thescoop – Winter 2021

WINTER 2021 | VOLUME 4

LOOKING BACK ON 2021 04

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COOPERATIVE

FARM

BRAND TALK

Q&A WITH DENNIS RODENBAUGH

COLLABORATION BETWEEN DIVISIONS TO CREATE DFA ANIMAL NUTRITION

SPORT SHAKE® DELIVERS DAIRY PROTEIN TO CONSUMERS

Get to know Dennis Rodenbaugh, who will succeed Rick Smith as president and chief executive officer of DFA, effective at the end of 2022.

How a unique partnership led to a new value-added product for our family farm-owners.

All about the dairy-based protein drink and DFA-owned brand.

COOPERATIVE

LOOKING BACK ON 2021 Much like the years before it, 2021 was filled with peaks and valleys. The country, and our Cooperative, settled into a new normal as we continued to figure out life with COVID-19. Through it all, our employees, dedicated family farm-owners and industry partners worked together to supply families everywhere with nutritious dairy products they love and enjoy. We continued to focus on our commitment to innovation, sustainability and community, and the year was filled with things we’re proud of.

INNOVATION DFA is committed to fostering a culture of innovation from farm to plant to office — and everywhere in between.

Launching new products We introduced several new innovative products for consumers to enjoy this year, and reintroduced a few old favorites, too.

Learning to come together virtually While holding some of our most beloved events and meetings virtually took some getting used to, we ensured we continued to engage with employees and members.

Our first-ever virtual Team Development Conference (TDC) was a success. Holding TDC virtually allowed more employees the opportunity to attend without traveling. The ability to send chats straight to presenters was a big hit – in fact, for every chat sent during TDC, we donated $5 to the Farmers Feeding Families Fund as part of Hunger Action Month in September.

400 4,000

ATTENDEES

CHATS SENT

$

20,935

DONATED TO FEED FAMILIES IN NEED

We launched monthly virtual Milk Bar Sessions to allow employees to gain a deeper understanding of different departments and initiatives at DFA. To better serve our family farm-owners, we utilized video conferencing technology to host informational webinars about topics relating to farm management. The majority of these video conferences were live meetings, but also continue to be available on-demand to cater to our members’ schedules.

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SUSTAINABILITY We’re committed to reaching net-zero emissions by 2050, and we were excited to share that commitment with the world this year.

Launching the Nerd Herd To communicate our sustainability journey to consumers, we launched the Nerd Herd campaign just in time for June Dairy Month. Through the Nerd Herd, we showed consumers that it takes a herd of individuals — agronomists, engineers, innovators, nutritionists, researchers, scientists and many more — to help dairy farmers on their sustainability journey.

Helping startups Now in its fifth year, our 2021 CoLAB Accelerator program assisted seven innovative startup companies founded by entrepreneurs determined to improve the dairy industry. Participants in our 90-day program left with more developed business plans and connections to dairy experts.

Highlighting our social responsibility This Earth Day in April, we launched our 2021 Social Responsibility Report to highlight the steps DFA took to reach net-zero in 2020. The report highlighted how DFA and our family farm-owners are leading the way to a more sustainable future through our sustainability pillars of our people, our planet and our communities.

2021

SOCIAL RESPONSIBILITY REPOR T

INTRODUCING

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dfamilk.c om/susta

inability |

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COMMUNITY One of our Cooperative’s core values is community, and we take that seriously.

This year, we had unique opportunities to strengthen the communities we touch.

Donating to those in need In observance of Feeding America®’s Hunger Action Month in September, our Cooperative:

RAISED $53,935 toward the Farmers Feeding Families Fund (FFFF), a branch of our DFA Cares Foundation.

DONATED 21 refrigerators to food banks nationwide.

COMMITTED TO FILLING those fridges with fresh dairy products through the remainder of 2021.

