The Scoop - Summer 2020

SUMMER 2020 | VOLUME 2

Paul van Puijenbroek, Tys van Puijenbroek, Sven van Puijenbroek, Esmee van Puijenbroek, Paula de Snayer, Jessica van Puijenbroek, Styn van Puijenbroek De Snayer Dairy | Lodi, Calif.

INNOVATION

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PLANTS

SHOWCASING OUR STARTUPS

EXPANDING AND IMPROVING

This year’s DFA CoLAB Accelerator ended with a virtual celebration

Breaking ground on expansions at our plants

INTRODUCING OUR 2020 MEMBERS OF DISTINCTION 06

COMMUNITY

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KEEPING MILK FRESH, ONE FOOD BANK AT A TIME A new program is helping provide refrigeration and cold storage

2020

MEMBERS OF DISTINCTION

SWISSLANE FARMS The Oesch Family | Alto, Mich.

Mideast Area

Every year, we honor one member farm from each of DFA’s seven Areas as a Member of Distinction and we are proud to announce our 2020 recipients.

These hardworking farm families exemplify the passion of our more than 13,00 family farm-owners and showcase why our Cooperative exists — to serve all of our hardworking farm families.

Our Members of Distinction program recognizes members who excel on their operations, in their communities and throughout the dairy industry.

They inspire others through their actions, leadership and involvement, and embody the Cooperative’s core values.

While we weren’t able to formally recognize our 2020 Members of Distinction during our Annual Meeting this year, they deserve all of our gratitude and appreciation for not only leading the industry with vision, dedication and innovation, but for continuing to deliver the goodness of real dairy during these unprecedented times.

We are proud to call these families our Members of Distinction.

For more than 100 years, the Oesch family has taken pride in their dairy by constantly improving their practices while also staying connected to the community around them. Today, Swisslane Farms milks just over 2,000 Holstein cows in Alto, Mich., and utilizes a robotic milking system to increase efficiency and the wellbeing of their herd. Through their onfarm, non-profit organization, Dairy Discovery, the Oesch family focuses on educating community members about the dairy products they all love to enjoy. With hands-on tours and events, they help consumers create a connection to their food.

BRICKSTEAD DAIRY

SI-ELLEN FARMS

The Brick Family | Greenleaf, Wis. Central Area

The Roth Family | Jerome, Idaho Mountain Area

The Brick family milks roughly 1,000 cows on their 1,500-acre farm that has been in the family for 170 years. They are passionate about sustainable farming practices to ensure their farm is around for generations to come, and are particularly focused on clean water, no-till practices and utilizing waste from their dairy as nutrients for their fields. To showcase their commitment to water quality and land stewardship, the Bricks host several educational events on their farm throughout the year. These events allow them to share their dedication to dairy with their community.

The Roth family in Jerome, Idaho, milks 8,000 Holstein cows with a focus on herd health and providing a good working environment for their dedicated employees. The eight Roth siblings who help run the dairy are continuing a legacy their parents started when Si-Ellen Farms was founded with only 100 cows. For the Roths, the word ‘family’ doesn’t stop with them. It carries over to their dedicated employees who have helped them keep their operation running smoothly for years. By hosting pizza Fridays and creating a collaborative environment that everyone can be a part of, Si-Ellen Farms continues to operate as a family — by everyone who calls the farm home.

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ROCK SOLID DAIRY

LAWRENCE SCHROEDER DAIRY

The Garber Family | Shippensburg, Pa. Northeast Area

The Schroeder Family | Windthorst, Texas Southwest Area

For the Garber family, dairying is more than milking their nearly 400 cows.

It’s a responsibility to provide the utmost care for their herd and produce high-quality milk. With a focus on steady vacuum levels and feeding the right mixture of total mixed rations, they pay attention to every detail for the wellbeing of their cows. The family strives for quality in everything they do throughout all aspects of their operation, from bookkeeping to calf care to ensuring cows are well taken care of at all hours of the day. This attention to detail ensures they produce quality, delicious milk for consumers around the nation — and the world — to enjoy.

When Butch and Diane Schroeder got married, they wanted to have a dairy they could raise a family on. Today, they milk 140 cows on 200 acres in Windthorst, Texas, focusing on efficiency, cleanliness and one another. The Schroeders have utilized the dairy as a platform to help mold their family to be caregivers, with the same caring mentality they use for their herd and operation. For Butch, staying engaged in every aspect of his operation on a daily basis helps ensure everything runs smoothly and that his herd is well taken care of. For the Schroeders, their operation is more than a well-kept, successful dairy. It’s a support system that has helped shape their family and instill values they can lean on for a lifetime.

