UDA Magazine Winter 23/24

WINTER 2023/24

COZY SOUP FOR RAINY DAYS Dairy Efforts Keep the Trains Running

Board of Directors Executive Committee Craig Caballero, President Jim Boyle, Vice President Robert Van Hofwegen, Secretary/Treasurer David Feenstra, Member at Large Dan Boschma, Member at Large Robert Chesler, Asst. Secretary/Treasurer

Directors Ian Accomazzo, Buckeye Arie de Jong, Maricopa Ben Dickman, Coolidge Tom Dugan, Stanfield Dan Gladden, Palo Verde Bill Kerr, Buckeye Jen Millican, Buckeye Justin Stewart, Gila Bend Paul Rovey, Buckeye Nick Vanderwey, Buckeye Casey Dugan, Casa Grande Ben Gingg, Buckeye

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877-920-1086 After Hours Service Line

480-303-1323 UNITED DAIRYMEN is published quarterly for the dairy cooperative members of the United Dairymen of Arizona, 404 W. Broadway Rd., 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.

Editor- Roxy Helman

Table of Contents Handling Animal Activist Situations Food Safety & Quality Assurance Update DairyKind 2023 Wrap-up LED Lighting Project Completed Cozy Soup for Rainy Days Dairy Efforts Keep the Trains Running Arizona Milk Producers Annual Report

Handling Animal Activist Situations As we start a new year it’s always a good time to freshen up on protocol and policies that keep our farm safes and running smoothly. A big component of farm safety is being aware of farm activist threats and ensuring there are procedures in place to prevent them from entering the property as well as mitigating situations that can potentially arise.

To protect your property from farm activists: Ensure your hiring process includes vetting applicants for potential involvement or history with animal rights activist groups.

Build relationships with neighbors and local authorities and create an emergency list of numbers to have on hand and readily available.

Report situations to local law enforcement, Arizona associations like the Animal Agriculture Alliance.

Invest in surveillance equipment. Trail cams are relatively affordable and easy to install.

Be educated on the law. Understand the laws in Arizona around key situations such as protesting, protecting private property, rights of drones and more.

For more information on farm security resources and background information on animal rights activist organizations visit www.animalagalliance.org.

Go VEGAN

Food Safety & Quality Assurance Update

Written by: Dave Kedzierski SVP Business Transformation

Continued Investments for the Future The United Dairymen of Arizona team just completed our budgeting process for the new fiscal year 2023-24. Included in our budget is a $7.8 million capital expenditure plan for operations. This represents continued investment for our future.

Three large projects will commence in this current year: 1. Butter Plant Modernization 2. UV (ultraviolet) Disinfection of City Water 3. R1 Transformer Replacement.

Butter Plant Modernization

The butter plant needs several upgrades and the project will include a larger capacity, sanitary designed churn, controls for improved fat and moisture components, evaluation of filling equipment, and automation improvements to packaging and palletizing.

Food Safety & Quality Assurance Update

Written by: Dave Kedzierski

UV Upgrades

The UV project will accomplish three key aspects: 1) achieves regulatory compliance for water used for “pushing” of pasteurized projects 2) allows us to run full capacity in the event the City of Tempe would issue a boil order on incoming water and 3) improves the overall microbiological quality of the water used in our facility.

R1 Transformer Replacement The R1 Transformer Replacement project is simply just that, the replacing of aging electrical infrastructure needs replacement. If this transformer would fail, the rental cost for a transformer would far outweigh the cost of a new unit. This proactive measure will keep our electrical grid system for that part of the operation current. This replacement was identified during our routine preventive maintenance on this system.

Fifteen other projects, smaller in scope and cost, are also in the plan for the current year. This includes our ongoing water conservation efforts through team Desert Water, lactose plant floor drain upgrades, locker room expansion, laboratory colony counter and stomacher units, and wastewater tank reseal and electrical upgrades.