Fostering a culture of inclusivity This year, we strived to make our company culture more inclusive. We added equity to our Diversity, Equity and Inclusion Advisory Council name in 2021. In doing this, we recognized fair treatment, opportunity and advancement for everyone in our Cooperative.

Partnering with dairy advocates We were proud to partner with several athletes from the 2020 Tokyo Olympic Games this year. These athletes are proud supporters of the dairy industry, and they’ll be powerful advocates for our Cooperative moving forward.

150

Diversity and inclusion ambassadors onboarded

54

Locations represented by diversity and inclusion ambassadors

1

Recognized our first ever Diversity and Inclusion Week in July

st

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COOPERATIVE

Q&A WITH DENNIS RODENBAUGH Get to know Dennis Rodenbaugh, who will succeed Rick Smith as president and chief executive officer of DFA, effective at the end of 2022. Dennis currently serves as executive vice president and president of council operations and Ingredients Solutions, and has a background in dairy farm management and ownership, as well as banking and finance.

In the past, you owned and managed dairy farms.

Has dairy always been a part of your life?

Agriculture has always been a part of my life, but I fell in love with dairy in my late 20s — the cows, the energy, the pace and the way of life. I was initially volunteering my background in business development, investment banking and finance to help revitalize communities in Western Kansas, where it seemed dairy could be introduced and built into a thriving industry.

Throughout my banking career, I continued working with great dairy farm families from across the country before ultimately owning and managing a couple of DFA member dairies prior to joining DFA’s management team in 2007.

What’s your favorite part about working at DFA? We get the privilege of working on behalf of dairy farm families across the country, advocating for their way of life and sharing their passion for feeding communities and consumers around the globe. When I consider that we wake each day with this focus on family farms, on providing consumers with a perfect source of nutrition and with everything around that, it’s absolutely fulfilling.

Why is DFA’s farmer-ownership important?

DFA’s farmer-ownership and connection back to the farm is our greatest strength and attribute. It’s accurate that we’re big, that we’ve grown, but what we build or buy doesn’t change who we are. We are a farmer-owned, member-focused, value-driven organization — and that will never change.

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What do you think the outlook is for the future of the dairy industry?

The outlook for dairy is strong. Some industries are challenged with the burden of marketing inferior and even unhealthy products, but we have the tremendous advantage of starting with the perfection of whole milk and all the unlimited forms, functions and flavors of dairy nutrition. Dairy demand continues to grow domestically and globally through a combination of dairy product innovation, greater per capita dairy consumption and a growing global population that will add 2 billion more consumers in the coming decades. Consumers are seeking safe, quality nutrition for their families, and dairy is well-positioned to meet this need. As we fulfill this global consumer demand, we’ll need to continually challenge ourselves to effectively tell our family farm-owners’ great story of stewardship and sustainability. We must also continue to evolve and adapt to meet stakeholders’ changing expectations while always adhering to our mission, vision and values.

Why is DFA in a position for growth?

DFA is in a great position to meet the needs of our family farm-owners across the U.S. and the expectations of customers and consumers around the globe, including DFA’s national footprint of membership and milk supply, our network of 85 wholly owned plants and additional joint venture plants, our national distribution network, our national and global customer relationships and the leadership roles our farmer-owners and employees serve in across our Cooperative. Each of us plays an important role in bringing this all together to maximize value for our family farm-owners now and into the future.

COMMERCIAL

GIFTING MADE CHEESY Finding the perfect holiday gift just got easier. Shop gift boxes from The Creamery, our dairy destination retail store in Beaver, Utah. Each box is filled with local cheese made with milk from our family farm-owners and unique accompaniments made in Utah. This year, there are even more ways to impress your friends, family or co-workers with four new delicious box gift options.

Head to thecreameryutah.com to shop now. And as an extra special gift for being a DFA employee, use discount code DFA21EMP at checkout to get 10% off your purchase. For orders larger than 10 gift boxes or custom-made curations, email The Creamery’s corporate gifting team at CorporateGifts@thecreameryutah.com.

