I M Foremost Farms USAforemostfarms.com/pdf/Sustainability_Overview.pdfForemost Farms USA ® 2016 U.S ... honorable mention in the fifth annual U.S. Dairy Sustainability Awards program

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Foremost Farms USA®

2016 U.S. SUSTAINABILITY AWARD FOR TURNING WASTEWATER INTO ENERGY

The Richland Center Renewable Energy (RCRE) facility, co-owned by Foremost Farms and Schreiber Foods, received an honorable mention in the fifth annual U.S. Dairy Sustainability Awards program.

The RCRE is a state-of-the-art water treatment facility that generates renewable energy from our plants’ wastewater. Its anaerobic digesters break down organic matter coming from the dairy plants and produce methane. The methane, in turn, fuels RCRE generators and produces extra electricity, which is sold to the electric grid.

OFFERING INTERNS REAL WORK EXPERIENCESForemost Farms’ 2016 class of summer interns was the largest ever: 14 interns, who worked in almost as many departments throughout the cooperative. We aim to give all our interns a great start in the dairy business with opportunities for future employment.

Representatives of Foremost Farms and Schreiber Foods who accepted the 2016 U.S. Dairy Sustainability Award (L to R): Joan Behr, Foremost Farms (retired); Tom Hedge, Schreiber Foods; Colleen Guerts, Schreiber Foods; Mike Malmstead, Schreiber Foods; and Justin Pope, Foremost Farms.

FOREMOST FARMS TRANSPORTS MILK AND FINISHED PRODUCTS THE SMARTWAY® SmartWay is a U.S. Environmental Protection Agency (EPA) program that helps the transportation sector improve supply chain efficiencies and reduce its environmental footprint.

Each year, Foremost Farms submits our shipment and mileage data to the EPA to show we’re shipping raw materials and finished goods using efficient technology and transportation routes to save fuel and reduce emissions.

In 2014, we contracted with transportation providers that drove 17.2 million miles. In 2015, we lowered that total to 10.6 million miles.

GIVING BACK TO OUR COMMUNITIESForemost Farms encourages employees to volunteer in their communities. In 2016, Foremost Farms employees:

• Planted trees at the Upham Woods Outdoor Learning Center in Wisconsin Dells, Wis., in celebration of Earth Day.

• Volunteered repeatedly to clean trash from local roadways through the Adopt-a-Highway program.

• Arranged for $120,380 in monetary and product donations to local groups and events.

• Raised $40,000 and distributed it via college scholarships to children of our members and employees.

IMPROVING OUR SCOREIn recognition of our continued commitment to sustainability, the Wisconsin Sustainable Business Council has again named Foremost Farms a Green Professional in the Green Masters Program. This is the fourth consecutive year that we’ve been named a Green Professional, improving our score by 47 percent over the previous year.

Foremost Farms’ 2016 class of interns (L to R): (front) Jason Bell, David Bradley; (middle) Taylor Halopka, Anna Sedivy, Lily Morrissey, Brooklyn Ewing, Jenna Schauer, Maddy Kuhn; (back) Alex Brockway, Ryan Wilson, Ben Turner, Ryan Wisherd, Sam Milewsky and Kevin Scherer. INCREASE

KEY PERFORMANCE INDICATORSForemost Farms USA is a member of the Innovation Center for U.S. Dairy. Innovation Center-led teams, made up of dairy processors, manufacturers, industry members and partners, identified the most relevant indicators and metrics for the following areas: energy use, greenhouse gas (GHG) emissions, water, labor management and community contributions.

These metrics are based on several performance indicators from the Global Reporting Initiative’s Sustainability Reporting Guidelines, Version 3.1.