Be DairyKind 2023 Wrap-up Michelle Schack, DVM

As the year comes to a close, we have an opportunity to reflect on the 2023. DairyKind has been an integral part of the well-being program for the dairies of the United Dairymen of Arizona since 2021. United Dairymen of Arizona requires everyone to take the ethics course and show annual progress. There have been over 2804 distinct learners part of UDA since initial enrollment, and over 32,000 distinct trainings have been completed.

There are currently 1913 active and distinct learners in UDA. These learners are actively using the program to learn and meet requirements set by their managers and owners. When employees leave the team, they are deactivated. DairyKind retains those records for future reference if any questions arise. If that same employee joins a different team, give us a call! The trainings they have been completed are certified through DairyKind and these employees should be proud of the certifications they have earned. In 2023, 777 new learners were enrolled in the program. That means 1,136 employees continued on from 2022. By investing more training and time in UDA employees, you have the opportunity to reduce employee turnover!

Many learners completed more than the minimum required courses. At DairyKind, we are excited to see dairies using the program to it’s full potential. The most popular courses in order of completion (excluding the required courses) are Stockmanship 1, Biosecurity, and Milking Technician. These courses help meet the requirements of your welfare evaluations and those farms using them are able to demonstrate that training through the DairyKind reporting portal. If you want to learn more about how you can maximize your use of the DairyKind program, please feel free to reach out to us at info@dairykind.com.

In 2024, FARM Program Version 5.0 will be coming out, and along with it more scrutiny on training. DairyKind provides dairies the opportunity to meet the requirements of your audits and provide documentation swiftly and easily. There are 14 courses that are a part of the DairyKind training, highlighting different departments on the dairy. Have you explored them all? 2023 was a great year and we encourage you all to continue learning to make 2024 an even better year!

DairyKind 2023 WRAP UP

777 1913

NEW LEARNERS ENROLLED ACTIVE LEARNERS

MOST POPULAR COURSES

Stockmanship 1 Biosecurity Milking Technician

LED Lighting Project Completed Our ambition to transition towards energy efficiency gained tangible momentum before the last fiscal year when our multi-phase LED lighting initiative was given the green light. Spanning several functional areas across the business, the project saw 156 traditional incandescent lights transformed into energy-efficient LED fixtures.

All-encompassing in its scale, this retrofit endeavor encompassed the Rogers 1 production plant and packaging warehouse Powder packaging unit Butter manufacturing facility.

Our continuous pursuit of sustainability touched every corner of our production portfolio.

The supporting calculations conveyed the magnitude of this project's impact.

By opting for LED lighting, we're on track to save a staggering 240,199 KWh of electricity annually. It augments our commitment to transitioning our operation to more sustainable practices, aligning with global trends, and recognizing our responsibility to preserve the environment.

Admittedly, this wasn't an endeavor without challenges. The broader context of global supply chain disruptions placed unforeseen roadblocks in our path.

However our dedicated team worked diligently and strategically, leading us to complete our project in August of 2023 despite the hurdles.

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@UDAMilk

COZY SOUP FOR RAINY DAYS This recipe boasts a delightful potpie-like quality, making it perfect for those cozy rainy day meals. The use of rotisserie chicken makes your prep time much more manageable. But remember, any left-over chicken will also work just as perfectly!

Creamy Chicken Noodle Soup with Rotisserie Chicken Active Time: 30 mins

Total Time: 30 mins

What you’ll need: 2 tablespoons unsalted butter 1 tablespoon olive oil 2 cups chopped yellow onion (from 1 large onion) 1 cup chopped carrots (from 2 medium carrots) 1 cup chopped celery (from 2 large stalks) 1 ¾ teaspoons kosher salt 3 tablespoons all-purpose flour 4 cups unsalted chicken stock 2 cups whole milk 4 ounces uncooked whole-wheat egg noodles 3 cups coarsely chopped rotisserie chicken breast (from 2 rotisserie chickens) 1 cup frozen green peas

Servings: 8

Directions: Melt butter with olive oil in a large Dutch oven over medium-high heat.

