm-owner | Loganton, Pa.

Brunner Dairy | Canton, Texas

DFA Grazing is a great resource

The DFA Insurance team went to work

It’s more like a team to me. DFA

when I need to make important and timely decisions affecting

for us, making sure we have the right coverage at the right price.

Financing assists you in finding what you need, and when things get tight,

my operation.

they understand. They know dairy.

JUSTIN BRUNNER

DOUG HARBACH

SHAWN TE VELDE

DFA FARMER-OWNER, CANTON, TEXAS

DFA FARMER-OWNER, LOGANTON, PA.

DFA FARMER-OWNER, FORT LUPTON, COLO. BRINGING VALUE FOR 25 YE ARS | 67

Joe Schmitz | DFA farmer-owner | Axtell, Kan. 68 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

SETTING HIGH STANDARDS DFA launched the Gold Standard Dairy Program in 2007, our on-farm continuous improvement program, to show the entire industry that we’re committed to producing high-quality dairy — ethically, responsibly and sustainably.

At a time when consumers, retailers, customers and processors were quickly becoming more interested in how food is produced, this program was created to offer assurances to them. The program was the first of its kind to provide tools for farmers and to share our farmer-owners’ best management practices. It allowed us to proactively tell the story of how our farmers take care of their animals and environment, while also eliminating the need for different sets of standards across the industry.

The program includes participation in the industry-wide National Milk Producers Federation’s Farmers Assuring Responsible Management (FARM) Program, which works to build consumer trust in our products and industry.

Over the years, the program has evolved to include assessments on farms in five key areas: animal care and well-being; environmental stewardship; milk quality; workforce development; and land stewardship. For more than 15 years, 100% of DFA farmer-owners have participated.

“It’s an effort on the part of dairymen to be continually conscious of animal care, employee welfare, environmental stewardship, nutrient management, waste management and more,” says Brian Hardy, retired DFA Board director.

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C H A P T E R T H R E E : B R I N G I N G VA LU E

Through Political Action

FOR DECADES, DAIRY HAS BEEN A HIGHLY REGULATED AND POLICY-DRIVEN INDUSTRY, WITH EVERY DECISION HAVING THE POWER TO AFFECT THE LIVELIHOODS OF FAMILY DAIRY FARMS. FROM THE BEGINNING OF DFA, IT HAS BEEN IMPORTANT THAT WE ADVOCATE FOR OUR FARMER-OWNERS AND SAFEGUARD THEIR BUSINESS INTERESTS AMID EVERCHANGING POLICIES AND REGULATIONS. For 25 years, DFA’s legislative affairs team and farmer-leaders have been committed to delivering maximum returns to our farmer-owners and protecting and advancing the future of the dairy industry.

“After DFA was created, you really had a national cooperative that helped lead things for the industry,” Wilson says. “I think it became much easier to put together national dairy policy and get agreement much quicker than it would have been in the old days.”

In partnership with other industry organizations like National Milk Producers Federation, DFA’s legislative affairs team works to advocate for dairy policies that benefit our farmer-owners and educates legislators about the impact of their decisions.

Each year, DFA farmer-owners engage locally and travel to Washington, D.C., to talk with their congressional representatives in person about how current dairy policies affect them.

“Personal stories from farmers continue to be the most effective way to make sure our voices are heard in our Capitol,” Mooney says.

of those efforts was the Dairy Security Act, included in the 2012 U.S. Farm Bill. The law established two programs to support producers during periods of low margins, which were the Dairy Producer Margin Protection Program (now called the Dairy Margin Coverage Program) and the Dairy Market Stabilization Program (now called the Dairy Price Stabilization Program.)

Mooney is emphatic about the importance of stabilizing economic conditions for farmer-owners.

“When 2009 hit, it was the worst,” he says. “Farmers were losing their farms. We were trying to get things done at the federal level and had listening sessions across the country where farmers would tell us about their thoughts on what should be in the farm bill. Some of them would break down and cry because of difficulties on their farms. I learned to listen more than talk and advocate for our farmers.”