PLANET

IndIcator MetrIc 2016 results 2015 results

Energy Intensity Total energy use (converted to million BTU per 1,000 pounds of production) 1.0% 1.0%

Greenhouse Gas Intensity Metric tons of CO2 per 1,000 pounds

of production 1.0% 0.40%

Water Use Percentage of total water withdrawn from surface water, including water from wetlands, rivers, lakes and oceans

Percentage of total water withdrawn from municipal water supplies or other water utilities

Total gallons

0%

33%

1.0%

0%

27.5%

1.5%

Water Efficiency Gallons of water used per 1,000 pounds of production 2.0% 1.0%

Water Discharge and Quality

Percentage of discharges compliant with regulations 100% 100%

PEOPLE


Employment Opportunities Number of jobs supplied 1,112 1,061

Employee Benefits Number of indirect and non-monetary benefits received by employees

Health insurance with employer

contribution = 1,071

401(k) (or comparable retirement plan) = 1,112




Employee Retention Total number of employees who have been employed during the past year and percentage of employees who have been employed for five, 10, 15 and 20 years

Total = 1,112

> 20 years = 18%

10-20 years = 23%

5-10 years = 17%

< 5 years = 42%

Total = 1,061

> 20 years = 21%

10-20 years = 24%

5-10 years = 16%

< 5 years = 39%

Days of Restricted Work Activity or Job Transfer

Days of restricted work activity or job transfer (DART) rate 1.4000 1.1000

COMMUNITIES


Monetary and Product Donations

Monetary and product donation activities $410,380 $378,076

Equal Opportunity Employer – M/F/Vets/Disabled are encouraged to apply

ONE MEMBER FARM RECEIVES $100,000+ IN ENERGY REBATES FOR SUSTAINABLE EXPANSION

Foremost Farms members, Tom and Katrien De Vos, own Cow Pleasant Dairy Inc. in Weidman, Mich. Before they drew up expansion plans, they worked with Michigan’s largest utility, Consumers Energy, to determine the most sustainable way to expand.

After factoring in their goals for sustainability, cow and worker comfort, food quality and safety, they built a new rotary parlor and free stall barns.

Their 84-unit rotary milking parlor includes energy efficient, variable speed drive motors, LED lighting (made locally in Michigan) and energy efficient cooling fans with temperature sensors – all eligible for energy efficiency rebates totaling $117,637.

OUR MEMBERS VOLUNTEER FOR FARM SMART PILOT PROGRAM

In 2016, 24 of our member farms participated in a Farm Smart environmental assessment pilot program that calculates a farm’s carbon footprint. During the pilot program, Foremost Farms assessed milk production, the number of animals, manure management and crop production practices, then calculated a baseline of greenhouse gas emissions and energy use based on national and regional averages.

The goal is to help farmers measure sustainability improvements, identify potential efficiency gains and cost savings, and track their progress. Besides the environmental improvements, farmers who complete the assessment can also benefit economically through power company rebates.

The Farm Smart environmental assessment tool was initially developed by the U.S. Center for Dairy Innovation. After piloting the tool on two dozen farms, Foremost Farms was also part of a task force charged with improving the Farm Smart assessment tool.

The revised tool is now part of a voluntary, science-based Environmental Stewardship module of the National Dairy FARM Program.

A Message from our President & CEO . . .

The farm-to-table supply chain is more transparent than ever. Consumers want to know more about where their food comes from – that it’s produced as safely and sustainably as possible – and that animal well-being is a top priority.

As one of the top dairy companies in North America, Foremost Farms strives to meet and exceed the expectations of our customers, consumers and business partners. They’re all interested in what’s happening on our members’ farms and in our plants, how we’re conserving resources, protecting the environment and caring for animals. And they expect continuous improvement in our sustainability efforts – from the farm to the fork.

Fortunately at Foremost Farms, we’ve got a great story to tell about our part in a sustainable supply chain.

On Our Farms Quality milk is where it all begins – and it starts on the farm with responsible animal care. That’s why in 2016, 100% of our farmer-members participated in the FARM (Farmers Assuring Responsible Management) Program from the National Milk Producers Federation.

Our farmer-members also are making great strides in water, land and energy conservation. In 2016, 24 Foremost Farms members volunteered for a Farm Smart environmental assessment pilot program that calculates a farm’s carbon footprint.