Add onion, carrots, celery and salt and cook, stirring often, until vegetables are slightly softened, 6 to 8 minutes.

Add flour and stir to coat.

Stir in stock and milk and let the mixture come to a boil.

Add uncooked noodles to the boiling mixture. Cover and cook until noodles are al dente, about 8 minutes.

Stir in chicken and peas and cook until pasta reaches desired doneness and chicken and peas are warmed through, about 1 to 2 more minutes. Serve immediately.

How Long Can Mexican Demand Keep Booming?

Stephen Cain Senior Director of Economic Research and Analysis U.S. dairy exports experienced a downturn in 2023, falling 7% year-to-date by volume through September. Global inflation, poor economic growth and heightened competition from New Zealand and the European Union have contributed to this setback. Despite these hurdles, however, U.S. exports to Mexico are up 17% so far this year. That increased volume to Mexico, which represents 27% of U.S. dairy exports, is helping keep total shipments higher than they would be otherwise.

The strength of the Mexican economy explains much of the gains. Mexican Gross Domestic Product (GDP) is forecast to grow 3.5% this year, higher than many predictions. Foreign direct investment (FDI) is bolstering that growth. Third quarter FDI for the country was the highest in a decade, reaching nearly $33 billion, thanks in part to firms shifting their manufacturing operations closer to the United States and away from China as they re-evaluate investments.

The strong peso is also supporting Mexico’s economy. The peso has risen 41% from the dawn of the COVID-19 pandemic in April 2020, which is supporting imports and bolstering Mexican sentiment toward their economy. Consumer confidence in Mexico is currently among the highest in the world, beating out larger and more developed economies.

This robust economic activity is supporting record Mexican dairy imports, which are up 17% so far this year. Nonfat dry milk (+25%), cheese (+13%) and lactose (+22%) are all up significantly. The U.S. maintains a roughly 90% market share in Mexico for dairy product imports, making America’s dairy farmers and exporters direct beneficiaries of increased Mexican demand.

We expect Mexican demand to continue to be strong, but there are potential headwinds. As global milk production tightens, prices will move higher, potentially making Mexican buyers hesitant. Also, global monetary policies are more fluid today than under a more “normal” inflationary environment, and there is no guarantee that the peso will remain strong. Still, because of the expected strength of Mexico’s economy, we expect demand to remain strong.

Mortality has gone way down. The use of First Defense products has proven to be a major weapon in the fi ght against neonatal scours on our dairy herds. Calves in our care get protected as soon as they hit the ground. If it was more complicated than that, I wouldn’t be standing here.

Learn more at FirstDefenseCalfHealth.com © 2021 Immucell Corporation. All Rights Reserved.

Sergio B. Pereira, DVM Azores Veterinary Practice

ARIZONA MILK PRODUCERS & DAIRY COUNCIL OF ARIZONA NEVADA DAIRY FARMERS & DAIRY COUNCIL OF NEVADA

2022-2023 Annual Report

TABLE OF CONTENTS

RETAIL

2

CONSUMER COMMUNICATIONS

4

EXPERIENTIAL MARKETING

6

SUSTAINABLE NUTRITION

8

YOUTH WELLNESS

10

NATIONAL CHECKOFF HIGHLIGHTS

11

EXPENSE AND STAFF

12

BOARD MEMBERS

13 2022-2023 2022-2023 ANNUAL ANNUAL REPORT REPORT 11

RETAIL With the ever-changing retail landscape in mind, innovating and exploring new marketing strategies to reach targeted consumers was key in developing campaigns. By leveraging consumer insight data, relevant content was developed to speak directly to targeted audience needs and interests. Particular focus was placed on reaching busy moms, fitness and sports enthusiasts, holiday shoppers, and budget conscious consumers.

To effectively reach these audiences, ads were delivered

through in-store and digital platforms, providing familiarity and multiple touchpoints for content engagement. Additionally, social media influencer partnerships were activated to create excitement and buzz around trending recipes and occasions to gather in the kitchen.