“We were determined to never allow ourselves to be exposed to those financial risks again,” Mooney continues. “Dairy farmers should never be put in a position, for reasons out of our control, where husbands and wives had to sit around the kitchen table not knowing how they are going to pay their bills. Where parents and their children had to discuss the end of a family farm that would not survive into the next generation. This is what drove DFA. It was in 2009 that our late chairman Tom Camerlo established a committee to develop guiding principles for long-term price stabilization.

We were driven to avoid a year that could wipe out entire generations of family farming work and wealth.”

For example, in 2011, the DFA legislative affairs team brought farmer-owners, other cooperatives and industry organizations together to support dairy reform. An outcome Left: Farmer-owners gathered in Washington, D.C., to meet with congressmen and women on impacts of dairy policy in 2017.

Right: DFA farmer-owners Cole and Elizabeth Hemmi, and Danny Dyksterhuis (right), outside of the Capitol in Washington, D.C., while attending a fly-in advocating for dairy policy issues in 2023.

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Each year, DFA farmer-owners engage locally and travel to Washington, D.C., to talk with their congressional representatives in person about how current dairy policies affect them.

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A DVO C AT I N G F O R DA I RY

DFA-PAC IMPACT

Making voices heard

When DFA first formed in 1998, our Board of Directors realized the importance of building relationships with federal legislators who possessed an intimate knowledge of the dairy industry. To accomplish that objective, Dairy Farmers of America, Inc. Political Action Committee (DFA-PAC), formerly known as Dairy Farmers of America Dairy Educational Political Action Committee, was established, which gives DFA farmer-owners the opportunity to support congressional representatives who are friendly to dairy.

Through the years, the DFA legislative affairs team has continued to advocate for changes to bring more value to our farmer-owners and to ensure that their voices are heard as more regulations and trade policies are negotiated, which directly impact the dairy industry.

“We weren’t as big as the big companies, but we had quite a bit of funding that could help their campaigns,” says Gary Hanman, retired DFA president and chief executive officer. “So, we invited congressmen that had some leaning toward dairy concerns to come to our meetings once in a while to share what was happening in Washington, D.C., with our farmer-leaders, and to learn about how it was affecting producers.”

Today, 94% of federal candidates we’ve supported have been elected to office since the formation of DFA-PAC. We remain dedicated to financially supporting political candidates who strive to strengthen the dairy industry and safeguard the interests of farmer-leaders during critical decisionmaking periods. By doing so, we are committed to securing a brighter future for the country’s dairy farms and communities.

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“Some of the issues we address are policy driven, pushed by any number of different agenda owners — from environmental regulations to farm technology access linked to product labeling involving growth hormones and genetically modified organisms (GMOs). Other policies are more emotionally driven,” Mooney says.

“Regardless of how they start, many flow down to us as farmers, directly impacting how we work. We, as an industry and as a Cooperative, need to constantly challenge the regulations and policies that are only pushing responsibility, risk and cost back on farmers.”

During the early days of the COVID-19 pandemic in 2020, the DFA legislative affairs team successfully lobbied for assistance for dairy farmers through the U.S. Department of Agriculture (USDA) and the Small Business Administration (SBA). This assistance was

crucial because supply chain issues and labor challenges due to the pandemic threatened the ability of dairy farmers to provide their products to the nation.

Another example of how DFA works for better policies is by using open comment periods at meetings to advocate for our farmer-owners. DFA also regularly submits comments and testimony on key issues, including farm bills, school milk, environmental policy, immigration policy and trade policy. We also create opportunities for our farmer-owners to provide testimony on important issues before Congress or regulatory agencies.

“Whether it’s securing tools like the Dairy Margin Protection Program and Dairy Revenue Protection to help deal with volatility, working with lawmakers on immigration and dairy policy, or ensuring trade agreements are fair to producers, it’s critical that we are not only at the table, but leading the discussions,” Mooney says.