CRAWLEY’S VALLEY VIEW FARMS

DE SNAYER DAIRY

The Crawley Family | Gravette, Ark. Southeast Area

The De Snayer Family | Lodi, Calif.

Western Area

The Crawley family in Gravette, Ark., milks roughly 300 cows on 650 acres, focusing on excellent calf care while utilizing DFA resources such as myDFA and Farm Services. To help improve efficiency on their operation, the Crawleys rely on easy-to-use tools like myDFA to check reports, receive industry news and ensure they have the information they need at their fingertips. The family not only depends on one another, but also tools and resources provided by DFA to keep their farm running well.

The De Snayer family in Lodi, Calif., milks a little over 1,600 cows with a focus on carrying on a family legacy left by Paula De Snayer’s late husband, Leen, who tragically passed away in an automobile accident in 2010. To help carry on the dairy, Paula has become the heart and soul of the operation.

De Snayer Dairy is currently focused on training employees, continuously improving their herd genetics program and improving their operation with a recent remodel of the milking parlor. Together with her family, Paula continues to ensure that Leen’s legacy of a positive mindset carries on today through their operation and the entire De Snayer family.

Scan the QR code with your smartphone to watch a video about our 2020 Members of Distinction. thescoop | Summer 2020

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FROM THE FARM

TECHNOLOGY

TECHNOLOGY IS HELPING OUR MEMBERS

CISCO DONATION HELPS DFA PLANTS STAY CONNECTED

From providing helpful resources and services to making strategic investments, it is our duty as a Cooperative to ensure our more than 13,000 family farm-owners have the tools — and technology — they need for their operations.

This is where myDFA shines. If you haven’t heard of it, the myDFA website is a personalized tool our members use to access lab results, payment statements, member information and industry news. It serves as a one-stop information source for Cooperative updates, as well as a valuable tool in day-to-day business.

“Milk quality has been a top priority over the last several years for us. We check myDFA several times each day to get a snapshot of how we’re doing with quality,” says DFA member Eldon Eberly of Eberly Family Farm in Waynesboro, Ga. Years ago, before technology played such an important role on the farm, dairy farmers didn’t have operational information at their fingertips and had to wait for updates to come back to them, causing delays in necessary adjustments to run and improve their farms. For our members, myDFA helps provide timely information in an ever-changing world to allow fast results and immediate reactions.

“Being able to look at myDFA to get the somatic cell count, react to equipment problems and look for other problems, it allows us to have that information and react immediately and not wait for a report to come back through the mail like we did years ago,” says DFA member Tim Crawley of Crawley’s Valley View Farms in Gravette, Ark. To improve this advantageous tool even more, the myDFA app was launched in late June for members to download. By utilizing the app on their smartphones, our family farmers can obtain quicker results with faster load times and offline mode functionality. Members still have access to the same information as on the myDFA website but can avoid excessive toggling and see lab results and other information with a simplified view, making important information needed for their operation easier to understand.

By creating and fine-tuning tools and resources for our members like myDFA, we’re helping our members on their operations, but we’re also ensuring our Cooperative thrives.

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The COVID-19 pandemic has changed how teams across DFA work together — from how we hold town halls and team meetings to one-on-one conversations with teammates. With 87 manufacturing facilities across the United States, this need is even greater at our plants, which must stay connected to maintain production and ensure families across the globe continue to have access to wholesome dairy products.

Thanks to a generous donation from Cisco — yes, the same Cisco that offers Webex — through its Country Digital Acceleration (CDA) program, four DFA locations have received new collaboration equipment and services to allow secure, remote access to experts and frontline support teams who are working from home or other DFA locations. In short, these tools are helping us securely leverage expertise, while adhering to social distancing guidelines that are in place across the organization.

“As an essential infrastructure, it’s critical to ensure our plants, which produce milk and dairy products to feed families around the world, continue to operate,” says Jeff Hurley, chief information officer. “Integrating Cisco collaboration technology allows our experts to safely connect across the country while staying safe.”

Our plants in Portales, N.M., Ventura, Calif., Zumbrota, Minn., and Schulenburg, Texas, are recipients of the first technology being deployed, including Cisco Webex room kits, DX80s, Webex Teams and Webex Expert on Demand software, and RealWear headsets. Webex and the DX-80s, a display model made for desktops, have been harnessed to help facilities interact with one another and share expertise from one location to another, remotely. The RealWear headsets have driven further collaboration by allowing off-site teams to see and guide on-site frontline workers, all hands-free.

