UDA Magazine- Spring 2021

SPRING 2021

UDA Magazine

61

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Annual Meeting

UDA Magazine United Dairymen of Arizona Officers & Executive Commitee Craig Caballero Jim Boyle Jr. Ben Gingg Robert Van Hofwegen David Feenstra Keith Murfield

President Vice President Secretary/Treasurer Member at Large Member at Large CEO and Assistant Secretary/Treasurer

directors Ian Accomazzo Daniel Boschma Arie DeJong Ben Dickman Tom Dugan Dan Gladden Bill Kerr Tom Thompson Justin Stewart Paul Rovey Nick Vanderwey Pieter van Rijn

Gila Bend Tonopah Maricopa Buckeye Stanfield Palo Verde Buckeye Buckeye Mesa Glendale Buckeye Mesa

UNITED DAIRYMEN is published quarterly for the dairy cooperative members of the United Dairymen of Arizona, 2008 S. Hardy Dr., Tempe, AZ 85282. Additional distribution includes agencies, businesses and individuals associated with the production of milk. Paid subscriptions are not available. Membership list is not available for public use. Acceptance of advertising does not assure that merchandise or services advertised have been approved by United Dairymen of Arizona, the health department or other regulatory agencies.

Advertisers are solely responsible for the content of the written material or representations that appear in the advertisement.

Cover Photo: A rare sight, the snow-capped Superstition Mountains in January. Photo Credit: Tiffany Selchow, AZ Beef Council

In this issue 61st Annual Meeting Despite the challenges, 2020 came with many opportunities to grow and give back.

Fairlife's First Load of Milk After many years of negotiating and preparation, the first load of milk has made its way to fairlife.

Maintaining a Safe Work Environment What to do when an employee tests positive for COVID-19.

COVID-19 Vaccination Info Helpful information to get you and your employees vaccinated.

What Will Animal Activism Look Like in 2021?

How are activists leveraging the pandemic for their cause?

COVID's Bovine Cousin and Bacterial Calf Scours Written by Briana Laguna | AZ DHIA Intern New Year, Simple Meal Net Zero Initiative Created for All Farms, All Geographies Written by Karen Scanlon | SVP, Environmental Stewardship | Dairy Management Inc. Dairy Priorities Take Shape in New Congress and Administration Written by Paul Bleiberg | Senior Vice President of Government Relations | NMPF DairyAmerica Update Written by Patti Smith | CEO | DairyAmerica Arizona Milk Producers Update

61 Annual Meeting st

On a beautiful afternoon in late January, the 61st annual meeting was called to order. A drastic difference from the celebration of 2020, the small in-person gathering consisted of board members, a few spouses, and UDA staff. Other participants listened to the updates via Zoom.

The impact COVID-19 was the common theme through each update. As a result of drastic declines in foodservice, schools, and travel, demand for dairy products plummeted at the start of the pandemic. As a result, over 20 million lbs of milk, cream, and byproducts were dumped. It was a heartbreaking time for the co-op. Especially in the midst of skyrocketing need for out of work families.

Despite the challenges, there were many bright spots in the year.

The completion of the UltraPure Lactose plant, in the summer of 2020. After over a year under construction. UDA's state of the art lactose plant was completed. Marking UDA as the first UltraPure Lactose drying operation in the country. This high-end lactose is used in the cosmetics, pharmaceuticals, and sports nutrition industries.

The $200 million dollar fairlife processing facility in Goodyear was in the final stages of construction by late 2020. Once fully operational in 2021, the plant will be the secondlargest dairy processing plant in Arizona.

The lactoferrin plant continued to grow and refine processes. After 17 months running hit a milestone of 10,000 kg produced. This milestone will be the annual goal as we move forward with Lactoferrin production.

The "Feeding Families, Supporting Farmers" community fundraiser successfully raised nearly $20,000 to help United Food Bank with the purchase and transportation of milk.

Thanks to partnerships formed to help feed hungry families during the beginning of the pandemic; UDA was nominated for and won an ASU Recognition of Resilience Award.