In addition, 21 Foremost Farms members participated in a Roundtable discussion with Nestlé about dairy cattle stockmanship and lameness prevention. Having our members openly and actively engage with one of our largest customers gives everyone a fuller view of the dairy supply chain.

In Our Plants Foremost Farms tracks key performance indicators that are in line with the Global Reporting Initiative’s Sustainability Reporting Guidelines – including energy use, water use and wastewater management, and greenhouse gas emissions.

We’re also in the midst of a significant business transformation effort that’s making fundamental improvements to our core business processes and information systems. This will further improve our efficiencies and ability to track our progress.

Sustainability is a Journey For years, we’ve being working to reduce our environmental impact at our plants, on our farms and in our communities. In fact, sustainability is an integral part of our core beliefs, which include:

• Making a positive impact• Constantly improving our business• Satisfying our customers• Conducting business with honesty, integrity and respect

I invite you to review our 2016 Sustainability Overview, and gauge for yourself our commitment to continuous improvement.

Michael Doyle President & CEO

100% OF OUR MEMBERS PARTICIPATE IN FARM PROGRAMThe FARM (Farmers Assuring Responsible Management) Program from

the National Milk Producers Federation provides animal care guidelines for every calf and cow on the farm. FARM is a requirement for any

dairy farmer who wants to become a Foremost Farms member.

Much like Foremost Farms, FARM is dedicated to creating a culture of continuous improvement. Over the past two years, FARM has expanded to include environmental and antibiotic stewardship.

REDUCING WATER USE AT OUR PLANTSForemost Farms invested more than $1 million in water conservation technologies in 2016. At our Sparta, Lancaster and Richland Center plants, we installed heat exchangers. These transfer heat between two separate fluids – don’t worry, the two fluids never touch. For example, we now use warm CIP (clean in place) solution to pre-heat boiler water.

In addition, at Marshfield, we installed a DAF (dissolve aeration flotation) system that reduces solids and cleans the plant’s wastewater before it’s sent to the city’s wastewater treatment plant. The water usage arrow can’t always point down, however. In a food processing plant, safety is paramount.

So while we’re continually developing strategies and investing in new technologies to reduce our water use, at some plants it increased in 2016, as we enhanced our sanitation protocols. The Appleton plant is a prime example.

The member farms that participated in the 2016 Farm Smart environmental assessment pilot program represented 15 percent of Foremost Farms’ milk supply, 38,000 milking cows, 50,000 acres and five anaerobic digesters.

Appleton

Baraboo

Chilton

Clayton

Lancaster

Marshfield

Milan

Plover

Preston

Reedsburg

Richland Center

Rothschild

Sparta

-25% -20% -15% -10% -5% 0% 5% 10% 15% 20%

14%

6%

4%

5%

5%

8%

-3%

0%

-6%

-11%

-5%

-3%

-21%

2015–2016 Individual Facility TotalWater Usage Percent Change

Emma Waterworth is Foremost Farms’ newest FARM advisor.

Steve Herbst is our plant manager in Richland Center. He helped Foremost Farms deliver a 5 percent reduction in water use in 2016 at the Richland Center plant.

ROUNDTABLE DISCUSSION WITH NESTLÉ USAForemost Farms is a major supplier of milk to Nestlé USA, a part of the world’s largest food and beverage company. In late 2016, as a follow-up to successfully completing a Nestlé Responsible Sourcing Guideline Audit, Foremost Farms helped arrange the first dairy farmer, academia and customer roundtable discussion with Nestlé USA.

Conversation centered around a wide range of topics, including Nestlé’s sustainability guidelines and customer trends. In turn, Nestlé USA’s dairy buyers heard about animal care issues, dairy cattle stockmanship and lameness prevention from dairy farmers and academic experts.

The Roundtable included presentations from Nigel

Cook, DVM, University of Wisconsin; Dr. Beth

Ventura, University of Minnesota; Dr. Martin Cooke, World Animal Protection (a non-governmental

organization); Dr. Katy Proudfoot, The

Ohio State University; and Brian Jones, manager of

responsible sourcing at Nestlé North America Procurement.