For Eric Miller, engineering manager at our Portales, N.M., plant, the technology has been a game changer. “The headset has given us a link to our maintenance team that we never had,” he says. “With this technology, we are right there with the team, even if the support person is hundreds of miles away. It has helped us identify what the problems are faster and has given our team a tool that they are excited about.”

The benefits of the technology upgrades are numerous, now and into the future. They are helping to ensure a safe workplace by enabling teams to maintain social distancing, while also enhancing our ability to receive real-time remote support from contractors and other experts. While this technology is still being integrated at these facilities, the plan is to use it permanently moving forward. As well, the technology will be rolled out to other plants in the future.

“Whether it’s a professional who is on-site, or someone at another location, the headset brings them right there on the floor where the problems are,” Eric says. “In the past, we have had to send a technician to other facilities. This tool could save a facility a lot of time, money and give them peace-of-mind that help is just a Cisco Webex headset call away.”

COOPERATIVE

INNOVATION

DFA 101: DAIRY BRANDS

SHOWCASING OUR STARTUPS

DFA’s Dairy Brands Division delivers on our vision of enriching communities and consumers’ lives through all the possibilities of dairy by nourishing consumers with delicious cheese, butter, fluid milk, ice cream and cultured dairy products.

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After three months of hard work, honing their pitches, learning more about the industry and creating partnerships, the nine companies participating in DFA’s CoLAB Accelerator, an immersive program to grow ag-tech and dairy foods startups, showcased their efforts during this year’s Demo Day, Thursday, July 30.

Dairy Brands is one of three divisions within DFA’s commercial investments group, along with Beverage and Dairy Foods and Ingredient Solutions. Each division delivers value to our family farm-owners in different ways through their products and services.

“Demo Day is an important part of the program because we are able to coach the founders how best to tell the story of their business in a way that is appealing, not only to potential customers but to investors as well,” says Doug Dresslaer, director of cultural innovation. “These pitches will be used as the companies continue to grow and can be adjusted easily to the audience.”

Our Dairy Brands Division focuses on bringing consumers the fresh, locally sourced dairy they’re asking for. Divided into three units — North, South and Ice Cream — this division is made up of regional fluid milk and ice cream businesses with leading brands supported by strong customer and consumer relationships; aseptic and extended shelf-life dairy; and local and regional-branded cheese and butter products.

In partnership with T-Mobile®, Demo Day took place virtually this year but was well-received with nearly 400 attendees including potential customers, partners, investors and media. The companies gave their best pitches, told their stories and left the audience with a memorable impression.

With the acquisition of a substantial portion of Dean Foods’ assets earlier this year, we also gained nearly twice the number of brands that include regional dairies across the United States. Having a presence in these communities where we have processing facilities will continue to help us tell our farm-to-table story to consumers around the nation and showcase how our products come to life because of our passionate family farmers. As these regional brands are already well-established, Dairy Brands is in a position to grow while continuing to provide trusted, high-quality dairy products to local communities across the country.

“We look forward to watching these companies continue to grow and make a difference in the dairy industry and their communities and will explore how we can work together in the future,” Doug says.

Now in its fourth year, DFA’s CoLAB Accelerator helps us form strategic partnerships that benefit our family farm-owners. “Our goal in innovation is to find new ways to help our family farmowners be better at what they do so they can concentrate on running their farms to the best of their abilities,” Doug says. “That can be through new on-farm technologies, sustainability processes or new, innovative dairy-based food products. When we work at our best, the end product is nutritious and quality dairy products benefitting consumers and the communities where our farmers call home.”

“The structure of Dairy Brands puts locally sourced dairy at the forefront, ensuring our place in communities as consumers continue to put buying local at the top of their list,” says Alan Bernon, president and chief executive officer of Dairy Brands.

In addition, our product development and brand-specific marketing teams drive demand for our legacy marks and new creations. As a valued partner to our customers, we bring new ideas for back-end processes to help increase efficiencies — from transportation to risk management programs.

Ultimately, Dairy Brands supports our Cooperative by delivering delicious dairy products to consumers in our own neighborhoods and around the world.

The above highlights a representation of Dairy Brands.

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Breaking ground on a $30 million expansion at the DFA plant in St. Albans, Vt., in July.

PLANTS

EXPANDING AND IMPROVING From constructing a new specialty cheese powder dryer to breaking ground on an expansion, several of our plants have been busy making improvements, so we can continue to deliver superior quality products to families down the road and around the world.

