A Bi-Yearly Newsletter from Trout Lake Farm

Trout Lake FarmPO Box 181Trout Lake, WA 98650USA

I was asked what are the three main things that we are focused on this year. I would say it in three words. Quality, Quality and Quality. For the last year we have been taking a bunch of farm-ers and operations people from the notes-on-a-napkin age into the systematizing, documenting and compliance age. We are in the midst of a multi-site, company-wide shift. Now, for all of us in Operations, not only do we need to go out and do it, but show how we did it, how it met with regulations, how we can duplicate it over and over, and document it accurately every time.

This move has transformed our work culture here at Trout Lake Farm. We are having to change our perspective in hiring staff, keeping in mind new skill set requirements. As Operations Manager, I need to make sure that my team can see clearly how things work, make necessary changes and work smarter and more efficiently so that our processes will meet the highest stan-

dard. Farmers tend to be a stubborn bunch. But we can see that this journey to excellence is the right thing to do, not only for the health and safety of our people and our products, but for the health of the environment as well.

At Trout Lake Farm we are very sensitive to our customers regarding product pricing. This year, in our ongoing efforts to keep costs low, we have consolidated and expanded our racking system in our East Farm warehouse. Significant savings from eliminating outside space rent and freight hauling between facilities will eventually mean cost savings to the customer.

It’s exciting to be working with our great team of people toward a company-wide goal where everyone is paddling in unison and with the current. I hope you enjoy the warm weather. Take care.

Gary Vollema, Operations Manager, Trout Lake FarmGrowing Certified Organic Medicinal Herbs Since 1973

Trout Lake Farm, Trout Lake, Washington, USAToll free 800.655.6988, Fax 509.395.2645

www.troutlakefarm.com

“Consider the Source!”

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Our Top Priority

Trout Lake FarmA Bi-Yearly Newsletter from Trout Lake Farm

Trout Lake FarmSeasons

spring-summer 2012 SeasonsSometimes the good is hidden within

the bad. In our case, the fact that our crop dryer burned to the ground last August gave us the opportunity not only to build a brand new dryer, but also to locate it right next to our milling operation. We have just started construction. The new facility will be built of steel, be extremely well insulated and be a vast improvement over our old system, espe-

cially in air handling and heat distribution. Being so close to the mill will help us improve handling times and employee hauling time on the road. We will be able to simply forklift the product to the mill via a breezeway that will connect to the drying area. Our new dryer will have an unload room, allowing us to put product onto the conveyors without concerns for inclement weather. We are excited to have this wonderful new facility and should be drying herbs in it by mid-July.

This year on the crop side we are going to expand our Skullcap production here at the West farm. We also are experiencing increased demand for Red Clo-ver herb, Stinging Nettle leaf and Oat tops. At the East farm, the continuing high demand for our mints, Echinacea and Catnip have required us to expand acreage there as well.

We have always worked hard to maintain the highest quality here at Trout Lake Farm. Danielle Hawkins, West Farm Operations Supervisor, is instrumen-tal in making sure that SOP’s for our farm processes are continually updated for compliance. She makes sure that we have the highest sanitation, safety and qual-ity production practices, and that systems are in place for documentation.

Speaking of staff, we have two new members of the team. Mel Calloway has joined us as our Field Operations Supervisor at the East farm, and Will Parkki has come on as our Maintenance Supervisor here at the West farm. Will is al-ready working to integrate a new preventive maintenance software program. This new system will not only help us keep our equipment in top shape, but will also minimize production disruption from last-minute repairs.

As usual, spring weather is a fickle thing in Trout Lake. We hope that the weather will dry out soon so we can get into the fields. In the meantime, as you might imagine we have plenty to do. Hope you have a great summer.

Kevin Ernst, Farm Manager, Trout Lake Farm

Kevin’s view on the Field

Trout Lake FarmThe Highest Standard in Quality Assurance!

Modern scientific tests have shown that Red Clover is a rich source of isoflavones, plant based chemicals that produce estro-gen-like effects in the body. Isoflavones have shown potential in the treatment of a number

of conditions associated with menopause, such as hot flashes, cardiovascular health and osteoporosis. Red Clover is a source of many nutrients, including calcium, chromium, magnesium, niacin, phosphorus, potassium, thiamine and vitamin C.

