




I’m proud that Foremost Farms has a long-standing commitment to sustainable practices and that we are continuing to build and evolve our environmental stewardship practices. Our sustainability philosophy integrates environmental, social and governance principles into business processes to provide safe, healthy and nutritious food while decreasing our environmental footprint and enhancing the well-being of our communities. It begins on the member-owners’ farms and can be identified throughout our dairy manufacturing plants and offices.
As a cooperative of dairy farmers, the Foremost Farms Board of Directors has always recognized the importance of sustainability, and they proactively formed a Sustainability Committee. This enables our Board to stay informed and engaged with our Sustainability Council of executive leadership team members and cross-functional employees. The Council identifies and implements opportunities to continually make improvements in sustainability and to engage all employees across the cooperative. They meet regularly to develop and execute these sustainability strategies.
We also have employees with roles that are specifically dedicated to the oversight of sustainability initiatives, data collection and education at both the farm and business levels. They also provide industry updates related to sustainability in agriculture and offer engaging events to improve Foremost Farms' collective efforts to "Take Care of Our World" from farm to fork.
Sustainability has always been part of Foremost Farms and will play an even more essential role in our future. I invite you to learn more about our sustainability program, progress and goals for the future through this report. I am proud of and grateful for the many member-owners and employees who make this progress possible.
Thank you for your interest.
Greg Schlafer President & CEOOur Mission is to create value for our dairy farm families by partnering with our customers to deliver high quality, nutritious, safe and sustainable milk products to the marketplace.
We are one team, collaborating with care and respect for each other, learning and continually growing in our personal and professional lives and working safely in all we do.
We work with integrity, building trusted relationships, uncompromising quality and doing the right thing with passion, honesty and commitment.
We are a force for good, a Dairy Co-op that is serving our member-owners, innovating with our customers and contributing to our communities.
Force for Good Demonstrated Values
We take care of our world, serving as good stewards of the earth, focusing on the environment and sustainability and producing wholesome, nutritious products.
Circle of Excellence represents the best of our culture. When someone goes above and beyond to make a positive impact for Foremost Farms USA’s employees, member-owners or customers they deserve to be recognized in meaningful and memorable ways. This program allows everyone who works at Foremost Farms to nominate their coworkers to help them receive the recognition they deserve for being outstanding representatives of Foremost’s mission, values and purpose.
The member-owners of Foremost Farms focus on animal care and nutrition so they can produce and supply their cooperative with high-quality milk that has superior butterfat and protein content. They are also becoming increasingly engaged in sustainable farming practices to make a difference today and to ensure a better environment for future generations.
6B
POUNDS OF MILK RECEIVED FROM MEMBER-OWNERS IN 2022
For nearly 30 years, we have produced our premium Wisconsin cheeses using the highest quality Grade A and rBST-free milk from the member-owners’ dairy farms. Cheese varieties we produce include Cheddar, Monterey Jack, Brick, Mozzarella, Muenster, Provolone and Asadero.
507M
POUNDS OF CHEESE PRODUCED IN 2022
Foremost Farms makes our award-winning butter with 100% real cream and all-natural ingredients, which results in impeccable flavor and texture. All our butter meets USDA Grade AA specifications, including our Kosherand Halal-certified butter.
52M
POUNDS OF BUTTER PRODUCED IN 2022
Foremost Farms’ dairy ingredients business provides fluid and powdered products that deliver exceptional nutrition, quality and superior functionality in the food, beverage, infant nutrition and animal feed markets. Our ingredients are by-products of our Italian and American cheese manufacturing operations, including whey, lactose and whey protein concentrates.
227M
POUNDS OF DAIRY INGREDIENTS PRODUCED IN 2022
*2022 FFUSA data, rounded.
The dairy supply chain at Foremost Farms begins on memberowner dairy farms and continues until our customers receive the cheese, butter, milk and dairy ingredients produced in Foremost Farms plants.
1/3
Of our milk goes directly to customers
863
MEMBER-OWNER
FARMERS IN 2022
• Test milk for safety & quality
• Store & cool
• Pasteurize milk
• Separate curd from whey (liquid)
• Make cheese!
Foremost Farms coordinates 1/3 of our freight using national and regional haulers shipping across the United States
It takes 10lbs of milk to produce 1lb of cheese
6B POUNDS OF MILK PER YEAR
*
* 60 HAULERS USED TO DELIVER MILK
Before cheese is shipped, it’s packaged in our plants
Product is distributed as committed orders or held to sell in the future
2/3
Of our customers handle their own freight
Foremost Farms is a cooperative that is owned and led by dairy farmer members, including a Board of Directors (BOD) that have oversight of the business, including policies and the rules and regulations that influence the management and operations of the cooperative. BOD committees, including Capital, Governance, Audit, Terms and Conditions, Risk Management, Resolutions and Sustainability provide decisions that impact the cooperative, environment and people.
Foremost Farms’ membership territory is sectioned into districts. Each member-owner is assigned to a district and a general BOD member is elected from each district. Additionally, the cooperative has three high-volume and up to two independent BOD positions. All BOD positions are three-year terms. Districts are frequently re-evaluated and recommended by a Redistricting Committee and approved by the BOD to ensure equal representation.
Delegates and Alternate Delegates are elected from their respective districts for one-year terms at annual district meetings by those in attendance. One Delegate is elected for every ten voting members in each district.
Each District and high-volume area elect a Nominating Committee of member-owners to solicit and prepare nominations for individuals to serve as their general and high-volume directors. The term for the Nominating Committee members is three years.
Voting Member Owners
Board of Directors (19) Delegates
District Directors (15)
High Volume Directors* (3) Independent Directors (1)
President & CEO
Board Level Committees
Executive Leadership Team Employees
Talent & Compensation Resolutions
Sustainability
*18M lbs of milk required to be produced per year to qualify as a high-volume director
Now, more than ever, it is important for Foremost Farms to have a voice in the industry. Members of the executive leadership team and other employees represent the cooperative in influential dairy and agricultural organizations by participating as board members, collaborating on critical projects and initiatives, serving as speakers and educators and understanding the latest opportunities and trends to keep the cooperative and industry moving forward in a positive direction. The organizations listed on this page represent some of the places where Foremost Farms served the member-owner dairy farmers and the cooperative in 2022 to maintain long-term viability of the dairy industry.
