thescoop - Fall 2022

DFA 101: DFA’S GOLD STANDARD DAIRY PROGRAM program to help improve all aspects of dairy farming was the first of its kind when it was introduced more than 15 years ago. Learn all the details. TALK

NEW YORKERS PROUDLY CHOOSE HOTEL BAR® BUTTER at this DFA-owned butter brand that started in 1885. VALUE OF WORKING FOR A

THE VALUE OF WORKING FOR A COOPERATIVE

Just as DFA’s more than 11,500 family farm-owners take pride in their work to feed the world delicious, nutritious dairy products, we, as DFA employees, can feel good knowing our work makes a difference in our communities.

“I think many employees at DFA appreciate and take pride in the fact that our efforts are going to support the farmers who are raising their herds and their families in a profession that is feeding consumers in the United States and globally,” says Jackie Klippenstein, senior vice president of government, industry and community relations. “Employees, regardless of their role, are a critical part of the success of the business and of implementing DFA’s strategic goals. Knowing we are in it for the long haul gives us the flexibility to commit to meaningful innovation, initiatives and growth.”

Whether you work in a plant, lab, office or out of the cab of a truck, the work you do each day not only helps deliver all the possibilities of dairy to people everywhere, but you also help the Cooperative deliver on our mission: to deliver value to our family farm-owners.

Working for a cooperative has some distinct benefits compared to working for a corporation, and they are important to be aware of as employees of DFA and advocates for the dairy industry.

A stable place to work

A cooperative is a unique structure because it is owned by, governed by and operated for the benefit of those using its services. We connect our family farm-owners with secure markets for their milk, provide a broad range of services, like insurance, farm supplies and more, and we make investments to blaze new, innovative paths for our members’ milk in all the forms, functions and flavors of dairy. Unlike corporations, cooperatives run as long as a group of their members choose to work together to achieve this mutual benefit, and that model has proven to endure longer than other business structures. Both corporations and cooperatives have an objective to generate a profit, but a cooperative’s profits, and the many services it offers, create returns back to their member-owners — in so many different ways.

Historically, farmers weren’t always allowed to work together by forming cooperatives. Cooperatives like DFA are a unique business structure that came to be after Congress passed the Capper-Volstead Act in 1922. (This year marks the 100th anniversary of the passing of the act.) The act gave farmers and ranchers the legal right to join together in a cooperative-like association, and it provides them with limited antitrust protection to conduct joint trading activities. Before the Capper-Volstead Act, individual farmers were disadvantaged because of the perishable nature of their commodities — buyers could manipulate them and force them to sell at prices and terms of sale before the commodities went bad. Congress reasoned that agriculture cooperatives enabled farmers to operate on a more equal basis with processors and distributors. That same farmer need, and cooperative value, has never been more important. Now, nearly 25 years after its inception, DFA is a diverse community of dairy farmers and employees who work together with the joint goal of feeding the world nutritious dairy products — either through one of our 85 manufacturing plants and 23 wholly owned regional brands or through a broad network of partnerships and joint ventures.

As a cooperative, we operate differently from publicly traded companies. The steps we take as an organization — from business decisions like acquisitions to setting our areas of focus — are rooted in our goal of sustaining value for the next generation of dairy farmers. Also, unlike corporations, we are guided by the leadership of our farmer-owner Board of Directors without the confusion of outside shareholder expectations.

“There is no better feeling than knowing our work supports dairy farmers,” says Dennis Rodenbaugh, president and chief executive officer. “Having spent a good part of my life on a dairy farm, I know the grit and love that is required to run a successful dairy. I hope DFA employees feel a sense of pride when they come to work and when they tell people where they work. We operate as a cooperative, where our farmers are our stakeholders and owners, and we have the privilege to operate with the long-term mindset of doing what’s best for current and future generations of dairy farmers.”

Our unique operating structure as a farmer-owned cooperative lends stability and drives us forward. As part of the agriculture industry, we are in a critical industry that provides nutrition to consumers around the world, and the demand for dairy products, in all their amazing forms, continues to grow.

Community-minded, people-focused

Besides offering job and financial security for employees, as a dairy cooperative, we get to do one of the most fulfilling jobs: feeding people.

Our family farm-owners and employees donate their time, their money and their brain power to give back and make a difference in the lives of families right down the street and all the way across the country. Through our DFA Cares Foundation and initiatives like our Farmers Feeding Families Fund, we help get dairy products to those in need.

“Community is one of our core values at DFA — but our values are much more than words on a page,” Dennis says. “They have meaning in both our work and our personal lives.”