In California, Red Clover was considered a food by many native Americans. They ate the fresh leaves before the flowers appeared. The Mohegans of Con-necticut steeped the dried leaves in hot water to make a soothing tea for sore throats and colds, and other native American tribes used the plant to heal skin eruptions.

Red Clover is also a fine source of “green manure.” It is often grown as a cover crop and then plowed under. The nitrogen-fixing bacteria that grow in association with its root system greatly improve the soil.

Red Clover HerbThe little plant that gives and gives

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Trout Lake Farm • Consider the Source Trout Lake Farm • Consider the Source

The Right Tool for The Job

“Spring is when you feel like whistling even with a shoe full of slush.” -Doug Larson

To tell you the truth, I feel a little like Dorothy in the Wizard of Oz; having just been through a tor-nado of change since last April, and knowing I’m not in Kansas anymore. I have settled in to this great Columbia Gorge community, met great friends and explored the natural beauty of the area on foot and on bike. Professionally, I have gotten to know many of our fantastic customers, have learned a lot more about farming and farmers, as well as how to integrate and align TLF’s business model and seasonal cycles with the reporting and procedural needs of our parent company -- a challenging and evolving process!

Oz’s tornado of change has, of course, impacted everyone at Trout Lake Farm. Our perspective and goals have become more refined and focused via the establishment of SMART (Specific, Measurable, At-tainable, Relevant, Time-Bound) objectives. The development of those objectives has been a very involved process! I am inspired and impressed by the increased effectiveness, commitment and leadership shown by the management team and the entire staff to achieve those objectives, which include cost-savings projects

and improved systems for sales forecasting, production planning and quality compliance. I am thankful to our customers for their understanding that true quality improvements can initially come at a cost, but have long-term rewards.

Another whirlwind of growth has resulted from an unassuming suggestion from our great colleague Katie Huggins at Traditional Medicinals. She encouraged me to think about what Trout Lake Farm could contribute to AHPA (American Herbal Products Association) as a member of the Board of Trustees. This made me reflect on what TLF currently represents in the organic herb industry: an innovator of crop practices and technology, a stickler for quality. But who could we be? How could we truly improve and promote the interests of our company, customers and the Herbal Products industry?

The answers came fast and furious: We bring a unique organic farming perspective to the Board’s policy making. We can use our experience to address market/industry needs like standardized micro levels in tea products. We can be instrumental in herbal product education. With nearly 40 years of experience, we are a strong voice for organic. Finally, with our Amway/Nutrilite partnership we can utilize the insight, experience and resources of a global leader in the herbal supplement industry.

After some soul-searching, and with the enthusiastic support of Amway-Nutrilite, I ran for the AHPA Board of Trustees during AHPA’s annual meeting. I am so happy to report that I am now representing Trout Lake Farm -- and your interests -- on the AHPA Board!

Well, there is so much more to tell you, but for another day. Stay well. Talk to you again in the Fall. Now...where did I put those ruby slippers...!

All the best to you and yours, Lisa Spicka, General Manager, Trout Lake Farm

Lisa Spicka: GM’s Corner

A sprayer in an organic botanical field! Let me explain...Have you ever thought about how enormous quantities of organic botanicals can be grown to meet the needs of an ever-growing market? Most people don’t realize that most of the organic supplements, herbal remedies, salves, lotions and teas they use contain botanicals that are grown on farms just like ours. Trout Lake Farm is one of the largest growers of organic herbs in the U.S. Still, in the end, we are a farm. Granted, a very regulated, inspected and high quality organic farm. And yet, as a farm we have to deal with farmer’s challenges: soil health, pests and of course unpredictable weather.

It takes a lot of experience to know how to grow millions of pounds of herbal ingredients consistently year after year. It takes the right people and the right tools. A farmer has to know how to add natural soil supplements and pest control agents to his crops. One of the ways that we have found to apply these products is with our sprayer pictured above.

