Dairy Farmers of America 2022 Social Responsibility Report

SOCIAL RESPONSIBILITY REPORT 2022

CONTENTS

CONTENTS

Daniel Chapman Chapman Jersey Farm LLC | Taylorsville, N.C.

PROGRESS IS A JOURNEY

02

OUR SUSTAINABILITY PILLARS

03

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CRITERIA

04

DAIRY AS A SOLUTION

06

OUR PLANET

08

GETTING TO 2030

10

ON OUR FARMS Gold Standard Dairy Program Animal care Renewable energy projects How does an anaerobic digester work?

Harnessing the power of the sun

12 13 14 15 16 17

IN OUR PLANTS On the road

18 21

OUR PARTNERS

22

OUR PEOPLE

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OUR EMPLOYEES Diversity, Equity and Inclusion Value Integrity

28 30 34

OUR MEMBERS

35

INNOVATION

36

OUR COMMUNITIES

38

DFA CARES Supporting food security Giving back Disaster assistance Veteran support Education

40 42 43 44 45 45

PROGRESS IS A JOURNEY At Dairy Farmers of America, we are passionate about delivering all the possibilities of dairy to our neighbors down the road and around the world. For us, this goes beyond getting products to grocery store shelves — it starts with taking care of our planet, our land, our communities, our family farm-owners and our employees.

We believe dairy plays a key role in solving our climate change crisis — and we are constantly striving to find more ways to reduce our greenhouse gas emissions, invest in innovation to make our business more sustainable, and engage in the communities where we live and work. Throughout 2021, we made progress on our goals and continued to evolve the business and how we deliver value to our family farm-owners.

We built upon best practices to maintain safe and healthy work environments during the second year of the COVID-19 pandemic.

We invested in sustainable initiatives, like renewable energy on our farms and in our facilities alongside business collaborations and industry partnerships to further our sustainability goals.

We evaluated and recommitted to our diversity, equity and inclusion (DEI) efforts in hiring, developing and promoting employees.

We supported our local communities through product donations, volunteer programs and fundraising efforts.

Today, we remain focused on quality, innovation and the future. Thanks to our more than 11,500 hardworking family farm-owners on more than 6,000 dairy operations across the country, and our dedicated essential employees, we continue to put the highest quality dairy products on the tables of families everywhere.

United in our shared passion for dairy, our farm families and employees remain committed to progress and quality — on our farms and in our plants, our products, our brands, our services and our way of doing business.

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Rick Smith

Randy Mooney

President and Chief Executive Officer

Chairman of the Board

2022 Social Responsibility Report

OUR SUSTAINABILITY PILLARS OUR PLANET We continued to make progress on our commitment to produce milk and other dairy products sustainably and ethically. We did this through innovative renewable energy methods like wind turbines, solar power and even methane digesters that convert animal manure to energy, along with regenerative farming practices, transportation efficiencies and partnerships with customers and industry allies. In 2021, we conducted our second materiality assessment to identify potential environmental, social and governance (ESG) issues of importance to guide our long-term business strategy (read more on pg. 4). We also remained committed to providing transparency about our sustainability goals and progress by partnering with multiple third-party organizations to validate our progress and hold us accountable to our efforts.

OUR PEOPLE This year, we continued to invest in our people and provide them with resources to be successful, especially amidst year two of a global pandemic. We continued to deliver on our mission and vision while maintaining a safe and healthy workplace, utilizing guidance from the Centers for Disease Control and Prevention (CDC), along with state and local health departments. We provided opportunities for vaccination through on-site clinics and paid time off, implemented protocols to stop the spread, and used virtual communication to collaborate while apart for those who were able to do so.

We also reaffirmed our commitment to DEI in the workplace, expanding our DEI team to work in tandem with the DEI Advisory Council to drive and execute DEI strategies across the Cooperative. We made improvements in diverse talent acquisition, training programs and community support, while acknowledging that we can always do better and continuously working toward a more inclusive environment.

In this report, you’ll see that 2021 was a year filled with progress, transparency and improvement on our social responsibility commitments, sustainability efforts and support for those who bring our vision and mission to life — our herd of family farm-owners and employees.

OUR COMMUNITIES As a purpose-driven Cooperative, our family farm-owners and employees generously donated their time and their resources to help those in need in local communities across the country. As food banks continued to face supply shortages during the pandemic, our Farmers Feeding Families Fund showed up for them with refrigeration resources and dairy products for those who need them most. In addition, we donated dairy products to local events and initiatives in the community, our people volunteered at food drives and other community enrichment projects, and our Cooperative donated funds for disaster assistance, scholarships and to combat food insecurity.

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ENVIRONMENTAL, SOCIAL AND GOVERNANCE CRITERIA We conducted our second materiality assessment in 2021 to identify potential environmental, social and governance (ESG) topics that are important to our everevolving business. The list of key topics that emerge from this assessment provide critical inputs to a well-rounded, long-term business strategy. These topics signal relevant industry trends, as well as risks to markets and business operations. We use what we learn to prioritize action areas, direct sustainability investments, and guide our communications. They also serve as the pillars from which our sustainability projects are built.

As part of our 2021 materiality assessment, we partnered with a leading sustainability consultancy to survey 23 internal and 22 external stakeholders and interview 10 stakeholders across 32 ESG issues aligned with the Global Reporting Initiative (GRI).