As part of our goal to be connected to all the communities where our employees live and work, we strive to recognize our employees’ local impact by documenting volunteer hours and donations. We also continue to grow in our efforts to hire and retain diverse, talented employees within an inclusive culture that values, welcomes and seeks out different perspectives, experiences and backgrounds.

We are all ambassadors for DFA. Refer those from your community that are similarly purpose-driven to join the team by checking out DFA’s careers page at dfamilk.com/careers.

PROGRESS CONTINUES ON CREATING DFA’S EVOLVED STRATEGIC PLAN

Every three to four years, DFA’s management and Board of Directors take a hard look at our strategic plan. They ask questions like, “What are we evolving into?” and “How do we maximize value for members, employees, customers and consumers?” The world has changed significantly in the past few years, and it is now time to give our plan a refresh.

In the last issue of thescoop, we announced that work had started to update DFA’s strategic plan, and progress is underway.

For this latest update of the plan, employees across all levels and throughout the business are being asked to provide input. A working group of approximately 150 individuals from across the Cooperative met virtually in July. They heard President and CEO Dennis Rodenbaugh’s perspective on why the time is now to refresh the plan; learned about the in-depth environmental analysis we are undertaking to help deepen our understanding of the opportunities and challenges we face as a Cooperative and industry; and learned how they can take part in the planning process by gathering feedback from their teams.

So, what’s next? More feedback is needed to continue moving forward. Currently, the Board of Directors is providing input on the environmental analysis, and employee-led projects are beginning to provide guidance for the plan, including work to analyze and forecast future plant capacity needs, customer and consumer trends, and logistics capabilities, among others. We are also seeking feedback through surveys, roundtable discussions at locations and more.

Stay up to date on the progress of the plan by checking our new Our Strategy page on The Parlor. If you don’t have access to The Parlor, we will continue to update you in future issues of thescoop.

“We hope to share DFA’s refreshed strategic plan in March 2023, launching at our Annual Meeting,” Dennis says. “While our foundation as a Cooperative will not change, growth requires us to evolve. I’m excited for a new plan that sets priorities for creating a more connected DFA, primed for the future.”

DFA 101: DFA’S GOLD STANDARD DAIRY PROGRAM

DFA’s Gold Standard Dairy Program, which was the first of its kind when it was introduced more than 15 years ago, helps our family farm-owners achieve the best possible farming practices across every aspect of farming. From animal care and well-being to land and environmental stewardship, workforce development, and milk safety and quality, the program takes a holistic approach to modern-day farming.

“The program shows our customers, consumers and the entire dairy industry what we already know — DFA’s family farm-owners are committed to stewardship of the land, the welfare of their animals, the safety and health of farm employees and family members and producing nutritious dairy to feed the world,” says Kayla Rink, senior manager of dairy science and farm practices. “Sustainable, safe farming practices are also vital in creating and maintaining a strong Cooperative.”

Through the program, farms are evaluated every three years, which also includes participation in the industry-wide National Milk Producers Federation’s (NMPF) Farmers Assuring Responsible Management (FARM) Program. More than 99% of the U.S. milk supply comes from farms participating in the FARM Program.

“Participating in the FARM Program helps demonstrate DFA’s commitment to strong farming practices and provides us with a pathway for continuous improvement,” Kayla says.

As one of the first on-farm evaluation programs of its kind, DFA’s Gold Standard Dairy Program is our way of setting our family farm-owners up for success.

DFA’s team of field representatives are field and classroom-trained to evaluate members’ operations under the program and follow up with helpful recommendations and resources. “Our field staff are integral to our on-farm programs being successful. Our family farmowners rely on our field staff to be the direct line to the Cooperative and bring resources to them to help keep strong farming practices top of mind,” Kayla says.

Our program is designed to evolve with the ever-changing dairy industry. Just as our family farm-owners continue to make improvements on the farm, DFA’s Gold Standard Dairy Program helps bridge where our members need us and where our customers expect us. The program is currently in its fifth iteration since its inception in 2007, with plans for the next version to roll out in 2024.

NEW YORKERS PROUDLY CHOOSE HOTEL BAR BUTTER

Hotel Bar®, a DFA-owned butter brand available to New Yorkers, has been serving great butter for great value since 1885. The brand originated when Hotel Bar’s creators began delivering sticks of fresh butter to New York’s finest hotels in a horse-drawn carriage.

While horse-drawn carriages have given way to trucks, the foundation of Hotel Bar is still the same: fresh, slow-churned butter made from grade A milk at our DFA plant in Winnsboro, Texas. The brand offers traditional salted and unsalted sticks of butter, as well as tubs of whipped butter, which are perfect for spreading on top of another New York classic: bagels.