DFA’s St. Albans, Vt., plant recently kicked off a $30 million investment to improve the milk processing and storage capacity of the facility.

“For decades, the St. Albans plant has been an integral part of Vermont’s dairy community,” says Leon Berthiaume, senior advisor of Vermont operations. “These investments in the plant infrastructure make Vermont dairy stronger, both now and for many more years to come.” The plant produces cream, condensed skim milk, nonfat dry milk and ice cream mixes.

In addition to increasing milk storage capacity through the purchase and installation of new silos, the project includes adding new receiving bays, which will allow for greater efficiency when receiving and unloading milk.

The modifications will also maintain the quality and safety of the products produced at the plant. “This upgrade will ensure DFA farmers in this Area will have a home for their milk in the future,” says Hans Berghorst, vice president of assets and technology. The anticipated completion date for the upgrades is this fall.

To keep the project on track during the COVID-19 pandemic, the plant utilized GoPro cameras, video conferencing tools, like Cisco Webex and Microsoft Teams, and 3D drawings to show vendors the inside of the facility. Because the plant is adding equipment to existing processing areas, using these tools allowed the team to continue the quote process, which is essential for finding the best vendor based on quality and price.

DFA’s Zumbrota, Minn., plant, which produces hard Italian cheese and specialty cheese and yogurt powders, was in the middle of the design phase for the construction of a new specialty cheese powder dryer and a wastewater treatment plant when the COVID-19 pandemic hit. Site work began on the $90 million expansion project in mid-July. When completed, 6

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the project will make the plant capable of producing 24.5 million pounds of product, will add 86,000 square feet of space to the already existing 110,000 square feet and will lower the cost of water disposal, ultimately delivering value to our family farm-owners. “We continue to look at projects through the lens of our farmer-owners,” Hans says. The expansion will also include an employee wellness area and additional office space. The bulk of the project is expected to be completed by the end of 2021.

DFA’s engineering team utilized online collaboration tools, new thinking and innovation to keep the project on track. Both projects in St. Albans, Vt., and Zumbrota, Minn., utilized a new model of project management created for large capital projects. Rather than working with one general contractor for the whole process of designing, contracting and construction, the engineering team was involved from the beginning in the design process and contracting of suppliers. Not only does this save on costs, it also allows DFA to have better control over project quality, which ultimately provides our customers with superior products.

In Bridgeton, N.J., our Cumberland Dairy plant recently completed a $22 million expansion, which added 36,000 square feet of space, increasing the plant’s extended shelf life processing capacity. Other updates to the plant include robotic palletizing, additional aseptic tanks with computer-controlled aseptic valving and two new extended shelf life filling lines.

“We’re seeing continued interest in extended shelf life products from our key customers, and this investment will help us continue to grow and meet their needs,” says Carmine Catalana IV, president of Cumberland Dairy. The plant produces ultra-pasteurized fluid milk, creams, frozen dessert mixes, non-dairy creamers, and other specialty beverages.

Even during trying times, we’re committed to improving — for our family farm-owners, for our customers and for one another.

COMMUNITY

KEEPING MILK FRESH, ONE FOOD BANK AT A TIME EMPLOYEE SPOTLIGHT

DAVE TRAUGHBER Lead driver, Mountain Area transportation It’s an early morning in Jerome, Idaho — 1:30 a.m. to be exact — when Dave Traughber begins his 12-hour shift as a lead driver for DFA. He checks in with the scheduled drivers about assigned trucks, safety checks, routes and delivery schedules for the day.

For 32 years, Dave has been involved with the dairy pickup and transportation supply chain, spending more than 10 of those years with DFA. With a rich knowledge and understanding of the dairy industry, Dave’s crew of about 20 drivers relies on him to help with any issues that may arise throughout the day. True to DFA’s value of community, Dave considers his crew to be more like family.

“DFA is truly a family,” he says. “Just like a real family, we all have our own personalities to bring to the table, and we all have the opportunity to support one another and learn from one another daily.”

Throughout these current unprecedented times, Dave plays an integral role in ensuring the safety of his crew at each farm and plant. Masks, social distancing and hand sanitizer have become essential to daily operations and he ensures all precautions are taken.

In addition to COVID-19 precautions, Dave says, “As drivers, we keep our tankers washed and sanitized so we can deliver a quality product.

We also wash the outside of our tankers, as we are proud to be part of DFA and what it stands for.”