Important topics that emerged in our first materiality assessment in 2018, like regulatory compliance and animal care, continue to be as vital today as ever.

As we strive for positive change, we are increasingly turning our attention to new considerations that arose in our 2021 assessment related to worker and farmer safety and economic resilience, among others.

As we look toward what we can change right now and what we can plan to improve upon in the future, we know that social topics, such as diversity and inclusion and human rights, are areas of the utmost importance. Likewise, environmental topics remain as relevant as ever, and we know that we need to keep pace with rapidly evolving environmental challenges and customer expectations. We feel confident in our progress already. We are addressing both social and environmental topics not only because it’s the right thing to do for our planet and our people and animals, but also because it’s the best thing for a healthy, long-term business that’s economically resilient.

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2022 Social Responsibility Report

The topics identified as the most significant to our business include: • Economic viability and resilience of farmers • Leading the way on sustainable business practices in partnership with suppliers • Generating indirect positive economic impacts • Transparent performance reporting and communication • Generating direct economic value • Environmental laws and regulations • Greenhouse gas emissions • Recording and taking action against discrimination • Animal care on dairy farms • Human rights and ethical practices

DFA’S MATERIALITY MATRIX

POTENTIAL IMPACT OF ISSUE ON DFA

Increasing impact

DFA’s materiality assessment is aligned with the U.S. dairy industry’s 2021 materiality assessment, conducted by the Innovation Center for U.S. Dairy. To learn more and view the report, go to usdairy.com and search for “2021 materiality assessment.”

Animal care on Generating indirect positive dairy farms economic impacts Economic viability and resilience of farmers Leading the way Environmental laws on sustainable and regulations business practices in partnership with suppliers Recording and taking action against discrimination Generating direct economic value Water consumption of DFA’s activities Transparent performance reporting and communication Human rights and ethical practices Greenhouse gas emissions

ECONOMIC ENVIRONMENTAL SOCIAL

POTENTIAL IMPACT OF DFA ON ISSUE

Increasing impact dfamilk.com/sustainability

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DAIRY AS A SOLUTION

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2022 Social Responsibility Report

We’re proud to have long supported the U.N.’s 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries — developed and developing — in a global partnership.

Throughout these pages, you’ll see more about actions we’ve taken on these specific goals:

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OUR PLANET At Dairy Farmers of America, we are determined to do our part to produce dairy responsibly, ethically and sustainably. We are continually searching for new, innovative ways to conserve resources, reduce waste and work efficiently across farms, in plants and on the road.

We are proud to lead the way as the first U.S. dairy cooperative to establish a science-based target (SBT) and are striving to reduce greenhouse gas (GHG) emissions across the supply chain by 30% by the end of 2030. As part of an industry-wide collaboration on environmental sustainability through the Innovation Center for U.S. Dairy, DFA is a key contributor to the dairy industry’s commitment to become greenhouse gas neutral or better by 2050.

For our farm families, sustainability is a way of life and a responsibility for future generations. We are committed to developing solutions and sharing them with others in order to give farm families the opportunity to work the same land for generations to come.

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Griffin and Ron Honkomp Honkomp Dairy | Earlville, Iowa

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GETTING TO 2030 The entire dairy industry, from farm to manufacturer, contributes to only about 2% of total U.S. greenhouse gas emissions. But we’re focused on making improvements and doing even better.

HEALTHY SOIL Scaling regenerative agriculture practices across our farms to store more carbon in the soil

TRANSPORTATION EFFICIENCIES Optimizing routes to reduce fuel usage and minimize time on the road, and exploring low-carbon fleet options

HEALTHY COWS

CO2E EMISSIONS

Optimizing our cows’ diets, exploring the use of feed additives and continuing to elevate overall herd health to reduce emissions and keep our cows happy and healthy

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2022

We’re striving toward a goal to reduce emissions across our business by 30% by the end of2030 through transportation efficiencies, plant optimization, healthy soil and healthy cows. Not to mention, we’re also increasing our use of renewable energy methods, such as wind turbines, solar power and anaerobic digesters, all in partnership with our farmer-owners, customers and industry allies.

PLANT OPTIMIZATION

RENEWABLE ENERGY

Increasing efficiencies in our dairy manufacturing facilities to optimize manufacturing systems, reduce energy demand and increase the use of renewable energy

Increasing the use of solar panels and wind turbines to turn nature’s natural elements into energy for farms, homes and local businesses

MANURE MANAGEMENT

COLLABORATIONS AND PARTNERSHIPS

Driving adoption of advanced manure management practices, such as using anaerobic digestors, to turn cow manure into energy

We know we can’t tackle this alone. We’re proud to partner with others, including our family farm-owners,, customers, industry groups and more, to drive innovation and help reduce greenhouse gas emissions

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ON OUR FARMS Taking care of our planet isn’t just an initiative — it’s a responsibility that our family farm-owners have always taken to heart. U.S. dairy farmers have long focused on improving efficiencies in their herds by optimizing feed rations, improving cow genetics, and always placing a strong emphasis on herd health. And through investments in innovative renewable energy methods, like wind turbines, solar power and even methane digesters that convert animal manure to energy, our family farm-owners are doing their part to reduce their environmental impact.

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Si-Ellen Farms Employees Si-Ellen Farms | Jerome, Idaho

The Gold Standard Dairy Program covers:

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 wellbeing to environmental stewardship, employee training, and milk safety and quality, the program takes a holistic approach to modern-day farming.

