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GAZETTE SUMMER 2026

STRENGTHENING OUR COMMUNITIES TOGETHER

A CONVERSATION WITH ANDREW HENDERSON Getting to know your new board chair

CO-OPERATIVE LEADERSHIP PROGRAM UPDATE Building Skills for Tomorrow

SUSTAINABILITY

on the Farm

Progress, impact, and what’s next

Confronting CANADA’S CREAM SURPLUS


GAZETTE gayleafoodsmembers.com | contact@gayleafoods.com OVE HANSEN Executive Director, Member Relations & Corporate Secretary 10 Carlson Court, Suite 100, Etobicoke, ON M9W 6L2 Office: (905) 283-5226 | Local: (519) 323-9613 Email: ohansen@gayleafoods.com

ONLINE facebook.com/gayleafoods facebook.com/groups/gayleafoodsmembers @gayleafoodscoop @gayleamembers youtube.com/user/GayLeaFoodsCoop

DEANNE REILLY Business Coordinator & Assistant Corporate Secretary

instagram.com/gayleafoodscoop

(519) 838-6268 dreilly@gayleafoods.com

pinterest.com/GayLeaFoods gaylea.com gayleafoodsmembers.com

STACEY BOWLES Manager, Member Relations (519) 838-7171 sbowles@gayleafoods.com

EMILY FRANKEN Member Services Representative 21 Clinton St N, Teeswater, ON N0G 2S0 (519) 838-6234 efranken@gayleafoods.com

RETAIL LOCATIONS

NINA HIDDEMA

Ivanhoe Cheese

Alberta Cheese

Member Services Rep/Admin Assistant

Madoc, ON

Company Ltd. Calgary, AB (403) 279-4353 x 7821

21 Speedvale Avenue West Guelph ON N1H 1J5 (289) 206-7787 nhiddema@gayleafoods.com

(613) 473-4269 x 7230

Teeswater Store Teeswater, ON (519) 392-6864 x 2230

AMÉLIE LEMIRE Member Services Representative 2819 Cassburn Road Vankleek Hill, ON K0B 1R0 (613) 800-3330 alemire@gayleafoods.com

Salerno Retail Outlet

Bothwell Factory Cheese Shop New Bothwell, MB (204) 388-4666

Hamilton, ON (905) 544-6281 x 8244

ALYCIA WALKER Member Services Representative 21 Speedvale Avenue West Guelph, ON N1H 1J5 (519) 838-6249 awalker@gayleafoods.com

GAZETTE EDITORIAL TEAM

JESSICA TAYLOR Administrative Coordinator 21 Speedvale Avenue West Guelph, ON N1H 1J5 (519) 838-6267 jctaylor@gayleafoods.com

2 | Summer 2026

WENDY HASSON Member Communications and Events Specialist whasson@gayleafoods.com

HAVE A QUESTION?

KRISTINA VASSILIEVA

Feel free to connect with any member of our team.

*Currently on maternity leave

Communications Specialist kvassilieva@gayleafoods.com


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CONTENTS

Summer 2026

4 8 9 12

16 26

Reports from the Chair and President & CEO Member Coffee Chats & Member Facebook Facebook Community On-Farm Sustainability Program Launch of new program for producer members.

Udderly Informed Confronting Canada’s cream surplus.

14 16 18

Commercial Connection

22

Co-operative Leadership Program Update

23

Sustainability Team Presents in Manitoba

Insights and updates on market partnerships and industry trends.

Where We’ve Been

24

Dairy Goat Business Update

25

Director’s Scholarship Awards

25

Advocating For Canadian Dairy

26

A Conversation with Andrew Henderson

28

A look back at recent events and engagements.

Around Gay Lea Foods Highlights and happenings from across the co-operative.

Progress and impact of developing future co-op leaders.

Sharing our environmental initiatives.

32 33 34

Key developments in the dairy goat sector.

Supporting the next generation.

Efforts to promote and protect the Canadian dairy industry.

Getting to know your new board chair.

Community Investment Update Supporting communities through meaningful contributions and partnerships.

Dairy Museum Update What’s happening this summer at the museum.

4-H Ontario Honours Gay Lea Dairy Museum Manager Craig Steven Recognizing leadership and dedication to the 4H program.

Shareholder’s Corner Key membership information and updates for shareholders.

Summer 2026 | 3


CHAIR’S Report

Summer on the farm has a way of putting things into perspective. The days are long and the work is constant, yet progress is visible all around. You know you’re part of something bigger that is taking shape around you as you watch the hard work of the spring develop into a prosperous tomorrow. In many ways, that’s how my first few months have felt as chair of Gay Lea Foods.

I

t’s been a bit of a whirlwind. Since stepping into the role, my calendar has filled quickly as I’ve focused on understanding the full scope of this business and the responsibilities that come with leading it at board level. The pace has been fast, but it’s also been energizing – and I’m grateful for the warm welcome and support I’ve received along the way. A major focus during these first months has been on listening, learning, and strengthening relationships. I’ve had the opportunity to connect one-on-one with senior leaders and meet with fellow directors across the co-operative. These conversations have reinforced something I already believed deeply: Gay Lea Foods benefits from a tremendous amount of experience, perspective, and institutional knowledge, and our job as a board is to listen carefully and make space for that expertise to inform our decisions. I have always believed in the value of co-operation and open, transparent dialogue, and that will continue to guide how I approach this role. Strong leadership at Gay Lea Foods is not about one voice – it’s about a team of voices working toward shared goals. The board remains deeply engaged in its ongoing work to strengthen governance and sharpen how we fulfill our responsibilities on behalf of members. This work is not always visible, but it is especially important in moments that test our systems, our decision-making, and our shared commitment to doing the right thing. I want to recognize the effort that directors, management, and employees have put into responding to recent challenges with care, professionalism, and a clear focus on people and safety. The progress we’ve made reflects the strength of our team and the values that guide our co-operative. Looking ahead, there is a strong, continued focus on strengthening the systems and capabilities that enable us to grow our capacity, deliver on our commitments, and live our purpose to enrich life with dairy. Through our Network for Growth (N4G) strategy, we

4 | Summer 2026

are positioning Gay Lea Foods to deliver sustained, industryleading, profitable growth, and thrive in a dynamic future. That same future-focused mindset also extends to our people. This spring, I was honoured to spend time with participants in the Cooperative Leadership Program (CLP), which plays a vital role in preparing the next generation of leaders. These investments – in both our infrastructure and our people – are essential to the longterm health of our co-operative. As I reflect on these early months, one thing is abundantly clear to me: I’m not starting this work, and I won’t be the one to finish it. Like any farm operation, this is a long-term effort, built over many years by many hands. The responsibility we share – as chairs, directors, members, and employees – is to do our part while we’re here and to leave things in better shape than we found them. I’m proud to play my role in that stewardship and grateful to be part of a co-operative with such strong roots and clear commitment to the future. Sincerely,

Andrew Henderson Chair


PRESIDENT’S Report

Summertime offers a natural moment to pause, not just to reflect on the year so far, but to appreciate what we are building together.

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s we move through fiscal 2026, what stands out most is the strength of our co-operative, in our industry, in our performance, and most importantly, in our people.

Across the dairy industry, we are seeing strong consumer demand and renewed momentum. More and more, consumers are turning to dairy for its quality, its nutritional value, and its role as a trusted, natural source of protein. There is a growing confidence in dairy, and that matters for all of us. Because of the work we have done over the past several years, Gay Lea Foods is well positioned to meet this moment. We are seeing that translate into growth across our business, while continuing to strengthen the foundation that will carry us forward. Across our network, operational improvements are driving meaningful margin expansion, creating the capacity to reinvest in our facilities, our capabilities, and the long-term resilience of our co-operative. At the heart of this progress is our Network for Growth program, which is strengthening the discipline, focus, and capability needed to grow sustainably. This work ensures we are not only delivering today, but building long-term value for our members. At the same time, dairy remains a complex and often volatile industry. Cream surplus, milk shortage, global conflict driving inflation and trade tensions require us to stay agile and responsive, something that is not always easy. What gives me confidence is how our teams continue to rise to that volatility and how they show up when it matters most. This spring, we faced a difficult moment with the recall at our Paradise Island Foods facility. It was a moment that tested us. And in moments like that, you truly see what you are made of.

That response made me incredibly proud. And it is that same spirit I continue to see across our co-operative every day. Whether navigating market pressures or managing through operational challenges, our employees show resilience, professionalism, and heart. They understand the role we play, not just in delivering products, but in supporting the livelihoods of our members and serving Canadians who trust what we produce. That commitment is what allows us to move forward with confidence. It is also what defines us beyond the work we do every day, in how we support one another, how we show up in our communities, and how we care for our people when it matters most. That sense of care is part of what makes this co-operative so special, and something we should all be proud of. I am deeply grateful for our employees’ commitment and care, and for our board and delegates’ continued stewardship. It is a privilege to lead Gay Lea Foods alongside you, as we continue to enrich life with dairy. Sincerely,

Suzanna Dalrymple President & CEO

I saw firsthand the way our teams came together, with urgency, with care, and with a deep sense of responsibility. There was no hesitation, only a shared commitment to do the right thing. To take accountability. To support our customers. And to protect the trust that has been placed in us. Summer 2026 | 5


Rapport du PRÉSIDENT L’été offre un moment naturel pour faire une pause, non seulement pour réfléchir à l’année écoulée, mais aussi pour apprécier ce que nous construisons ensemble.