Arizona State University produced a video featuring its three winners and interviewed Wes and Bill Kerr on behalf of UDA. State Senator, Sine Kerr, gave a legislative update and shared the proclamation that was given on the floor to pronounce January 1, 2020, as the United Dairymen of Arizona’s 60th Anniversary and to showcase the Senate’s appreciation for their contribution to the agriculture, economy, and heritage of our state.

Quality Producer Award Creamline Dairy

Fairlife's First Load of Milk

On a cold, rainy day in January, a supertanker rolled to a stop at Paloma Dairy. The tanker, driven by Wade Ellison of Milky Way Transport, was not making any old pick up. Instead, it was picking up the much anticipated first load of milk for fairlife.

After years of negotiations and 18+ months of construction, UDA's newest customer is running milk! Starting at a trickle through the spring and then ramping up during the summer and fall, the fairlife plant will be the second-largest dairy plant in the state.

You can expect to find fairlife products filled with Arizona milk as soon March 2021!

Maintaining a Safe Work Environment It’s a New Year (so glad to see you, 2021!) and while it’s probably safe to say EVERYONE is ready to put this pandemic behind us, it is more important than ever to maintain a safe work environment for employees and follow important health guidelines.

Below are a few friendly reminders of what to do if an employee tests positive.

Wait approximately 24 hours after the positive employee has begun self-isolation to begin cleaning and disinfecting. Use a solution such as bleach to clean areas used by the sick employee as well as common areas and high contact spaces such as Bathrooms Breakrooms Shared workspaces and/or equipment High touch surfaces such as door handles, light switches, refrigerators, microwaves, coffee makers, etc.

If you provide laundry services, launder the sick employee’s clothing separate from other employees and leave the clothing for at least a day before others use it.

Be strict about policies already in place such as social distancing or wearing face coverings when social distancing isn’t possible.

Wishing all of our members safety and health this year. For more information or resources visit cdc.gov or azdhs.gov/covid-19.

COVID-19 Vaccination Info Food and agriculture-related occupations are eligible to be vaccinated in Phase 1B after prioritized 1B groups. In order to get vaccinated you must: Be a member of the current phase (1B).

Schedule an appointment.

Provide appropriate identification once you arrive at the vaccination site Be sure to check what is required at the location you choose. For example, you might be required to show the appointment confirmation along with confirmation you are in Phase 1B, such as an ID showing age or a work badge or paycheck proving place of employment.

To schedule an appointment, click here: https://www.maricopa.gov/5659/COVID-19-VaccineLocations Tips to make scheduling run smoothly:.

Use a desktop or laptop, not a mobile device Use Chrome, Edge, or Firefox browsers Use an email address that does not end in .gov, .edu, or cox.net, and is not a work-based email; free email services like Gmail and Hotmail work better Have your insurance card handy (if you have insurance) Visit maricopa.gov/covid19vaccine for more information.

What Will Animal Activism Look Like in 2021?

The Animal Ag Alliance remained focused on monitoring animal rights activism in 2020 despite other topics taking over the news. In light of this research, below are some trends worth noting that may continue into 2021 that UDA will be monitoring and providing messaging and other resources to combat.

1. Activists have merged public health concerns with animal agriculture messaging. The COVID-19 pandemic has unfortunately ignited activists’ belief that animal agriculture is a threat to public health. There have been increased calls for “reforming the food system” and references to farms as “breeding grounds” for future disease outbreaks.

2. Sustainability once again under the spotlight. While the conversation might have shifted away from the environmental impact of animal agriculture for most of 2020, over the last few months this has become front and center with announcements from restaurant chains such as Panera and Chipolte introducing new labeling programs to communicate the environmental footprint of their menus. This topic is also at the forefront of up-and-coming summits such as the UN Food Systems Summit which is promoting a shift to sustainable consumption patterns.

3. Large protests and demonstrations will still happen. Despite restrictions on gatherings, activist groups are still planning protests. Protests continue to occur at farms, plants, and public health offices, with some involving trespassing and the disruption of daily operations. Some protests have even been organized at private homes of animal agriculture companies and organization leaders. Now more than ever, it is key members are up to date on farm security and crisis plans.