In 2022, Foremost Farms worked with our insurance providers to understand physical climate risks associated with our processing plants. On-site assessments and in-depth computational analysis identified the greatest climate risks are associated with flood zones, stormwater flooding and roof collapse from snow load and drift.
Multiple actions throughout the year strengthened our climate resilience and reduced our loss expectancies associated with climate disasters. Flood and stormwater emergency response plans were developed, and roof areas were evaluated and improved to prevent collapse and withstand snow drift loading. Foremost will continue to partner with our insurance providers to receive mitigation recommendations and address outstanding climate exposures.
Actionable risk: A potential risk that is capable of being addressed or mitigated
Inherent risk: The natural level of risk present in a process or activity without doing anything to reduce the likelihood or mitigate the severity of the risk
In 2022, Foremost Farms created awareness and engagement around our sustainability commitments. Member-owners and employees learned about cooperative-wide goals and how their roles contribute to implementing sustainability commitments.
Equipping employees with skills and resources to understand the environmental and social impacts of Foremost’s operations was a key initiative in 2022. It is important for employees to view the cooperative’s business decisions and operational processes through a sustainability lens. Therefore, at Foremost processing plants, dashboards are on display to show employee safety incident rates, first pass quality yield, energy and water usage and greenhouse gas emissions (GHG). These dashboards increase the visibility of sustainability performance indicators and drive continuous improvement conversations.
Employees were offered numerous sustainability engagement opportunities during 2022. New employees learned about the foundations of environmental, social, governance while being introduced to Foremost’s organizational values, sustainability strategy, long-term commitments, partnerships and initiatives. All employees were offered learning opportunities through Foremost’s “Net Zero Lunch N’ Learn,” “Sustainability Leadership” LinkedIn Learning collection, internal success stories, Earth Week celebration, 30x30 nature challenge, Adopt-A-Highway cleanup events and a sustainability strategy road show. Additionally, Foremost’s Circle of Excellence program includes a category for “Take Care of Our World,” which is one of the cooperative’s four core values, and rewards and recognizes employees who go above and beyond their job description to uphold environmental and social values.
Independent dairy farm member-owners are vital to current and future sustainability efforts of Foremost Farms. Through the BOD Sustainability Committee, member-owners shape the best approaches for on-farm sustainability and are essential stakeholders in conversations about natural resource utilization, land stewardship, food security, workforce development and animal welfare.
Sustainability efforts at the farm level are supported through Foremost’s cross-industry partnerships, educational resources and in-depth data collection. Strategic partnerships with industry leaders and customers provided flexible funding to cost-share projects that scale the adoption of regenerative agriculture practices while improving soil health, sequestering carbon and protecting water quality. These partnership programs gave member-owners the ability to implement regenerative agriculture practices that fit their unique operations while aligning with their on-farm goals and objectives. Educational resources introduced benefits of leveraging available on-farm conservation projects, highlighted success stories from peer dairy farms and shared industry wide trends that influence adoption of on-farm sustainability practices. Data collection related to resource consumption and on-farm practices positioned Foremost to tell the story of member-owner dairy farms and accredit them for sustainability transitions they already accomplished.
In 2022, Foremost Farms conducted our first materiality assessment using the Global Reporting Initiative’s (GRI) guidelines to identify and align our sustainability priorities with the environmental, social, governance (ESG) issues that are significant to internal and external stakeholders who took the assessment.
Foremost’s Sustainability Council compiled ESG issues from the following frameworks’ suggestions:
• U.S. Dairy Stewardship Commitment
• 11 criteria for the Dairy Sustainability Framework
• SASB Materiality Map for food retailers & distributors and meat, poultry and dairy
• U.S. Dairy Materiality Matrix
• Carbon Disclosure Project
• Task Force on Climate Related Financial Disclosures
• UN Sustainable Development Goals
• GRI G4 Food Processing Sector Disclosures
• Customer Inquiries/ Surveys
The Foremost Farms Sustainability Council, Sustainability Committee and Executive Leadership team determined 35 high impact ESG issues to focus on in the materiality survey, out of more than 100 total ESG-related questions. ESG issues excluded were not relevant to Foremost Farms because of operating regions, supply chain stakeholders and markets served.
The survey was completed by about 400 employees, 12 BOD members-owners, three customers, eight suppliers and two associations representing the U.S. Dairy industry. Stakeholders assessed each ESG issue from the following perspectives:
• Importance: personal importance
• Impact: actual or potential impact Foremost’ operations have on the issue
• Influence: the level of control Foremost has on managing the issue and its associated impacts
The cooperative identified 13 priority issues: ten material issues identified by the materiality survey in addition to GHG management, water conservation and water quality that Foremost Farms adopted in the U.S. Dairy Stewardship Commitment in 2018, pledging to “achieve greenhouse gas (GHG) neutrality or better, optimize water use while maximizing recycling and improve water quality by optimizing utilization of manure and nutrients” by 2050.
Survey results were aggregated and weighted by stakeholder group and placed on a materiality matrix, which can be found on pg. 13. The matrix identifies ESG issues that ranked the highest on the three perspectives of importance, impact and influence.
The materiality assessment created a baseline understanding of where to focus our sustainability efforts to create transformational change that will have positive effects on the entire industry.
All ESG issues included in the materiality assessment, regardless of ranking, are important to create a sustainable world. The aim of the materiality assessment is not to isolate topics ranked lower but to prioritize ESG issues where Foremost Farms can have the highest positive impact. Continual review and evaluation of the materiality assessment and associated commitments will uphold the mission and philosophy of future stakeholders.