Following last year’s success, partnerships were again formed with hometown athletes to capture interest and deliver healthy snack and meal options, as well as inform consumers of dairy’s benefits.

DAIRY MANAGEMENT WEST 2022/2023 RETAIL CAMPAIGNS

In 2022/2023, Dairy Management West (DMW) saw on average, a 19% increase in incremental volume during retail promotional period in comparison to the national average of 5%. This increase is three times higher than comparable markets!

“Incremental volume is a great measure of effectiveness for promotions.”

– John Loehr, Circana Client Insights

A targeted email blast promoted recipes including milk, yogurt, and sour cream to 200K shoppers.

Floor signage installed at 126 Fry’s, Albertsons, and Safeway stores.

2 DAIRY MANAGEMENT WEST

TOTAL INCREMENTAL VOLUME AT ACTIVATED RETAILERS DURING PROMOTIONAL PERIODS* YOGURT

3,761,292

MILK

27,441,116

SOUR CREAM

1,138,026

CREAM CHEESE 855,740 CHEESE

9,469,139

BUTTER

2,924,514

TOTAL

45,589,827

INCREMENTAL VOLUME IN POUNDS BY CATEGORY

This year a total of nine retail campaigns were implemented through digital displays on apps and websites, social media platforms, influencer partnerships, targeted email blasts, in-store signage and product sampling. Retailers where campaigns were activated, include Fry’s Food Stores, Albertsons, Safeway, Bashas’, Sprouts, Costco, and Instacart.

*total promotional efforts combined

An interactive digital experience delivered back-to-school snack options for Fry’s, Albertsons, and Safeway shoppers. A custom landing page included links to retail for direct purchase.

RETAIL

Digital ad banner displayed on Fry’s website and app showcased the protein power of milk, cottage cheese, and yogurt to fuel workouts.

Placement of floor signage at 95 Fry’s stores featuring Zac Gallen promoting fresh, fast, local milk.

Digital ad on Albertsons and Safeway e-commerce sites highlighting local dairy brands.

Partnered with Shamrock Farms to promote milk, cream, and sour cream on Instacart for Thanksgiving.

In December, digital ads linked shoppers to a product page of flavored half & half, whipping cream and eggnog for beverages and desserts

Partnered with five influencers to create holiday recipe content featuring milk, half & half, heavy whipping cream, butter, cream cheese, sour cream, and cheese.

Ads were targeted to Albertsons and Fry’s shoppers through Facebook, Instagram, TikTok, and Snapchat.

Influencer Freddsters provided four Super Bowl snack options that included sour cream, cream cheese, milk, butter, and cheese. Content ran on Instagram and TikTok with links to purchase products on Instacart.

Custom milk caps with QR code to sustainability messaging installed on 1.67M gallons and half gallons of milk at Albertsons and Safeway.

Arizona Farms Cheese and Sarah Farms heavy cream were sampled at Costco stores prior to New Year’s Eve and Thanksgiving.

2022-2023 ANNUAL REPORT 3

CONSUMER COMMUNICATIONS To deliver impactful content and connect with consumers in dynamic ways, communications strategies involved harnessing the power of digital advertising, particularly social media platforms. Aligning with national team objectives, our primary focus centered on engaging Millennial and Gen Z audiences, and the Hispanic community. Actively connecting with these diverse demographic groups helped cultivate familiarity and trust around dairy products, sustainability practices, and the many benefits of incorporating dairy into daily life.

For maximum engagement, optimal channels for message placement were explored. Just as important as place and time of delivery was creating compelling content that resonated with consumers, ensuring that dairy remained top of mind when making purchasing decisions. A key element in this endeavor was collaborating with social media influencers who are able to establish authentic and relatable connections with consumers, thereby enhancing engagement and bolstering trust and value in dairy.