For more information and support on animal rights activism, visit animalagalliance.org.

Go VEGAN

COVID’s Bovine Cousin & Bacterial Calf Scours

Anna Nguyen, Arizona DHIA Intern

Many groups of microorganisms cause calf scours. Interestingly, a virus in the coronavirus family causes calf scours. Bovine coronaviruses and rotaviruses are the most common causative agents of calf scours. Bovine viruses are found in contaminated calf milk. The source of contamination comes from the virus shedding into manure. Aside from viruses, bacteria like E. coli and Salmonella species also cause scours in calves, but with different strategies. Bacteria are capable of invading intestinal tissues and cells, which contributes to intestinal damage. Bovine viruses and bacteria go through distinct processes and use various virulence factors to cause calf scours successfully.

When a calf consumes contaminated milk, viruses in the milk use a lock and key mechanism via the spike protein to attach and enter cells in the small intestine. These cells are called enterocytes. Once inside an enterocyte, viruses hijack cellular equipment to replicate. Bovine coronaviruses and rotaviruses attach and enter the small intestinal villi cells, or small antenna-like structures on the intestinal walls of calves. Rotaviruses produce enterotoxins, making it easier for viral particles to move along the intestine and hijack epithelial cells to replicate in. Calf scouring caused by these viruses is prevalent in 1 to 2week-old calves. Antibodies in their small intestines' mucosal membranes are immature, so immune defenses against these pathogens are weak.

Calf Scours Continued Other microbes like bacteria are also causative agents of calf scours. Coliforms, or gramnegative bacteria like E. coli and Salmonella species are typical suspects. When calves ingest contaminated milk, again from milk contaminated with manure particles, the organism goes into the calves' intestine and adheres to the intestinal wall to reproduce. Bacterial reproduction causes enterocytes to slough off the intestinal lining. This leads to fluid loss and diarrhea. Salmonella species invade intestinal mucosal membranes and penetrate the walls of the intestine. Penetration breaks down intestinal tissue, causing bleeding and the presence of blood in manure. Bacterial shedding occurs just like viral shedding, so manure and contaminated boots and equipment serve as reservoirs for easy transmission to other calves.

Calf scours are prevalent in newborn calves due to the pathogenic nature of the microbes that cause infection. Shedding viruses and bacteria into feces introduces these microbes to other calves, which leads to contamination in the environment these calves live. With an underdeveloped immune system, calves are at a higher risk for developing scours if their hutches are contaminated with infected manure.

Proper calf hygiene protocols can be tested in our microbiology department. Arizona DHIA is proud to serve producer needs as a one-stop tool for milk quality and herd health.

New Year, Simple Meal When it comes to cooking, the start of a new year can sometimes inspire people to adapt healthier eating habits. After 2020, what if the goal was just to keep things simple, and of course, tasty in the kitchen?

Check out this mouth-watering, one-pot wonder.

Recipe courtesy of Food Network Creamy Skillet Chicken What you’ll need: 1/4 cup all-purpose flour Kosher salt Fresh ground black pepper Four 6-ounce boneless, skinless chicken breasts 4 Tablespoons vegetable oil One 8-ounce container sliced mushrooms 2 cloves garlic, minced 4 ounces cream cheese, cut into chunks 1 cup half and half One 10-ounce package of baby spinach (about 8 cups) Warm egg noodles, for serving Let’s get started: Whisk together the flour, 1 tablespoon salt and a few grinds of pepper in a pie plate or shallow dish. Coat both sides of the chicken breasts in the flour. Shake off any excess and set aside.

Heat 3 tablespoons of oil in a large, heavy-bottomed skillet over medium-high heat.

Add the chicken to the skillet and cook, undisturbed, until deeply golden, about 3 minutes. Turn the chicken and cook, undisturbed, until the other side is deeply golden brown, about 3 minutes.

Remove the chicken to a plate.