Farms are evaluated every three years, which includes ensuring participation in the industrywide National Milk Producers Federation’s (NMPF) Farmers Assuring Responsible Management (FARM) program. As one of the first on-farm evaluation programs of its kind, DFA’s Gold Standard Dairy Program is our way of setting our farmers up for success.

• Producers’ manure management systems • Water and energy conservation measures • Pesticide and fertilizer usage and handling • Soil and water sampling programs, and more

Practices assessed are: • Milk testing • Milking procedures • Proper record keeping

Employees are trained on: • Animal care and handling • Milking • Employee safety, and more

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ANIMAL CARE Some things just make sense — like our family family farm-owners providing the best possible care for their animals. Not only is it the right thing to do, but it’s just good business. Our farmers treat their animals with respect and care, and in turn, their healthy, comfortable cows produce the highest-quality milk.

Through our Gold Standard Dairy Program, all of our farmers participate in and meet the FARM program guidelines. FARM is a science-based industry standard, internationally recognized and compliant with the International Organization for Standardization (ISO) — one of the first livestock animal care programs in the world to gain this recognition.

Farmers are evaluated on: • Quality of animals’ feed, nutrition and housing • Calf care practices • Role of veterinarians, nutritionists and other herd health professionals on the operation • Care for sick animals, and more

Our commitment to animal care doesn’t stop at training and evaluations. We’re always working toward improvements. That’s why we provide our family farm-owners with the resources they need, such as helpful industry documents, training opportunities, manuals, templates, employee training guidelines and helpful checklists, among others to provide the best care for their cows.

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RENEWABLE ENERGY PROJECTS Renewable energy isn’t just the way of the future — it’s here now, and we’re leading the way toward a sustainable future on our farms and in our processing plants.

DFA family farm-owners use solar panels and wind turbines to turn nature’s elements into energy to keep their farms running. Some of them even power homes and businesses in their local communities.

And all that manure produced by cows? We’re partnering with leading organizations to add anaerobic digesters to some farms, turning manure and local food scraps into energy.

RECYCLING WATER RECYCLING WIND SOLAR ANAEROBIC DIGESTER dfamilk.com/sustainability

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BREAKING IT DOWN:

HOW DOES AN ANAEROBIC DIGESTER WORK?

Think of a garbage disposal. Now think of a garbage disposal on steroids. That’s an anaerobic digester.

It takes cow manure from dairy farms and even food scraps from local restaurants and businesses and turns it into clean energy. That clean energy goes on to fuel the dairy and the towns and cities nearby.

It all comes full circle when the liquids produced from the digester are used to fertilize dairy farm crops and the solids are used for things like cows’ bedding.

IT STARTS WITH MANURE

Peter Melnik | Bar-Way Farm | Deerfield, Mass.

CONVERTS TO GREEN ENERGY

ORGANIC FERTILIZERS ENRICH THE FIELDS

HARNESSING THE POWER OF THE SUN We have helped 180 farms start capturing energy through solar projects, and we’re just getting started. We know renewable energy production is a complicated matter, so we don’t leave our farmer-owners to figure it out on their own.

To make it easy for our them to decide if a solar system makes sense for their operation, DFA Energy offers a calculator that makes solar system recommendations and shows the environmental benefits for the farm. We’re also working on a wind energy calculator to help our family farm-owners make decisions that are right for their operation.

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SOLAR PROJECTS COMPLETED

with our family farm-owners with more planned

DFA Energy is dedicated to helping our family farm-owners learn about energy opportunities best suited for their operation, including energy partnerships and information on available state and federal funds.

Paul Tillotson Cottonwood Farms | Pavilion, N.Y.

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IN OUR PLANTS Our social responsibility efforts extend well beyond our farms.

From our farms to our facilities and on the road, our journey of continuous improvement takes a holistic approach. We are constantly developing solutions to reduce or eliminate carbon emissions, feed people around the world and help communities thrive.

Through business partnerships, industry collaborations and on-site innovations, our plants create efficiencies and lead sustainable initiatives. As members of the U.S. Dairy Stewardship Commitment, we report our progress and benchmark against other industry metrics; we learn from our industry partners and apply the latest best practices to our operations. The metrics provided through regular reporting are critical to helping the U.S. dairy industry achieve our environmental goals. We take holding ourselves accountable seriously.

In partnership with expert engineering firms, we’ve continued to drive innovation and identify opportunities for further greenhouse gas (GHG) reductions and efficiency gains across our business. A number of our manufacturing facilities are undertaking energy efficiency projects to reduce our total energy consumption, in addition to our facilities that are engaged with renewable energy production, such as solar. These sustainable initiatives go beyond just meeting our environmental goals — they also provide benefits reducing costs and increasing efficiencies that are important to our business.

As a Cooperative, we’ve always been committed to producing dairy responsibly, ethically and sustainably.

Here are a few ways we do that: • Utilizing renewable energy methods, such as solar panels and wind power, on our farms and in our plants • Building more anaerobic digesters, which convert manure and food waste to energy, on farms and in plants • Creating transportation and hauling efficiencies to reduce emissions • Exploring innovative technologies and solutions to reduce emissions and promote environmental stewardship

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Pat Evancich | DFA’s Alta Dena® Dairy plant | City of Industry, Calif.