Two Foremost Farms members also presented at the roundtable: Patrick Christian, Christian Hill Dairy in

Lomira, Wis.; and Maria Woldt, ToldYaSo Holsteins in Sun Prairie, Wis. In all, 21 Foremost Farms members participated in the discussion. Those members represent 20,653 cows.

IMPROVING ENERGY EFFICIENCY ON OUR FARMS

In 2016, Foremost Farms teamed up with EnSave – an engineering firm with the goal of enhancing the sustainability of agriculture through energy management – to conduct energy audits on four member-owner farms.

EnSave evaluates everything from electricity and propane use to milk harvest and milk cooling, stock watering, lighting and ventilation to crop and feed storage. An EnSave audit typically identifies opportunities to reduce current energy use between 10 and 35 percent.

While all four audits on our member farms found on-farm savings, one audit uncovered $53,000 in potential energy savings. Because farmer-members had such positive experiences during the initial round of audits, Foremost Farms is working with EnSave to offer all our farmer-members a discount on energy audits.

An EnSave audit typically identifies opportunities to reduce current energy use

between 10 and 35 percent.

FIRST PROCESSOR TO JOIN DAIRY STRONG SUSTAINABILITY ALLIANCEForemost Farms is proud to be the first dairy processor to join the Dairy Strong Sustainability Alliance. The alliance involves a diverse group of partners who’ve come together to ensure that all touchpoints in the production of dairy foods are continuously improving. Specifically, the alliance focuses on three key areas:

• Animal care• Environmental conservation• Food safety

Foremost Farms will be the first dairy processor to contribute aggregate data from farms and processing facilities. The move is a logical extension of our sustainability commitment to continuous improvement: Our farmer-members and plants work 24/7 to produce safe, nutritious milk, dairy products and innovative ingredients that are environmentally, socially and economically better.

The Dairy Strong Sustainability Alliance represents all aspects of the dairy community: farmers, processors, conservation groups, vendors, service providers, consumer packaged goods companies, retailers, government agencies, universities and dairy and trade non-profits.

In addition to Foremost Farms, other alliance members include The Nature Conservancy, Yahara Pride Farms, Peninsula Pride Farms, U.S. Farmers & Ranchers Alliance, Innovation Center for U.S. Dairy, Wisconsin Cheese Makers Association, Dairy Business Milk Marketing Cooperative, American Society of Agronomy, Wisconsin Farm Bureau and the Dairy Business Association.

Katrien and Tom De Vos of Cow Pleasant Dairy Inc. in Weidman, Mich., were named Large Commercial Project of the Year by their utility, Consumers Energy, for their sustainable dairy expansion.

Foremost Farms member Patrick Christian

presented at the roundtable.

















In Our PlantsForemost Farms tracks key performance indicators that are in line with the Global Reporting Initiative’s Sustainability Reporting Guidelines – including energy use, water use and wastewater management, and greenhouse gas emissions.



• Making a positive impact • Constantly improving our business • Satisfying our customers• Conducting business with honesty, integrity and respect


Michael DoylePresident & CEO









Appleton

Baraboo

Chilton

Clayton

Lancaster

Marshfield

Milan

Plover

Preston

Reedsburg

Richland Center

Rothschild

Sparta

-25% -20% -15% -10% -5% 0% 5% 10% 15% 20%

14%

6%

4%

5%

5%

8%

-3%

0%

-6%

-11%

-5%

-3%

-21%

2015–2016 Individual Facility TotalWater Usage Percent Change



ROUNDTABLE DISCUSSION WITH NESTLÉ USAForemost Farms is a major supplier of milk to Nestlé USA, a part of the world’s largest food and beverage company. In late 2016, as a follow-up to successfully completing a Nestlé Responsible Sourcing Guideline Audit, Foremost Farms helped arrange the first dairy farmer, academia and customer roundtable discussion with Nestlé USA.








































In Our PlantsForemost Farms tracks key performance indicators that are in line with the Global Reporting Initiative’s Sustainability Reporting Guidelines – including energy use, water use and wastewater management, and greenhouse gas emissions.