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lors que nous avançons dans l’exercice 2026, ce qui ressort le plus, c’est la force de notre coopérative, de notre industrie, dans notre rendement, et surtout, chez nos gens.

Dans l’ensemble de l’industrie laitière, nous constatons une forte demande des consommateurs et un élan renouvelé. De plus en plus, les consommateurs se tournent vers les produits laitiers pour leur qualité, leur valeur nutritionnelle et leur rôle en tant que source naturelle et fiable de protéines. La confiance dans les produits laitiers est en croissance, et cela compte pour nous tous. Grâce au travail que nous avons accompli au cours des dernières années, Aliments Gay Lea est bien positionnée pour relever ce défi. Nous constatons que cela se traduit par une croissance dans l’ensemble de notre entreprise, tout en continuant de renforcer les bases, qui nous mèneront vers l’avenir. Dans l’ensemble de notre réseau, les améliorations opérationnelles stimulent une expansion significative des marges, créant ainsi la capacité de réinvestir dans nos installations et nos capacités ainsi que dans la résilience à long terme de notre coopérative. Au cœur de ce progrès se trouve notre programme Réseau pour la Croissance, qui renforce la discipline, la concentration et les capacités nécessaires pour croître de manière durable. Ce travail garantit que, non seulement nous répondons aux besoins aujourd’hui, mais nous construisons également une valeur à long terme pour nos membres. En même temps, l’industrie laitière demeure complexe et souvent volatile. Le surplus de crème, la pénurie de lait, les conflits mondiaux alimentant l’inflation et les tensions commerciales exigent que nous restions agiles et réactifs, ce qui n’est pas toujours facile. Ce qui me rassure, c’est la façon dont nos équipes continuent de faire face à cette volatilité et dont elles se mobilisent lorsque cela compte le plus. Ce printemps, nous avons traversé un moment difficile à la suite du rappel survenu dans notre installation Paradise Island Foods. Ce moment nous a mis à l’épreuve. Et dans des moments comme celui-là, nous montrons vraiment de quoi nous sommes capables.

6 | Summer 2026

J’ai vu de première main de quelle manière nos équipes ont unis leurs efforts, dans l’urgence, avec bienveillance et avec un grand sens des responsabilités. Il n’y avait aucune hésitation, uniquement un engagement commun à faire la bonne chose. Assumer la responsabilité. Soutenir nos clients. Et protéger la confiance qui nous a été accordée. Cette réponse m’a rendu incroyablement fière. Et c’est ce même esprit que je continue de voir chaque jour au sein de notre coopérative. Que ce soit pour faire face aux pressions du marché ou gérer des problèmes opérationnels, nos employés font preuve de résilience, de professionnalisme et de cœur. Ils comprennent le rôle que nous jouons, non seulement en livrant des produits, mais aussi en soutenant les moyens de subsistance de nos membres et en servant les Canadiens qui font confiance à ce que nous produisons. Cet engagement est ce qui nous permet d’avancer avec confiance. C’est aussi ce qui nous définit au-delà du travail que nous accomplissons chaque jour, dans la manière dont nous nous soutenons mutuellement, dont nous nous engageons dans nos communautés et dont nous prenons soin de nos gens quand cela compte le plus. Ce sentiment de bienveillance fait partie de ce qui rend cette coopérative si spéciale, et c’est quelque chose dont nous devrions tous être fiers. Je suis profondément reconnaissante de l’engagement et du dévouement de nos employés, ainsi que de la gestion continue de notre conseil d’administration et de nos délégués. C’est un privilège de diriger Aliments Gay Lea à vos côtés, alors que nous continuons à enrichir la vie avec les produits laitiers. Sincèrement,

Andrew Henderson Président


Rapport de la PRÉSIDENTE ET CHEF DE LA DIRECTION L’été est un moment naturel pour faire une pause et réfléchir – à ce que nous avons entrepris de faire au cours de l’exercice 2026 et aux efforts que nous avons dû déployer pour rester sur la bonne voie.

L

’été est un moment naturel pour faire une pause et réfléchir – à ce que nous avons entrepris de faire au cours de l’exercice 2026 et aux efforts que nous avons dû déployer pour rester sur la bonne voie.

Nous savions que l’année serait difficile. Lorsque nous nous sommes engagés en octobre à renforcer ce qui compte et croître là où ça compte, nous l’avons fait avec une compréhension claire de ce que cela nécessiterait, à savoir de la discipline, une solide gouvernance et un partenariat étroit entre la direction, le conseil d’administration et vous en tant que membres. Nous nous sommes engagés parce que nous croyions qu’Aliments Gay Lea pouvait livrer – et parce que notre raison d’être, enrichir la vie avec les produits laitiers, exige que nous le fassions. Ce que nous n’avions pas pleinement anticipé, c’était le nombre de vents contraires que nous devrions gérer simultanément. Nous avons assisté à un excédent de crème sans précédent, qui a fait augmenter les stocks de beurre et exercé une pression sur le beurre, tout en connaissant des pénuries de lait, ce qui affecte notre capacité à servir nos clients. Nous continuons à faire face à des défis liés aux coûts influencés par les conditions mondiales. Parallèlement, notre industrie a été sous les projecteurs, avec d’importantes discussions en cours qui contribueront à façonner l’avenir des produits laitiers canadiens. Parallèlement à ces pressions plus larges, nous avons traversé un moment difficile ce printemps avec un rappel dans notre installation Paradise Island Foods. Dès le départ, notre objectif était clair : assumer nos responsabilités, faire ce qui est juste et renforcer nos systèmes pour continuer à mériter la confiance qui nous est accordée. Et c’est exactement ainsi que nos équipes ont réagi. Dans toute l’entreprise, nos employés ont relevé le défi – en gérant le rappel, en maintenant le rendement dans nos catégories principales, en contrôlant les coûts et en gérant la volatilité du lait, tout en restant concentrés sur ce qui compte le plus : accomplir notre mission et le rôle que nous jouons dans la vie de nos consommateurs, de nos clients et de nos membres. Grâce à leur travail, nous restons en bonne voie pour respecter les engagements que nous avons pris pour l’exercice 2026, tout en continuant à réaliser des progrès importants au sein de notre coopérative. Cela reflète le professionnalisme, la responsabilité et la résilience de nos gens.

Grâce à notre programme Réseau pour la croissance, nous renforçons les capacités, la discipline et la capacité nécessaires pour assurer une croissance durable. Ce travail est fondamental – il garantit que nous construisons pour le long terme et que nous ne sacrifions pas la valeur future pour des résultats à court terme. Ce qui est tout aussi important, nous continuons également à donner vie à notre mission grâce à nos initiatives de durabilité à la ferme, aux répercussions de la Fondation Gay Lea dans les communautés où nous vivons et travaillons, ainsi qu’à des programmes comme le Gerry Schafer Emergency Hardship Fund, qui reflètent notre souci pour nos employés et nos communautés. Ce sont des expressions claires de notre raison d’être en action – non seulement dans les produits que nous fabriquons, mais aussi dans l’impact que nous avons. Je tiens à reconnaître le partenariat continu de notre conseil d’administration et l’occasion de travailler en étroite collaboration avec Andrew Henderson dans son rôle de président. Une solide harmonie entre notre équipe de direction et notre conseil d’administration – fondée sur un engagement commun envers notre mission et le succès à long terme de notre coopérative – constitue une force déterminante. Il reste encore du travail à faire. Il y en a toujours dans les produits laitiers. Mais je suis confiante. Confiante en notre personnel. Confiante dans notre leadership et notre gouvernance. Et confiante dans la capacité de notre coopérative à relever les défis directement, à assumer ses responsabilités et à continuer de livrer. Merci à nos employés pour votre engagement et votre résilience. Merci à nos délégués et au conseil d’administration pour votre confiance et votre gestion. Et merci à vous, nos membres, de continuer à croire en cette coopérative. Je suis fière de diriger Aliments Gay Lea à vos côtés, alors que nous continuons à enrichir la vie avec les produits laitiers. Sincèrement,

Suzanna Dalrymple Présidente et chef de la direction Summer 2026 | 7


CONVERSATION & COMMUNITY

Summer Coffee Chats Return Gay Lea Foods President & CEO Suzanna Dalrymple is hitting the road this summer, travelling across the province to connect directly with members at three special coffee chats hosted by local Ontario delegates.

T

he farm visits provide a unique opportunity for meaningful, in-person conversation, bringing members and leadership together in a relaxed, on-farm setting to connect informally and hear directly about what’s happening across the cooperative. Local members will be invited to hear from Suzanna as she shares updates on the cooperative’s Gay Lea Recipe priorities, including efforts to strengthen the foundation, grow big bets, and enrich communities co-operatively. Each visit will include time for open questions and discussion, giving members the chance to share their perspectives, ask questions, and engage in meaningful conversation about the future of the co-operative. Visits will also include a guided tour of the host dairy operation, providing participants with a firsthand look at the farm and insight into day-to-day management techniques. The summer coffee chat series, launched in 2025 as part of the co-operative’s Member Engagement Strategy, reflect the Gay Lea Foods’ ongoing commitment to driving member value and engagement by encouraging an informed, proud, and active member community.