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ZERO WASTE TO LANDFILL In the United States, it is estimated that 40% of food goes unsold or uneaten, ending up, instead, as waste. This accounts for roughly 4% of all U.S. GHG emissions and 24% of landfill inputs. Many of our plants are making strides to divert their waste, including the Kemps® plant in Rochester, Minn., which produces ice cream and has achieved zero waste to landfill status. In 2021, the plant sent more than 9 million pounds of food waste to become feed for an animal nursery that it has partnered with in repurposing efforts.

Any unsellable finished product and packaging is used by the county to turn waste into energy.

In total, the Kemps plant in Rochester, Minn., diverted more than 13 million pounds of waste away from the landfill in 2021.

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MIDDLEBURY CENTER SOLAR PROJECT Our first solar project at a DFA production facility was completed in 2021, with a 1.9 megawatt (MW) ground mount solar installation at the DFA plant in Middlebury Center, Pa.

Approximately 20% of the plant’s yearly electricity needs comes from the newly installed solar panels on facility grounds.

It will generate an estimated 2,012,633 kilowatts per hour (kWh) annually, offsetting the equivalent of 1,426 metric tons (MT) of carbon dioxide equivalent each year. This usage equates to taking 307 cars off the road, or the equivalent energy use of 180 homes for a year.

ON THE ROAD At DFA, we look at changes in energy sourcing as a long-term evolution and are taking steps to reduce our impact across every aspect of our business — including transportation. With 83 manufacturing facilities throughout the United States, our processing plants are always near our supply, requiring minimal transportation so that we can provide the freshest dairy possible to customers around the world. And when it comes to hauling and trucking, some parts of our fleets have transitioned from diesel fuel to compressed natural gas to lessen our environmental footprint.

TLK Dairy | Mountain Home, Idaho

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OUR PARTNERS It takes more than a village to create the kind of sustainable, long-lasting change we’re looking to make — it takes a global community of committed partners working to achieve the same goal. That’s why we are spearheading efforts toward common social responsibility goals through transparency, accountability and progress. We are proud to support and partner with organizations around the world to find a path toward a healthier planet for the next generation to continue to care for and enjoy.

We lead the industry by having our emissions reduction targets approved by the Science Based Targets initiative, supporting the Paris Agreement’s broader goals to keep global warming well below 2 degrees Celsius.

We provide transparency and honesty about our sustainability goals and progress through our partnership with CDP, which runs a global disclosure system for environmental reporting across the world.

We hold ourselves accountable and benchmark our progress through shared industry metrics that are reported every five years by participating in the U.S. Dairy Stewardship Commitment.

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PATH TO PASTURE One of our many partner initiatives includes the Path to Pasture program with premium cultured dairy brand Good Culture® and nonprofit organization 1% for the Planet.

The Path to Pasture program aims to create a sustainable pasture-milk supply through regenerative farming practices. Through the program, funds from Good Culture will be used to help dairy farms incorporate regenerative agriculture practices and pasture access for animals to graze.

The program provides farmers with education on and access to sustainable, regenerative agriculture farming resources to create healthier soil, grow more nutrient-dense feedstuffs give animals outside pasture access to sequester carbon. This includes timeless concepts that our family farm-owners have used for decades coupled with new technology and practices.

Improvements in soil health, including development of pasture, are important parts of our overall sustainability strategy. DFA is excited to further our commitment to people, animals and the planet by fostering continuous improvement with our members through the Path to Pasture Program.

David Roberts | Roberts Dairy | Beaver, Utah

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FARM POWERED STRATEGIC ALLIANCE In late 2020, we joined forces with major food industry leaders and renewable energy partners to launch the Farm Powered Strategic Alliance (FPSA). Along with our founding partners Vanguard Renewables, Unilever and Starbucks, we are committed to reducing food waste and expanding renewable energy production across the United States.

Our goal? Eliminate food waste by repurposing what can’t be eliminated into renewable energy. It’s not an easy task, but we’re not ones to turn down a challenge.

The fact is that more than 40% of all food produced in the United States ends up being discarded. Reducing overall waste is a good first step, but even some of the unavoidable waste still gets sent to landfills or incinerators. And we’re working to change that.

Through the FPSA, partners can now recycle unavoidable food waste on farms, where it gets combined with farm manure in a Vanguard Renewables Farm Powered anaerobic digester to generate renewable natural gas (RNG).

And the alliance isn’t just tackling food waste — we’re bringing down carbon emissions while we’re at it. The alliance’s circular approach reduces the detrimental environmental impacts of CO2 emissions.

Through the alliance,16,875 tons of feedstock has been diverted from the landfill since 2012 and sent to the digester to be converted to energy, reducing GHG emissions by nearly 10,000 tons of carbon dioxide equivalent.

Anaerobic digestion can change the economics and carbon footprint of a farm, allowing generational sustainability and energy independence. We are excited to see many more of our farms and dairy processing facilities taking advantage of the new carbon economy to make a positive impact on the United States.

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Bar-Way Farm | Deerfield, Mass.

SUSTAINABLE AGRICULTURE INITIATIVE PLATFORM As members of the Sustainable Agriculture Initiative (SAI) Platform, we have banded together with more than 150 other companies and organizations to lead the way to sustainable agriculture worldwide. The SAI Platform aims to harness the collaborative power of the members working together to advance and adopt sustainable agriculture practices and create sustainable food systems.