Cheese and Chocolate Lovers: The Creamery baby cheddar, colby jack and Gouda paired with locally made chocolates, makes this sweet box too good to pass up.

Spicy Favorites: The Creamery jalapeño jack, fiery jack and green onion cheese — alongside savory accompaniments — is the spicy trio you need to leave your tastebuds tingling.

Savory Goodness: The ultimate cheese board starts right here — with The Creamery medium cheddar and Gouda, almond-crusted jalapeño bacon cheese ball and all the perfect pairings.

Milk and Cookies: It doesn’t get better than this classic duo, especially during the holidays. This set comes with a keepsake The Creamery half quart glass milk bottle, each flavor of The Creamery milk and an assortment of cookies.

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We have made significant progress in creating a more diverse, equitable and inclusive workplace for our DFA community this year. I am proud of all that we have accomplished but know there is even more work to be done. Thank you for being a part of our DEI journey and for making it a priority — this work is essential to living our core values and to the success of our Cooperative.

— President and CEO Rick Smith

OUR ACCOMPLISHMENTS IN 2021

OUR PRIORITIES IN 2022

Communication and Feedback: Launched and updated DEI web pages on The Parlor, dfamilk.com and the DFA career site to provide education and resources for current and potential DFA employees

Communication and Feedback: Integrating more diverse and inclusive messaging, imagery and open lines of communication to contribute to fostering a more inclusive DFA culture

Community Engagement: Created the DEI Scholarship Program to attract more diverse students to the dairy industry and DFA

Community Engagement: Connecting with diverse students and organizations through scholarships and grants and community giveback efforts where our DFA community lives and works

Employee Engagement: Launched the DEI Ambassador Program and expanded our recognition of holidays and heritage months to celebrate the diversity of our DFA community Talent Acquisition: Fostered stronger relationships with more historically Black colleges and universities and other diverse universities to reach more diverse students and talent Training and Education: Enhanced learning and development opportunities for DEI ambassadors, people leaders and all employees through our first Diversity and Inclusion Week 6 thescoop | Winter 2021

Employee Engagement: Launching of Employee Resource Group Program Talent Acquisition: Enhancing hiring practices and diversifying applicant pool Training and Education: Incorporating DEI goals in employees’ performance and development routines

SHARING OUR COMMITMENT TO DEI As a Cooperative, we strive to live our values not only through our day-to-day work, but also in our relationships and interactions with our farmer-owners, our customers and one another. We continue to work to create and promote a culture that is welcoming to everyone, regardless of their race, ethnicity, sexual orientation, gender identity, religion or ability.

MARK YOUR CALENDARS Nov. 28–Dec. 6: Hanukkah Dec. 25: Christmas Dec. 26–Jan. 1: Kwanzaa Jan. 17: Martin Luther King Jr. Day

The inaugural DEI Advisory Council, comprised of employees from across the Cooperative, supports these efforts by helping guide strategies to enhance and strengthen our diversity and inclusion initiatives.

Feb. 1: Chinese New Year

Earlier this year, the DEI Advisory Council established their charter statement, guiding principles and pillars to set the foundation for DEI at DFA.

WE’RE ON THIS JOURNEY TOGETHER

“Here at DFA, we are focused on building and maintaining a workforce that reflects the diversity of the communities in which we live, operate and serve,” says Joanie Baucum, regional continuous improvement manager and DEI Advisory Council member.

• Check out our DEI efforts on dfamilk.com and The Parlor

Hear from our DEI Advisory Council about DFA’s DEI charter statement and guiding principles. Scan the QR code to watch the DEI Advisory Council charter video.