Jackie Klippenstein (left), senior vice president and chief government and industry relations officer at DFA, and Josh Cleland (center), a DFA farmer-owner in Erie, Colo., met with U.S. Department of Agriculture Secretary Sonny Perdue (right). Josh was invited to interview the secretary Sept. 26, 2017.

USDA photo by Preston Keres

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DFA farmer-owners met with Rep. Mike Simpson (R-Idaho) and his staff in June 2023 to advocate for policy issues affecting them, including passage of the farm bill, cosponsoring the DAIRY PRIDE Act, supporting access to more export markets and more. From left to right: Shayla and Dylan Turnbow, DFA farmer-owners in Weston, Idaho; Rep. Mike Simpson (R-Idaho); Tim Sorensen, a DFA farmer-owner in Fallon, Nev.; and Will de Boer, a former DFA intern and son of a DFA farmer-owner.

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TO O L S TO TA K E AC T I O N

DFA ADVANCING DAIRY ASSOCIATION Introduced in 2018, DFA Advancing Dairy is a tool to advance the policy priorities of the dairy industry. Advancing Dairy is funded through contributions from farmer-owners and supports the Cooperative’s education efforts on Capitol Hill. It also allows the Cooperative to engage in state campaigns and ballot initiatives that would impact the dairy industry.

DFA LEGISLATIVE ACTION CENTER Twenty-five years ago, if our farmer-owners wanted to voice their opinion with their representative, they would have to call their representatives, send a letter or travel to Washington, D.C. Advances in technology have evolved how our farmer-owners have a voice. Today, DFA offers the DFA Action Center, an interactive portal that makes it easy for our farmer-owners to act on issues that matter to them. They can voice their opinions by submitting an email on issues like the farm bill, a multi-year law that shapes food and farm policy in every corner of the country, school milk, milk labeling and more, right from their computer or smartphone.

Farmer-owners, Board directors and DFA employees posed in front of the Capitol building while advocating for policy that supports dairy in 2011.

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COMMITTED TO THE FUTURE As we look toward the future, we strive to stay ahead of what our farmer-owners need by continuing to focus on marketing milk, making strategic commercial investments, providing exceptional farm services and taking political action. By staying on the forefront, we’re ensuring our Cooperative will always give them back more than they put in.

Mooney Dairy | Rogersville, Mo.

CHAPTER FOUR

Looking Toward the Future FROM DFA’S BEGINNING TO TODAY, WE HAVE MADE A DIFFERENCE IN PEOPLE’S LIVES. BY DELIVERING ON OUR MISSION, VISION AND VALUES, WE FEED THE WORLD, CHAMPION SUSTAINABILITY, DRIVE INNOVATION, SUPPORT LOCAL COMMUNITIES AND SUSTAIN THE AMERICAN FAMILY DAIRY FARM, SO WE CAN SHARE THE SIMPLE PLEASURES AND NUTRITION OF REAL DAIRY WITH PEOPLE EVERYWHERE. AND WE’LL CONTINUE TO DO THAT WELL INTO THE FUTURE.

DFA has evolved dramatically over the last 25 years, but we are always guided by our roots.

“We are a grassroots, farmer-owned, value-driven Cooperative. That will never change,” says Dennis Rodenbaugh, president and chief executive officer of DFA. With a strong foundation to guide us — built by the founding farmer-leaders of our Cooperative and the many voices of our farmer-owners since then — DFA is forging ahead as a leader in the industry.

We are pursuing the potential opportunities the future holds and chasing the promise of an even better tomorrow for DFA farmer-owners.

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Judah, Brittany, Maverick, Irelyn, Paxton, Paul and Prudence Windemuller | DFA farmer-owner family | Coopersville, Mich.

Guided by our Mission, inspired by our Vision and bound together by our Values DFA’s journey began with the belief that dairy farmers are stronger together and that partnership holds immense potential. With our founding document, Project Vision, the Cooperative set the stage for building secure, long-term, stable markets for our farmer-owners’ milk and enhancing their profitability.