2022/2023 ANALYTICS FOR AZ & NV WEBSITES & SOCIAL MEDIA CHANNELS 2,788,387 Facebook impressions

RADIO ADS AIRED IN ARIZONA AND NEVADA MARKETS REACHED AN AUDIENCE OF 26.4M

1,774,882 Instagram impressions

14.2M MILLENNIAL AUDIENCE REACHED

291,157 Pinterest impressions

KEY MESSAGES: DAIRY SUSTAINABILITY, HEALTH BENEFITS, ANIMAL CARE, RETAIL PROMOTIONS

262,065 Website visits

DIGITAL ADS Through a sponsorship with Vegas PBS and PBS Kids, the Nevada team was able to secure TV, website, and billboard ads and a feature newsletter article: 1.6M impressions

INFLUENCERS INFLUENCER PARTNERSHIPS 17 campaigns with influencer partnerships drew: 2M+ impressions 858,791 video views 11,820 engagements

Ad placements at mega sports complex, Legacy Park has drawn over 2.1 million impressions throughout the park’s 100-plus digital screens. Legacy Park has welcomed 4.1 million visitors in 2023, and over 8.6 million since opening in 2022.

Target digital ads spread across five months delivered 600K impressions and drew 1.2K clicks to “Learn More” about nutrition information, recipes, and special promotions.

4 DAIRY MANAGEMENT WEST

Videos with collegiate volleyball player Brooke Nuneviller featured meal planning recipes for busy athletes. Content was delivered via ads geofenced to volleyball practice facilities and targeted email blast = 446K impressions, 34.7K email opens, 4.1K clicks on ad

CONSUMER COMMUNICATIONS INFLUENCERS

Social media great, Freddsters, delivered three savory snack recipes for Super Bowl party planning. 1.3M views

Through partnership with the Arizona Diamondbacks, the AZMP team produced a fun video featuring Zac “The Milkman” Gallen sharing the benefits of milk.

S CAN TO WATCH THE VIDEO

The Nevada team arranged a partnership with Las Vegas Raiders’ Daniel Carlson and Nacho Daddy to offer a live Facebook demo on creating the perfect plate of nachos.

31K video views, 379 engagements

Back to School and National Dairy Month influencer campaigns included 5 influencers in NV and AZ markets. Content featured recipes, giveaways, dairy nutrition and sustainability messaging.

44 posts and videos, 160.8K impressions; 95.4K video views; 6.7K audience engagements

HISPANIC CONSUMER AZ & NV POPULATION = 32% & 30% HISPANIC 85% consume milk | $262M spent on dairy products Source: Claritas-Geoscape, American MarketScape Data Stream

@dareen_radwan

@mixxery_bell

@madeitateitlovedit

Six campaigns were developed in the AZ and NV markets with tailored messaging and content to resonate with the cultural preferences, values, and foods of the Hispanic demographic.

Cooking segment with El Mercado; Facebook engagement: 36,000 views, 239 likes, 75 comments, and 51 shares

@chelseacalantoni

Partnership with familyowned Colados Crepes and Coffee on specialty latte, Abuelita: 1,063 sold; Arizona Midday segment, 15,494 viewership

@phillips_fambam

Collaboration with the NV Chapter of American Academy of Pediatrics yielded nutrition information resources and short videos of a physician providing nutrition tips in Spanish.

Arizona Midday segment featuring a queso cooking demo from longtime local favorite, La Pinata: 16,600 viewership 5 Recipes were shared throughout Hispanic Heritage Month: 2.2K impressions; 74 engagements 2022-2023 ANNUAL REPORT 5

EXPERIENTIAL MARKETING To build positive connections between consumers and local dairy, DMW executed experiential marketing efforts designed to deliver compelling messages to the community. Through in-person events, signage, media channels, and impactful partnerships, the AZ and NV teams strategically delivered key narratives surrounding dairy nutrition, sustainability, accessibility, and enjoyment. This intentional approach not only captured attention but also reinforced interest, cultivating trust to drive dairy sales.

GIRLS ON THE RUN DCNV was the booth to visit at the winter and spring Girls on the Run events! The team provided chocolate milk, nutrition education, and fun giveaway items to a combined total of 3,000 attendees.