TIER 1: Priority issues core to Foremost Farms strategy
• Product Safety & Quality
• Occupational Health & Safety
• Environmental Compliance
• Ingredient Traceability
• Farmer Livelihoods
• Employee Training & Education
• Wastewater Management
• Healthy and Affordable Food
• Animal Care
• Customer Privacy
TIER 2: Significant issues to maintain oversight on
• Workforce Development
• Natural Resource Management
• Procurement/Sourcing
• Antibiotic Use
• Water Conservation*
• Employee Engagement
• Labor Management/Relations
• Water Quality*
• Governance Structure
• Market Development
• Waste Management
• Transportation
• GHG Emissions*
• Land Management
• Nutrient Management
• Gender Equality
• Energy Management
• Marketing Communications
TIER 3: Issues of importance to approach with focused strategy
• Economic Development
• Community Engagement
• Climate Resiliency
• Air Quality
• Employee Diversity
• Animal & Feed Sourcing
• Biodiversity
* = sustainability issues adopted through our adoption of the U.S. Dairy Stewardship Commitment through the Innovation Center for U.S. Dairy regardless of materiality results
Our 13 areas of sustainability commitment help Foremost Farms uphold our mission, values and purpose and approach decisions with consideration for member-owner families, employees, customers, communities and the planet. Our three-pillar sustainability strategy is a result of the materiality assessment and recognizes the responsibility the cooperative has for people, the planet and food.
“In 2015 the United Nations developed the Sustainable Development Goals (SDGs) which provide a shared blueprint for peace and prosperity for people and the planet, now and in the future.”*
Foremost Farms’ Sustainability Commitments align with these 11 United Nations Sustainable Development Goals:
Customer Privacy
Employee Training & Education
Farmer Livelihood
Occupational Health & Safety
Animal Care
Environmental Compliance
Greenhouse Gas Management
Water Conservation
Wastewater Management
Water Quality
Healthy & Affordable Food
Ingredient Traceability
Product Safety & Quality
*https://sdgs.un.org/goals
Customer/data privacy encompasses how Foremost Farms manages data we collect from customers, suppliers, member-owners and employees; and our cybersecurity practices are critical to protecting the information. Foremost is committed to protecting data and each employee has a role to ensure it is used ethically.
To combat cybersecurity risks, employees are required to pass monthly cybersecurity training. Example training topics are phishing scams, ransomware, social media safety and document disposal, and 92% of employees with active cybersecurity accounts completed the training in 2022. If an employee fails related testing, they are enrolled in a high-risk category and are tested more often to help them improve. This third-party training empowers them to take actions that protect the data Foremost Farms needs to collect in the course of doing business.
The Information Technology (IT) team conducts routine cybersecurity audits and continuously runs vulnerability scanning and remediation across the network to manage risk. Updates proactively address vulnerabilities and mitigations are handled via automatic system patching.
• No critical vulnerabilities were identified in 2022
cybersecurity audits
• No breaches or complaints were received concerning customer privacy or loss of customer data
The IT team also used scheduled system penetration testing, which uses ethical hacking techniques to try to breach the security of the systems and identify areas that need strengthening.
• No critical issues were reported because of penetration testing
Foremost contracts with third-party expert partners to protect our systems and data. It is important that these partners have proven technology, driven to innovate as industry leaders in cybersecurity and demonstrate similar company core values.
92% OF EMPLOYEES ENROLLED WITH ACTIVE CYBERSECURITY ACCOUNTS COMPLETED SECURITY TRAINING IN 2022
Successful training and development programs ensure employees have tools and resources to excel in their roles while staying current on best practices.
Foremost Farms is committed to providing training and education to employees to promote a continuous growth mindset, support professional and personal development and to show our employees their continued development is being prioritized.
Foremost online learning management systems (LMS) are used to deliver educational courses and training programs and materials related but not limited to sustainability, people safety, ethics and integrity, business acumen and operations. Each plant tracks its required monthly training using the LMS Intertek Alchemy. Managers are expected to help employees meet the goal to complete their assigned or required training by the end of the month.
Goal setting is another method used to encourage and track employee continuous improvement. Salaried employees set individual goals that align with the organization’s strategic objectives. Progress and actions taken toward goals can be noted by the employee throughout the year using an online portal.
Employees and their managers complete annual performance reviews at year-end by referencing the goals. Additionally, Individual Development Plans (IDPs) are used for salaried employees to track long-term goals and professional development.
Annual Performance Reviews Completed
January 1st, 2022 through December 31st, 2022
Committed to Our People
Our Leadership Framework is based on leadership expectations that align with Foremost’s strategic vision and values. The concept of the framework is that everyone in the organization can be an influential leader, regardless of their title or role. We guide employees to the development resources that are essential to becoming a leader in their role, team and department.
91.5% SALARIED EXEMPT & SALARIED NON-EXEMPT
The CDR provides instruction based on research and real-world experience, using a combination of hands-on and lecture-based learning. Programs vary from basic instruction to advanced certifications on topics such as cheesemaking, cultured products, beverages, dairy ingredients, food safety, membrane processing, cheese grading and more.
Each year college scholarships are given to seven children of member-owners, and seven children of internal employees. The money is awarded to students that are continuing education with a focus in agri-business and is a way to contribute to the future viability of the dairy industry.
$42,000 DONATED TO COW-LEGE CASH SCHOLARSHIP
Leading People is a four-day, in-person course intended for people leaders within the business. Topics include building your brand, providing impactful feedback, active listening, productive conflict, hiring and selecting, leading positive change, building the culture of your team and expanding your network as a leader.
The University of Wisconsin at River Falls partners with the Wisconsin Cheese Makers Association to offer additional courses for Foremost employees. Courses include Cheesemaker’s Short Course, Hazard Analysis and Critical Control Points (HACCP) Workshop and Pasteurization Short Course.
Foremost offers tuition assistance to employees interested in obtaining a degree from an accredited college or university. Employees must have an Individual Development Plan that outlines that the educational investment is part of the employee’s development for their current role or for a job which the employee could attain in the future.
$59,000
To prepare employees for state certifications, pasteurizer training is offered twice a year at the Cooperative headquarters in Middleton, WI. This training is open to all employees who would like to operate a pasteurizer or is necessary for certain operational roles.