February: Black History Month

• For learning sessions specific to topics about diversity, equity, inclusion and community engagement, connect with your supervisor to check out the sessions on DairyU or visit DairyU through The Parlor • To get involved, ask questions or share ideas, email inclusion@dfamilk.com

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COMMUNITY

FARM

DFA CARES AND DEI SCHOLARSHIP OPPORTUNITIES AVAILABLE

COLLABORATION BETWEEN DIVISIONS TO CREATE DFA ANIMAL NUTRITION

Each year, the DFA Cares Foundation Scholarship Program awards scholarships to incoming college freshmen, undergraduate students and graduate/professional students in accredited degree programs. This year, we’re taking a step forward on our diversity, equity and inclusion (DEI) journey and launching the DEI Scholarship Fund as well.

At its core, DFA exists to provide value to our family farm-owners.

Across all divisions, we seek ways to find innovative solutions to problems and create value through new services and products.

“We recognize the importance of investing in the future of the dairy and agriculture industries through aiding students with diverse perspectives, educations and backgrounds that will make our industry stronger,” says Cherrese Belt, director of human resources and DEI lead.

In 2022, we will be partnering with four organizations — Agriculture Future of America (AFA), The National FFA Organization (FFA), INROADS and Minorities in Agriculture, Natural Resources, and Related Sciences (MANRRS) — to invest in a more diverse set of talented students.

As DFA employees, you can spread the word about our DFA Cares and DEI-sponsored scholarships to your network — whether it be to students, parents of students, our family farm-owners, school counselors and advisors or others.

Interested applicants can visit dfamilk.com/careers/ students-and-graduates for more information and to access the link to the DFA Cares scholarship application. DFA Cares scholarship applications opened Friday, Oct. 15, and will close Friday, Jan. 14, 2022. DEI scholarship application information will be found on the website as made available. Contact Nikki Walker at nwalker@dfamilk.com with any questions.

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Recently, a unique partnership led to a new value-added product supporting optimal calf nutrition on member farms, while also creating a new market for DFA milk powders. Through a collaboration between DFA Farm Services and the Ingredient Solutions Division, our members now have access to DFA Animal Nutrition calf milk replacer.

DFA Farm Services offers a variety of products, services and resources that help make it easier for our farmers to run their operations, while the Ingredient Solutions Division manufactures and sells dairy-based ingredients and works with customers to find innovative dairy taste and flavor solutions for the food manufacturing and food service channels. While the two business units conduct their day-to-day business in vastly different parts of DFA, they came together with an idea and ended up with a unique, value-added product for our family farm-owners’ operations.

Dairy farmers feed milk replacer to their young calves for a certain amount of time to ensure they’re receiving the proper nutrition, vitamins and minerals for optimal growth. Think of it as baby formula!

This collaboration created premiumformulated milk replacer products made with milk from our family farms and processed with dairy-based ingredients — such as nonfat dry milk powder and buttermilk powder— from DFA’s own Ingredient Solutions plants.

“Through Animal Nutrition, we’ve developed another market for our own manufactured powder products,” says Martin Bates, senior vice president and chief operating officer of Ingredient Solutions. “This project is also exciting because we’ve opened up a closer connection between Ingredient Solutions and our farmer owners.”

DFA Animal Nutrition, a new brand within our Farm Services Division is now offering milk replacers in a variety of protein and fat levels to meet member needs. Products are sold in quantities from a pallet to a truckload, to family farms across the United States. DFA Farm Supplies, which is part of our Farm Services Division, facilitates sales and logistics, while our Ingredients Solutions Division provides manufacturing expertise, along with the dairy ingredients.

“It was awesome to work together with Bill Lange (vice president of business improvement) and the entire DFA Ingredient Solutions team to make this idea happen! By collaborating together, our new DFA Animal Nutrition approach keeps the value of our milk replacer products inside the Cooperative,” says Matt Musselman, vice president of DFA Farm Services.

Though this relatively new endeavor, our colleagues are excited to continue to grow our business by expanding our quality product and service offerings to our family farm-owners.

COOPERATIVE

WHAT’S COMING UP Mark your calendars.