Over the years, we built on this document and set a mission, vision and values for the organization that all employees and farmer-owners strive to live by.

Although the wording has evolved through the years, the sentiment remains the same: we are owned by, governed by and here for dairy farmers in all that we do. In a world going through continual change, we will continue to adapt how we do things in the future but are always guided by this foundation.

MISSION Deliver Value to Our Family Farm-Owners as a Leading Global Dairy Cooperative.

VISION Enriching Communities and Consumers’ Lives Through All the Possibilities of Dairy.

OUR VALUES DFA’s core values — integrity, passion, quality and community — guide the organization and help us forge strong connections with one another, as well as customers, partners and consumers.

Aspen Honkomp | DFA farmer-owner family | Earlville, Iowa

Honkomp | Earlville, Iowa 80 | BETDairy TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

PASSION

RETIRED DFA PRESIDENT AND CHIEF EXECUTIVE OFFICER

QUALITY

BRIAN REXING DFA FARMER-OWNER, FORT BRANCH, IND. SECOND VICE CHAIRMAN, DFA’S BOARD OF DIRECTORS CHAIRMAN, DFA’S SOUTHEAST AREA COUNCIL MEMBER, DFA’S EXECUTIVE COMMITTEE

“We work hard to get it right the first time, not just in the products we make, but in all our actions.”

Annie Link | DFA farmer-owner | Alto, Mich.

RICK SMITH

“There is just not a better group of people out there than dairy farmers. They are the salt of the earth. They have a work ethic and a passion for what they do. They have compassion for other people.”

Sherri Alger | DFA farmer-owner | Friona, Texas

culture, inspires our work and ensures the strength of our reputation as a Cooperative.”

Ashley Bailey | DFA farmer-owner | Quitman, Ga.

“Integrity is ingrained in our

Janet Shawhan | DFA farmer-owner | Hillsboro, Ohio

INTEGRITY

COMMUNITY

“We feel strong and confident in our relationship with and support of our neighbors and community, which is ultimately very important to us.”

BRIAN HARDY RETIRED DFA BOARD DIRECTOR

RANDY MOONEY CHAIRMAN, DFA’S BOARD OF DIRECTORS DFA FARMER-OWNER, ROGERSVILLE, MO.

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Tracy Bodily | DFA farmer-owner | Preston, Idaho

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John DeVos | DFA farmer-owner | Plainview, Texas LOOKING TOWARD THE FUTURE | 83

Looking toward the future: sustainability As stewards of their land and animals, sustainability has always been a way of life for our farmer-owners.

“Many DFA farmer-owners took over the farm from their parents, who took over from theirs — generation after generation. That is the definition of sustainability,” says Jackie Klippenstein, senior vice president and chief government and industry relations officer at DFA. Our Cooperative has supported our farmer-owners in their efforts to produce dairy responsibly, ethically and sustainably for years, including creating a DFA sustainability team in 2013 to guide the direction of sustainability initiatives in DFA’s commercial investments.

“Today, our team has expanded to lead sustainability efforts not just in our plants, but with customers, on the road and through helping find opportunities to support our farmer-owners on all aspects of their sustainability journeys,” Klippenstein says.

While our farmer-owners have used sustainable farming practices for generations — like water recycling and manure management — their interest only continues to grow as consumers care more and more about the environmental impact of their food.

“Sustainability is dairy’s future, and dairy farmers are serious about it. We have to be — our families and businesses depend on it,” Melvin Medeiros, a DFA farmerowner in Laton, Calif., DFA Board director, chairman of DFA’s Western Area Council and member of DFA’s Executive Committee, wrote in 2022 in an opinion piece for The Fresno Bee. When it comes to sustainability, our farmer-owners are continuing their efforts — big and small — to make a difference in the future.

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MANURE MANAGEMENT RENEWABLE ENERGY Solar panels (pictured here) and wind turbines turn nature’s natural elements into energy for farms, homes and local businesses.