LinkedIn Learning is a selfpaced online learning platform available to salaried employees. Courses are based on employees’ interest and are aligned with the goals and values of the organization.
Alchemy of Leadership is a collection of courses available to all Foremost Farms employees. Courses focus on skills such as conflict management, effective communication and problem solving.
6,612 HOURS OF LEARNING THROUGH DIGITAL PLATFORMS IN 2022
As a cooperative owned by independent dairy farm families, we understand the challenges facing dairy farmers today. Farming and agriculture are the backbone of rural economy, especially in the upper Midwest. Foremost Farms supports farmer livelihood by upholding our mission to create value for our member-owners by partnering with our customers to deliver high quality, nutritious, safe and sustainable milk products to the marketplace.
For member-owners, adding value means offering incentives, awards and recognition programs for high-quality milk that meets the highest customer expectations and providing access to the best on-farm experts in animal care, milk production, risk management and environmental stewardship practices. On-farm support is managed and provided by our team of field representatives who engage, consult and work one-on-one with member-owners to address concerns, assist with regulatory and customer compliance, communicate cooperative news, share experiences and provide support.
A crucial step in advancing farmer livelihood is encouraging and developing the next generation of agricultural talent and cooperative leaders. Following the pandemic, in 2022, Foremost re-launched its participation in the National Young Cooperators Program (NYCP). This program with the National Milk Producers Federation (NMPF) provides networking opportunities for future cooperative leaders. The NYCP is a two-year commitment for participants and involves travel, leadership development, networking and attending a Foremost board meeting.
Participants in the program learn more about:
• Cooperative principles
• The role of cooperatives in processing and marketing milk and value-added dairy products
• Challenges and opportunities facing the global food industry
• Foremost’s business goals, objectives, and strategies
• Communication and advocacy training
Foremost Farms is committed to upholding Occupational Health and Safety Administration (OSHA) requirements. Foremost has a long-standing and continuously evolving Safety Management Plan (SMP) that is updated annually and executed at all operating locations. Programs in the SMP include, but are not limited to, confined space protocols, contractors and visitors’ safety, electrical safety, emergency action plans, fire protection systems, fall protection, hazard communication, hearing conservation, hot work, lock out tag out, machine safeguarding, personal protective equipment and respiratory protection.
Employee observance of safety begins during new-hire orientation. OSHA and Foremost-specific safety rules and procedures are discussed, and an agreement outlining Foremost’s safety policy is signed. Annual training on safety and health policies and procedures continues throughout an employee’s tenure. Employees are assigned safety and health inspection duties and are provided hazard recognition training on how to execute proactive safety duties. Promotion of safety process activities include management led town hall meetings and safety metric communication boards.
Foremost maintains a formal incident management process that includes reporting in the health and safety management system, ensuring employee care and conducting investigation and root cause analysis followed by corrective action and mitigation. Employee participation in incident investigation is mandated for those involved in or witnessing incidents. Numerous hazard identification and risk assessment processes are applied throughout the year, including OSHA-related department inspections, third-
party property inspections, employee-driven job hazard analysis reviews, incident investigation and root cause identification and management safety tours to elicit employee safety suggestions and feedback on unsafe conditions and behaviors. Hazard identification competency is developed and improved through annual training and monthly safety webinars for employees engaged in hazard identification and assessment techniques. Significant findings are shared throughout the cooperative and adopted by the SMP as applicable.
Foremost Farms recognizes our responsibility to ensure the animals on member-owners’ dairy farms are provided with the highest standards of animal care. Dairy farm families recognize the importance of animal care and husbandry to their farms and the cooperative’s business.
In 2009, NMPF, with support from Dairy Management Inc. (DMI), formalized animal well-being principles and guidelines into the Farmers Assuring Responsible Management (FARM) Program. The FARM Program is designed to demonstrate U.S. milk producers’ commitment to providing the highest standards of animal care, using standards that are science and outcomes-based, while maintaining facility and size neutrality. Every three years, dairy industry experts revise the FARM Animal Care Program standards. These experts include dairy farms, veterinarians, dairy cooperatives and processors who rely on the latest research to inform revisions.
All Foremost members-owners have gone through at least one second-party FARM Animal Care evaluation. Any new member must complete a FARM Animal Care evaluation within 60 days of joining the cooperative. Producers go through evaluations under current guidelines at least every three years; and annually, producers are selected at random for third-party evaluations, adding another layer of verification to the program.
Foremost Farms’ employees and member-owners also participate on FARM’s Farmer Advisory Council, the FARM Animal Care Taskforce and the Animal Health & Wellbeing Committee. Dairy farmer participants partner with cooperative and processor staff, academics and veterinarians to provide oversight to the FARM Animal Care Program.
172,000 AVERAGE SOMATIC CELL COUNT
Environmental compliance is a set of industry audited requirements, backed by science, to ensure the manufacturing and disposal of materials does not compromise the integrity of ecosystems or abuse natural resource utilization. Foremost Farms is committed to complying, and exceeding where practicable, to applicable legislation, regulations and codes of practice.
Environmental Management Plans (EMPs) are active at all facilities and managed by the Environmental Health and Safety (EHS) team. EMP tasks include, but are not limited to:
• Ammonia checks, operating procedures and release drills
• Wastewater samples
• Meter readings (electric, gas, water)
• Spill prevention control inspection
• Universal and hazardous waste inventory checklist and storage inspections
• Discharge monitoring reports
• Storm water rainfall inspections
• Effluent tests
• Fuel usage reports
• Air permit monitoring reports
• Land application reports
• Underground storage tank inspections
• Water management plans
• Permit renewals
An environmental coordinator at each processing plant manages daily, monthly, quarterly and annual tasks on the EMP. Monthly environmental coordinator meetings are held to discuss incidents, corrective action, review training and response protocols and discuss educational opportunities. Educational and training requirements are outlined in the Environmental Training Matrix
and are comprised of five primary topics. Environmental coordinators collaborate with production supervisors and plant managers monthly to discuss the EMP programs and associated action items.