Employee self-evaluations due Dec. 7, 2021 An important part of DFA’s performance and development routines is the annual performance review. Goal-eligible employees have the opportunity to complete a self-evaluation through the Performance and Development portal providing their supervisor insight into their accomplishments for the year.

Non-goal-eligible employees are encouraged to have a one-on-one conversation with their manager.

December Milk Bar Session Dec. 9, 2021 (date subject to change) Mark your calendar for our upcoming Milk Bar Session with a DFA update from President and Chief Executive Officer Rick Smith. If you are unable to attend this virtual event, a recording will be shared on The Parlor and digital signage at locations.

Performance review discussions take place Jan. 7–21, 2022 Providing employees with regular feedback on their performance is an integral piece of our performance and development routines. Discussions for the annual performance review take place between employees and managers in January.

National Milk Day Jan. 11, 2022 This celebration commemorates the day many think the first milk deliveries in glass bottles began in the United States. Be sure to celebrate with an ice-cold glass of the good stuff.

DFA Cares scholarship applications due Jan. 14, 2022 Encourage students in your family or network to apply for a scholarship from the DFA Cares Foundation. Submit an application at dfamilk.com/careers/studentsand-graduates.

January Milk Bar Session Jan. 20, 2022 (date subject to change) Mark your calendar for our upcoming Milk Bar Session. If you are unable to attend this virtual event, a recording will be shared on The Parlor and digital signage at locations.

Data Privacy Day Jan. 28, 2022 A day focused on raising awareness of privacy issues and empowering individuals to take action to safeguard their personal information and privacy.

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BRAND TALK

SPORT SHAKE DELIVERS DAIRY PROTEIN TO CONSUMERS Sport Shake® is a delicious, dairy-based protein drink and DFA-owned brand. The product launched in the mid-1970s by Mid-America Farms, one of the original four cooperatives that merged to form DFA. Since that time, Sport Shake has expanded its flavor selection and earned a loyal following among a diverse set of consumers.

“The Sport Shake brand is about 45 years old,” says Ted Sowle, assistant vice president of marketing in the Beverage and Dairy Foods Division. “The product concept at the time was to put a delicious, dairy shake on the market with all the carbohydrates that you need for energy. It was targeted toward athletes.”

Over the years, dietary preferences have evolved, and Sport Shake’s formula has gone through multiple reformulations. But Sport Shake in its iconic steel can has remained popular, especially in the upper Midwest region of the United States.

Sport Shake stands out from its competitors for many reasons. It has a creamier texture than other protein drinks, which can have a chalky mouthfeel, and even though some of its competitors offer more protein per serving, drinks with more grams of protein also inherently have more calories. As a result, Sport Shake is ideal for a more casual athlete who isn’t necessarily trying to build muscle mass but wants a tasty source of protein after a workout. Last year, Sport Shake expanded its flavor line beyond the classic chocolate and vanilla. Now, consumers can enjoy strawberry and cappuccino flavors, too.

A loyal following Around 1980, one of Sport Shake’s distributors in Miami, Fla., pitched the product to exporters, and the brand saw even more growth as a result. Sport Shake has developed a particularly strong following in Haiti.

“It absolutely took off,” Ted says. “To this day on our steel can business, some of our export markets really drive the entire line.”

When it was introduced in Haiti, Sport Shake was the only shelf-stable nutritional drink on the market. The 11-ounce drink with carbohydrates, electrolytes and calcium leaves a consumer feeling satisfied and full, especially important in a country with a high rate of food insecurity.

Today, Sport Shake is commonly advertised on Haitian billboards and radio channels, which is the primary form of communication there. The Haitian Creole slogan “Reto fo, rete an sekirite,” which translates to “Stay strong, stay safe,” is found on billboards for the product.

The Sport Shake brand has evolved and stood the test of time, all thanks to the wholesome goodness of real dairy straight from the family farm. To find out where to buy Sport Shake near you, or to order a case online, visit sportshake.com.