ARE YOU PART OF THE COMMUNITY? Are you part of Gay Lea Foods’ members-only Facebook Community? This is your space to stay connected, informed, and engaged with what’s happening across our co-operative. We’re building a strong, supportive community where you can: •

Get the latest co-op news and updates

•

Stay in the loop on upcoming events and opportunities

•

Connect with fellow members across the network

•

Share your own stories and experiences

Know another Gay Lea Foods member who isn’t here yet? Invite them to join our group so they don’t miss out! Together, we can make this a vibrant hub for sharing, learning and celebrating our community.

Already part of our online community? Invite your fellow members to join!

8 | Summer 2026

1.

Go to the Members’ Facebook Community page at www.facebook. com/groups/gayleafoodsmembers

2.

Click the blue “+Invite” button at the top of the page.

3.

Go through your friends list and click the box beside any friends you know are Gay Lea Foods members. Once you have checked the boxes of all friends you would like to invite, hit the “Send invites” button at the bottom right of your screen. That’s it, you are done!


Net Zero

Big News for Gay Lea Foods

OUR ON-FARM SUSTAINABILITY PROGRAM IS HERE! There’s a lot to be proud of on our farms—and now, we’re bringing it all together. This summer, Gay Lea Foods is officially launching our On-Farm Sustainability Program to members across the co-operative. It’s a new, practical way to recognize the work already happening on your farm—and help you build on it in the years ahead.

You’ll gain insight into: • What you’re already doing that’s making a difference • How your practices line up with broader industry efforts

And the best part? This program was built by farmers, for farmers— shaped with input from delegates and directors and tested on 15 member farms earlier this year.

• Where there may be opportunities to take things even further It’s not about adding more work—it’s about recognizing progress and making it easier to keep moving forward.

LET’S SHINE A LIGHT ON WHAT’S ALREADY HAPPENING If you’re like most producers, you’re probably already doing more than you think when it comes to sustainability—whether it’s improving soil health, supporting biodiversity, or reducing greenhouse gas emissions. This program helps bring those efforts into focus. By building on your existing proAction Environment Scorecard with a short supplementary questionnaire, we’ll create a clear, personalized snapshot of your farm. The program also draws on the Dairy Farmers of Canada’s Net Zero by 2050 best management practices, helping connect what you’re already doing today with practical ways to build on it over time.

Summer 2026 | 9


SUPPORT EVERY STEP OF THE WAY

WHY THIS MATTERS — FOR ALL OF US

Each participating farm will receive a custom report, followed by a one-on-one debrief with a member of the Gay Lea Foods team.

Sustainability is becoming an increasingly important part of how our industry is viewed by customers and consumers—and where it’s headed.

This is your chance to:

By participating, you’re helping to:

•

Walk through your results

•

Strengthen the long-term resilience and efficiency of your operation

•

Ask questions

•

•

Explore ideas that make sense for your farm

Reinforce Gay Lea Foods’ position as a credible leader in sustainability within the Canadian dairy sector

•

Build a stronger, more resilient dairy sector together

Whether you’re looking to fine-tune what you’re already doing or try something new, we’re here to support you.

A PROGRAM THAT GROWS WITH YOU Farms are always evolving—and this program is designed to evolve with you. Aligned with your proAction cycle, your report will be refreshed every two years so you can track your progress, see what’s working, and continue building on your results.

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Most importantly, you’re helping bring our purpose—enrich life with dairy—to life through real, measurable action on the farm.


Join us

We’re excited to open this next chapter—and we hope you’ll be part of it. To learn more or sign up, please reach out to: Lisa Wormsbecher — lwormsbecher@ gayleafoods.com or scan the QR code to submit your information.

*Early adopter bonus* Be part of the first wave! The first 50 producers to register in 2026 will receive a $200 honorarium as a thank-you for joining the program early.

Summer 2026 | 11


Udderly Informed

CONFRONTING CANADA’S CREAM SURPLUS By Marie Ly, Senior Director, Industry and Government Relations

Canada’s dairy sector is facing a growing challenge: a surplus of cream. In recent months, processors have been forced to find alternate, and less than ideal, uses for excess cream, despite paying full price for the component. This is a result of the overwhelming volume of excess cream in the system. This imbalance is not only costly but also signals deeper structural issues in how we manage milk components. Here’s an example: a yogurt processor receives milk and pays for all components – protein, butterfat, and other solids – at the Class 2a price. But to make high-protein,

low-fat products like Greek yogurt, mostly protein is needed. The resulting cream from skimming is difficult to sell, and with butter inventories already full, it risks being dumped. The processor still pays the full domestic price for butterfat, even when it’s discarded.

WHAT’S DRIVING THE CREAM SURPLUS? The cream surplus is largely a side effect of surging consumer demand for high-protein dairy products. Greek yogurt and cottage cheese have seen double-digit growth, driven by health-conscious consumers and the rise of GLP-1 medications like Ozempic. These drugs are reshaping eating habits, with users seeking nutrient-dense, high-protein foods. Yogurt and cottage cheese fit the bill perfectly. At the same time, butterfat levels in raw milk have reached record highs. Our supplymanaged system is based on butterfat quotas, so to meet rising protein demand, more milk is shipped, bringing more butterfat along with it. Additionally, the elevated butterfat content in raw milk further contributes to the problem. The result is a butterfat-driven production model that unintentionally floods the system with cream in the process of meeting rising protein demand.

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POLICY RESPONSE: REBALANCING FAT AND PROTEIN The current situation is unsustainable, and the industry is moving quickly to respond. The most urgent task is to rebalance the SNF-to-BF ratio in our milk production. In plainer terms, we need to either boost the protein content of milk or reduce its fat content (ideally both), so we’re not oversupplying one component just to get enough of the other. This is easier said than done, as on-farm milk composition can only change gradually. Nonetheless, policy makers are acting. In a major shift, the country’s dairy regulators (both the P5 and the Western Milk Pool) changed the pricing formula in April 2026 to incentivize higher protein and curb butterfat content in raw milk. Producers now earn relatively more for

protein and a bit less for butterfat than before. For example, under the new P5 pricing policy, the producer revenue share shifts from 60% for butterfat and 35% for protein to 52% and 43%, respectively. However, such herd-level changes take time (breeding for different milk composition can span several years). If the current measures aren’t enough to quickly stem the cream overflow, additional policy tools will need to be considered to accelerate the shift. The P5’s new component policy is a needed first step, but it may not be the last word.

STRENGTHENING DOMESTIC COMPETITIVENESS: REFORMING SPECIAL CLASSES TO COUNTER IMPORTS Another critical area for action is the need to recapture market share currently lost to imports, particularly through the Import for Re-export Program (IREP). Over the past year, IREP usage has surged by more than 25% and now accounts for approximately 6% of Canada’s total butterfat quota. This translates to an estimated 34,000 tonnes of butter being sourced from abroad. This highlights a glaring inefficiency and a missed opportunity for the Canadian dairy economy. One might reasonably ask: how is this possible when Canada already has a Special Milk Class program designed to provide further processors with access to competitively priced, domestically produced dairy ingredients? The answer lies in pricing. Over the past two years, U.S. butter prices have declined significantly, making imported butter far more attractive. As a result, Canada’s Special Class pricing mechanisms have become increasingly uncompetitive and, in many cases, irrelevant.

This situation underscores the urgent need to review and modernize the Special Classes program. If Class 5 prices and rules were recalibrated to reflect current market realities, Canadian butterfat could be offered to further processors at prices that rival imports. Doing so would not only help absorb surplus cream within our own system but also reclaim business that is currently flowing to U.S. suppliers.

GAY LEA FOODS’ POSITION Gay Lea Foods believes the current situation requires urgent, coordinated action. We support the P5’s new component pricing policy as a necessary first step to rebalance the SNF/BF ratio. However, we also call for: •

Additional policy tools to accelerate the shift toward higher protein, lower butterfat milk production.

•

A rapid review and modernization of the Special Milk Class program to ensure it is competitive with import alternatives.

We remain committed to working with our industry partners and government stakeholders to protect the long-term sustainability of Canada’s dairy system. By aligning production with evolving consumer demand and strengthening our domestic processing capacity, we can turn today’s surplus into tomorrow’s opportunity.

If there’s a government or industry issue you’re interested in learning more about, send us an email at communications@ gayleafoods.com, and we’ll consider covering it in a future Udderly Informed.

Summer 2026 | 13


COMMERCIAL CONNECTION:

Driving Growth, Building Momentum The Commercial team at Gay Lea Foods continues to deliver strong results—accelerating growth across key categories, strengthening brand performance, and expanding our national presence with customers and consumers. These achievements reflect disciplined execution, cross-functional collaboration, and a continued focus on winning where we said we would. At the highest level, the business is demonstrating clear forward momentum. Recent results show meaningful gains in both market share, net sales and profitability, supported by increased distribution, innovation, and targeted media investment.

