thescoop – Spring 2021

SPRING 2021 | VOLUME 1

ANNUAL MEETING

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Lance and Mike Mills | Warm Springs Dairy | Monroe, Utah

COMMUNITY

DFA 101: DFA CARES FOUNDATION A look at the history, primary focus and current efforts of our foundation built on giving.

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BRAND TALK

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A TOUCH OF GREEN New mint vanilla milk, brought to you by TruMoo®, just in time for St. Patrick’s Day.

INNOVATION

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NATURALLY POWERFUL HYDRATION Get to know GoodSport™, a startup sports drink company that participated in DFA’s 2020 CoLAB Accelerator progrom.

COOPERATIVE

ANNUAL MEETING They say the show must go on, and as DFA’s most important event, our Annual Meeting happens every year — even if we have to adapt due to a global pandemic.

In 2020, as the COVID-19 pandemic took hold, we postponed our Annual Meeting, which was set to take place in March in Kansas City, Mo., and transformed it into a virtual event in October instead. This year’s event also took place virtually Wednesday, March 17.

Even if it looked different this year because our family farm-owners, staff and industry guests weren’t able to come together in person, it was still an exciting time for DFA. Our family farm-owners heard updates about the Cooperative — from commercial updates to milk marketing — and took part in the culmination of our grassroots resolutions process. They also had the chance to ask questions during a Q&A with Randy Mooney, chairman of the Board, and Rick Smith, president and chief executive officer.

Resolutions Committee, where they represent their Area at the national level. This ensures representation from all Areas of DFA. The resolutions process begins each January, as our Area Resolutions Committees meet. (In a normal year, these events take place in person throughout the country, but in 2021, they were all held virtually.) Our resolutions provide guidance on a host of public policy issues ranging from animal care and wellness to trade and dairy policy. Any member can propose a resolution by submitting it to their Area Resolutions Committee representative before their Area’s meeting. During the Area meetings, resolutions are proposed, debated and voted on. The Corporate Resolutions Committee then meets to review, debate and reconcile all the resolutions acted on from the Area meeting. The final suggested changes are presented to delegates at Annual Meeting for consideration.

During the meeting, elected delegates also reviewed and voted on proposed updates to the resolutions book, as well as elected nominees to the Board of Directors, in accordance with our bylaws.

Annual Meeting marks the conclusion of the resolutions process. Elected delegates vote on changes to the Cooperative’s resolutions book as well as elect leadership for the coming year during the meeting. This process is the essence of DFA’s grassroots governance structure and is designed to ensure members are represented and have a voice in the Cooperative’s future.

“Annual Meeting is an integral part of our Cooperative’s business and is the culmination of our grassroots governance process,” Randy says.

“Our farmer-leaders’ contributions during this meeting are vital and they make it a success.”

Learn and watch Employees at DFA are diverse in their job types and where they work — whether you’re at a desk, on a plant floor or in a milk truck — and we realize that not everyone could attend Annual Meeting, even if it was virtual.

Our resolutions process Each of DFA’s seven Areas is divided into districts where members are elected to serve in farmer-leadership positions, including as Area Council members, delegates and Resolutions Committee members. From the Area Resolutions Committee, members are elected to serve on the Corporate

In the coming weeks, we will share relevant video segments from the event on The Parlor and break room screens. Be sure to watch for those to learn more about this vital grassroots process.

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thescoop | Spring 2021

COMMUNITY

DFA 101: DFA CARES At DFA, community has always been at the core of who we are. As a family of families, we’re inspired to be an integral part of all the communities we touch, starting with the local towns where we live, work and raise our families, to those communities we reach with our products.

So, beginning in September 2020, in addition to providing funds for dairy purchases, the FFFF has also donated refrigerators for food banks, food pantries and food shelves to ensure they can continue to offer dairy products to those they serve for years to come.

While caring for our community has always been a shared value, we were moved to formalize our commitment in 2005 after Hurricane Katrina devastated the Gulf Coast region and impacted our member farms, and thus, created the DFA Cares Foundation, a 501(c)(3) nonprofit run by a farmerleader board of directors.

In 2021, we’ll continue connecting food banks around the country with much needed dairy products and refrigeration, and give products such as milk powder to Convoy of Hope®, which distributes food to families in need domestically and overseas.

