Foremost Farms Business _amp; Social Responsibility by ert554898


									Foremost Farms USA’s
2011 Business & Social Responsibility Overview
                                                                                         Our Approach to Busin

A Message from Foremost Farms USA’s President

Foremost Farms USA’s Commitment
to Business & Social Responsibility
Foremost Farms USA is a manufacturing and marketing cooperative owned by                What do we mean by business
dairy farmers who are committed to producing quality milk that is made into dairy       and social responsibility?
products for customers around the world. Every day, we strive to deliver cheese,        We believe that acting in an environmentally,
whey ingredients, butter and bulk fluid milk products that provide consistent            socially and financially responsible manner
performance, taste, nutrition and value. At the same time, we’re finding better ways     in our relations with our stakeholders
                                                                                        and communities is good business sense.
to be good stewards of our environment, keep employees safe and healthy, improve
the communities we’re part of and drive economic gain for our farmer members.           Our approach to business and social
                                                                                        responsibility begins with our core values of
In this overview, Foremost Farms outlines its philosophy and values and details         conducting business with uncompromising
                                                                                        honesty, integrity and respect. Successfully
a wide range of initiatives that we plan to measure going forward in an effort to       managing social, ethical and environmental
track our progress. The initiatives fall under three categories called People, Planet   issues is ongoing and involves everyone at
and Profit. Outlined here are several responsibility goals and our plans to meet         Foremost Farms.
them. These are areas that customers tell us matter to them including animal
well-being, the environment and food safety. We know there is always room for
improvement so we expect to continually evaluate each of these areas and refine          Our Business & Social
                                                                                        Responsibility Steering Team
them as needed going forward.
                                                                                        We have a core corporate group that
Acting in the best interests of our member-owners, our employees, our customers         encompasses our business functions to
                                                                                        oversee our business and social responsibility
and the communities we’re part of is an evolving process. We encourage your
                                                                                        strategies and actions. This team includes
feedback which helps us understand how we’re doing and where we can do better.          functions such as manufacturing, corporate
Please let us know what you think.                                                      communications, logistics, corporate safety,
                                                                                        quality assurance, engineering, cost
Sincerely,                                                                              accounting and procurement.

                                                                                        Team Members:

David E. Fuhrmann                                                                       Vice President-Manufacturing:     Provides
President                                                                               support and leadership for the overall
                                                                                        business and social responsibility effort
December 2010                                                                           at Foremost Farms.
ness & Social Responsibility at Foremost Farms USA

  Coordinator:    Schedules and leads                              • In 2010, we received                          • Reduced natural gas consumption by
  meetings and annual reviews. Acts                                  a Well Workplace                                installing eight energy-efficient boilers
  as a company representative to trade                               “Gold” Award                                    at our Reedsburg, Appleton, Rothschild,
  associations. Coordinates collection of                            from the Wellness                               Plover, Marshfield and Clayton,
  information. Shares support role with                              Council of America                              Wis., plants
  Communications or appropriate                                      (WELCOA) for                                  • Became an accredited SmartWay
  executive staff.                                                   fully embracing our                             partner/shipper because of measuring
                                                                     responsibility to promote employee              and reducing emissions using an
  Milk Marketing and Member Services:
                                                                     health and well being.                          EPA-approved model and increasing
  Provides F.A.R.M. (Farmers Assuring
  Responsible Management) program                                  • We have formalized employee and board           the amount of freight shipped with
  representation and serves as liaison to                            leadership and development programs             SmartWay approved carriers
  the Transportation function.                                       aimed at building our talent from within      • Added boiler stack economizers at
                                                                     and to meet our business goals for              several plants
  Technology/Food Safety:     Provides food
                                                                     succession planning, job performance
  safety and quality program support to the                                                                        • Reduced electrical usage by eliminating over
                                                                     competency, new hire orientation and
  team and is the support for vendor program                                                                         30 computer servers and storage arrays used
                                                                     employee retention.
  to employees and customers.                                                                                        at our data centers and replacing them
                                                                   • Our Code of Business Conduct and                with more efficient technology
  Director of Operations:   Provides resources
                                                                     Ethics sets out our values and expected
  to manage development of the program.                                                                            • Implemented printer reduction through
                                                                     standards of behavior for conducting
  Assists coordinator with presentation of                                                                           multi-functional network printers, dual
                                                                     business and interacting with members,
  program at plants. Engages plant personnel                                                                         monitors and imaging
                                                                     vendors, customers, communities and
  in achievement of goals.
                                                                     governments.                                  • Implemented web conferencing to conduct
  Business Process:   Provides timely reports                                                                        business meetings which has reduced
  for energy usage, greenhouse gas emissions                       • Annual cash and product donations allow
                                                                                                                     employee travel time and fuel consumption
  and carbon consumption.                                            us to give back to our industry and plant
                                                                     communities. Foremost Farms supports          • Investigated the future use of digesters for
  Process Integration:   Assists with data                           activities that benefit our youth through        treating plant wastewater and reducing
  collection, integration services and                               organizations such as 4-H and FFA, plant        land application of waste materials
  coordination with Business Process.                                town community fund campaigns,                • Developed new processing and livestock
  Communications:     Develops and                                   initiatives at land grant universities and      applications for permeate, eliminating the
  implements a communication plan                                    technical colleges that advance dairy           need to dispose of these by-product solids
  aimed at sharing the program’s goals                               farming and food processing, dairy
                                                                     breakfasts and banquets, and plant            Recycling efforts include:
  and results with the Foremost Farms
  executive staff, member-owners,                                    town medical facilities and emergency         • Introduction of a universal waste
  employees and customers.                                           responders such as ambulance and fire            recycling program at all offices and plants
                                                                     departments.                                    for recycling all consumer batteries used
  PEOPLE                                                                                                             by employees at work and at home
                                                                   PLANET                                          • Contract with a professional electronics
  With 1,000 employees and 18
  manufacturing plants and office locations                         As a farmer-owned cooperative, our                recycler to recycle all computer and
  in Wisconsin, Minnesota, Michigan and                            commitment to protecting the environment          electronic equipment
  Indiana, we are working to create a world                        is a fundamental part of our values. Being      • Separate office paper and aluminum from
  class safety, health and engagement culture.                     a good steward of our natural resources           trash and send it to recycling centers
                                                                   is critical to our business and to future
  Foremost Farms USA’s                                             generations. From reducing fuel, energy         PROFIT
  Incident Rate
                                                                   and water usage to installing state-of-the-
                         16                                        art water treatment facilities at most of our   Foremost Farms’ performance with regard
                         14   15.2
   Number of Incidents