14 | Summer 2026

WINNING IN MARKET: GROWTH WHERE IT MATTERS MOST Across core categories, Gay Lea Foods continues to outperform competitors and strengthen its market position. In retail cheese, the Bothwell brand has been a standout success story, delivering strong gains in market share, household penetration, and distribution. This momentum has been fueled by an integrated approach combining product innovation, enhanced promotional execution, and focused marketing support. In parallel, further processing segments—including mozzarella and Monterey Jack—are growing ahead of the market. This growth highlights the strength of customer partnerships and the team’s ability to capture opportunities in high-demand channels that are highly competitive. Beyond cheese, performance across dairy staples continues to build. Gay Lea Foods remains a leader in sour cream, cottage cheese, whipped cream, and butter, with growth supported by increased distribution, strong consumer demand, and effective advertising campaigns.


EXPANDING REACH: DISTRIBUTION AND CUSTOMER WINS Distribution gains have been a consistent theme across the portfolio. Over the past quarter, the team has successfully secured new listings across major retailers and channels. These wins are translating directly into improved product availability, stronger shelf presence, and increased velocities—ensuring that Gay Lea products are easier for consumers to find and choose. In butter sticks, increased distribution has driven share gains, while in whipped cream, expanded listings have supported doubledigit growth. In addition, strong collaboration between Sales, Marketing, and Go-To-Market teams has ensured that these distribution gains are supported by clear customer strategies and effective execution at the shelf.

STRENGTHENING THE BRAND: AWARENESS, LOYALTY, AND ENGAGEMENT Brand health continues to improve across categories, with strong awareness reinforcing Gay Lea’s #1 position in the market. Consumer engagement has also reached new levels, with millions of impressions generated through social, TV, and digital campaigns. These efforts are strengthening brand equity, driving trial, and building long-term loyalty— particularly in growth regions like the west where awareness is still developing. Importantly, the transition toward the “Gay Lea Family Farms” identity is further enhancing consumer connection by reinforcing the co-operative’s Canadian roots, farmer ownership, and commitment to quality.

A TEAM EFFORT: COLLABORATION FUELS RESULTS Underlying all of these achievements is a strong spirit of collaboration. Over the last quarter, the Marketing, Go-ToMarket, and Insights teams have worked closely with Sales to align strategies, translate insights into action, and deliver consistent messaging to customers. This integrated approach was evident in the recent sales meeting, which received outstanding feedback for its clarity, impact, and ability to inspire confidence in the plans ahead. This alignment has been critical in ensuring that strategy turns into execution—and that execution translates into measurable

Looking Ahead

As Gay Lea Foods moves into the next phase of the fiscal year, the momentum built over the first half of the year provides a strong foundation for continued growth to close the year and move into fiscal 2027. With a continued focus on innovation, distribution expansion, and brand building, the commercial teams are well positioned to sustain performance and unlock new opportunities. The message is clear: where we said we would win, we are winning—and with continued focus and collaboration, the best is still ahead.

results. Summer 2026 | 15


WHERE

We’ve Been

CONNECTING WITH MEMBERS AT THE OTTAWA VALLEY FARM SHOW The 99th Ottawa Valley Farm Show, held March 10–12, 2026 at the EY Centre, brought together the best of agriculture—from cutting-edge technology like robotics and drone advancements to long-standing traditions like seed competitions and a record-setting toy auction. With more than 360 exhibitors, it was a great celebration of the strength, innovation, and community of Eastern Ontario agriculture.

L to R: Gay Lea Foods delegates, Anjela Verburg and Geert Rijke, along with Amelie Lemire, Member Services Representative.

At Gay Lea Foods, we were proud to be part of it—serving chocolate milk to attendees as they made their way through the show and raising $2,120 for 4-H Ontario, with all proceeds from milk sales going directly to this valuable youth program. Our booth team showed their spirit in Natalie Spooner Team Canada hockey jerseys, celebrating our collaboration with the Canadian hockey star and Nordica campaign spokesperson. It was a great opportunity to build awareness, as many attendees were not aware that the Nordica brand is part of Gay Lea Foods. With protein consumption on the rise in Canadian diets, we highlighted cottage cheese as an easy, affordable way to add high-quality protein to everyday meals. It truly took a team effort across many departments to make the show a success. A big thank you to everyone involved and a shout out to our local delegates for their assistance in staffing the booth. We look forward to celebrating the 100th Anniversary of this farm show in 2027.

L to R: Kevin MacLean, Zone 4 Chair & Delegate, Scott Jackson Delegate and Amelie Lemire, Member Services Representative.

A STRONG PRESENCE AT CDX 2026 Gay Lea Foods had a strong presence at the Canadian Dairy Xpo 2026, with a steady flow of members and industry partners visiting our booth from April 1–2. Over the two-day event, the booth became a hub for catching up, sharing a meal, and spending meaningful time with our member relations team and delegates in person. A highlight of the event was the complimentary member luncheon, offered exclusively to Gay Lea Foods members in partnership with 4 H Ontario. More than 500 meals were served over the two days, giving members a comfortable place to sit down, refuel, and connect during a busy show schedule.

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For us, being at CDX is about more than having a booth—it’s about staying close to the people behind our co-operative. It’s one of the ways our purpose, to enrich life with dairy, comes to life—not only through the high-quality, nutritious dairy products we produce, but through the relationships we continue to build and strengthen across the Canadian dairy community. Thank you to everyone who helped bring the Gay Lea booth to life, and to all the members who stopped by. We’re grateful for another successful CDX and the opportunity to connect face to face.

L to R: Gay Lea Foods delegates Peter Angst, Doug Johnston and Erica Kiestra, with board member Gerald Schipper.


BREAKFAST ON THE FARM – BINBROOK Farm & Food Care Ontario’s first Breakfast on the Farm event of the season was held on June 13, 2026 at Roy‑A‑Lea Farms Ltd. in Binbrook, Ontario - a dairy, beef, and grain farm owned by long-time Gay Lea Foods members Randy and Michelle Spoelstra. Families from across the region gathered for a fun celebration of agriculture, community, and local food, enjoying warm hospitality, and an unforgettable hands-on farm experience. Guests were treated to a delicious farm fresh breakfast, made possible through the generous support of event sponsors, including a product donation from Gay Lea Foods. Attendees also enjoyed meeting farm animals up close, exploring impressive modern equipment, and taking guided tours of a working dairy and beef farm. Interactive exhibits and hands on activities engaged both kids and adults, offering valuable insight into where food comes from and the care that goes into producing it. The event fostered meaningful conversations between farmers and the community, strengthening appreciation for local agriculture. Gay Lea Foods was proud to support the event by offering complimentary tickets to any staff member who wished to attend, encouraging employees and their families to experience agriculture first-hand. Volunteer opportunities were also made available to staff who wanted to lend a hand, allowing them to play an active role in supporting a successful and well run community event. With its affordable entry, family friendly atmosphere, and engaging educational experiences, Breakfast on the Farm truly delivered on its promise of bringing agriculture to life. A heartfelt thank-you goes out to the host farm, Farm & Food Care staff, volunteers, sponsors, and everyone who attended and contributed to making the day such a memorable success. Events like this continue to highlight the important role Ontario farmers play in putting food on our tables every day.

Missed Breakfast on the Farm – Binbrook? A second event will be held July 25 at Cranbrook Farms in Brussels, a progressive dairy operation run by Gay Lea Foods’ members Joe and Barb Terpstra. Learn more at www.farmfoodcareon. org/breakfast-on-the-farm/

500 meals served!

Summer 2026 | 17


AROUND GAY LEA FOODS THE MILKY WAY APP EXPANDS CONNECTION ACROSS OUR FRONTLINE TEAMS In food manufacturing, strong communication matters. It helps employees stay informed, connected and supported across shifts, sites and teams — especially for those whose work happens on the floor, away from a desk. That is why the continued rollout of the Milky Way app marks such an important step forward for Gay Lea Foods.

LEADERSHIP VISITS BRING CONNECTION, SAFETY AND LISTENING TO LIFE ACROSS OUR SITES Across Gay Lea Foods, some of the most meaningful conversations happen where the work happens – on the floor, in town halls and alongside the teams who make, move and deliver our products every day. Over the past several months, Suzanna Dalrymple, president and CEO, and Katie Rogers, chief people officer, continued their site visits across the business, spending time with employees at locations including Stirling, Ivanhoe, Clayson, Longlife, Teeswater, Hamilton, Brampton Distribution Centre (BDC), Alberta Cheese Company (ACC) and Bothwell. The visits were an opportunity to listen, learn and recognize the people behind our co-operative. Employees shared what is working well, where support is needed and what opportunities they see to keep improving. Leaders also had the chance to tour facilities, hear directly from teams and see the pride, care and problem-solving happening across our sites. Safety was a strong and consistent theme. Across locations, teams reinforced that everyone has a role to play in building a strong safety culture – one where employees feel comfortable speaking up, looking out for one another and helping make their workplace safer every day. The town halls also highlighted the many ways employees are helping shape positive change. Across every stop, teams recognized service anniversaries, celebrated employees going above and beyond, congratulated those stepping into new roles and honoured important career milestones. Most of all, these visits reinforced the importance of building a strong listening culture across Gay Lea Foods. Through town halls, floor conversations, recognition moments and open dialogue, employees are helping shape a safer, stronger and more connected co-operative – one that continues to move forward because of the people behind it.