FIESTA BOWL Arizona’s perennial partnership with the Fiesta Bowl continues to provide valuable opportunities to connect community members with local dairy.

At the Fiesta Bowl Parade, young dairy lovers earned spots as Half Pint Parade judges, the AZMP milk bottle float made an appearance, and reporters’ commentary about nutritious, fresh, sustainably produced local milk was broadcast from KTVK Channel 3 to 200K viewers.

100K IN ATTENDANCE Based on video submissions highlighting the value of dairy in their lives, four AZ university-bound students won scholarships in the REEL Milk Moments Scholarship Video Contest.

COFFEE BAR

AZMP sponsored several coffee bars at community events throughout the year. The Shamrock, Danzeisen, and Fairlife cream and milk plus flavored syrup options provided an elevated coffee experience for participants.

REACH: 1000 ATTENDEES On January 1, 2017, I was awarded the Arizona Milk Producers Grand Prize scholarship from the Dairy Council of Arizona. In that moment I realized I was one step closer to reaching my goal of becoming a doctor. Today, I am in my third year of medical school with an emphasis on surgery. I can’t thank the Council enough for believing in me and investing in my dream. I am forever grateful and will pay it forward. –Jake Castaldo

Chocolate milk was provided for 100 participants at the Fiesta Bowl Youth Football Clinic.

6 DAIRY MANAGEMENT WEST

EXPERIENTIAL MARKETING STATE AND COUNTY FAIRS

NOON YEAR’S EVE CELEBRATION

Local fairs provided the perfect backdrop for connecting community members to agriculture. Dairy farming, sustainability, cow care, and nutrition were the key topics woven into interactive experiences.

In partnership with Las Vegas radio company Audacy, DCNV participated in a New Year’s Eve celebration at Town Square. The team provided products for a noontime milk toast for young families, along with giveaway items and photo ops with Daisy. 2K+ IN ATTENDANCE

Arizona State Fair saw a total attendance of 1.38M during its fall run.

Visits from Daisy and the Dairy Facts Scavenger Hunt provided a fun learning experience for families.

The Pinal and Maricopa County fairs combined drew 25K+ attendees. Visitors had the opportunity to interact with the AZMP General Store educational display, while ag career options were presented to 4-H & FFA exhibitors.

At the Moapa Valley County Fair, the DCNV team worked alongside Nevada Farm Bureau’s Ag Education Wagon to provide information experiences for the 15,000 in attendance.

LAS VEGAS PBS BE MY NEIGHBOR DAY Nutrition information, positive dairy messaging, and a sustainability-themed activity were made available for the 8,000 guests at this family fun event.

GOOD FOOD EXPO Good Food Expo provided a connection between local products to wholesale food service professionals. AZMP and UDA worked together to inform attendees and vendors about opportunities for increasing and promoting their dairy recipes.

386 ATTENDEES, COVERED BY EIGHT MEDIA OUTLETS, SOCIAL MEDIA IMPRESSIONS: 96,536

2022-2023 ANNUAL REPORT 7

SUSTAINABLE NUTRITION Sustainable nutrition initiatives developed by the Dairy Council of Arizona (DCAZ) and Dairy Council of Nevada (DCNV) focused on reaching agricultural stakeholders, health professionals, chefs and food service partners, and food insecurity thought leaders.

Dairy’s story is captured via educational experiences and credible science-backed resources that showcase the nutritional benefits of consuming dairy products and the innovative sustainability practices of our dairy farmers. Outreach strategies include speaking engagements, exhibiting at conferences, newsletters, professional publication ads, farm tours, and partnerships.

HUNGER RELIEF Seven dairy cooler donations to Food Pantries throughout AZ and NV have resulted in 11,782 pounds of milk being distributed to foodinsecure community members.