An EMP scorecard is used to measure the completion of required daily, monthly, quarterly and annual testing, reporting and continued education. This scorecard is tracked and reviewed monthly at individual plants. An EHS representative completes quarterly reviews with each plant to ensure EMP tasks and requirements are being met. The EHS representative then reviews the EMP scorecards across the entire plant network to track progress and proactively address gaps or inconsistencies.
• In 2022 Foremost scored a 95.4% on completing all EMP required elements
In instances when spills or notices of non-compliance are identified, the EHS team meets with the environmental coordinator, plant manager and production supervisor to review the EMP and develop a plan for corrective action.
• 7 reportable spills occurred in 2022
GHG is important to mitigate global climate change and reduce its impact on communities and the environment. Foremost Farms recognizes agriculture can contribute to solving global climate issue, so we adopted the U.S. Dairy Stewardship Commitment in 2018 and pledged to “achieve GHG neutrality across our value chain by 2050.”
In 2022, Foremost focused on quantifying emissions sources to understand high impact reduction opportunities across scope 1, 2 and 3 categories. Through this assessment, we identified project interventions and better understand systematic limitations to achieving emission reductions across the dairy value chain. Using Foremost’s GHG inventory, we identified the three highest emissions sources are on-farm fluid milk production; electricity and natural gas from plant operations and transportation; and distribution of fluid milk and finished products. As Foremost increases rigor towards emissions abatement, we will prioritize sources as areas for intervention, while partnering with cross-industry stakeholders to de-carbonize and transition towards a GHG neutral economy. Foremost Farms member-owners have implemented conservation practices for generations. It’s important to understand and quantify emissions sources on-farm and to recognize, accredit and share the intentional conservation practices they have adopted.
level emissions modeling, sustainable agriculture education and cost-share collaborations are offered to encourage them to mitigate or capture potential emissions. Farmers Assuring Responsible Management Program- Environmental Stewardship (FARM ES) Version 2.0 is used to understand emissions sources associated with member-owner operations. In 2022, 44% of Foremost’s milk supply completed a voluntary FARM ES Version 2.0 evaluation.
To assist member-owners in decarbonizing through new technologies and conservation agriculture practices, two on-going customer-partnered programs were available in 2022. They offered opportunities unique to each participating farm and helped more than 20 member-implement cover crops, no tillage, nutrient management and feed additives.
Fluid milk accounts for the largest ratio of Foremost’s emissions footprint due to enteric fermentation, manure management, feed production and energy utilization. Although on-farm practices are not dictated to member-owners in the cooperative’s bylaws, farm
Farms supported through implementing:
• Cover crops
• Reduced/no till
• Crop rotation
• Nutrient stewardship
• Grazing and feed management
• Edge of field practices
Within Foremost’s owned and controlled operations, natural gas and electricity are the second largest portion of the cooperative’s GHG footprint. Foremost achieved a 15% reduction in scope 1 and 2 emissions from our 2018 baseline by improving process efficiencies and completing energy efficient equipment upgrades. Example actions that delivered energy reductions are partnering with Wisconsin Focus on Energy since 2016 to complete energy audits, form a plant energy task force and complete energy projects that annually save over 6.3 million kWhs of electricity, 400,000 therms of natural gas and 6,600 metric tons of GHG emissions. Live dashboard displays provide on-demand energy-usage visibility within plants to empower team members to identify trends and potential reduction opportunities.
Transportation of raw milk and finished products contributes to the third largest portion of Foremost’s GHG footprint. To reduce emissions associated with transportation, Foremost is increasing hauling efficiency, improving fuel use data collection and partnering with hauling companies to evaluate routes to decrease travel distances. In 2022, Foremost increased use of bulk tankers for finished products at our Michigan plant and reduced diesel fuel usage by 4,210 gallons. Foremost has been a registered Environmental Protection Agency SmartWay partner since 2009, which informs strategic freight transportation choices and measures the environmental performance of haulers across our supply chain.
Water is at the center of environmental health, economic and social development, human health and food production. Foremost Farms has the privilege to operate in the Midwest’s rich water area but has a responsibility to ensure a plentiful water supply for future generations.
Foremost pledged to “optimize water use while maximizing recycling” in our adoption of the U.S. Dairy Stewardship Commitment in 2018; so we implemented capital projects and smaller quick wins in 2021 that yielded a 12% net water reduction, which surpassed the 10% water reduction goal. We set a 10% reduction goal for 2022; but with quick wins addressed and projects halted due to challenges with water reclamation during the whey evaporation process, the 2022 net water reduction was 1%. However, we implemented multiple projects related to non-contact cooling water optimization, vacuum pumps optimization and polishers.
Environmental coordinators and maintenance managers at the plants help identify the water saving opportunities, which are rolled into capital projects and contribute to large scale water conservation. Environmental coordinators at each plant document water usage data collected daily from flow meters in the central enterprise resource planning system. The EHS team monitors this data monthly to track real time trends in usage.
To help plants visualize water consumption and drive conversations about process or behavioral challenges, daily and monthly water consumption levels from a net usage and intensity perspective are displayed on dashboards.
Proper management of water used in and discharged from Foremost Farms processing plants comply with environmental regulations and safeguards the health of surrounding communities and watersheds.
In 2022, Foremost achieved 99.4% compliance with wastewater discharge permits issued by regulatory agencies. Treated wastewater is discharged to surface water, agricultural land and domestic wastewater treatment plants and is a combination of freshwater withdrawn for processing and water accumulated from evaporation and condensation of milk throughout intake and processing.
To protect domestic wastewater treatment plants and aquatic ecosystems, Foremost plants in Wisconsin are issued Wisconsin Pollution Discharge Elimination System permits by the Wisconsin Department of Natural Resources (WDNR). Foremost’s plant in Michigan has a National Pollution Discharge Elimination System permit issued by the Michigan Department of the Environment, Great Lakes, and Energy.