18 | Summer 2026

The app has now launched at Longlife, Clayson, Alberta Cheese Company (ACC), Ivanhoe, Stirling, Brampton Distribution Centre (BDC) and Hamilton, with remaining Ontario and Western sites set to follow this summer. With each launch, more employees are gaining access to the tools, updates and resources they need in one easy-to-access place. From safety updates, site news and calendars to HR resources, co-operative news, production information and recognition programs, the Milky Way app is helping simplify the employee experience and make important information easier to find. But this is about more than a new communications channel. It is another way Gay Lea Foods is building a stronger listening culture. By creating more opportunities for two-way communication and real-time feedback, the app is helping connect corporate and frontline teams in a more consistent, accessible way. For a national food manufacturing business, that is a meaningful step toward building a best-in-class communications ecosystem – one that reaches employees wherever they work. As the Milky Way app continues its journey across the cooperative, it is helping bring our people closer together and strengthening how we listen, share and move forward as one Gay Lea Foods.


FROM BREAKFAST PLATES TO PIZZA OVENS, GAY LEA FOODS’ BRANDS ARE SHOWING UP ON MORE MENUS Across Canada, some of Gay Lea Foods’ proudest brand moments are happening outside the grocery aisle — in busy restaurant kitchens, neighbourhood pizza shops, breakfast destinations and local gathering places where quality and consistency matter every day. Recent foodservice partnerships are helping bring Gay Lea Foods products to more menus and more consumers in visible, memorable ways. Gay Lea Real Whipped Cream is now featured at Cora Breakfast & Lunch, one of Canada’s most recognized restaurant chains. Known for colourful plates, fresh fruit and morning-to-mid-afternoon service, Cora is a natural fit for Gay Lea Real Whipped Cream, which guests can enjoy on signature items including waffles with strawberries, waffles with fresh fruit and the Peach Treat breakfast pizza. Salerno Mozzarella is also building momentum with a growing list of foodservice partners. Sherlock Holmes Hospitality Group is now serving Salerno Mozzarella across its neighbourhood pubs in Greater Edmonton, while Schoolhouse Pizza in Ottawa, Descendant Detroit Style Pizza in Toronto and Culture Crust locations across Ontario are bringing Salerno to pizza lovers through bold, crave-worthy menu items.

WELCOMING CITY OF TORONTO PARTNERS TO CLAYSON A strong future for Gay Lea Foods is built through thoughtful planning, strong partnerships and continued focus on the products Canadians know and love. That future was part of the conversation during a recent visit to our Clayson facility by representatives from the City of Toronto’s economic development and innovation teams. During the visit, City representatives met with Gay Lea Foods leaders to learn more about our co-operative, tour the site and discuss the role Clayson continues to play in supporting our business, communities and the broader Canadian dairy industry. For members, visits like this are an important part of building strong relationships with municipal partners and sharing the story of Gay Lea Foods as a farmer-owned, Canadian dairy co-operative with a long-term commitment to innovation, operational excellence and community. As we continue planning for the future, Clayson remains an important part of our ability to serve consumers and customers, strengthen our business and enrich life with dairy – today and for future generations.

These partnerships matter because they show our brands performing where it counts — in real kitchens, on real menus and in front of consumers across the country. From dependable melt and stretch to consistent flavour, quality and presentation, Gay Lea Foods products are helping operators deliver the experience their guests expect. For members, these customer wins are a proud proof point of how our co-operative is growing with purpose. They strengthen our presence in foodservice, build momentum behind important brands and create more opportunities for Canadians to experience the dairy products our teams work hard to make and deliver every day. From a swirl of whipped cream on a breakfast favourite to mozzarella melting on a hot slice of pizza, Gay Lea Foods brands are earning their place in moments Canadians enjoy — one plate at a time.

L to R: Mike Langdon, Senior Vice-President, Corporate and Co-operative Affairs; Matthew Premru, Economic Development Officer, City of Toronto; Eric Wood, Sector Development Officer, Food and Beverage, City of Toronto; and Vachel Yuen, Operations Manager.

Summer 2026 | 19


ALBERTA CHEESE DELIVERS MEANINGFUL SUSTAINABILITY PROGRESS Meaningful progress starts with a practical improvement. At Alberta Cheese Company (ACC), the team recently completed an air receiver tank installation project designed to improve the performance and reliability of the site’s compressed air system. The upgrade included the installation of a 240-gallon vertical air receiver tank, helping increase compressed air storage capacity and improve system stability. The project supports more efficient energy use and is expected to reduce greenhouse gas emissions by approximately six tonnes per year — equivalent to planting 270 trees annually.

BOTHWELL’S SUSTAINABILITY IMPACT EARNS AWARD NOMINATION At Bothwell, sustainability is part of the way the team is helping build a stronger, more responsible business. That commitment was recently recognized when the site was nominated for the Efficiency Manitoba Sustainability Award at the 2026 Canadian Manufacturers & Exporters Manitoba Gala Awards. The nomination reflects the meaningful work happening across the site to reduce environmental impact and support continuous improvement. From PPE recycling and Earth Day activities to engineering and maintenance projects focused on reducing energy use, water consumption and wastewater generation, the Bothwell team is turning everyday actions into measurable progress.

The project also secured 50 per cent capital incentive support through Alberta’s Strategic Energy Management for Industry (SEMI) program, helping offset costs while maximizing value for the business. For members, this work is a strong example of how focused, siteled improvements can support both operations and sustainability. By improving reliability, reducing emissions and contributing to ACC’s F26 sustainability objectives, the team is helping build a more efficient and resilient Gay Lea Foods. It is a reminder that progress does not always come from one big change. Often, it comes from teams identifying opportunities, taking action and delivering improvements that make a lasting difference.

For members, this recognition is a proud example of how our cooperative continues to create value beyond the products we make. By embedding sustainability into site culture and day-to-day operations, Bothwell is helping strengthen the business, support the community and contribute to a more responsible future. It is also one more way our teams are helping bring our purpose to life. To enrich life with dairy is not only about the products that reach Canadian tables. It is also about the choices we make to care for our people, our communities and the world around us.

L to R: Sandeep Shrestha, Operations Manager; Jeremy Evans, Maintenance Manager; Dominic Marion, Manager, Engineering Projects

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NEW HARDSHIP FUND HONOURS GERRY SCHAFER’S LEGACY OF CARE As a co-operative, caring for one another is part of who we are. That spirit is at the heart of the new Gerry Schafer Emergency Hardship Fund, created to provide confidential, one-time financial assistance to eligible Gay Lea Foods employees facing sudden and unavoidable personal hardship. The fund is designed to help employees cover essential, short-term needs during a crisis, such as medical emergencies, housing loss due to fire or flood, or other serious personal situations outside an employee’s control. To ensure privacy, fairness and compassion, the program is independently administered by Emergency Assistance Foundation Canada, a registered charity specializing in hardship and disaster relief. Gay Lea Foods does not review or adjudicate applications. The fund is named in recognition of Gerry Schafer’s extraordinary 45-year contribution to Gay Lea Foods and the values he embodied throughout his career. Known for his leadership, loyalty and deep commitment to the co-operative, Gerry was widely respected as a mentor, colleague and ambassador of Gay Lea Foods. This fund honours that legacy by offering support when it matters most — with dignity, compassion and care.

Vicki Cox, Operations Manager for Stirling and Ivanhoe, celebrates Employee Appreciation Day with Ivanhoe team.

EMPLOYEE APPRECIATION DAY CELEBRATES THE PEOPLE BEHIND OUR PRODUCTS Across Gay Lea Foods, our people are the heart of what we do. They make our products. They move them. They keep our sites running. They support one another, serve our customers and help bring high-quality dairy products to Canadians and their communities every day. This year’s Employee Appreciation Day was a chance to celebrate that work and thank the employees who make it possible. Our facilities across Canada marked the occasion in their own way, with celebrations ranging from sweet treats and cakes to tropical themes, taco lunches, pizza parties and town hall moments. While each celebration looked different, the purpose was the same: to recognize the care, commitment and pride employees bring to Gay Lea Foods. For members, it is a proud reminder of the many people working across our co-operative to support our shared success. From production and distribution to operations, maintenance, quality, safety and support teams, every role helps us deliver on our purpose to enrich life with dairy.

Summer 2026 | 21


CO-OPERATIVE LEADERSHIP PROGRAM Kicks Off for Class 6

STORY WRITTEN BY CLP CLASS PARTICIPANTS CODY BRAY, IVAN HEEG & MEL KARPENKO

The sixth class of Gay Lea Foods’ Co-operative Leadership Program (CLP) officially commenced on April 7, 2026, at the co-operative’s home office in Etobicoke. Over the next 18 months, 14 participants will come together for six sessions focused on developing leadership skills, deepening their understanding of co-operatives, and building strong peer connections across the industry.