The foundation has three primary focuses: 1. Provide disaster relief through product and monetary donations 2. Invest in the future of our industry with scholarships to students pursuing careers in dairy 3. Donate nutritious dairy and food products for those in need During times of crisis, like the current COVID-19 pandemic, we turned to DFA Cares. When schools began to shut down and the need for assistance started to rise, we launched our Farmers Feeding Families Fund (FFFF) through DFA Cares to help get dairy products into food banks in communities where we live and work.

Members and employees can, and continue to, nominate a food bank or food pantry to receive a monetary donation from DFA Cares to help purchase dairy products. (Visit dfamilk.com/dfacares for more information.)

“Food banks are always in need of dairy products, which are less commonly donated because of how perishable they are. Initiatives like this that allow us to get our highly nutritious milk and dairy products into the hands of people who need them are essential right now. We are proud to be a part of it,” says Ron Shelton, a DFA family farm-owner and chairman of DFA Cares.

Thanks to generous donations from our family farm-owners, employees and customers, and matched by DFA Cares, we have raised more than $675,000 and have positively impacted more than 215 communities through the FFFF. Additionally, earlier this year, DFA donated its 1 millionth gallon of milk to support hunger efforts.

But it’s not all gallons and cheese. What started as an effort to stock fridges with dairy products revealed a bottleneck need at many food banks across the country: a lack of cold storage. thescoop | Spring 2021

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PLANTS

CULTURE

NEW UPGRADES AT THE ST. ALBANS PLANT

HALF & HALF SPRING 2021 ISSUE HITTING MAILBOXES

When DFA merged with the historic St. Albans Cooperative Creamery in 2019, we made a commitment to invest in the plant to support our more than 300 Vermont family farm-owners and the local community. Part of this commitment was a $30 million investment to improve the milk processing and storage capacity at the plant.

A key part of this multi-year investment, the installation of new receiving bays and silos are now officially in operation as of Feb. 4, 2021, after breaking ground on July 15, 2020. The new silos, which provide additional milk storage, have the capacity to hold 25% more raw milk and 25% more raw skim milk — and with the addition of the new receiving bay building, the plant can receive up to 25% more raw milk per day.

The plant also received new, state-of-the-art equipment, such as custom-designed receiving docks for safe personnel access to the top of the tankers, a certified Coriolis metering system for measuring the actual weight of the milk on the tanker without having to scale the truck, and a multitude of safety devices to ensure the safety of employees and to prevent milk losses.

“The investment in St. Albans will be ongoing, but the completion of the new receiving bays and addition of storage is an exciting milestone,” says Shane Dill, plant manager. “Streamlining milk receiving, helping get our milk haulers back on the road more quickly and making sure that we have enough storage for milk and milk products is important for our members and employees.”

In December 2020, the St. Albans Co-op Store — which provides customers, including our family farm-owners, with everything from feed and fencing to gardening supplies and groceries — also underwent some changes, including a new name: St. Albans Creamery & Supply. The St. Albans team says they’ve received great feedback from the local community and our family farm-owners on all the upgrades, from the rebranding of the store and purchase of new trucks and tankers for Northeast Logistics Inc., DFA’s hauling company in St. Albans, to the new receiving bays and silos.

The spring 2021 issue of Half & Half, our magazine celebrating dairy and those who make it, is on its way to your home — if it hasn’t arrived already. Among other articles and recipes, this edition features fusion foods from different cultures, a peek into a boutique store in Texas rooted in dairy and one dairy farmer’s commitment to recycling and innovation.

Want to share the goodness of Half & Half?

Gift a subscription to a friend or family member. Employees can use coupon code SPRINGEMP2021 at halfandhalfmag.com/ subscribe to receive 25% off an annual subscription.

Be sure to follow Half & Half on Instagram, Facebook and Pinterest for more recipes and inspiration, and tell your friends and family to follow us, too.

ETHICS AND COMPLIANCE

SAVE THE DATE: VALUE INTEGRITY WEEK 2021 DFA’s annual Value Integrity Week is a time to reinforce our commitment to our value of integrity across the Cooperative. This year, Value Integrity Week is April 5–9, and all week we’ll highlight what it means to act ethically and with integrity, including recognizing employees who exemplify ethical behavior and reminding you to report potential unethical behavior.