Cow manure fertilizes crops or can be dried for animal bedding.

Installing an anaerobic digester on the farm can also turn cow manure into energy.

HEALTHY SOIL Regenerative agriculture practices, including timeless farming concepts that have been passed down for decades coupled with new technology, store more carbon in the soil.

REDUCING EMISSIONS Optimizing cows’ diets, exploring the use of feed additives and continuing to elevate overall herd health all help reduce methane emissions and keep cows happy and healthy.

WATER RECYCLING On average, water gets recycled four times on a dairy farm, including as drinking water, cleaning machinery and equipment, misting cows, flushing manure from barns and watering crops.

Vander Eyk & Sons Dairy | Pixley, Calif.

My grandchildren are proof that sustainability is important. They are the seventh generation of the Heins family to have the opportunity to milk cows and run a dairy farm on this land.

When I think about the future of sustainability, I think of all our children.

PAUL HEINS

Paul Heins | DFA farmer-owner | Higginsville, Mo.

DFA FARMER-OWNER, HIGGINSVILLE, MO.

Sunshine Dairy | Andrews, Ind.

We are only stewards of the property for a short time in the whole scheme of things. We would like to leave the farm for any of our family that wants it. It’s important to us that we’re leaving it in as good as or better condition than we got it in.

PAUL TILLOTSON DFA FARMER-OWNER, PAVILION, N.Y. 86 | BET TER TOGETHER: 25 YE ARS OF DAIRY FARMERS OF AMERICA

Boxler Dairy | Varysburg, N.Y.

We’re running a multi-generational farm.

Everything I do, I do with that in mind.

When I think ‘How can we make sure we’re still able to run a dairy farm in 100 years?’ it becomes clear that we need to invest in lowering our carbon footprint and find ways to run our operation more efficiently.

Vander Eyk & Sons Dairy | Pixley, Calif.

ROBERT (BOB) VANDER EYK DFA FARMER-OWNER, PIXLEY, CALIF.

We’ve been blessed with an amazing opportunity to dairy. Doing our best and doing it the right way is how we can honor that.

AJ DE JAGER DFA FARMER-OWNER, AULT, COLO.

AJ De Jager | DFA farmer-owner | Ault, Colo.

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Looking toward the future: innovation Ever since our Cooperative was formed, DFA farmer-owners have inspired innovation in the industry with their fortitude and foresight.

Sometimes that has meant overcoming challenges to remain a staple in families’ fridges.

“Dairy as a whole continues to grow, but fluid milk is shrinking as a category — and I think there are so many different reasons behind that,” says Brian Hardy, retired DFA Board director. “A lot of it has to do with eating at home. Families aren’t getting up in the morning and having a bowl of cereal with milk on it or a glass of milk; they’re eating on the go.”

As a Cooperative, DFA has always found a home for our farmer-owners’ milk and that has meant innovating through the research and development of new and exciting products, creating inventive packaging and improving production efficiencies.

“It used to be we would produce milk and just assume that it would go in a jug and people would come buy it,” says Brian Rexing, a DFA farmer-owner in Fort Branch, Ind., second vice chairman of DFA’s Board of Directors, chairman of DFA’s Southeast Area Council and member of DFA’s Executive Committee.

“Now, we’ve really started listening to the consumer more,” he says. “We’ve put a lot of money into innovation and different products. We’re trying to listen to the consumers on

Peter Melnik | DFA farmer-owner | Deerfield, Mass.

what they want and adapt to that and come up with new products, new packaging and improve the accessibility of products. Consumers are wanting stuff fast and easy and healthy, and innovating has been essential for DFA.” Hardy agrees. “For a long time, we were dealing with a category that had not had an enormous amount of innovation, but we’ve really been working on that as an industry. DFA is making headway with innovation in shelf-stable milks, lactose-free milk and probiotic milk.

We’re making a lot of progress on a category that used to be a little tired.”