T

he opening session began with a welcome dinner, giving participants the opportunity to connect and start building relationships in an informal setting before diving into the program content. The following day was a full and engaging session centered around leadership development and self-awareness. Participants explored Insights Discovery and its colour-based personality framework, gaining a better understanding of how different communication styles influence teamwork and decision-making. In addition, a Co-operatives 101 session introduced the seven guiding principles of co-operatives and highlighted the significant role they play in supporting members and strengthening the world around us. A key highlight of the session was the opportunity to hear directly from leadership within Gay Lea Foods. Participants engaged in a discussion with board chair Andrew Henderson, gaining insight into governance, board dynamics, and leadership at the board level. This was followed by a session with President & CEO Suzanna Dalrymple, where participants had the opportunity to ask questions and learn about the challenges and responsibilities of leading a large cooperative organization. The session concluded with a team-based, “Family Feud”-style competition, allowing participants to test their knowledge from the Knowledge Hub modules and session content in a fun and collaborative environment.

They returned home to their operations with new ideas and perspectives to apply in their day-to-day roles and are looking forward to continuing the program.

improve leadership

learn about co-operatives

Ivan Heeg

create strong relationships.

Cody Bray

The next session for Class 6 will take place online on July 28, 2026. Our thanks to class participants and contributing writers of this story Cody Bray, Ivan Heeg and Mel Karpenko.

Participants left the first session with a stronger understanding of Gay Lea Foods, the co-operative model, and their own leadership styles.

Mel Karpenko

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OVER 18 MONTHS, PARTICIPANTS WILL ATTEND SIX SESSIONS TO:


Spring Producer Meetings

SHARING THE PROCESSOR PERSPECTIVE ON SUSTAINABILITY Gay Lea Foods’ Specialist, Animal Welfare & On Farm Sustainability, Lisa Wormsbecher, participated in Alberta Milk’s spring producer meetings in Lethbridge, Red Deer, and Leduc, Alberta, connecting with nearly 500 producers over three days this April. Sustainability was a key focus, with producers asking for greater insight into the processor perspective.

D

uring the morning producer-only sessions, Lisa shared how sustainability has become an important business risk and opportunity within supply management—reinforcing that processors and producers must work together for long-term success. The presentation highlighted progress from Gay Lea Foods’ Environmental, Social and Governance (ESG) reporting and On-Farm Sustainability Program, highlighting how meaningful sustainability improvements can take many different forms. Producers also heard more about Gay Lea Foods as a cooperative—from our purpose to Enrich life with dairy, to our commitment to communities. In the afternoon, Kira Hames from Alberta Milk provided an overview of sustainability fundamentals, including the role of the province and Dairy Farmers of Canada (DFC). Her presentation emphasized the importance of current data and the broader impact of sustainability across people, planet, and profit.

Together, the meetings reinforced the value of collaboration across the dairy value chain as we work toward a more sustainable future.

Summer 2026 | 23


Dairy Goat Business Update

SHAPING THE FUTURE OF DAIRY GOAT FARMING IN ONTARIO Approval of the Dairy Goat Farmers of Ontario marks a new chapter for producer collaboration and industry growth

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ntario’s dairy goat industry has been on a quiet rise – now producing most of Canada’s goat milk. Today, roughly 198 Grade A farms across the province produce more than 60 million litres of milk each year. But with that growth has come complexity. Because goat milk is not supply managed and lacks a formal structure, dairy goat producers are often left more exposed to market pressures and have fewer coordinated supports in place. As the sector continues to evolve, this has reinforced a clear need for a stronger, more unified voice across the industry – and a shared focus on how the sector can best support long-term success.

BUILDING MOMENTUM As shared in the fall 2025 Gazette, Gay Lea Foods and the Ontario Dairy Goat Co-operative (ODGC) partnered with producers last spring to explore what that future could look like. This work led to a proposal to establish the Dairy Goat Farmers of Ontario (DGFO) – a unified, producer-led organization focused on supporting a sustainable, profitable, and innovative dairy goat industry through producer engagement, advocacy, research, education, and collaboration with industry partners. The proposed organization would support the sector – not regulate it.

A KEY MILESTONE The proposal has now reached an important milestone. In an Expression of Opinion vote held in April 2026, producer support exceeded the Ontario Farm Products Marketing Commission’s thresholds of 66 per cent of voting producers and 50 per cent of production represented – enabling the Minister of Agriculture, Food and Agribusiness to authorize the Commission to proceed with the next steps to establish a marketing board under the Milk Act, paving the way for the formation of the Dairy Goat Farmers of Ontario. The organization will not regulate production, set prices, impose quotas or enforce government policies, nor buy, sell, or process goat milk – focusing instead on advocacy, education, research and consumer promotion. The approval marks an important moment for Ontario’s dairy goat industry, reflecting strong producer support for coming together under a unified organization focused on strengthening the sector.

WHAT COMES NEXT

“As we move forward, our focus will be on listening, building trust, and demonstrating value for all producers. We are committed to working collaboratively across the industry to support a vibrant and sustainable future.” Jeff Smith Chair, Gay Lea Foods’ Goat Producer Advisory Committee

As part of the regulatory process, proposed regulations under the Milk Act will be posted to Ontario’s Regulatory Registry for a 45-day public comment period, offering an opportunity for producers and stakeholders to provide input before the organization is formally established. In a press release issued on June 5, industry leaders emphasized that the next phase will focus on building trust and delivering value for producers across the sector.

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2026/27 DIRECTORS’ Scholarship Awards

Gay Lea Foods is now accepting applications for its annual Directors’ Scholarship Awards. Five students will each receive a $750 scholarship

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ll dependent children of Gay Lea Foods shareholders are eligible to apply. Shareholders must be in good standing at the time the scholarships are awarded in the fall of 2026. Children of Gay Lea Foods employee shareholders are not eligible as Gay Lea Foods has a separate scholarship program for them. Eligible applicants must have completed their final year of high school and be enrolled in an accredited college or university in the fall of 2026 or beginning in the winter of 2027. If a successful scholarship recipient does not complete their fall or winter semester for any reason, he/she will forfeit the scholarship to allow another student to take advantage of the program.

ADVOCATING FOR A STRONG FUTURE IN CANADIAN DAIRY This May, Gay Lea Foods President & CEO, Suzanna Dalrymple, and Senior Vice President, Corporate and Cooperative Affairs, Mike Langdon, met with the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food, in Ottawa. The meeting was part of a broader industry advocacy day in Ottawa, where Gay Lea Foods engaged with government representatives on key priorities for Canada’s dairy sector and its farmer members. The discussion with Minister MacDonald centred on a shared priority: ensuring Canada’s dairy sector remains strong, resilient, competitive and able to deliver highquality, nutritious products to Canadians.

From left to right: Mike Langdon, Minister MacDonald, and Suzanna Dalrymple.

Conversations like this play an important role in shaping a stable and forward-looking industry. For Gay Lea Foods, it’s also an important part of how we support our members and our co-operative—with more than 1,200 farmer members in Ontario and Manitoba, our success is directly connected to the strength of the broader sector. By working closely with government and industry partners, we help ensure the perspectives of our members are heard and that policies continue to support sustainable growth across Canadian dairy.

THE FOLLOWING WILL BE TAKEN INTO CONSIDERATION:

First priority will be given to students entering agriculturerelated fields of study.

Demonstrated past/current community and co-operative involvement.

Best average of any six Grade 12 courses (as the final determinant).

Completed applications must be submitted by online form and a copy of the student’s final high school transcript must be emailed to Gay Lea Foods’ Corporate Secretary, Ove Hansen, at ohansen@gayleafoods.com by no later than Thursday, September 10, 2026. Documents received after this date will not be accepted.

Please use the QR code or link to fill out and submit your application. https://forms.office. com/r/Ck1ZVCLWf8

*Only applications submitted through the QR code will be accepted. Successful and non-successful applicants will be contacted in the fall of 2026. All decisions of the selection committee are final.

Summer 2026 | 25


Member Profile

MEET YOUR NEW BOARD CHAIR: Andrew Henderson Andrew Henderson’s days don’t start in the boardroom – they start on the farm. Like so many Gay Lea Foods members, that means early mornings, the hum of the barn coming to life, and a deep commitment to the land, the animals, and family.

Can you share with our readers what a typical day on your farm looks like? Of course, the answer is there is never a typical day on the farm!

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t Kenora Farms in Spencerville, Ontario, Andrew and his family work side by side, continuing a multi-generational tradition built on hard work, resilience, and pride in producing high-quality Canadian milk. It’s this lived experience – understanding both the challenges and rewards of farm life – that he brings to his new role as board chair. A long-time supporter of the co-operative, Andrew believes strongly in the power of farmers working together to build something bigger than any one farm. We sat down with Andrew to learn more about the family behind the farm, his journey to leadership, and his vision for the future of Gay Lea Foods.

We milk 190 cows with robots on our farm. So, with that system, there is obviously no milking to be done. There are usually a few cows that are overdue to be milked that we need to fetch. There are still all the regular chores to complete, like on all farms, and always something to fix. We try to have a weekly planning meeting every Monday to lay out a game plan for the week. Then it’s about managing people and trying to execute the plan.