“Hotel Bar has such a rich brand heritage, much like many of DFA’s regional brands,” says Mike Snyder, eastern region sales

manager for DFA’s Dairy Brands Division. “Generations of New Yorkers recognize and love the products.”

Plugrá® Premium Butter, another one of our DFA-owned butter brands, got its start because of Hotel Bar. French pastry chefs working in New York requested European-style butter be imported for them to use due to the slightly higher butterfat content, and the makers of Hotel Bar created Plugrá to meet that need.

To read more about Hotel Bar, visit hotelbarbutter.com.

COMMERCIAL

In August, DFA acquired two extended shelf-life (ESL) processing facilities from SmithFoods that are now part of our Dairy Brands Division as Richmond Beverage Solutions and Pacific Dairy Solutions. The facilities are located in Richmond, Ind., and Pacific, Mo.

The Richmond, Ind., facility produces ESL dairy and non-dairy beverages, as well as some ice cream and shake mixes for retail and food service customers. The Pacific, Mo., facility produces ESL ice cream and shake mixes for food service.

“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,” says Pat Panko, executive vice president of DFA and president of DFA Dairy Brands North. “With the addition of these plants, we have an opportunity to not only grow our customer base, but to also create synergies between our other ESL and aseptic facilities.” CAPABILITIES

ETHAN HALL

In his seven years at DFA’s Mayfield Dairy Farms® plant in Athens, Tenn., Ethan Hall has shown up to work with a can-do attitude and a dedication to DFA’s core values of integrity, passion, quality and community.

Ethan’s day-to-day work as an automation and controls technician at the plant varies, but he generates reports to track losses and productivity when equipment malfunctions, and he’s also in charge of troubleshooting any electrical issues with the plant’s equipment — an essential role to keep the plant running and producing cream, fluid milk, frozen novelties, fruit juices, ice cream, ice cream mixes, sherbets and tea. When Ethan started working at the plant as an apprentice maintenance technician four years ago, he realized his love for engineering. That role led him to pursue a bachelor’s degree from the University of TennesseeChattanooga in electrical engineering with the help of DFA’s tuition assistance program. He says the technical difficulty of the work keeps him fascinated.

“I love the feeling of being completely engrossed in a project, and that happens often here,” Ethan says. “A lot of times, things stop with me — if I can’t figure out the problem, there’s no one else on-site that we can call. Sometimes I’ll look up and realize six hours have passed since I started working on a machine. I also like that I get to see the latest and greatest technologies that can help our processes here.”

One of Ethan’s favorite things about working at Mayfield is the support from his co-workers and supervisors as he’s continued his formal education.

“This place has always taken care of me,” Ethan says. “I have two more years to go to finish my bachelor’s degree. Everyone has gone out of their way to ensure that my schedule allows for me to take the classes that I need so that we can reach our mutual goal of me earning my degree.”

Ethan says he’s proud to work for DFA not only because of his co-workers in Athens, but because of the Cooperative’s mission to deliver value to its more than 11,500 family farm-owners as a global dairy cooperative.

“I come from a family of farmers,” Ethan says. “DFA’s mission of servicing farmers and keeping conversion costs low resonates with me. I know exactly how difficult it is to farm — it’s definitely a way of life and not a 40-hour work week.”

I come from a family of farmers. DFA’s mission of servicing farmers and keeping conversion costs low resonates with me. I know exactly how difficult it is to farm — it’s definitely a way of life and not a 40-hour work week.

IT’S EASY TO STAY SAFE ONLINE

Attacks on cybersecurity have been identified as the greatest risk to DFA. In the past year alone, our information security team has rolled out security features like multi-factor authentication and mobile device management software to better protect the Cooperative.

“We live in a highly data-driven and connected world, where information is available at any time,” says Sherry Callahan, chief information security officer. “By taking time to understand the basics of protecting yourself online and practicing good cyber hygiene, you can better ensure your personal and DFA-provided devices are safe.”

The information security team works to protect DFA all year, and enjoys sharing their knowledge on staying safe online with all DFA employees. During Cybersecurity Awareness Month in October, they will share how to protect both personal and DFA-provided devices. It’s easier than you think.

“Cyber criminals like to take advantage of those who are not aware of the dangers of being online, not paying attention or are creatures of habit,” Sherry says. “By far, phishing emails remain the most effective method of tricking someone into giving them their password or information. Another common attack is to use a program that continually guesses a password until they get it right, which is why using complex passwords, multi-factor authentication and not reusing passwords are so important.”

Whether you work from home or connect your personal device to public Wi-Fi on your days off, you could be at risk for cyberattacks; it’s important to take action and secure your devices regularly.