As part of our SAI Platform membership, we have committed to the Sustainable Dairy Partnership (SDP) to make sure our values align with those we do business with across the industry. The SDP was created by stakeholders across the industry, including dairy processors, industry associations and dairy buyers, with the goal of driving continuous improvement in dairy sustainability. It provides a consistent sustainability approach in business-to-business relationships between dairy buyers and processors.

The SDP system includes: • Requirements that dairy processors and their supplying farms must meet • An assurance model that gives buyers confidence in the sustainability of the dairy products they buy from processors We’re proud to say that our customers also share in our aspirations of creating a more sustainable food system that includes high-quality dairy products.

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OUR PEOPLE Everyone in our organization plays an essential role in bringing high-quality dairy to families everywhere. From our family farm-owners to the employees who support them, our incredible team brings our vision to life every day.

This year continued to look different from the past, as we navigated through the second year of the COVID-19 pandemic. We built on best practices implemented in 2020 to maintain safe, healthy work environments and remained committed to delivering value to our family farms so they can continue to thrive for generations.

Through training opportunities and benefits, we continued to invest in our people and provide them with resources and tools to be successful. In turn, our passionate people made it possible for our organization to continue to enrich communities and consumers’ lives through all the possibilities of dairy.

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Jennifer Koolstra and Aracely Estrada Daisy Lane Dairy | Cope, Colo.

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OUR EMPLOYEES Nothing is more important to us than the health and safety of our employees, especially during the COVID-19 pandemic. Addressing unforeseen challenges of the pandemic hasn’t always been easy, but guided by our values, we continued to deliver on our mission and vision while maintaining a safe and healthy workplace. Our nearly 18,000 employees at more than 400 locations adapted to new ways of working and communicating with flexibility and patience. Our essential workers across the country who showed up day in and day out demonstrated their unwavering commitment to nourishing families near and far through the simple pleasures of real dairy.

With an ever-evolving situation, we followed guidance from the Centers for Disease Control and Prevention (CDC), along with state and local health departments, to make decisions in the best interest of our employees.

This included regularly reassessing and reevaluating our standard operating practices, implementing protocols aimed at preventing the spread, and facilitating vaccination opportunities for our employees.

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Dora Torres and Eric Jones DFA’s Alta Dena® Dairy plant | City of Industry, Calif.

Vaccination Regardless of any personal stance on vaccinations, having employees vaccinated ensures a safer work environment for everyone and benefits our business. To support those following vaccination recommendations, we hosted more than 100 vaccination clinics with community partners or at plants. In addition, we offered paid time off for employees to receive their initial vaccination and/or boosters, up to two hours per dose for hourly employees.

COVID-19 Paid Leave Through our Temporary COVID-19 Paid Leave for Vaccinated Employees Policy, we provide up to 40 hours within a 5-day period of paid leave for eligible vaccinated employees.

Virtual Communication For those who typically work in offices, collaboration and connectivity is in the DNA of our culture. To keep in touch while we were apart, employees used virtual collaboration tools and video when being in an office was not possible.

Counseling Services We know mental health is just as important as physical health. That’s why we offer employees and their family members access to counseling and other support services via our Employee Assistance Program, through New Directions®, to take care of themselves mentally and emotionally.

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600+

DEI-RELATED COURSES THROUGH OUR ONLINE LEARNING SYSTEM FOR EMPLOYEES TO BUILD EDUCATION AND AWARENESS

At DFA, we believe that a diverse workforce drives better business decisions, more creativity, more effective problem-solving, and stronger customer and consumer relationships. Those are a few of the many reasons we focus on maintaining a workplace that reflects the diversity of the communities where we live, operate and serve. This means we remain committed to creating and promoting a culture that welcomes everyone, regardless of their race, ethnicity, sexual orientation, gender identity, religion or disability.

We established our Diversity, Equity and Inclusion (DEI) Advisory Council in 2020 with 22 employees from around the country and Cooperative who assessed the current state of diversity and inclusion at DFA, identified priority areas for improvement and began building a foundation for a long-term strategy.

We’ve made progress since then, but we know we can always do better. That’s why we are continuously evaluating, reflecting and improving on our goals.

The priority areas our DEI Advisory Council identified fall into five categories: communication and feedback, community engagement, employee engagement and retention, talent acquisition and recruiting, and training and education. We made strides in each of these priority areas, while remaining aware that continuous evaluation and improvement is paramount in each of these efforts.

BY THE NUMBERS • 3.25% increase in racially and ethnically diverse hires first/midlevel officials and managers* from 2020 to 2021 • 2.65% increase in female hires in first/mid-level officials* and managers from 2020 to 2021 • 5% of our executives, 21% of managers and 15% of our professionals belong to an ethnic/racial minority group • 23% of our executives, 20% of managers and 39% of our professionals are women • Roughly 7% of our management and executive team are veterans *As defined by Equal Employment Opportunity (EEO) categories

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150+

DEI AMBASSADORS WERE ONBOARDED ACROSS 54+ LOCATIONS

600+

DEI TRAINING HOURS COMPLETED

OUR PROGRESS IN 2021 Communications and Feedback: Launched and updated DEI web pages on our employee intranet, The Parlor, dfamilk.com, and the DFA career site to provide education and resources for current and potential DFA employees Community Engagement: Created the DEI Scholarship Program to attract more diverse students to the dairy industry and DFA 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 minority-serving institutions 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.

Terry Johnson and Joanie Baucum-Robinson DFA Headquarters | Kansas City, Kan.