Add the remaining 1 tablespoon oil to the skillet.

Add the mushrooms and cook, stirring occasionally, until they begin to brown and release their liquid, about 5 minutes.

Add the garlic and cook, stirring, until the garlic is fragrant, about 30 seconds.

New Year, Simple Meal Add the cream cheese and stir until melted.

Then pour in the half-and-half. Use a wooden spoon to scrape any browned bits from the bottom of the skillet.

Season with salt and pepper.

Add the chicken back to the skillet, cover, and cook, turning about halfway through until an instant-read thermometer inserted into the thickest part of the chicken reaches 165 degrees F, 15 to 20 minutes.

Transfer the chicken to a serving platter filled with warm egg noodles.

Add the spinach to the skillet, cover and cook until wilted, about 5 minutes.

Stir to combine and season with salt and pepper. Pour the creamy spinach sauce over the chicken and noodles.

Net Zero Initiative Created For All Farms, All Geographies

By Karen Scanlon | Senior Vice President, Environmental Stewardship Dairy Management Inc.

When U.S. dairy announced the 2050 Environmental Stewardship Goals and Net Zero Initiative (NZI), the strategy was for farmers to never carry the load alone. Our plan was to bring others to the table with their resources and expertise, and that is exactly what’s happening.

Nestlé announced its partnership and Starbucks publicly stated its intent to partner with NZI. Also, the Foundation for Food & Agriculture Research (FFAR) said its grant proposal has been selected. In total, this could bring up to $30 million, and conversations with additional prospective partners continue.

Their engagement speaks volumes about their belief in dairy as a leader in sustainability.

FFAR funding will allow us to conduct research that lays the groundwork for better data and models, more accurate measurement, and, ultimately, monetization of best practices in feed production. Its important NZI works not just for farmers in the West but across the country. It isn’t a one-size-fits-all mindset, but rather one that makes sense for farms of all sizes, styles, and geographies.

NZI is showing U.S. dairy’s true unity. It was founded by organizations representing farmers, cooperatives and processors, including Dairy Management Inc., the Innovation Center for U.S. Dairy, Newtrient, National Milk Producers Federation, U.S. Dairy Export Council and International Dairy Foods Association.

NetZero Continued The 2050 goals and NZI are crucial to our future. We’ve seen a shift, accelerated by COVID-19, in consumers wanting more transparency in how their food is produced.

Purchase decisions are linked to emotions and values. People want to feel good about what they consume, and NZI can prove that dairy is responsibly produced.

We understand we cannot achieve sustainability without profitability. NZI will help farmers implement new technologies and adopt economically viable practices on our journey to net zero greenhouse gas emissions, optimized water usage, and improved water quality.

Through expanded research, better information about proven practices and viable technologies, on-farm pilots, and new opportunities, NZI aims to knock down barriers and create incentives that lead to economic viability and positive environmental impact.

Funding from corporate partners and grants will address needs, including closing research gaps in feed production to help farmers identify best practices that reduce greenhouse gas emissions and improve soil health and water quality. We’ll quantify environmental outcomes that set the stage for new market opportunities, such as non-traditional carbon and water markets.

Other possibilities include feed additives that positively impact greenhouse gases and feed efficiency and genetics to lower methane emissions. Manure presents opportunities, including technology, to create dried products that can be packaged and marketed.

Renewable energy from wind and solar, as well as anaerobic digestion, is within reach.

From an energy savings perspective, LED lighting, variable frequency drives, and high-efficiency refrigeration are NZI solutions. So are practices such as minimal disturbance tillage, cover cropping, and buffer strips.

This is an exciting time for dairy, and we have built a long runway for this moment. This work has been on the radar of the checkoff-created Innovation Center for U.S. Dairy and its member companies, including the United Dairymen of Arizona, for years. We also are building on generations of sound practices by dairy farmers, who have proven the great care they manage their land.

This sort of vision and commitment make it a natural fit for major companies and others to join our already strong foundation.

To learn more about the U.S. dairy industry’s sustainability efforts, visit www.usdairy.com/sustainability.