Interacting with the other drivers, our family farm-owners and their employees, and plant receiving employees is the highlight of Dave’s day. One of his colleagues shares, “Every time you carry a conversation with Mr. Traughber, you learn something new. He is a very likable person and all farmers appreciate his level of care to the farm.”

As we’ve worked with food banks and community organizations around the country through volunteering events and our Farmers Feeding Families Fund (FFFF), we’ve heard many stories about how gallons of milk and other dairy products are providing more than just wholesome nutrition — they are providing hope during these challenging times.

Milk is one of the most requested, yet least donated items to food pantries across the country. The perishable nature of dairy, along with the need for refrigeration and storage, makes it difficult to keep in supply.

That’s why starting in September, as part of Hunger Action Month, DFA, through the FFFF, is launching a program supplying funds and resources to help food banks around the country secure needed refrigeration or increase cold storage capacity.

“We know how essential these products and funds are to communities,” says Jackie Klippenstein, senior vice president of government, industry and community relations. “It’s one of the reasons we are continuously exploring ways we can help ensure dairy is getting into the hands of those who need it most.”

Since early April, DFA has donated the equivalent of 14.8 million servings of milk. Additionally, through the generous contributions from many of our own family farm-owners and employees, our FFFF has raised nearly $550,000, with more than $225,000 going to rural community food banks where our members live and work.

At a time when many Americans continue to face unprecedented hardships as a result of the COVID-19 outbreak, our family farm-owners and employees, along with industry partners and friends in the community, have been stepping up to provide nutritious dairy products, personal protective equipment and encouragement to those in need, from coast to coast. This is just one more way we plan to help.

“We never want logistics that we can help solve to stop a willing organization from providing nutritious dairy to families in their community,” Jackie says. “This is a practical way for us to make a real difference with lasting impacts.”

Outside of work, Dave and his wife, Kellee, enjoy spending time with their family, especially their 13 grandchildren. They also love hosting travelers in a historic store they converted into a vacation rental. thescoop | Summer 2020

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BRAND TALK

TAKE A SIIP We love milk, and we also love creating new ways for people around the world to enjoy this delicious, nutritious beverage. That’s why our team at Kemps®, one of DFA’s brands known throughout the Upper Midwest, is introducing our favorite drink in a whole new way. Called Siips, this low-fat milk drink includes more than 8 grams of protein, vitamins A and D, 25% calcium and 100% real milk, straight from our family farms.

“The idea came from a meeting with our partners at Dairy Management Inc™️ (DMI),” says Rachel Kyllo, senior vice president of marketing and innovation in DFA’s Dairy Brands Division. DMI works to increase sales and demand for dairy through research, education and innovation. It manages the dairy product promotion fund, commonly known as the checkoff, with state and regional organizations, and together they implement these programs across the country.

Not that we can’t all indulge, but this milk drink was developed with some very specific people in mind. “They conducted extensive product concept testing to understand what kind of milk-based product concepts would appeal to tweens and teens,” Rachel says. The goal was to create a product that appealed to this age group, while also providing protein for power, calcium for strong bones and delicious, indulgent flavors.

That’s how Siips came to life. It was one of the top-scoring concepts to come out of the research project conducted by DMI. The team did extensive research and exploration with tweens and teens to understand what they liked most — from branding and artwork to flavors.

The team landed on three main flavors that the targeted group ranked the highest: chocolate, caramel and mocha. Chocolate milk is a staple, bringing us back to our childhood with that sweet flavor we’ll never outgrow; caramel is sweet and subtle; and mocha is rich with a jolt of caffeine to help power you through the day.

The slender, 8-ounce cans feature ribbons and swirls of brown, orange and tan colors to match each flavor, along with a white milk drop in the middle to reflect the most important ingredient, of course — milk.

It’s deliciously natural nourishment, offering a healthier option for kids as opposed to other flavored milk. “We specifically formulated this milk with a lower sugar content,” Rachel says. “Most flavored milk contains 25 to 28 grams of sugar per serving. Siips contains 18 grams of sugar per serving, which is a significant reduction.” During testing, consumers gave Siips rave reviews for its taste and creaminess.

The Kemps Research and Development (R&D) team has been working closely with the team at the DFA plant in Cabool, Mo., where production on Siips will begin soon. It will launch to a small test market in Milwaukee, Wis., beginning mid-August, at a Kroger® division called Pick ‘n Save®. The Kemps team also plans to taste test Siips in high schools and convenience stores throughout the area.

Learn more at siipsmilk.com.

dfamilk.com | © 2020 Dairy Farmers of America | August 2020

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