To ensure compliance with discharge permits, all wastewater treatment operators are licensed, in their respective states, and perform daily testing of wastewater effluent. Each quarter, environmental coordinators conduct nitrate tests on wastewater effluent to ensure compliance with permits. On land that is spray irrigated with treated wastewater, groundwater monitoring wells are sampled for nitrogen and chloride levels to monitor water quality.
Wastewater discharge notices of non-compliance are tracked by the EHS team and aggregated for each facility to understand the percent of wastewater discharged in compliance.
99.4%
This metric is based on gallons of wastewater discharged to the environment out of compliance with permits/total wastewater gallons discharged to the environment. Percent of wastewater volumes discharged to the environment in compliance with WDNR issued permits, goal is 100%.
In 2022, Foremost had ten processing plants that discharged process water to: Discharged wastewater refers to wastewater, treated after processing uses, to a wastewater treatment system or surface waters. Foremost Farms surface water and agricultural land discharge locations were defined and approved by the WDNR and include active stormwater pollution prevention plans (SWPP) and spill control and countermeasures plans (SPCC) for each plant. To ensure environmental protection of ecosystems receiving treated wastewater, extensive analytical testing is conducted daily to maintain adherence to legal nutrient limits. By ensuring wastewater is responsibly treated, tested and discharged Foremost Farms is returning used water to nature and the communities from which it was withdrawn.
Foremost Farms adopted the U.S. Dairy Stewardship Commitment in 2018 and pledged to “improve water quality by optimizing utilization of manure and nutrients.” Nutrients, which provide crops with nitrogen, phosphorus and other elements to help plants grow, are attributed to multiple processes on farms and in manufacturing plants.
On-farm use includes chemical fertilizers and animal manure spread on fields to help crops grow. Use of a Nutrient Management Plan (NMP) is one indicator of a farm’s commitment to reduce excess nutrients and runoff into ground and surface water while optimizing nutrient inputs. A NMP manages the rate, source, placement and timing of plant nutrients and soil amendments on all fields. Nutrients and soil amendments managed include livestock manure, organic by-products and commercial fertilizers. Of Foremost’s member-owners that completed a FARM ES Version 2 evaluation, 72% had an active NMPs.
Biosolids generated through milk processing at our plants are managed with attention to nutrient utilization and management. Biosolids generated through wastewater treatment can be land spread as a soil conditioner on agricultural land and reduce the need for synthetic fertilizers. Our plants that land spread biosolids maintain an active management plan, which includes Wisconsin Department of Natural Resources(WDNR)-approved land spreading sites and mandated land spreading mechanisms, including distance from well water supplies, topography, vegetation, crop production and distance from ground and surface water bodies. Foremost jointly owns the Richland Center Renewable Energy wastewater treatment plant that generates renewable electricity for up to 1,200 homes in the surrounding community while also providing more than 20 thousand tons of natural fertilizer to local agricultural land annually.
Dairy products are nutritious foods that contain high values of protein, calcium and minerals. “Dairy foods provide about 52% of the calcium, 51% of the Vitamin D and 17% of the protein consumed by Americans1,” and it all starts with the milk.
Healthy cows produce healthy milk, so Foremost Farms’ memberowner dairy farm families work closely with teams of experts –veterinarians, dairy cattle nutritionists, agronomists, dairy genetics professionals, milking equipment experts and their Foremost Farms field representatives to ensure the best in animal care practices and milking technology. In 2022, members-owners’ farms averaged a somatic cell count of 172,000, below the 2022 national average of 187,0002, which is an indicator used to measure animal health and milk quality.
Foremost Farms recognizes members who produce the highest quality milk through a quality awards program. We recognized 48 farms with Superior Quality awards and 186 farms with Excellent Quality awards based on their 2022 milk quality data.
When milk is picked up from farms, each bulk tank and bulk milk delivery are tested multiple times to ensure the highest quality and freshness of protein, fat and other milk solids. Due to antioxidants delivered in milk’s unique fat and protein content, dairy provides a dense nutritional value per serving that other superfoods cannot. Dairy products contain 8g of protein per cup of milk and “dollar for dollar, three servings of milk only costs about 60 cents, making it one of the most economical sources of nutrition3.” Foremost negotiates fair pricing contracts with our customers so consumers can continue accessing nutritional dairy products at an affordable cost.
1https://www.usdairy.com/dairy-nutrition
2https://queries.uscdcb.com/publish/dhi/current/sccx.html
3https://www.usdairy.com/dairy-nutrition/health-wellness
In the Foremost Farms plants, the Cheese Technology Team enforces standards on protein, fat and salt levels and ensures taste and performance levels to provide consumers with healthy, delicious products that serve their nutritional and functional needs. Cheese is evaluated with a newly expanded and improved cheese sensory analysis matrix that follows an eleven-point scale for variables such as texture, flavor and appearance and examines quality through the lens of organoleptic variables.
Each plant averages one sensory meeting every two weeks, which provides employees with opportunities to see and learn about quality standards for a range of products. This education equips employees with the knowledge and confidence to detect and proactively address defects that may be a risk to quality or physical and nutritional specifications.
Foremost Farms is committed to producing safe, wholesome products. Properly tracking ingredients and lots from farm to customer is one of many policies observed to safeguard consumer health and wellbeing, retain customer loyalty and maintain supplier relationships.
Successful ingredient traceability tracks lot information of ingredients, processing aids and product contact packaging, using codes that identify the manufacturing facility and make/package date. Traceability policies are used during manufacturing and the storage and shipment of finished products to direct domestic and international customers. Primary traceability is performed through electronic records and enterprise software; additional manual records are used as supporting documentation as verification.
Foremost complies with the Food and Drug Administration’s Food Safety Modernization Act, Rule 204, which is the Food Traceability Rule. Additionally, as a supplier of identity preserved foods (Kosher and Halal); Foremost has supplier approval programs to ensure supplies used during manufacturing meet the certified rules and requirements. All plants are audited annually by certifying bodies to ensure Foremost is compliant with identity preserved food standards.