Be on the lookout for more information about Value Integrity Week, including playing our Raise It bingo game, recognizing a co-worker who goes above and beyond when it comes to acting with integrity and completing your 2021 Code of Conduct training. So, stay tuned — you may even win a special Value Integrity prize.

BRAND TALK

COOPERATIVE

A TOUCH OF GREEN

A BALANCING ACT

We love a wild flavored milk — The Creamery’s root beer float milk and Oakhurst® Dairy’s maple milk come to mind. Now, we have mint vanilla milk, brought to you by TruMoo®, which distributes every year just in time for St. Patrick’s Day.

It should come as no surprise that milk, due to its perishability and 365-days-a-year harvest, has to be adequately and responsibly managed to address both the daily supply — how much farmers are producing — and the demand — how much dairy is being consumed. That’s where DFA comes in.

The TruMoo brand launched in 2011 and joined our family of DFA-owned brands last spring under the Dairy Brands Division. What was originally a “Better for You” chocolate milk for kids and teens, giving moms peace of mind knowing they are serving their kids a nutritious and delicious wholesome drink, is now a nationally known milk brand — nourishing all of childhood’s precious moments with essential vitamins and nutrients after a long day of being a kid.

In 2012, the TruMoo team began launching limited-edition flavors, starting with Orange Scream for Halloween. With consumers yearning for more, the team brainstormed ways to keep the momentum going. Thinking of seasonal flavors that would resonate with and excite consumers, TruMoo’s Mint Vanilla Lowfat milk was born. Piloted in the Garelick Farms® and Tuscan® Dairy Farms markets at the start of 2013, it’s still going strong today.

“I love knowing that consumers get super excited when our TruMoo limited edition flavors are in season. They go out of their way to find them because they enjoy them so much,” says Kristina Jackson, brand manager for our Dairy Brands Division. “One year, a consumer reached out and said he was willing to travel to other states to get his TruMoo limited edition flavor. It’s rewarding to feel the TruMoo love and know our products bring fun and enjoyment into peoples’ lives.”

Aside from its delicious flavor, TruMoo Mint Vanilla Lowfat milk also comes in a fun, green color. Given the high Irish population across the nation and celebrations on March 17, it made sense to launch it in March. It will also be back for the holidays.

“The bright, green color pops on shelves and has stopping power as consumers approach in stores,” Kristina says.

TruMoo’s limited edition flavors are currently produced at the DFA plants in Englewood, Colo.; Salt Lake City, Utah; Grand Rapids, Mich.; and Sharpsville, Pa. You can find it in stores starting in early- to mid-March and in November for the holidays in select markets, including Walmart and Target, across Pennsylvania, Michigan, Colorado, Utah, Nevada, Indiana and Ohio. It comes in a half gallon size — perfect for sharing with family or savoring yourself.

Or, add it to shakes, mixed with vanilla or mint chocolate chip ice cream for a fun, festive treat.

Be on the lookout for other limited-edition flavors from TruMoo in 2022 and beyond.

Marketing the milk supply of more than 7,500 family farms is no small task. In fact, that accounts to roughly 64.1 billion pounds of milk we have to find a home for every year.

It takes a cross-functional team of dedicated individuals from each of our seven Areas, plus many supporting team members, to ensure the logistics of it all run smoothly, while avoiding too much of a surplus, shortage or, in the worst case, waste of milk.

So how do we do it? Balance. In a perfect world, similar to other commodities and aspects of our economy, dairy markets would balance perfectly and supply would match demand. But that’s not how the world works. Many different factors cause supply and demand to fluctuate, such as the changing seasons, regional trends and conditions, changes in government policy, herd population, unique economic situations and, most recently, a pandemic and historic weather conditions, among others. The unpredictable nature of the world we live in is the exact reason — and one of our primary responsibilities as a cooperative — we strategically plan ahead to mitigate the risk for both our Cooperative and family farm-owners.

Balancing our Cooperative’s milk supply revolves around getting a load of milk from point A to point B, anticipating demand and maximizing its value. We do this in a number of ways. Every day, team members work with our customers to ensure their needs are met and to anticipate their demand for product well in advance. In addition, we do our best to anticipate consumer demand and prepare accordingly — for example, we would plan for higher demand for milk at regional grocery stores ahead of a winter storm due to consumers stockpiling staples.