Is your family involved in your farming operation? My father Paul is still a help on the farm. He is enjoying partial retirement and does like to travel, but when he’s home, he’s very happy to do errands, drive tractors, help out with whatever’s needed or just read the farm magazines in the office. I have a sister who works part-time on the farm, as well as my oldest son, Sam, who is now home full-time. Sam is in charge of feeding the cows and takes care of equipment maintenance. He is also the go-to person for fix-it jobs. All my other children have helped and continue to do so on weekends or during the summer. We will continue to transition Sam over the years and wait to see if there is any further interest from any of the other children, as three of them are still only sixteen.

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I wouldn’t be here if I didn’t have a supportive family, the support of the members and delegates who voted for me, and a supportive board that has provided me with the opportunity to develop. To me, this role is a great responsibility. One that I don’t take lightly. What gives me confidence is that I don’t face challenges alone, I’m part of a great team on the board of directors.

In your opinion, what are the biggest challenges and opportunities that dairy farmers face today? Of course, the biggest threats seem to be international trade negotiations, as they can have a significant effect on our domestic system. Other, more internal challenges are adapting milk composition to meet what the market demands, as well ensuring we have a national system where all provinces can work together to evolve and protect our supply management system. Our biggest opportunity is the fact that we work within a system where producers have such a significant voice in the management of that system.

As chair, what are your top priorities for supporting our members?

Wait, did you say you have three sixteen-year-old children? Yes, my wife Tracey and I have seven children together ranging in age from 16 to 24 years old: Anna, Sam, Lily, Grace, Claire, Kate and Luke. The triplets were a surprise.

What has being a producer member within Gay Lea Foods meant to you and your farm? In its simplest form, being a member of Gay Lea Foods has been a great investment. Financially, it makes a lot of sense – but the benefits go much deeper. For one, being a part owner of a processing company could be a risk mitigation strategy in the future; but I believe the biggest impact is around personal growth. This co-operative has provided me with so many opportunities for self-improvement it’s hard to recount them all. From the opportunity to network with progressive people, to training programs with lessons that are transferable to so many other aspects of life, to situations where I had to challenge myself and step out of my comfort zone. Gay Lea has significantly altered the course of my life.

What inspired you to take on the role of chair and what does that title mean to you? I didn’t join the board with an intent to become the chair. I found myself in this position in the same way I found myself in the role of director – I’m interested in the work that goes on at Gay Lea Foods, I believe it is purposeful, and I gained the trust and support of the people around me.

Gay Lea Foods was created to enrich life with dairy and that purpose still guides us today. That means that while the industry has evolved over time, our commitment to members remains essentially the same: to harness the power of the collective, support a strong, sustainable Canadian dairy industry, and create fair, stable, and generational opportunity for farming families. We also know how important it is to maintain transparent, open lines of communication and encourage members to realize all the benefits the co-operative has to offer. We’ve committed resources to this, through our Member Engagement Strategy, with the intent to drive value and engagement by building an informed, proud, and active community.

What would you like your fellow Gay Lea Foods members to know as you step into this role? I would like members to know that I step into this role with a lot to learn, but I will give my best effort. I have a very strong, supportive team around me and we will continue to work in the best long-term interests of our members to move Gay Lea Foods forward.

One thing is clear – as Andrew steps into the role of chair, he does so with a strong appreciation for the responsibility it brings – and the team around him. While his perspective may now include the boardroom, he remains, first and foremost, a farmer committed to listening, learning, and working in the best long-term interests of Gay Lea Foods members – today and into the future. As our co-operative continues to grow and evolve, that connection – to each other and to the farm – remains one of our greatest strengths. Summer 2026 | 27


Gay Lea Gives:

COMMUNITY INVESTMENT UPDATE

$290,0000+

Invested This Spring

GAY LEA FOUNDATION SUPPORTS COMMUNITIES AND AGRICULTURE This spring, the Gay Lea Foundation invested more than $290,000 with 14 organizations working to strengthen rural communities, local food systems and agriculture, both here at home and abroad. The funding reflects the co‑operative’s commitment to healthy communities and a strong, sustainable ag sector.

Community Well Being Grants

• •

14

Organizations Supported

$3 Million

Awarded Since 2014

Sustainable Agriculture Grants

OSHARE FOOD DEPOT, Owen Sound, ON – $50,000

•

RAYJON SHARE CARE, Haiti – $25,000

TAVISTOCK HEALTH CENTRE, Tavistock, ON – $40,000

•

IMPACT NATIONS, Uganda – $25,000

HUMBER RIVER HEALTH FOUNDATION, North York, ON –

•

SOCODEVI, Ethiopia – $20,000

$25,000

•

SHEAF/ESPIGA FOUNDATION, Nicaragua – $14,000

PRINCE EDWARD COUNTY HOSPITAL FOUNDATION, Picton,

•

RISING OUT OF THE ASHES (ROOTA), Egypt – $10,000

ON – $21,000 •

CHILDREN’S HEALTH FOUNDATION, London, ON – $20,000

•

K W HABILITATION FARM, Kitchener, ON – $14,000

•

4 H ALBERTA SUMMER CAMPS, AB – $10,000

•

FOOD STASH FOUNDATION, Vancouver, BC – $10,000

•

THE BRIDGE, Niagara Falls, ON – $10,000

Since 2014, the Foundation has awarded more than $3 million to charitable projects that build community capabilities and address key needs in education, health, poverty relief, and sustainable agriculture, creating lasting, positive change in communities locally and globally. For more information, please contact Kelly McNamara (kmcnamara@gayleafoods.com)

THE GAY LEA FOUNDATION Board of Directors DEEDEE BEKKERS Director

SARA ABE Employee

JEFF STEWARDSON Shareholder

JENNIFER WOODHOUSE Director

LISA POND Employee

MARIE MCNABB Shareholder

JENNIFER BRYSON Delegate

DEANNE REILLY Employee

SUZANNA DALRYMPLE Ex-officio

RICK ATTEMA Delegate

NEETU GARCHA

ANDREW HENDERSON Ex-officio

28 | Summer 2026

Employee


COMMUNITY IMPACT GRANTS IN ACTION

OSHaRE (Zone 3)

The Bridge (Zone 2)

A $50,000 investment is helping OSHaRE Food Depot expand its food rescue program, increasing storage capacity to handle more donated food that would otherwise go to waste. The added space will support growing demand across Grey and Bruce counties, ensuring more nutritious food reaches local families and community meal programs.

A $10,000 grant is supporting Bridge 2 Learn, helping provide daily nutritious meals to students in Niagara Falls while building long term food skills for families. The program ensures hundreds of children have reliable access to healthy food at school, helping them stay focused, engaged and ready to learn.

Prince Edward County Memorial Hospital Foundation (Zone 4) A $21,000 donation is helping bring new 3D mammography technology to Prince Edward County Memorial Hospital, improving access to early, accurate breast cancer screening close to home. This upgrade will support better detection, reduce the need for repeat testing, and ensure rural families can access critical care in their own community.

STRONG COMMUNITIES START WITH FULL PLATES

STRONG COMMUNITIES START WITH FULL PLATES

G

ay Lea employees were proud to volunteer with Food Banks Canada’s After the Bell program this spring, helping pack healthy food for kids who rely on school meal programs during the year. Joining 1,500 volunteers at the International Centre in Mississauga, the Gay Lea Gives team helped assemble more than 200,000 food packs that will be distributed to food banks in communities across the country. Each pack includes

nutritious items like granola bars and oatmeal, with fresh food added locally. With food bank use continuing to rise, especially among families, the program helps bridge the gap for children during the summer months when school-based supports aren’t available. It’s one more way Gay Lea employees are stepping up to support families, strengthen communities and ensure kids have access to the food they need.

Summer 2026 | 29


PURPOSE IN ACTION: GAY LEA FOODS RECOGNIZED NATIONALLY WITH CMC AWARD

A recognition of the progress we’re making to embed sustainability across our operations, sites and farms.

W

e’re proud to share that Gay Lea Foods has been recognized with the Co-operatives and Mutuals Canada (CMC) Environmental Initiative Award for our leadership in sustainability. This award reflects how we’re bringing our purpose—enrich life with dairy—to life through how we operate as a co-operative. As Lauren Beerman, Director, Corporate Sustainability, shared while accepting the award, this work isn’t separate from the business; rather, it’s embedded in how we make decisions every day. In addition to receiving this honour, Gay Lea Foods proudly played a significant role at the conference as one of the event’s major sponsors. Suzanna Dalrymple, President & CEO, delivered the opening address at the reception, helping set the tone for a collaborative and inspiring gathering. The co-operative also hosted a tour and networking session at Carlson Court, showcasing our operations and strengthening connections across the sector. Together, these contributions highlight our

30 | Summer 2026

commitment to actively supporting and advancing the cooperative movement at a national level. Over the past few years, we’ve taken an integrated approach to sustainability, moving beyond stand-alone projects to build a company-wide environmental strategy that connects our operations, sites, and our member farms. That approach is grounded in the same principles that guide our co-operative—supporting our members, working together across teams, and making deliberate investments in the places we serve.