                                                                   plants, to environmentally-friendly farming     to business and social responsibility is
                         10                                        practices, Foremost Farms continually           directly linked to our long-term financial
                          8                                        focuses on reducing its environmental           success. Profit allows us to make strategic
                          6                6.6                     impact.                                         investments that strengthen our business
                          4                      4.4                                                               by improving operational efficiencies
                          2                            2.3         We have worked on the following efforts to
                                                             2.0                                                   while manufacturing safe and wholesome
                              2005 2006 2007 2008 2009 2010        operate our offices and facilities in a more     products, developing employees, retiring
                                                                   environmentally friendly manner:                equities and growing with our members
  • Our company-wide focus on safety                               • Installed heat exchangers at our Plover,      and customers.
    processes has resulted in a reduction in                         Rothschild and Sparta plants
    our incident rate from 15.2 in 2005 to
    2.0 in 2010.
Our Initiatives for 2011

    Key Measure                                                                      Target
    Incident rate (total incidents divided by total hours worked X 200,000)          1.5
    Health and wellness rating (WELCOA)                                              Gold Award
    Farms evaluated in Farmers Assuring Responsible Management                       33% of farms
    program (F.A.R.M.) – assures the milk used in our products comes                 pre-evaluated
    from farms that meet established guidelines for sound animal care                25% of farms evaluated
    Participants in Cooperative Leaders Program (young farmers)                      20
    Scholarship dollars awarded to dependents of employees and members               $40,000
    Cash and product donations to approved community and                             *
    industry organizations
    Number of plants earning SQF certification – protects confidence                   12
    in the safety of our products


    Key Measure                                                                      Target
    Greenhouse gas emissions reduction at manufacturing facilities                   2%**
    Water usage reduction (gallons per 1,000 lb. of product)                         2%**
    Energy demand intensity reduction (million BTU per 1,000 lb. of product)         5%
    Gallons of diesel fuel used per ton of milk hauled (Upper Midwest)               1.75
    Interplant bulk fluid payload size                                                51,000 lbs./load
    Use of SmartWay transportation carriers for dry and refrigerated freight
    to improve fuel efficiency                                                        95%
    Pounds of waste recycled (batteries, computer equipment, office paper)            *
    Pounds of product using sustainable packaging                                    *
    Pounds of solid waste                                                            *


    Key Measure                                                                      Target
    Meeting state dairy plant licensing requirements based on the financial           $1.25 to $1.00
    strength of our balance sheet                                                    current ratio
    Meeting financial obligations to past equity holders and implementing
    equity investment plan for active members on Jan. 1, 2011

* Foremost Farms will measure annually; no specific target.
** Our EPA Energy Star target is 2% per year for five years – for a 10% total reduction.

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