Innovation has also meant improving efficiencies and technology on the farm. DFA farmerowners have recognized that they can’t be everywhere and everything at once, and they’re always looking for ways to increase efficiency and their herd’s comfort wherever possible.

This might look like robotic milkers, anaerobic digesters, feed pushers or wearable health monitors for cows, but it also might look like software that utilizes artificial intelligence to speed up financing options or scientific breakthroughs in on-farm in vitro fertilization.

Thanks to our farmer-owners, who always have an eye on what’s next, the future is bright for innovation in dairy.

WEARABLE HEALTH MONITOR ANAEROBIC DIGESTER

ROBOTIC MILKER

Will Collier | DFA farmer-owner | Snyder, Texas

Scott Vieth Dairy | Windthorst, Texas

Bar-Way Farms | Deerfield, Mass.

Saying of the generations on the farm before him: They were never afraid to do anything.

And I think it was one of the things that enabled us to keep this farm alive for so long.

They always had this optimism, ‘If we do something, we do it the best we can, and if it doesn’t work out, we try something else.

If it works out, we do it again next year.’

The way the industry is changing, you’re either in or you’re out. It’s key to be innovative and progressive.

We kept seeing technology move fast and decided to find other opportunities to take advantage of technology to help increase our efficiency of the dairy operation.

SCOTT VIETH

WILL COLLIER

DFA FARMER-OWNER, WINDTHORST, TEXAS

DFA FARMER-OWNER, SNYDER, TEXAS

PETER MELNIK DFA FARMER-OWNER, DEERFIELD, MASS.

LOOKING TOWARD THE FUTURE | 89

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Looking toward the future: community A strong sense of community has always been a part of DFA’s farmer-owners’ lives and, consequently, a part of our Cooperative.

employee and Board participation in various community programs, the foundation allows us to “walk the talk” of our corporate values, like integrity, passion and community.”

Every DFA farm looks a little different, but all try to be good neighbors in their own ways. You might find our farmer-owners hosting school tours, breakfasts, open houses or community engagement events on their farms.

They also sit on school boards, volunteer at local food pantries and sponsor kids’ sports teams.

At the height of the COVID-19 pandemic in 2020, our farmer-owners stepped up to help those in need by donating to the Farmers Feeding Families Fund through our DFA Cares Foundation, coordinating milk donations at their local food pantries and volunteering their time.

Our farmer-owners understand the average American doesn’t have firsthand experience with where their food comes from, and they enjoy having the opportunity to educate about life on a dairy farm.

“As farmers, we work hard every day to make food for our local communities,” Ron Shelton, chairman of DFA Cares and a DFA farmer-owner in La Salle, Colo., said in 2022.

“It’s an honor to be a part of this effort and to help provide food for people who are facing tough times.”

Driven by our farmer-owners, DFA formed our DFA Cares Foundation, a 501(c)(3) nonprofit run by a board of directors made up of DFA farmer-leaders and DFA employees, in 2005 after Hurricane Katrina affected thousands of people, many dairy farmers included, in the Gulf region, destroying homes and infrastructure.

Our farmer-owners have always been committed to helping those in need, and that philanthropy has guided our Cooperative over the years. Thanks to our farmerowners, a strong sense of community is deeply rooted in our Cooperative, and we will continue to enrich and nurture all the communities we touch into the future.

Since the inception of DFA Cares, the foundation has provided disaster relief for all major hurricanes, tornadoes, earthquakes, winter storms and more. The foundation has also supported communities at home and around the world through product and monetary donations and has encouraged the next generation of dairy advocates by awarding scholarships to college-bound and current undergraduate and graduate students.

“As DFA Cares grew and developed, it proved to be an ideal vehicle to reach out beyond the original intent of natural disaster assistance,” Joyce Bupp, the original chairperson of DFA Cares and retired DFA Board director, said in 2013. “The scholarship program offered a tremendous opportunity to incorporate into our service outreach and support for bright, deserving young people. Through our growing involvement in various programs that share our goals, as well as some unique and creative member,

Left: In March 2021, Steve (third from right) and Derek Whitesides ( fifth from right), DFA farmer-owners in Rupert, Idaho, along with Lindsey Dimond ( first from right), DFA field representative, joined customers and industry partners to present Martha & Mary’s Food Pantry in Jerome, Idaho, with a large refrigerator unit and funds to purchase dairy products to fill it.