What this looks like in action: Smarter energy use •

Launched our first-ever carbon intensity reduction program

•

Rolled out real-time energy monitoring at our sites

•

Identified high-impact opportunities to reduce emissions and costs

Advancing a more circular approach •

Introduced personal protective equipment (PPE) recycling alongside construction material recycling

•

Expanded waste audits and standardized training

•

Reduced virgin packaging materials by over 61,000 kg annually

Supporting our farms •

Completed a 20-farm pilot to strengthen environmental practices

•

Developed plans to expand the program across our membership

Lauren Beerman, Director, Corporate Sustainability, accepts the award on behalf of Gay Lea Foods.

The impact so far: •

Reduced an estimated 4,890 tonnes of CO2e since 2023—roughly equivalent to taking more than 1,600 cars off the road for a year

•

Achieved an estimated 9.5 per cent carbon intensity reduction from baseline (2023), surpassing every annual target to date

•

Delivered more than $1.3M in annual energy savings

•

Improved landfill diversion from 28 per cent to 40 per cent, exceeding targets by 500+ basis points

•

Eliminated more than 61,000 kg of virgin material through packaging redesign

•

Engaged over 300 employees in environmental initiatives, strengthening sustainability culture at every site

This recognition belongs to teams across Gay Lea Foods—from our manufacturing sites and members to procurement, packaging, sustainability ambassadors and beyond. It also reflects the leadership and commitment across the organization, including Lauren and her team, who continue to advance this work in meaningful and practical ways. At its core, this award is about how we show up as a co-operative—building a strong, sustainable business together and ensuring the value we create is shared beyond our organization and into the future. Summer 2026 | 31


DAIRY MUSEUM Update

CYL (CO-OPERATIVE YOUNG LEADERS) The 59th year of the CYL program, run by the Ontario Co-operative Association, will be hosted at our very own Dairy Museum again this July. A team of Gay Lea Foods staff members will be facilitating the first week of camp, called Explorers, for young people 12-14 years of age. There will be an additional two weeks of camp offered for youth aged 13-16 and 15-17.

SCHOOL GROUPS Starting in April and running to the end of June, the Gay Lea Dairy Museum & Co-operative Education Centre hosted close to 500 students and adults, from seven different school groups. Participants learned about the rich history of the dairy industry and nature in the Carolinian forest while exploring the beautiful site. They also enjoyed various arts and crafts and even tried their hand at making their own ice cream.

The Community Living Classes of East Elgin Secondary School completed a year of monthly visits to the site. Students participated in an Amazing Race event, made salsa, planted trees, tulips and daffodils, created habitats for wildlife, constructed a frog hotel, and learned about cartooning. We can hardly wait until September when they are back in class and returning to the Dairy Museum for more fun and collaborative programming!

Dairy Museum staff also attended three different AgScape events, along with several Gay Lea Foods members and delegates, to help promote careers in agriculture and, more specifically, within Gay Lea Foods. The events – held in Hamilton, Stratford and Simcoe, Ontario – reached more than 500 students in each of the respective communities.

32 | Summer 2026

GLF CAMP OUT Gay Lea Foods employees, members and their families converged on the Dairy Museum & Co-operative Education Centre for the weekend of June 20-21 for what has fast become an annual tradition to look forward to! The Dairy Museum team provided a BBQ lunch on Saturday while attendees explored the property, taking in several of the group games and activities. As always, the bouncy cow made an appearance, the campfire was a popular location on Saturday evening, and the fireflies put on a spectacular light show for attendees. Plan to attend in 2027!

The program is like no other and promises to create a lifetime of memories and friendships. Gay Lea Foods is sponsoring 15 participants to attend one of the various weeks of programming. If you or someone you know would be interested in attending CYL as a facilitator or camp participant, please contact us at museum@gayleafoods.com. If you’ve never experienced the CYL program, you are definitely missing out on a week of incredible fun, teambuilding, and personal development!

UPDATE ON THE NEW COMMUNITY MEETING HALL We’re excited to announce that construction is underway on the new community meeting hall at the Gay Lea Dairy Museum! The bright, year-round building will be accessible for community organizations and provide a focal point for co-operative organizations in southern Ontario, as well as rural youth groups like Community Living, 4-H, and Big Brothers & Sisters . Check out the Members’ Facebook Community page for updates on the project’s progress!


4-H ONTARIO HONOURS GAY LEA DAIRY MUSEUM MANAGER CRAIG STEVEN with Prestigious Arbor Award

4-H Ontario has announced the recipients of its 2026 4-H Ontario Arbor Award, the organization’s highest volunteer honour recognizing long-standing service, leadership, and community impact. Among this year’s three distinguished recipients is Craig Steven, Manager of the Gay Lea Dairy Museum in Aylmer and a member of the Elgin 4-H Association.

T

he Arbor Award, established in 2001 during the International Year of the Volunteer, celebrates 4-H Ontario volunteers with more than a decade of service who have made a meaningful and lasting contribution to both the 4-H program and their wider communities. Recipients are nominated by local 4-H associations and selected by a committee of past Arbor Award winners.

Craig Steven was formally recognized on March 21, 2026, during 4-H Ontario’s Regional Roots Volunteer Conferences held across the province and online. Each recipient received a hand-crafted metal tree sculpture, with an additional tree to be planted in a location of their choosing to honour their contributions. A 28-year 4-H alumnus, Craig has served the organization in numerous leadership and volunteer roles, including Ministry Staff Member, provincial program volunteer, association representative, association vice president, and club volunteer. Known for his creativity, enthusiasm, and engaging mentorship style, Craig has become a favourite among campers, facilitators, and fellow volunteers alike. In recent years, Craig brought his passion for pickling to life through the creation of pickling camps for 4-H alumni and friends, blending skill-building with community connection. His energetic approach and commitment to mentorship have left a lasting impression on countless participants. “Craig’s infectious enthusiasm, entertaining mentorship style and unwavering support make him an exemplary candidate,” said Margo, a fellow 4-H alumnus, in the award announcement. “I am confident that Craig’s positive influence will continue to leave a lasting impact on those fortunate enough to be mentored by him.” Beyond 4-H, Craig’s volunteerism extends to numerous organizations, including Co-operative Young Leaders (CYL) Camp, Black Hills Recreation, CIBC Run for the Cure, Great Lakes Recreation, Hoosier Leadership, the Ontario Co-operative Association, and Friends of Dorothy Bowling.

Lisa M. Thompson, Minister of Rural Affairs and Craig Steven, Manager, Gay Lea Dairy Museum.

“Craig’s infectious enthusiasm, entertaining mentorship style and unwavering support make him an exemplary candidate”.

Gay Lea Foods is proud to celebrate Craig Steven’s exceptional commitment to youth development, community leadership, and volunteer service through this well-deserved recognition. Summer 2026 | 33


SHAREHOLDERS’

Corner

PLEASE KEEP US INFORMED!

MEMBER PRODUCT PURCHASE FROM OUR STORES

•

Members no longer need to show a member card when buying products at our retail locations. A government-issued photo ID will be checked against a monthly updated member list. Please mention you are a member before checkout to ensure you receive member pricing.

Contact Member Relations if any of the following information has changed:

• • •

Address, email or phone number (including 911 details) Banking information for payment deposits Farm ownership or succession updates (we need to know the current ownership structure) Your milk licence status (new, replaced, inactive)

FOR LINKED FACILITIES AND ADDITIONAL TANKS If you’ve added a linked facility or installed a second tank, it is your responsibility to notify Gay Lea Foods. Your new licence must be applied for and on record with your membership. Please note: Gay Lea Foods does NOT receive automatic notification when a producer adds a second tank or transfers quota to a linked facility, even if all milk payments appear on a single milk cheque. To ensure everything is properly documented, contact a Member Services Representative as soon as possible to complete the necessary paperwork.

OWNERSHIP CHANGES FOR MEMBERSHIPS IN A CORPORATION/LIMITED OR PARTNERSHIP NAME If you have made changes to the owners or shareholders of your membership, Gay Lea Foods requires an updated letter from your accountant or lawyer to confirm the changes. It is your responsibility as a member or shareholder to notify Gay Lea Foods of any changes.

Introducing Nina…. We are excited to announce that Nina Hiddema has joined the Member Relations team as a Member Services Representative/ Administrative Assistant on contract for the next year.

ACCESS YOUR INFORMATION ONLINE The members’ website offers annual tax slips and statements for every year-end and is accessible 24/7. Contact us (contact@gayleafoods.com) if you have any difficulties logging in.

www.gayleafoodsmembers.com

34 | Summer 2026

Nina graduated from the University of Guelph Ridgetown Campus with an Associate Diploma in Agriculture. She then took her education back to her family’s broiler chicken and cash crop farm in Wellington County. She is looking forward to connecting with producers, learning more about the dairy industry, and supporting our members and shareholders. Building strong relationships and understanding the day-to-day realities of producers are important to her, and she is eager to continue learning from their experiences while contributing to the success of the co-operative.


Summer 2026 | 35


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