• Making a positive impact • Constantly improving our business • Satisfying our customers• Conducting business with honesty, integrity and respect


Michael DoylePresident & CEO









Appleton

Baraboo

Chilton

Clayton

Lancaster

Marshfield

Milan

Plover

Preston

Reedsburg

Richland Center

Rothschild

Sparta

-25% -20% -15% -10% -5% 0% 5% 10% 15% 20%

14%

6%

4%

5%

5%

8%

-3%

0%

-6%

-11%

-5%

-3%

-21%

2015–2016 Individual Facility Total Water Usage Percent Change



ROUNDTABLE DISCUSSION WITH NESTLÉ USA Foremost Farms is a major supplier of milk to Nestlé USA, a part of the world’s largest food and beverage company. In late 2016, as a follow-up to successfully completing a Nestlé Responsible Sourcing Guideline Audit, Foremost Farms helped arrange the first dairy farmer, academia and customer roundtable discussion with Nestlé USA.
























back cover

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FOREMOST FARMS TRANSPORTS MILK AND FINISHED PRODUCTS THE SMARTWAY® SmartWay is a U.S. Environmental Protection Agency (EPA) program that helps the transportation sector improve supply chain efficiencies and reduce its environmental footprint.












PLANET







Total gallons

0%

33%

1.0%

0%

27.5%

1.5%




PEOPLE











Total = 1,112

> 20 years = 18%

10-20 years = 23%

5-10 years = 17%

< 5 years = 42%

Total = 1,061

> 20 years = 21%

10-20 years = 24%

5-10 years = 16%

< 5 years = 39%



COMMUNITIES





back cover

4 in

ches

hig

hth

is is

acc

epta

ble

for e

mbr

oide

ry







FOREMOST FARMS TRANSPORTS MILK AND FINISHED PRODUCTS THE SMARTWAY®

SmartWay is a U.S. Environmental Protection Agency (EPA) program that helps the transportation sector improve supply chain efficiencies and reduce its environmental footprint.












PLANET







Total gallons

0%

33%

1.0%

0%

27.5%

1.5%




PEOPLE











Total = 1,112

> 20 years = 18%

10-20 years = 23%

5-10 years = 17%

< 5 years = 42%

Total = 1,061

> 20 years = 21%

10-20 years = 24%

5-10 years = 16%

< 5 years = 39%



COMMUNITIES





















In Our Plants Foremost Farms tracks key performance indicators that are in line with the Global Reporting Initiative’s Sustainability Reporting Guidelines – including energy use, water use and wastewater management, and greenhouse gas emissions.



• Making a positive impact • Constantly improving our business • Satisfying our customers • Conducting business with honesty, integrity and respect


Michael Doyle President & CEO









Appleton

Baraboo

Chilton

Clayton

Lancaster

Marshfield

Milan

Plover

Preston

Reedsburg

Richland Center

Rothschild

Sparta

-25% -20% -15% -10% -5% 0% 5% 10% 15% 20%

14%

6%

4%

5%

5%

8%

-3%

0%

-6%

-11%

-5%

-3%

-21%

2015–2016 Individual Facility Total Water Usage Percent Change



ROUNDTABLE DISCUSSION WITH NESTLÉ USA Foremost Farms is a major supplier of milk to Nestlé USA, a part of the world’s largest food and beverage company. In late 2016, as a follow-up to successfully completing a Nestlé Responsible Sourcing Guideline Audit, Foremost Farms helped arrange the first dairy farmer, academia and customer roundtable discussion with Nestlé USA.
























Documents

I M Foremost Farms USAforemostfarms.com/pdf/Sustainability_Overview.pdfForemost Farms USA ® 2016 U.S ... honorable mention in the fifth annual U.S. Dairy Sustainability Awards program