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OUR PRIORITIES IN 2022 In 2021, employees weighed in through our employee engagement survey, allowing for feedback for the first time on diversity and inclusion. While our journey to having a more inclusive Cooperative is just getting started, we are encouraged that 8 out of 10 employees said they felt that they can bring their authentic selves to work and be accepted.

As we continue to make progress toward a more diverse and inclusive workplace, our employees also shared insights into areas where we can do a better job, like promoting and encouraging diversity across the organization. Guided by employee feedback and recommendations from the DEI Advisory Council and teams, we’re aiming to do better in 2022 — because a more diverse, equitable and inclusive culture is better for everyone.

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Communications 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: Connecting with diverse students and organizations through scholarships, grants and community giveback efforts where our DFA community lives and works Employee Engagement: Launching an Employee Resource Group Program Talent Acquisition: Enhancing hiring practices and diversifying the applicant pool Training and Education: Incorporating DEI goals in employees’ performance and development routines Partnerships To maintain a workforce reflective of the communities in which we live, operate and serve, we partner with organizations across the country who share in our commitment to diversity and inclusion to support our communities

OUR PARTNERS:

Christine White and George Kelley DFA Headquarters | Kansas City, Kan.

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We are a purpose-driven cooperative, working to enrich communities and consumers’ lives through all the possibilities of dairy. As a Cooperative, we strive to live our values of passion, quality, integrity and community not only through our day-to-day work, but also in our relationships and interactions with our family farm-owners, our customers and one another.

Our Value Integrity compliance program reminds us that everyone is expected to adhere to the highest standards of ethical conduct every day in every way. As part of our Value Integrity Week in 2021, employees completed their Code of Conduct training, participated in activities and recognized peers as Value Integrity All-Stars for demonstrating the highest levels of integrity. In addition, employees were reminded of the Integrity Helpline, which allows them to report any concerns of suspected illegal, unethical or improper conduct in the workplace.

In addition, we are proud members of Suppliers Ethical Data Exchange (SEDEX), one of the world’s leading online platforms for companies to manage and improve working conditions in global supply chains.

SEDEX aims to help companies improve their responsible and sustainable business practices and source responsibly through practical tools, services and a community network.

As part of our commitment to our customers and continuous improvement, many of our plants have completed the SEDEX Members Ethical Trade Audit (SMETA) over the past few years. SMETA is one of the most widely used and recognized audit formats in the world to assess responsible supply chain activities, including labor rights, health and safety, environment and business ethics. In 2021, SEDEX audits were conducted at 14 of our facilities.

We take the results seriously, and we meet regularly to discuss audit findings, corrective actions to be taken and progress made.

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BY THE NUMBERS

303

EMPLOYEES RECOGNIZED AS VALUE INTEGRITY ALL-STARS

140

VALUE INTEGRITY LIAISONS THROUGHOUT THE COOPERATIVE

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EMPLOYEES SIT ON THE VALUE INTEGRITY LEADERSHIP COUNCIL

OUR MEMBERS The family farmers who own DFA are all united in their shared passion for dairy, and at the same time, all have different needs. As an organization, we deliver value to our family farms so they can continue to thrive for generations.

In 2021, the National Dairy FARM Program launched its workforce development (WFD) module as part of an industry-wide set of on-farm standards. The WFD module is a tool designed to encourage best practices in employee management processes and procedures, and promote positive human resources and safety outcomes on dairies. As a voluntary program, DFA member farms may undergo the evaluation to understand areas of strength and weakness in their employee management process, and set goals to work toward areas of improvement or increased documentation.

FARM WFD evaluators are trained and certified to support dairy producers in their development of strong human resource practices, documentation and record keeping, and ensuring safety measures are established on the farm.

Evaluators provide resources and expertise in what is required on the farm in these topics. Within DFA, 15 of those certified evaluators are from our field staff, with 42 evaluations conducted on DFA member farms so far.

We are passionate about the land we are charged to protect, the animals we care for, and the employees we work with, and the WFD module aligns with our values. This helps fuel us to be the best at what we do — delivering all the possibilities of dairy to our neighbors down the road and around the world.

Gary Haines Haines Farms | Stockport, Ohio

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INNOVATION Collaboration is the name of the game. It’s what our entire Cooperative is based on. Ideas that stem from our community of family farm-owners and employees around the world will shape our future and the future of dairy.

To foster new ideas, our CoLab innovation program focuses on collaboration across our Cooperative through different initiatives.

COLAB CONNECT CoLab Connect is an online idea submission forum for our family farm-owners and employees to share their ideas so we can put them into action. From big to small — and everything in between — DFA’s innovation team monitors ideas submitted to CoLAB Connect to start turning those big ideas into the next big thing.

COLAB CONVERSATIONS CoLAB Conversations are brainstorming sessions to tackle problems, develop ideas and inspire creative thinking. We tailor sessions to each group’s needs, making it easier than ever for teams to collaborate.

MILK BAR SESSIONS Milk Bar sessions are bi-monthly virtual events to connect employees to the latest news, trends and projects happening throughout the Cooperative.

TALK DAIRY TO ME Talk Dairy to Me is our monthly podcast that explores new and exciting things happening at DFA and within the industry as a whole. Search for Talk Dairy to Me wherever you listen to podcasts to join us as we bring you some of the innovation happening in dairy.

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Doug Dresslaer and Alexa Cubbage DFA Headquarters | Kansas City, Kan.