Incidents of non-compliance with voluntary codes:
0 Incidents at all Foremost plants
Fast and effective traceability is tested multiple times throughout the year at each plant with third party audits or internal audits and mock recalls by Foremost to ensure readiness to take prompt action to remove a product that is determined to be defective, unsafe or in violation of regulation from the marketplace to protect consumers. Mock recall is a traceability exercise during which an input (raw material, ingredient or packaging) or output (finished
product) is chosen, and the Foremost team must find all potentially impacted products, tracking them through the supply chain using production records, including confirmation of on-hand inventory as well as tracing shipments to customers and co-manufacturers.
A mock recall report will include:
• A summary of the process, including reports used and people involved
• A summary of findings from the exercise, including any corrective actions, if needed
• The percent recovery of the item being tracked and if tracked item is not a finished good, percent recovery of the impacted product
• All supporting documents, reports, receipts, on-hand inventory counts, shipping bill of landing and manifests
If standards for the mock recall are not achieved, a corrective action protocol is initiated and a retest mock recall exercise is conducted by an assigned target date.
Foremost set a goal of 100% compliance to mock recall requirements. All facility mock recalls were completed per requirements and any corrections and corrective actions needed were remediated.
Foremost Farms reinforces customer and consumer confidence by producing a sustainable supply of safe, wholesome and quality dairy products. As a participant in the Global Food Safety Initiative (GFSI), Foremost continuously improves quality and product safety programs by using data and risk-based food safety analysis.
Foremost’s quality doctrine outlines the cooperative’s product safety and quality improvement journey and the foundational elements to be a product safety and quality leader in the dairy industry. The doctrine emphasizes proactive food safety procedures and the commitment all departments have to understanding and prioritizing product safety.
Foremost’s commitment to prevent and mitigate potential negative impacts within food safety and quality are supported by:
• Abiding by state and federal guidelines and regulations
• GFSI-Benchmarked Safe Quality Food (SQF) program – Food Safety and Quality Code
• Quality Management System including Food Safety, HACCP and Quality Programs
• Internal auditing of Foremost programs and plants, which are completed by plant personnel with varying frequencies of weekly, monthly, quarterly and annual audits
• Supplier and co-manufacture approval programs and partnerships
Foremost is committed to correcting gaps, inefficiencies or nonconformances found during assessments of processing environments, raw materials, plant processes and products. Preventative measures are implemented when applicable to ensure sustainable, safe and quality products for customers and consumers. If deficiencies are identified, internally or in customer and supplier
compliance systems, they are documented and prompt a root cause analysis investigation will occur. Foremost uses this to make program corrections and analyze long-term corrective and sustainable actions. Foremost reviews and analyzes data to verify the effectiveness and sustainability of actions taken.
Foremost shares best practices and continuous improvement opportunities through multiple communication channels. SCORE (supply chain optimization resource engagement) is a program utilized at the plants to formalize consistent key performance indicators, enable daily huddles and pre-shift meetings and create visible action boards for employees. An electronic plant action log is used to track tasks related to the five pillars of SCORE: quality, safety, service, value and teamwork and drive conversations around root cause analysis and continuous improvement. SCORE is a framework for leadership at the plants to increase employee engagement and create standardized processes.
Customer Complaints / Million Lb. of Finished Products Shipped
100% OF PLANTS CERTIFIED TO A GFSI-BENCHMARKED SAFE QUALITY FOOD (SQF) PROGRAM 96.62%
*First pass quality measures percentage of finished products that meet all quality specifications at a final test point, relative to total pounds of finished product produced.
*Values with N/A are either new metrics where a tracking mechanism was implemented in 2022, or data is not yet available *FARM – Animal Care Program was temporarily suspended by the National Dairy FARM Program for 18-months during COVID-19 Pandemic
STATEMENT OF USE
GRI 1: USED
APPLICABLE GRI SECTOR(S) STANDARDS
GRI 2: General Disclosures 2021
GRI 3: Material Topics 2021
GRI 303: Water and Effluents 2018
GRI 307: Environmental Compliance 2016
GRI 403: Occupational Health and Safety 2018
GRI DISCLOSURE REQUIREMENT
GRI 2 - GENERAL DISCLOSURES
GRI 416: Customer Health and Safety 2016
GRI 418: Customer Privacy 2016
GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022
GRI
SECTOR STANDARD REF. NO.
2-1-d
2-6-a
Pg. 6
2-7-a
Total number of employees: 928 employees
Male: 667
Female: 261
All employees of Foremost Farms USA operate within the United States of America
GRI DISCLOSURE REQUIREMENT
GRI 2 - GENERAL DISCLOSURES
GRI 2: General Disclosures 2021
Governance structure and composition
GRI 2: General Disclosures 2021 Nomination and selection of the highest governance body
GRI 2: General Disclosures 2021
Chair of the highest governance body
Report whether the chair of the highest governance body is also a senior executive in the organization
The Chairman of Foremost Farms USA’s Board of Directors is not a senior executive within the organization. The Chairman of the Board of Directors is a member-owner and is nominated by the Board of Directors. The Board of Directors, led by the Chairman, appoints the President and CEO who has the general charge of business operations.
GRI 2: General Disclosures 2021
Mechanism for seeking advice and raising concern
Describe the mechanism for individuals to raise concerns about the organization’s business conduct
To ensure that a transparent and trusted working environment is upheld, a third-party anonymous reporting system is available through report it® for individuals to raise concerns around organizational business conduct. GRI 2: General
GRI 3: Material Topics 2021
Describe the process it has followed to determine material topics
416-2
Incidents of non-compliance concerning the health and safety impacts of products and services
Incidents of non-compliance with regulations resulting in a fine or penalty;
0% at all Foremost Farms facilities.
Incidents of non-compliance with regulations resulting in a warning;
0% at all Foremost Farms facilities. Incidents of non-compliance with voluntary codes.
0% at all Foremost Farms facilities.
If the organization has not identified any noncompliance with regulations and/or voluntary codes, a brief statement of this fact is sufficient
Foremost Farms has not experienced any regulatory public recalls in the last five years.