Furthermore, we also continuously seek out new, reliable markets to secure a home for our members’ milk to deliver maximum value. thescoop | Spring 2021

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INNOVATION

NATURALLY POWERFUL HYDRATION After four years of research and development, careful planning and a lot of hard work, GoodSport™, a startup sports drink company that participated in DFA’s 2020 CoLAB Accelerator, officially launched this year.

Creating a product from scratch is no easy feat, especially when trying to launch in the midst of a pandemic.

“There were the usual hurdles that many entrepreneurs face, but the COVID-19 pandemic most certainly presented some big ones. The biggest being all of the uncertainty it created with our current and potential business partners, but thanks to their strength and the excitement around GoodSport, we were able to continue moving forward,” says Michelle McBride, founder and chief executive officer of GoodSport.

Made from the naturally hydrating power of milk, GoodSport isn’t the average sports drink on the market.

“What’s unique about GoodSport is that we unlock the naturally hydrating power of milk by ultrafiltering milk to harness its electrolytes and carbohydrates to provide rapid and long-lasting hydration in a clear, thirst-quenching and delicious beverage,” Michelle says.

“Consumers no longer have to choose between a sports drink with natural ingredients or effective hydration. Now they can have both — from the goodness of milk.”

Not just tasty and hydrating, the company is also committed to creating products from sustainably sourced ingredients, guided by the belief that greatness starts with goodness — including for the planet.

GoodSport drinks are now available on goodsport.com and Amazon.

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Through DFA’s annual CoLAB Accelerator, a 90day, immersive program featuring mentorship and educational programming, DFA is committed to helping ag-tech and dairy foods startups like GoodSport grow.

“The Accelerator provided a great opportunity to connect DFA’s teams of experts who provided invaluable advice as well as to connect with and be inspired by the other entrepreneurs who are all doing remarkable things in dairy,” Michelle says.

Look out for announcements about the next class of startups soon. DFA’s 2021 CoLAB Accelerator kicks off Monday, April 5. “We are extremely excited about the companies we’ll be bringing into the program this year,” says Doug Dresslaer, director of cultural innovation at DFA. “They’re doing amazing innovation in both ag-tech and in dairy-based food products.”

COMMUNITY

MAKING STRIDES IN DIVERSITY AND INCLUSION Last August, DFA’s inaugural Diversity and Inclusion Advisory Council was formed to address the need for more diversity and better inclusion within our Cooperative community. Consisting of 20 employees from across the Cooperative, the Council represents diversity in race, age, gender, sexual orientation, job role, location and experience to reflect the diversity of our employee population.

“As the inaugural group, the council has been tasked with helping to develop, implement and communicate a diversity and inclusion strategy for DFA,” says Council Chairman George Kelley.

“Additionally, we are advising senior leadership on DFA’s diversity and inclusion needs.”

The council finalized DFA’s diversity and inclusion charter at the end of 2020, which consists of a mission statement, pillars and guiding principles.

Since August, the council has made great progress identifying areas for education and growth, with a variety of initiatives kicking off in 2021. Efforts have been put toward areas of communication and feedback, training and education, talent acquisition and recruiting, employee engagement and community relations.

While the quest to become a more diverse and inclusive Cooperative is a journey — not a one-time initiative — the council is already helping to implement changes as the strategic action plan for 2021 unfolds. Priorities identified for this year include, but certainly are not limited to:

WAYS TO GET INVOLVED AND LEARN MORE Have a question, suggestion or idea for the Diversity and Inclusion Advisory Council?

Email inclusion@dfamilk.com.

Listen to February’s episode of Talk Dairy to Me, DFA’s podcast on all things innovation, highlighting the council and its work to foster a culture of openness and inclusion across the Cooperative. Listen by searching for Talk Dairy to Me wherever you listen to podcasts, such as Apple Podcasts, Google Play or Spotify.