TOTAL POUNDS OF MILK FOR ALL HUNGER RELIEF INITIATIVES=

8 DAIRY MANAGEMENT WEST

61 organizations & committees where dairy is represented 31 PRESENTATIONS 134 E-newsletters to 2,278 recipients

Avg. opens: 1,101 Avg. open rate: 42% Avg. click through rate: 9.2% 241 new subscribers

30,410 educational materials distributed 470 DOWNLOADS; 54 NEW MATERIALS CREATED

10 FARM TOURS 240,469 total audience reach approx. 10,744,597 extended reach

Hunger relief initiatives including the 1,000 Gallon Challenge with Fry’s Food Stores, St. Mary’s Food Bank, and Zac Gallen; Arizona Diamondbacks Hunger Awareness Night; and a Future Farmers of America (FFA) meal packing event for Community Food Bank including milk donations from Fairlife and Shamrock Farms resulted in a total of 234,772 pounds of milk donated.

SUSTAINABLE NUTRITION FARM TOURS Connecting health and culinary professionals to the source of their food is an important step toward ensuring a positive place for dairy in sustainable food systems. To meet this need, a total of 10 farm tours were arranged for 299 educators, dietetic interns, nutrition students, chefs, school nutrition professionals, and thought leaders. Topics covered during the tour included sustainability efforts, cow care, and dairy nutrition.

Surveys measuring perceptions of cow care, farming practices, sustainability, milk safety and nutrition were distributed before and after each tour. Post-tour surveys revealed:

Average new rating across all categories 4.66 out of five

ON AVERAGE 18.7% increase in positive opinion across all categories

INFLUENCERS Partnerships with health professional influencers resulted in a total of six posts focused on recipes and the benefits of dairy nutrition for National Milk Day and National Dairy Month.

ON AVERAGE 95.1% of participants “agree or strongly agree with” across all categories

pediatric registered dietitian @infantnutritionist

pediatric dentist @lisabienstock

33,030 IMPRESSIONS “ I will absolutely use the information I learned to help correct misinformation on the nutritional value and environmental impact of dairy given by media or by my peers and give a deeper dive into what dairy farms are actually like.”

“ I plan to share that the cows are very well taken care of. Also, there is so much thought, detail, and care that dairy farmers put into their job.”

20,583 VIDEO PLAYS

828 ENGAGEMENTS

CONFERENCES AZ and NV teams presented at numerous conferences sharing science-based information and educational resources on dairy nutrition, farming practices, and sustainability with health and wellness professionals.

DCAZ’s Herd That! Nutrition Conference drew 72 health and nutrition thought leaders from across the state for an interactive experience centered around dairy’s many benefits.

2022-2023 ANNUAL REPORT 9

YOUTH WELLNESS Youth wellness is supported by Arizona Milk Producers and the Dairy Councils of Arizona and Nevada through equipment grants that enhance school nutrition programs. Our goal is to optimize dairy consumption opportunities for the Gen Z demographic. In addition to funding, we provide educational experiences and resources for classrooms, delivering information on farming practices and the nutritional value of dairy products to encourage educated food choices as a part of a healthy lifestyle.

10 Organizations and committees where dairy is represented 20 E-newsletters delivered to 1665 recipients each 6 presentations delivered 77 Schools received grants/equipment for dairy optimization initiative

SHAMROCK’S CHOCOLATE MILK REFORMULATION FOR SCHOOLS With the proposed USDA regulations changing for school meals concerning added sugars in flavored milk, Shamrock teamed up with DCAZ to protect and promote sales via a new flavored milk formula that meets the 10g of added sugar regulation. Shamrock executives, staff, and DCAZ presented in front of AZ school district directors, supervisors, and menu planners. Topics included Shamrock’s partnership with schools, the nutritional benefits of flavored milk from Grand Canyon University’s sports dietitian Emily Orvos, and info about Shamrock’s new flavored product formulation which launched in October 2023.

Attendees sampled both the current formula and the new lower added sugar version, with the majority favoring the newly formulated milk.

Food Service Directors previously ready to eliminate chocolate milk agreed to continue to offer it with this new formulation. Many recognized that if they eliminated flavored milk, the consumption of milk in general would have gone down.