“Cybersecurity isn’t just an Information Technology (IT) Department issue. You’re going to make decisions every day that might impact security while you’re at work or at home. Taking the time to educate yourself about these issues is really the best step you can make in ensuring your cyber safety both at home and at work,” Sherry says.

Many cyberattacks are password-based, so choosing good passwords is a must, says Sherry, who recommends using a password manager. DFA employees can use the IT-recommended password manager, Lastpass, free of charge for themselves and five of their family or friends. Throughout Cybersecurity Awareness Month, the information security team will provide additional tips on:

• Securing your DFA and personal devices

• How to work securely from different locations

• Protecting your identity online

“We hope all employees will join us in activities throughout the month to learn more,” Sherry says.

CELEBRATING DEI WEEK

This year, we recognized our second annual Diversity, Equity and Inclusion (DEI) Week July 25–29. DEI is a journey and not a destination, and we are grateful for all the ways you help to create an environment where everyone is welcomed, valued and heard. From snacking on popcorn while watching the Milk Bar Session to writing welcoming notes of encouragement for fellow employees, check out some of the ways DFA locations across the country celebrated DEI Week.

Representatives from The Golden Scoop, Antoinette Redmond and Sadie Polson, Kansas City, Kan.

Kennedy Mounce, Kansas City, Kan.

Jose Fernandez, LaVenta Wooten, Mike Greenwald, Gloria Kermoian (standing), City of Industry, Calif. North

Caleb Miller, Middlebury Center, Pa.

Martin Gutierrez, Juan Robles, Juan Beltran, Manuel Elizalde and Misael Ocotlan, City of Industry, Calif. South

Hem Shah, City of Industry, Calif. North

IT TAKES EQUITY

What is the difference between equity and equality?

While the word equity sounds similar to equality, the two are not the same.

Equality means that individuals are given the same opportunities or resources, while equity recognizes that each individual has different circumstances and abilities and allocates the exact resources and opportunities needed to reach an equal outcome. Equality can only happen when equitable practices are put into place.

At DFA, we aim to provide equitable opportunities and implement equitable practices so that each employee and family farm-owner can succeed as a member of the DFA community.

JOIN AN EMPLOYEE RESOURCE GROUP

Employee Resource Groups (ERGs) are voluntary, employeeled groups that aim to foster an inclusive workplace. The groups create opportunities for employees to build connections and belonging through cultural awareness, community engagement and learning and development. Being a part of an ERG is an opportunity to connect with coworkers across the Cooperative, no matter your job role or function, through a shared affinity or community. All ERGs are open to all DFA employees.

Multicultural Including African American, Asian American, Black, Hispanic, Indigenous, Latino, Native American, Pacific Islander employees and more, this group will support, honor and celebrate employee cultures and ethnicities by providing a space for professional development activities, community and social networking and organizing cultural events.

This group will support early-in-career professionals by providing personal and professional development activities. The ERG will organize professional, community and social networking opportunities. Scan the QR code to up to an ERG.

Mark Lozoya, Tony Kam, Martin Sanchez, Cecilia Esperanza and Mike Martin

DFA CARES UPDATES

Introducing the DFA Cares Employee Relief Fund

For years, the DFA Cares Foundation has provided disaster relief to our family farm-owners facing unexpected challenges. We are excited to announce a similar program for employees — the DFA Cares Employee Relief Fund. This employee-funded program’s purpose is to help employees cover sudden expenses in emergencies, such as natural disasters, home catastrophes, medical emergencies or funeral expenses. The fund is available for all DFA employees who are permanent full-time or permanent part-time for a minimum of 90 days. Employees can apply for a grant up to twice a year and can receive up to $2,000 to help cover emergency expenses. Stay tuned for more information about how to apply if the need arises. If you have any questions, contact your HR representative or email dfacomm@dfamilk.com.

Giving back to communities where we live and work

One way we live our core value of community is through product and monetary donations that support local or global communities affected by natural disaster, war or devastating events. DFA partners with organizations like American Red Cross, Feeding America® and Convoy of Hope® to send dairy products throughout the country and world to provide food and support to these communities. In the past few months, a few of the communities we have supported include Buffalo, N.Y., when a grocery store closed due to a tragic shooting, Ukrainian refugees impacted by the war with Russia and communities in Kentucky impacted by tornadoes. Additionally, DFA has donated more than 86,000 pounds of milk powder to Convoy of Hope for those in need of food and nutrition around the world.