• Recognizing and showcasing diversity throughout the Cooperative by celebrating months and holidays like Black History Month, International Women’s Day and Hispanic Heritage Month • Working to strengthen the integration of diversity and inclusion into existing programs, such as DFA’s internship and scholarship programs, recruiting, hiring and promotion practices and our community giving strategy, to name a few • Enhancing and expanding our training curriculum at all levels of the Cooperative to focus on developing inclusive leaders, raise awareness of unconscious bias and deepen all employees’ knowledge of diversity, including equity and equality issues

Watch a recording of our Milk Bar Session featuring a panel of members on the council.

Scan the QR code to watch the Milk Bar Session on fostering diversity and inclusion.

Many of these efforts are new for us as a Cooperative, and we know diversity and inclusion looks different for each individual employee, location and team. Your questions, suggestions and feedback are crucial to the success of the council’s strategic action plan and initiatives. Please email inclusion@dfamilk.com to connect with the council.

“As one DFA community, it’s our responsibility to hold each other accountable as we grow each day to become a more diverse and inclusive Cooperative,” George says.

DIVERSITY

INCLUSION

COMMUNITY ENGAGEMENT

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Kim Park’s niece, Hailey Kohake, looks out over the cows at her family farm, Kohake Dairy, in Centralia, Kan.

EMPLOYEE SPOTLIGHT

KIM PARKS March is International Women’s Month, a time dedicated to celebrating the social, economic, cultural and political achievements of women. In honor of the month, we’re highlighting one woman of DFA and her contributions to the dairy industry: Kim Parks, vice president of business optimization for our Ingredient Solutions Division.

Q: What is your favorite thing about working for DFA? There are so many things that I could list, including the constant challenge that DFA brings. I’d like to think that my passion for DFA is seen in everything that I do and it is rewarding to work where I can connect to my “why”. My “why” is my family, who are members of DFA. I grew up on a 200-cow dairy farm in Northeast Kansas, so part of my “why” is preserving the dairy industry so my nieces and nephews can take over the farm if they choose to someday. I love how I grew up and want to ensure that it is possible for generations to come. I do what I do for the dairy families that I’ve met in the last 16 years and for the hundreds that I haven’t met. Additionally, I’m able to fulfill another passion of mine, which is leading people and developing highly effective teams.

Q: What did you do prior to joining DFA? Before DFA, I spent nearly five years at a risk management firm. I loved working with commodity markets because it was challenging and something new every day. When I left my first career after relocating, I found DFA. Even though dairy was in my background and my family was a member of DFA, I didn’t know a lot about DFA. I worked on the farm growing up, milking cows and taking care of the calf

operation, but I was never part of business conversations with my dad and uncle.

Q: When did you start working for DFA, and what past roles have you held?

I started my career with DFA in 2005 in dispatch, moving milk from farm to plants in the most efficient way possible, and have had many positions since then, including many years with DFA Risk Management. I didn’t think of it this way back then, but even in my first role, I was optimizing for DFA, finding value for our members.

Q: In your current role, what do you like most?

I appreciate knowing that I’m making a difference in my role. I may not be as connected to our farmer-owners as I was during the early years in my career; however, in business optimization, the team is constantly looking for ways to improve the profitability of the business. In being part of the business optimization team — a team that brings all of the pieces and parts together to make the best product mix and pricing decisions — we are delivering value to our members and making a difference.

Q: In the agriculture and dairy business, why do women’s voices matter?

All voices matter; all perspectives matter. We all have our own reasons for being here and

those different reasons can be impactful in the agricultural industry and lead to change and different ways of thinking. In my opinion, one of the best leadership characteristics is being genuine. Having diversity of voices in agricultural and dairy issues brings genuine, authentic leadership into the Cooperative.

Q: Why is it important to have women in leadership positions?

I think it is important for diversity in thought — no matter where it comes from — in leadership positions. We have so many challenges facing us every day, and it takes passion from everyone, at every level, to meet those challenges and be successful.

Q: What advice do you have for other women looking to one day hold a leadership position?

Find a mentor/coach. To me, personal development is about being a sponge — soak up any knowledge, advice or experience you can to help you become a better person and professional. Each of us has experienced, and will continue to experience, some special influencers along the way who will push your development to another level and challenge you. Embrace those people! As leaders, our jobs are to help develop those around us.

Be a mentor for someone within the organization and pass it on.

dfamilk.com | © 2021 Dairy Farmers of America, Inc. | March 2021

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