Top right: Randy Jordan ( far right), a DFA farmer-owner in Rutland, Mass., along with his family, helped distribute more than 8,600 gallons of milk donated by DFA’s Farmers Feeding Families Fund in a drive-thru style event at Boston College High School in May 2020.

Bottom right: Leroy Ornellas (left), a DFA farmer-owner in Tracy, Calif., and DFA Board of Director, and Alexa Cabral (middle), manager of member services in DFA’s Western Area, presented a check in July 2023 to Second Harvest of the Greater Valley in Manteca, Calif., to help the food pantry purchase dairy products.

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We love having the opportunity to educate and strengthen the connection between farms and consumers, bridging the gap between production and consumption.

ERICA HERMONOT DFA FARMER-OWNER, WOODSTOCK, CONN.

Erica Hermonot, Mackenzie Hermonot, Diane Morin DFA farmer-owner family | Woodstock, Conn.

Teaching kids about the dairy, that’s one of my favorite things.

TAMMY LOWERY DFA FARMER-OWNER, SPRINGFIELD, MO.

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A local elementary school in Hendersonville, Tenn., hosted DFA’s Southeast Area young cooperators (YCs) for a “Dairy Day” with nearly 500 eager-to-learn students in April 2023.

Brendon and Eldon Eberly | DFA farmer-owner family | Waynesboro, Ga.

I consider myself proud to be a dairy farmer. Not only am I proud of the product that we are able to produce through our cows, but I’m proud of the opportunities and jobs and relationships that our dairy farm has been able to provide and create.

JENNIFER KOOLSTRA Jennifer Koolstra and Aracely Estrada DFA farmer-owner and farm employee | Cope, Colo.

DFA FARMER-OWNER, COPE, COLO.

As producers, it’s very important to connect with your community on a regular basis.

KELLY VANGUNDY DFA FARMER-OWNER, RADNOR, OHIO

Jack and Meredith VanGundy DFA farmer-owner family | Radnor, Ohio

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Michael Carvalho | DFA farmer-owner | Crows Landing, Calif.

CONCLUSION

The Next 25 Years and Beyond DFA was founded by dairy farmers who came together with a common goal and a shared vision — and what a vision it has become. We are a leading global dairy cooperative owned by dairy farmers feeding the world. We supply markets all around the globe, operate best-in-class manufacturing facilities at home and nourish people everywhere. We can all be proud of what we have accomplished together over the past 25 years.

Our success lies in our foundation. DFA is fully owned and governed — to its deepest grassroots level — by our farmer-owners, and everything we do is about creating value and benefit for them. Over the years, we have remained true to these roots. Guided by our farmer-owners, our organization has grown, evolved and weathered our share of storms.

With a strong foundation, we are able to overcome challenges both big and small. If the last 25 years have shown us anything, it is that change is inevitable and how we adapt to it is what matters.

While we can’t predict the future, we can rely on our foundation of farmerownership to help us move toward a bright future for dairy and DFA.

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As we focus on gathering insights, capturing new opportunities and improving our connectivity as an organization, we will continue to be a leading global dairy cooperative into the future.

DFA’s purpose is as true today as it was in the beginning: to provide value to our farmer-owners. We brought value 25 years ago, we’re bringing value today, and we’re going to bring value for the next 25 years and beyond.

Here’s to moving forward together into the future.

D ENNIS ROD ENBAU G H PRESI D ENT AND C H I EF EX ECU TI V E O F F I CER DAI RY FARMERS OF A MER I CA

Dennis Rodenbaugh | Kansas City, Mo. DAIRY FARMERS OF AMERICA | 97

DFA farmer-owner family | Americus, Ga.