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EMPLOYEE SPOTLIGHT

MANUEL SOLIS Global perspectives and diverse talent from our employees and family farm-owners enrich our Cooperative community, and the hobbies and skills of our employees can truly shine when our culture of inclusion allows us to feel authentically ourselves in the workplace.

As our Cooperative continues to grow, so will the opportunities to connect people, ideas and initiatives that will make an impact and tell the story of dairy like we’ve never done before. This connectivity is imperative to our ever-evolving strategy and relevancy in the food and agriculture industries and throughout the world.

When Melanie Pethtel, business analyst in our Kansas City, Kan., office, reached out to the Half & Half magazine team earlier this year, she saw an opportunity to spotlight her co-worker and friend, Manuel Solis and his talent for baking delicious goods, in addition to his full-time job as an SAP business analyst in the Information Technology Department for DFA. Prior to the COVID-19 pandemic, Manuel enjoyed baking.

Growing up in Mexico, he learned about cooking and baking while helping his mom in the kitchen. But when the pandemic hit, and the panaderia, or bakery, was no longer open to buy bread, Manuel decided to try baking his favorite Mexican pastries and breads at home.

“The breadmaking tradition in Mexico is vast,” Manuel says.

“Our bread has strong influences from France, Denmark, Austria, Italy and Spain, so it has always been daunting to try to make Mexican bread at home.”

With extra time on his hands due to the pandemic, Manuel rolled up his sleeves and began trying a concha recipe from his mother’s recipe book. With a few tweaks and adjustments, he made the perfect concha, motivating him to develop other recipes like Pan de Muerto (Day of the Dead bread) and Rosca de Reyes (three kings bread).

“Being at home when the world shut down provided more time to develop hobbies,” Manuel says. “Some people lost weight, many read books, but in my case, I developed recipes and learned the craft of bread baking.”

In addition to perfecting conchas and cakes, Manuel continued the family tradition by teaching his own kids to bake and cook. His wife, Briceida, and two kids, Emily (10) and Ian (7), enjoy spending time with Manuel measuring ingredients and catching up with one another after days at work and school.

“Mexican households treasure and appreciate eating together as a family,” says Manuel. “Sitting around the table or cooking together is always a great time to chat and learn about each other.”

If you haven’t already, check out Manuel’s three pan dulce recipes in the Fall 2021 issue of Half & Half magazine (pages 68–75). Just like the magazine says, there’s no need to visit a panaderia to get a taste of Mexico. You can make these traditional sweet breads at home, thanks to Manuel.

“I never thought I would be able to share my recipes with the DFA community,” Manuel says. “I am so happy to have had this opportunity to share a little bit of my heritage and the flavors of my country.”

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FARM

FAMILY FARM SPOTLIGHT: SWEETWATER VALLEY FARM Located in Philadelphia, Tenn., Sweetwater Valley Farm was founded in 1917 and is now owned and operated by fourthgeneration dairyman John Harrison, his wife, Celia, and two of their five children.

“It’s a blessing to be able to farm in Tennessee and it gives me a great sense of pride to produce a high-end product,” John says.

Milking 1,500 dairy cows, the family also produces their own selection of cheese products made with milk right from the farm for those in their local community and beyond. The farm recently opened a café on-site where visitors can enjoy grilled cheeses made with their cheese and delicious milkshakes made with ice cream from DFA-owned brand Mayfield Dairy Farms®.

The Harrison family invites travelers and locals alike to come visit their farm, take a tour to learn more about where their milk comes from and sample some of their tasty cheese and dairy products.

Sweetwater Valley Farm utilizes eight robots to help with some of the milking and is one of the first in the region to utilize this unique, innovative technology. The technology customizes to each cow’s udder placement and tracks when and how much milk each cow provides according to her own set routine. Tracking the data and information through the robots, as well as the cow’s diet and eating patterns, enables John and his herd manager to provide individualized care for each cow on the farm.

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

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