46 IN ATTENDANCE, REPRESENTED OVER 357,000 STUDENTS

MISSION 57: END STUDENT HUNGER In honor of Super Bowl 57, GENYOUth partnered with DCAZ to provide breakfast carts and accompanying equipment to 57 schools in the state of Arizona as part of their End Student Hunger initiative. Participating schools were asked for feedback and data from before using the carts, and after carts were in use, including breakfast and lunch average daily participation (ADP).

Currently, GENYOUth is working with DCNV to place breakfast carts and accompanying equipment in 58 schools leading up to Super Bowl 58 in Las Vegas.

MISSION 57 GRAB AND GO EQUIPMENT GRANTS MEAL PARTICIPATION

As reported by 3 districts covering 25 schools and over 21K students

11%-58% increase in breakfast Average Daily Participation 2%-11% increase in lunch Average Daily Participation 10 DAIRY MANAGEMENT WEST

The Mission 57 equipment kits have made a difference. The students are excited about the kits and visuals it provides for our meals.

The kits are easy to use and maneuver…We are thankful and look forward to continued use of the kits for this coming 2023-2024 school year!

–Casa Grande Elementary School District

ADOPT A COW This national program is a free educational resource for teachers to bring an ag experience to their students.

Each registered class adopts a local calf and receives activities and updates from October to May. Throughout the school year, classrooms discover their cow’s name, birthday, the farm they live on, and how the farmer takes care of her. They receive photos, activity sheets, and a lesson plan that follows Common CORE standards and Next Generation Science Standards. Students often write letters to their calf and farm family.

AZ & NV ADOPT A COW REGISTRATIONS: 437 CLASSROOMS TOTAL STUDENTS REACHED: 15,295 SCAN TO VIEW Q&A VIDEO ➡

NATIONAL CHECKOFF HIGHLIGHTS In 2023, the innovation and partnership work moved well over 200 million milk equivalent pounds through domestic foodservice, which helped offset declines in exports.

Checkoff’s “Dairy Dream Team” of chefs, recipe developers, “foodies”, gamers and lifestyle influencers delivered nearly 80 million impressions and jump-started the “butter board” craze that became a viral sensation, generating coverage from major news and entertainment outlets.

Working through checkoff-employed food scientists, partner Taco Bell rolled out a dairy-based creamer used in coffee and cold-whipped drinks – and relaunched the checkoff – created Grilled Cheese Burrito that features 10 times the amount of dairy vs. a traditional taco.

Checkoff launched a new partnership with Raising Cane’s to drive dairy-focused menu innovation that will increase dairy opportunities through variations in sandwiches, beverages, and sides.

National Dairy Council announces collaboration with Mayo Clinic to explore research and consumer outreach that improves public health and advances dairy’s benefits, including the role full-fat dairy may play in cardiovascular and metabolic conditions.

2022-2023 ANNUAL REPORT 11

EXPENSE ALLOCATIONS EXPORTS 8% BUSINESS DEVELOPMENT 10%

DAIRY IMAGE & COMMUNITY 33%

ADMINISTRATION 5%

NATIONAL PROGRAMS 23%

DMI MEMBERSHIP 3% SCHOOLS & HEALTH PROFESSIONALS 18%

STAFF Arizona Milk Producers/Dairy Council of Arizona Tammy Baker MS, RDN General Manager Cindy Swansiger Communications Director Karen Villagomez Operations Manager Lauren Kemmer RDN Sustainable Nutrition Manager Nicole Clements MS Promotions and Agricultural Affairs Manager Stephanie Taylor Business Development Director Tabatha Stevens, MS, RDN Youth Wellness & Nutrition Education Manager

12 DAIRY MANAGEMENT WEST

Nevada Dairy Farmers/Dairy Council of Nevada Libby Lovig RDN, LD General Manager, Dairy Council of Arizona and Nevada Delancey Prince RDN, LD Nutrition Communications & Project Manager Mara Kramer RDN, LD Nutrition Services & Community Outreach Manager