COLAB ACCELERATOR Our CoLab Accelerator is a 90-day program that accelerates and grows ag-tech and dairy foods startup businesses. Through mentoring and educational programming, DFA and industry leaders support various startups across the dairy value chain.

2021 DFA CoLAB Accelerator class: CattleEye – Aims to deliver a deep learning, cloud-based AI platform that is designed to interpret visual imagery of cattle from industry standard web cameras DairyOffice – Designed as a central location for all data sets collected on a farm, this platform is built to integrate with herd management software and sensors, feed systems and ration formulation programs H2Ok Innovations – Data analytics platform and propriety sensor that is designed to help manufacturers gain comprehensive, real-time visibility into industrial liquid systems VERI Nano – Created a patent-pending nanotechnology that is utilized as a bovine teat sealant, disinfectant, antimicrobial coating, skin care and wound care treatment Saga Ventures – Designed a single-serve cheese snacking bar to provide healthy and satiable fuel between meals SimpliFed – Utilizing the latest nutritional and microbiome science to develop a better, personalized organic formula and nutrition supplements to bridge the gap between breast milk and infant formula The Modern Milkman – Designed an online platform that offers fresh, local quality products that are delivered right to your doorstep

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OUR COMMUNIT We are a purpose-driven cooperative, working to enrich communities and consumers’ lives through all the possibilities of dairy. We are dedicated to giving back in all the ways we can — from sharing nourishment to those in need to supporting the next generation of dairy advocates and so much more.

This year, our family family farm-owners and employees donated 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.

In 2021, we launched our first volunteer logging system — an easy way for our employees to track, map and share all the ways they give back in their communities. We look forward to continuing to show up and serve our local communities in 2022 and to share more about all the ways the DFA family is making a difference.

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Julie Lux and Krista Merrill DFA Headquarters | Kansas City, Kan.

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Working to enrich community has always been deeply ingrained in our culture. The DFA Cares Foundation brings our commitment to community to life. Our efforts are rooted in four pillars — food security, disaster relief, veteran support, and education. We care deeply about the wellbeing of our neighbors and friends, and in 2021 our family farmowners and employees showed up for others and the community in a big way.

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Chiandria Crowe and friend, Anastasia Turner and Dwain Wooley Dairy Brands | Dallas, Texas

What we’re doing: • La Vaquita® celebrated its 50th anniversary by donating 13,000 pounds of its signature queso fresco cheese to the Houston Food Bank in honor of World Food Day on October 16. La Vaquita employees also volunteered their time on-site at the food bank • Employees from the DFA plant in Goshen, Ind., partnered with the Salvation Army to pack food boxes — including 50 bags of Borden Cheese sticks donated by the plant — for local families during June Dairy Month • In Kansas, DFA headquarters partnered with JuneteenthKC, a nonprofit organization leading Kansas City’s Juneteenth community celebration, to serve families in the Greater KC area by hosting mobile distribution events every Thursday throughout the month. Along with hygiene products, pantry items, family support essentials and more, DFA donated and distributed milk for the drive-thru event, and employees volunteered at the events. Throughout the month, more than 65 employees volunteered, impacting 260 families. DFA also donated 576 individually wrapped ice cream sandwiches for children attending the Juneteenth Festival

GIVING OUR TIME Our commitment to the community goes beyond producing wholesome dairy products for consumers to enjoy. At DFA, it is our responsibility to help those in need and lend a helping hand through volunteer efforts. Here are just a few examples of the many ways we’re going beyond the dairy aisle and helping feed communities.

• Employees in Dallas joined the North Texas Food Bank in a drive-thru event to provide nonperishable items to families in need, serving nearly 700 families. DFA employees also supported a drive-thru event celebrating Juneteenth at the Martin Luther King, Jr. Community Center, where 30 employees distributed a gallon of milk each to nearly 500 families in partnership with DFA’s Oak Farms plant • DFA’s retail store, St. Albans Creamery and Supply, in St. Albans, Vt., donates to various causes throughout their community, including yogurt to the local FFA and first responders, ice cream to the town’s teacher appreciation dinner, chocolate milk for bike riders during an annual charity bike race, mozzarella and a cooler to the Fairfield Community Center’s food shelf, and more • In our Western Area, employees and members donated milk and snacks to local first responders in honor of June Dairy Month

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SUPPORTING FOOD SECURITY Through our Farmers Feeding Families Fund (FFFF), which started in April 2020 with a generous donation from one of DFA’s family family farm-owners, food banks and pantries across the country receive financial support that allows them to offer dairy products to those in need.

Since its inception, the fund has raised more than $860,000 and provided funding for the purchase of dairy products for more than 300 food banks.

With milk being one of the most requested, yet least donated items to food pantries across the country because of its perishable nature, refrigerator donations from the FFFF provide longterm infrastructure improvements that make it possible for these organizations to continue to offer dairy products to those they serve for years to come. During Feeding America’s Hunger Action Month in September, DFA announced the donation of 21 refrigerators and more than 225,000 servings of milk to local food pantries in 20 states, in addition to monetary donations to keep those fridges stocked through 2021.

Throughout 2021, these efforts provided the equivalent of more than 10.2 million

servings of milk donated to those in need.