Dairy Priorities Take Shape in New Congress and Administration Written By: Paul Bleiberg NMPF Senior Vice President of Government Relations With a new Congress and White House beginning to take action in February, the National Milk Producers Federation (NMPF) is also beginning to educate policymakers on crucial priorities for dairy in what promises to be another year of economic uncertainty.

A divided Congress and new leadership in both of its agriculture committees, along with new agency leaders under the Biden Administration, reinforce the value of dairy’s commitment to working on a bipartisan basis for progress on issues important to Southwest dairy farmers, including coronavirus relief, agricultural labor reform, and expanded support for on-farm sustainability practices.

President Biden’s first weeks in office have focused largely on addressing the pandemic through executive action, but a robust legislative response from Congress is forthcoming. NMPF worked with members of Congress to address shortcomings of previous bills through the most recent assistance package, signed into law in late December, which included a provision that enables USDA to provide additional compensation to producers who encountered issues with payment limitations under the Coronavirus Food Assistance Program. This improvement, among others, provides a strong foundation to build from in the next relief package.

And with difficult months of the pandemic still ahead, it‘s crucial that lawmakers come to a bipartisan agreement that will provide financial stability for dairy farmers.

Dairy Priorities Take Shape in New Congress and Administration The ongoing labor crisis acutely felt by dairy farmers is also getting attention from new leadership. Ag-labor reform has proven difficult for decades, but representatives got closer to it in the last Congress with the imperfect, but promising, Farm Workforce Modernization Act. Urgent attention to COVID-19 stopped progress cold in the Senate.

But President Biden’s recent unveiling of the U.S. Citizenship Act of 2021, which includes legal status for farmworkers, indicates a willingness to address some of the longstanding needs of the dairy workforce.

The ability to talk to and work with both sides of the aisle has given dairy a unique sensitivity and ability to address concerns from across the political spectrum. That’s especially true in issues related to environmental sustainability. Dairy fights against environmental regulations that needlessly undermine its ability to effectively feed the world but it also proactively undertakes initiatives such as the Dairy Environmental Sustainability Goals and the Net-Zero Initiative to achieve a carbon-neutral dairy sector by 2050. Congressional leaders and the Biden Administration have indicated their strong support of initiatives to combat climate change; the dairy community is eager to support policies that encourage climate-smart practices on dairy farms.

NMPF will continue its work with the new Congress and Administration to advocate for dairy farmers and their cooperatives in policy decisions, with our hallmark bipartisanship giving us a seat at the table wherever, whenever, and with whoever is making important decisions affecting farmer livelihoods.

DairyAmerica Update

By Patti Smith, CEO, DairyAmerica

2020 Recap and Moving Forward into 2021 As 2020 wound down and the clock struck midnight, I completed my first six months as CEO at DairyAmerica.

Not only has it been an honor to join and lead a great company, but it has also been one of the most rewarding experiences of my career working with our member-owners and our talented team.

"DairyAmerica's performance for 2020 was exceptional and resulted in one of the best years ever for our cooperative"

When looking back at 2020, the impact of the COVID-19 pandemic on our families, daily lives, and businesses is unforgettable. For DairyAmerica, we started 2020 with good milk powder prices and then saw the pandemic plummet the dairy markets.

Demand switched from an emphasis on foodservice and institutional channels to the traditional dairy case and food shelves in our local grocery stores. Initial panic buying drove continued demand, but then we began to feel the downturn of the South East Asia region’s global impact being mostly shutdown and minimal demand from Mexico. Faced with volatile markets and challenges with supply chain execution, we pivoted our tactical approach. We utilized our strategic customer relationships, vendor relationships, risk management tools, brand equity, and industry expertise to drive results. DairyAmerica’s performance for 2020 was exceptional and resulted in one of the best years ever for our cooperative. To shed some light on the magnitude of our 2020 performance, it is notable that we sold over 1 billion pounds total of milk powder ingredients produced by all our member-owners. DairyAmerica doubled our amount of direct export shipments in total with the utilization and shipping of over 7,500 ocean containers and over 1,000 trucks transporting powder to Mexico.