Don’t forget to track your volunteer hours

Whether it be through monetary support or by volunteering your time, many of you are active members of your communities outside of work. Track your hours with our volunteer logging system, a tool that allows us to get a better picture of our Cooperative’s charitable reach and ensures we are making an impact across diverse communities. Document your personal volunteer hours all year long to be eligible to win prizes in quarterly drawings Cooperative-wide.

Scan the QR code to log your volunteer hours.

Mary Young and Terrel Schimpf, Kansas City, Kan.

DFA TAKES ACTION DURING HUNGER ACTION MONTH, AIMS TO RAISE $1 MILLION FOR FFFF

September marks Hunger Action Month, and this year DFA is proud to be matching up to $20,000 in donations to our DFA Cares Foundation to help us reach $1 million for our Farmers Feeding Families Fund (FFFF).

Milk is one of the most requested, yet least donated items to food banks across the country. The perishable nature of dairy, along with the need for refrigeration and storage, makes it difficult to keep in supply. DFA is committed to changing that issue. In addition to raising money for our FFFF, DFA will donate seven refrigerators (one for each of DFA’s seven geographical Areas) to food banks in need, building on the refrigerator donations we started in 2020. We’re also pledging to fill those refrigerators with milk, along with the 45 existing refrigerators from our previous donations. Thanks to partnerships and our FFFF, DFA has committed an additional 17 refrigerators to be donated through the remainder of 2022.

Watch your inbox or break room screens at your location throughout the month to see how you can participate and help DFA raise $1 million for our FFFF.

WHAT’S COMING UP

MARK YOUR CALENDARS

Human Resources Conference October 2022

In a series of three virtual meetings on Oct. 7, 14 and 21, human resources (HR) professionals from across the Cooperative will come together to hear from DFA leaders, discuss HR’s people strategy and priorities, and celebrate big wins from the past year.

Cybersecurity Awareness Month

October 2022

To help us learn more about safety and security online, the information security team, within the Information Technology (IT) Department, will share tips on how to stay safe online.

Employees can complete training, learn more and win prizes by participating in the month’s activities.

National Cooperative Month October 2022

A month dedicated to sharing our pride for our Cooperative and our hardworking family farm-owners.

Open Enrollment

Oct. 24–Nov. 11, 2022

Employees eligible for company-sponsored benefits can enroll.

Performance and Development Cycle/Self-Evaluations Due Nov. 7–18, 2022

As a performance-driven organization, we are committed to providing every employee with ongoing performance and development discussions.

Katie Rose (left) and Sydney Herndon (right), Kansas City, Kan.

HOW THE JONES FAMILY HAS MADE THEIR COWS THE TOP PRIORITY SINCE 1946

Four generations of the Jones family currently have a hand in the success of their dairy farm, Jones Dairy, in Veguita, N.M. Dale Jones, a third-generation dairy farmer, enjoys spending every day farming with his family, including his parents, Ron and Linda; his wife, Susie; and their three children, Brandon (married to Jennifer), Bradley (married to Micaela) and Brittney (married to James Padilla).

The Jones family has a long history in the dairy industry. Dale’s grandfather hauled milk for many years, deciding in 1946 to start milking his own herd. What started with just a handful of cows grew over the years as more generations joined the family business. Today, the Joneses look after a milking herd of about 3,000 Holsteins on their main farm and another 800 Holstein and Jersey cows at a nearby farm. The family also raises their own replacement heifers and farms about 3,000 acres of cropland.

To keep up with the demands of fieldwork and caring for their herd, everyone has a role to play on the dairy. Ron is still active with daily chores and operations, while Linda steps in where needed and assists with farm tours. Dale and Susie’s children all recently graduated or are enrolled in agriculture-related college programs. Bradley and his wife, Micaela, both recently graduated

and returned to live and work on the dairy. Brandon and his wife, Jennifer, attend veterinary school and work on the dairy during the summer. Brittney is seeking a degree in agriculture science and helps out on the dairy in the summer as well.

Since day one, the animals have been the top priority. Each cow is assessed daily to maintain health and productivity. Between weekly vet visits for general herd health and a check-in with the herd nutritionist every couple weeks, the Jones family ensures their cows are getting the optimal feed rations and healthcare for them to be happy, healthy and comfortable.

Beyond their day-to-day life on the farm, the Joneses take time to support the dairy industry as a whole through educational and promotional efforts. They truly enjoy welcoming the public for tours so families can see the cows up close, check out the facilities and learn about the farm-to-table process. Dale and Susie also stay involved in dairy and agriculture-focused youth programs through supporting the county fair, hosting dairy showing and education workshops, as well as coaching the local dairy judging youth teams.

There’s a lot that goes into getting milk from our farm to the consumer — from the care of the cows, to growing our own feed, to maintaining a clean, safe environment on the home front.