AT A GLANCE The equivalent of

10.2 million

SERVINGS OF MILK DONATED TO THOSE IN NEED

2 million

SHELF-STABLE MILK CARTONS DONATED TO DATE

throughout the U.S. via The Giving Cow Project launched by Kemps®, part of DFA’s family of brands The equivalent of

380,150

GALLONS OF MILK DONATED

335

Donated to

FOOD BANKS TO PURCHASE DAIRY PRODUCTS

591

COMMUNITIES POSITIVELY IMPACTED

through refrigerator, monetary and dairy donations

42

REFRIGERATORS DONATED

Supported feeding organizations in

50 states

WASHINGTON, D.C., AND PUERTO RICO TO-DATE

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GIVING BACK DFA employees across the Cooperative spread cheer last holiday season and helped those who needed it most: • Alta Dena® Dairy employees participated in a toy drive and donated wrapped toys to families and organizations in need • Dean’s® Dairy employees passed out candy and cartons of milk at a holiday light parade • Employees at the DFA office in Belleville, Wis., donated cookies, Kemps milk and even a visit from Santa himself to a holiday drive-thru celebration • Employees at the DFA plant in Cass City, Mich., donated wrapped gifts to a family of four who lost their home to a fire • Employees at the DFA office in Mansfield, Mass., collected gifts to donate to a local family of six for the holidays • Friendly’s® employees donated 347 pounds of food to a local food pantry from a plant-wide food drive • Guida’s Dairy sponsored a holiday lights fundraiser and distributed free milk vouchers to cars that drove through, in addition to 1,200 gallons of whole milk to a local food pantry • Hygeia® Dairy distributed 1,000 gallons of milk to community members in need • Meadow Gold® Dairy conducted a warm clothing drive and donated six bags of clothes and a box of food to a local community organization • DFA locations in New Wilmington and West Middlesex, Pa., distributed hats and mittens to seven local schools for children in need • Oak Farms® Dairy employees delivered gallons of fresh milk to four senior citizen centers • The Mideast Area raised $2,705 for its local community • In addition to donating 150 meals for families in need, employees at DFA’s Kansas City, Kan., headquarters also volunteered to wrap gifts for senior citizens, purchased gifts for those in need and rounded up their purchases in the Café to raise an additional $446 for the DFA Cares Foundation

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DISASTER ASSISTANCE Through the DFA Cares Foundation, we fulfill our core value of community by helping with disaster relief through product and monetary donations wherever we can.

$

50,000

DONATED TO TEXAS-AREA FOOD BANKS for families impacted by winter storms and power outages

$

37,000

IN ASSISTANCE DONATED TO 16 FAMILIES in agriculture who were impacted by natural disasters

MORE THAN

24,000 CANS OF SPORT SHAKE® DONATED

to families impacted by tornadoes in the state of Kentucky

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MORE THAN

45,000 CANS OF SPORT SHAKE DONATED

to Convoy of Hope for disaster relief in Haiti, Mexico, St. Vincent and elsewhere

55,500 POUNDS

OF POWDERED DAIRY INGREDIENTS DONATED

to Convoy of Hope for relief efforts around the world

VETERAN SUPPORT In honor of veterans in our DFA community and across the country, the Farmers Feeding Families Fund donated $10,000 to Feed Our Vets®, a nonprofit organization focused on providing nutritional support to the growing number of veterans facing food insecurity in the United States.

DFA’s donation supported Feed Our Vets’ initiatives, including: • Community food pantries that provide regular, free food distributions • Wal-Mart gift card program for food purchases • Public education and outreach to veterans and their families We look forward to exploring other ways in which we can bring nutritious dairy products and food security to veterans and their families in communities across the country.

EDUCATION At DFA, we recognize the importance of developing future leaders in the dairy industry and are committed to investing in their education. Through our DFA Cares scholarship programs, we mentor and support students from across the country to become the next generation of agriculture advocates.

In 2021, DFA Cares awarded $65,000 in scholarships to 45 students pursuing future careers in dairy. In addition, we worked with partners such as Agriculture Future of America (AFA), National FFA Organization, INROADS and Minorities in Agriculture, Natural Resources and Related Sciences (MANRRS) to invest in a more diverse set of talented students, providing $30,000 in additional scholarships.

We are also committed to educating consumers about the nutritional benefit of dairy products through our community activities. For example, DFA-owned brands TruMoo® and Oak Farms® Dairy sponsored the annual Dallas YMCA Turkey Trot on Thanksgiving Day to raise money for the YMCA of Metropolitan Dallas Community Health programs for children, adults and families. Volunteers helped set up for the race, hand out TruMoo and Oak Farms Dairy milk to runners and clean up afterward.

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FORWARD MOMENTUM We’re proud of our continued growth in 2021 and the progress we made toward our goals across all aspects of our business. At the same time, we aim to do even better every year. We know that slow and steady wins the race — that’s why we’re committed to achieving big changes through a series of small, achievable steps.

We are thankful to our family farm-owners and our employees across the business who bring our vision of enriching communities and consumers’ lives through all the possibilities of dairy to life day-in and day-out. It is because of them that our Cooperative continues to thrive, flourish and evolve to meet the ever-changing needs and standards of our global community. From the latest regenerative farming practices to making investments for a more sustainable future, our people have always committed to doing the very best.

Because of that, the DFA mark matters.

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Mallory, Alison and Audrey Carvalho | Carvalho Dairy Farms | Crows Landing, Calif.

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SOCIAL RESPONSIBILITY REPORT 2022

dfamilk.com | © 2022 Dairy Farmers of America, Inc. | June 2022

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