Pg. 16 418-1
GRI
Animal Health & Welfare
Describe polices regarding processing of animal products, animal transportation, handling, housing and confinement, and slaughter, by species
Foremost Farms’ dairy farms are diverse in size, scale and production systems. Regardless of the production system or size, all member-owner dairies are expected to meet the same standards of animal care. Facilities for all age classes of animals on the dairy are viewed by the FARM Program 2nd party evaluator at the time of the on-farm animal care evaluation.
Member-owner dairy farms answer questions throughout the FARM Program evaluation regarding proper animal handling and fitness to transport of all age classes of animals on their farm. All standard operating procedures on animal handling, movement and fitness to transport are reviewed at every FARM Animal Care evaluation. Evaluators let the
13.11.1
animals tell their story on health, hygiene and handling. All member-owner farms, owners, family members and employees must be trained annually in proper stockman ship. Additional educational materials are provided by the FARM Animal Care Program to assist producers in decision-making regarding fitness to transport.
An important aspect of the FARM Animal Care Program is the “See it? Stop it!” Program. This initiative provides guidance to those who work with or around animals in reporting any instance of abuse, neglect, harm or mishandling. This program confirms farmers’ commitment to excellent animal care and shows the commitment of those who work with animals to ensure the same care. If abuse is ever suspected on a FARM Program participating farm, the Willful Mistreatment or Neglect Protocol is initiated –investigating credible evidence to determine if mistreatment, abuse or neglect has occurred.
Describe the approach to animal health planning and involvement of veterinarians, including the approach to using anesthetic, antibiotic, antiinflammatory, hormone, and growth-promotion treatments, by species
Veterinarians play a key role in animal care on our member dairy farms. The role of a veterinarian is a partnership with the dairy farm to provide guidance on many topics, including cow comfort, disease prevention, antibiotic stewardship and herd health. A key tenant of the National Dairy FARM program is the Veterinarian-Client-Patient Relationship (VCPR) - documenting the veterinarian’s involvement and relationship with the dairy farm. In addition, the Veterinarian of Record (VOR) is responsible for reviewing the farm’s Herd Health Plan – including protocols and treatment guidelines, treatment records and farm visit evaluations.
Describe commitments for responsible and prudent use of antibiotics and describe how compliance with these commitments is evaluated
Foremost Farms participates in the National Dairy FARM Antibiotic Stewardship program as a part of the FARM Animal Care Program. This program focuses on education regarding the judicious use of antibiotics through the publication of the Milk & Dairy Beef Drug Residue prevention manual. This program and its materials serve as a tool for education in the responsible use of antibiotics, and avoidance of drug residues in meat and milk.
Describe the results of assessments and audits of animal health and welfare by species
Foremost Farms has committed that every memberowner dairy farm, will have at least one full, formal FARM Program Version 4.0 Second-Party Evaluation completed prior to June 30, 2024; with the reconciliation of any corrective action plans within the Program’s required timeframe. At the end of 2022, 98% of Foremost Farms members have had a FARM Version 4 evaluation completed.
Report the percentage of production volume from sites of the organization certified to third-party animal health and welfare standards, list these standards
One hundred percent of all members have gone through at least one second-party evaluation FARM Animal Care Program. Additionally, as a part of our Approved Supplier Program, all raw milk purchased by Foremost Farms USA is certified by the FARM Animal Care Program.
13.11.1
1. Global Reporting Initiatives (GRI) – www.globalreporting.org/
2. U.S. Dairy Stewardship Commitment - www.usdairy.com/about-us/innovation-center/stewardship-commitment
3. Dairy Sustainability Framework - www.dairysustainabilityframework.org/
4. SASB Materiality Map - www.sasb.org/standards/materiality-finder/find/?industry[0]=FB-MP
5. U.S. Dairy Materiality Matrix - www.usdairy.com/getmedia/401760f2-2982-48ff-826a-e445799b947b/MaterialityAssessment-For-USDairy.pdf?ext=.pdf
6. Carbon Disclosure Project - www.cdp.net/en
7. Task Force on Climate Related Financial Disclosures - www.fsb-tcfd.org/recommendations/
8. UN Sustainable Development Goals - sdgs.un.org/goals
9. The Center for Dairy Research - www.cdr.wisc.edu/
10. The University of Wisconsin River Falls – www.uwrf.edu/
11. Wisconsin Cheese Makers Association - www.wischeesemakersassn.org/
12. LinkedIn Learning - www.learning.linkedin.com/
13. National Milk Producers Federation (NMPF) – www.nmpf.org/
14. Occupational Health and Safety Administration (OSHA) – www.osha.gov/
15. Dairy Management Inc. (DMI) – www.usdairy.com/about-us/dmi?gclid=Cj0KCQjw2cWgBhDYARIsALggUhpLW_ 3luK4ReB2uPd22H_aUA0hFhPA0weEYOtP7JGd7XOHz4EnWZBMaAm3pEALw_wcB
16. Farmers Assuring Responsible Management (FARM) Program - www.nationaldairyfarm.com/
17. Farmers Assuring Responsible Management Program – Environmental Stewardship (FARM ES) - www.nationaldairyfarm.com/ dairy-farm-standards/environmental-stewardship/
18. U.S. Dairy Net Zero Initiative - www.usdairy.com/sustainability/environmental-sustainability/net-zero-initiative
19. Wisconsin Focus on Energy - www.focusonenergy.com/
20. Environmental Protection Agency SmartWay - www.epa.gov/smartway
21. Wisconsin Department of Natural Resources (WDNR) - dnr.wisconsin.gov/
22. Michigan Department of the Environment, Great Lakes and Energy - www.michigan.gov/egle/
23. Nutrient Management Plan - www.nrcs.usda.gov/getting-assistance/other-topics/nutrient-management
24. Food and Drug Administration’s Food Safety Modernization Act, Rule 204 - www.fda.gov/food/food-safetymodernization-act-fsma/food-traceability-list
25. Global Food Safety Initiative (GFSI) - www.mygfsi.com/
www.foremostfarms.com/sustainability