Ninety nine percent of the time we don’t need to spray at all. That fact too, comes from experience. How we prepare the soil, crop proximity, soil health and plant hardiness. If we do get a pest outbreak and need to save a crop we may need to apply a soap product or a biologically derived pesticide. One product we use is a protein that has been isolated from a soil organism that controls worms from the butterfly and moth fam-ily. Or, we may need to amend the soil. Our soil on the West farm, for example, is naturally deficient in Boron. We may need to add liquid

Boron in small amounts. In the photo above we are applying fish fertil-izer to a field of Valerian.

We apply only products that are listed in the National Organic Program and that have been well vetted. We apply them in a very precise and ac-curate manner. The amounts and processes are strictly monitored. We record amounts and weather conditions, and we are responsible for providing documentation to our certifier. We make sure that all of our people are competently trained. So, a sprayer on an organic farm...? You bet! It’s the right tool for the job.

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In March I had the opportunity to visit our Nutrilite processing facili-ties in Brazil and Mexico. Our Qual-ity Systems team here had developed

a plan to become CFR 111-compliant company-wide. (All domestic and foreign companies that manufacture, package, label or hold dietary supplements, including those involved with testing, quality control and dietary supplement distribution in the U.S., must comply with the Dietary Supplement Current Good Manufacturing Practices (cGMPS) for quality control.) We wanted to bring our Latin American operations on board with this and with our Global Agribusiness Operations Vision of being the “Global leader in dis-covering and unleashing the essence of nature to enhance life and wellness.”

We worked with great people on the quality and operations teams to train and begin implementing our compliance goals. This is a huge project to get our facilities all over the world moving forward together on this mission. To implement this goal we have an overall plan based on regula-tory guidelines; each facility will then tailor their plan to their particular situation. We will all have the same documentation requirements and the same deadlines for completion. It was such a good feeling to see the level of cooperation that was possible between us.

I loved Brazil and Mexico. The facilities were very well run and the commitment to sustainable practices was so inspiring. And, since these were organic farms, the food that was prepared for our meals was delight-ful. My best to you all. Debra Noah, Quality Assurance Manager

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AHPA Board 2012; Lisa, top row, 2nd from right

Darwin Hintz will be our new Technology Manager, based at the East Farm. His past experience in East Farm operations, and his passion and natural talent for improving efficiency and production processes through new technology, make him a great fit for this new post.

This year, thanks to Darwin, our East Farm root washing system got an “extreme makeover.” He adapted the Dyna-Vac, used mostly in the po-tato and fresh vegetable industries, to our root washing process.

The main purpose of the Dyna-Vac is to reduce the “sticky moisture” on the root after it is washed and before it hits the dryer. It uses vacuum, air knives, vi-

bratory tables and a stainless steel mesh belt to reduce the moisture. The advantage of this process is that it greatly reduces drying times, with less moisture on the root and thus less initial humidity. Darwin made further dry root cleaning improvements by integrating a dirt eliminator into the cleaning process. Both of these processes support our ongoing efforts to achieve high quality products.

He also has been instrumental in moving us into the era of the GPS tractor. After studying our initial GPS tractor systems, he was able to significantly improve our field accuracy tolerances. He also created a standardized planting system that is now being introduced company wide. For training tractor operators he integrated a system where the best operators from the field crew became the new train-ers. Darwin’s philosophy is “don’t just tell people what to do, show them, and help them learn.” Thanks Darwin!

“Extreme Makeover” at the East FarmQuality Systemson Nutrilite FarmsGo Global

Mel is a graduate of Oregon State University with a BS in Horticulture. Her most recent experi-ence was as Sales and Marketing manager for a dry edible bean company. She and her husband also farm potatoes in Quincy, Washington. She has two “swim crazy” boys, 7 and 10. When she is not working she is driving them around to their meets and activities. Mel and her husband enjoy downhill skiing and golf.

She also is an avid reader and gardener.At Trout Lake Farm she is enjoying learning about the inno-

vative ways of controlling weeds, and the trial production of new products. She is inspired by how easy people are to work with and the positive attitude of the team. Welcome Mel!

Mel Calloway Joins the East Farm Team