2020

2021 DairyAmerica Update continued It is a New Year and with that brings a refreshed culture and strategy. We continue to transform to support our business now and into the future with a culture focused on alignment, collaboration, challenging the “status quo,” and driving value creation. We are still in the COVID-19 pandemic and face the impact of unpredictable markets, supply chain challenges, and demand fluctuation. A strategic roadmap is the foundation of our execution plan for creating value and return to our member-owners. It provides a starting point for our journey and is the basis for our continued strategic focus. Our strategic focus remains on adding more direct customer business, producing the desired value add ingredients we need for global demand, and increased exports worldwide. DairyAmerica is not sitting idle; we’ve expanded our global footprint and supply a diverse base of nutritional ingredients here in the United States and around the world.

Looking forward to our continued collaboration and keeping you updated on DairyAmerica’s performance through 2021 and beyond. I wish you and your families a healthy and prosperous 2021.

Retail Fuel Up to Play 60 Gallon Challenge Sweepstakes As the winning school for most gallons purchased through a Fuel Up to Plav 60 Albertsons/Vons retail sweeptsakes, approximately 50, fifth grade students at Twitchell Elementary in Nevada were awarded a virtual classroom visit from Raiders player, Hunter Renfrow.

Advertising New Times A series of three mouth-watering cheese ads were placed in the Phoenix New Times, a popular source of local news, restaurants, arts, and culture for consumers who want to engage with their community. Arizona Farms Cheese Curds were featured in the Food section of the New Times Best of Phoenix issue.

Over 542K impressions* through print and digital

Communications Social Media Healthy Eating Campaign Arizona Milk Producers (AZMP) partnered with five social media influencers to encourage dairy consumption by showcasing delicious, healthy recipes while highlighting dairy as a great source of protein and vitamin D to help maintain a healthy immune system.

Three lifestyle influencers demonstrated making custom flavored yogurt at home using local milk. To inspire action, each offered a chance for their audiences to win a yogurt maker of their own.

Two health and wellness influencers featured recipes using local cottage cheese with a twist, by showing how to enjoy the protein and low carb that cottage cheese offers, but for those who don’t like the texture, how to whip the product for a smooth, creamy consistency.

Fry’s, Shamrock, and Danzeisen milk were featured throughout the posts, which all included a link to Nutrition Benefits of Dairy on the AZMP website.

813,040 impressions; 3,652 engagements**; 22,114 story views *impressions: total number of times content was displayed to social media browsers **engagements: shares, likes, and comments on social media content

Communications Cheers! To Holiday Happy Hours and Cookie Baking In a month-long promotion with 99.9 KEZ, morning radio show personality Beth McDonald shared two of the six AZMP sponsored dairy cocktail recipes on her Friday Facebook live, Favorite Holiday Cocktails feature. While mid-day host, SJ, presented Milk and Cookie pairings on her social media, including five recipes total.

“Hey it’s SJ and it’s time for My Holiday Milk and Cookie snack break brought to you by The Arizona Milk Producers, my Milk and Cookie pairing suggestion today is AZ Chocolate Milk paired with homemade peanut butter cookies. Don’t forget to stock up on Milk and other local dairy at all Valley grocers” The promotion included mentions on-air broadcasts and commercials, social media platforms, and digital newsletters, streaming, and ad displays Total 1.3M Impressions

Arizona State Ho-Ho Holiday Drive-Thru Fair Food Arizona State Fair Ho-Ho Holiday Drive-Thru Fair Food Participants at the eight-day Arizona State Fair Food drive-thru event were invited to help community members in need by donating in person or online to the Great American Milk Drive for Arizona food bank milk purchases. Those who donated were given an insulated mug and hot chocolate recipe cards.

Daisy the cow was onsite to pose for pictures in front of a farm-themed holiday photo backdrop.

Donations were matched by the Dairy Council of Arizona and MilkPEP, resulting in a total of $2400