2011 September/October Issue - Land O'Lakes Inc.

landolakesinc.com

2011 September/October Issue - Land O'Lakes Inc.

This centralization enables us to providemore effective and cost-efficient “backroom”support, while freeing the businessesto concentrate on the drivers of theirsuccess – serving members and customers,and out-performing the competition.Where it made sense, we’ve also workedto leverage close connections among businesses,such as merging our seed and cropprotection products businesses under theWinfield Solutions banner. This move recognizedthe synergies and market efficienciesthat can be achieved when two similarbusinesses join forces, and WinfieldSolutions has become Land O’Lakes’strongest earnings producer.We also more closely aligned our go-tomarketstrategy in our Dairy Foods andeggs businesses, capitalizing on their commonretail grocery store customers andconsumers. You can expect Land O’Lakesto continue finding ways for our businessesto work together.New Structure – Strong ResultsThis ongoing transformation to an operatingcompany structure has proveneffective in today’s challenging economyand volatile marketplace. From2005 through 2010, we achieved four ofour top five sales years and five of ourtop five earnings years, and since 2005Land O’Lakes has returned $645 millionin cash to members.Our core businesses have becomemore results-oriented and focused. Thishas made Land O’Lakes Dairy Foods,Land O’Lakes Purina Feed and WinfieldSolutions leaders in the marketplace.We’ve also seen our steady improvementrecognized by the financial community.Recently, our financial ratingsWhere it made sense,we’ve also worked toleverage close connectionsamong businesses, suchas merging our seed andcrop protection productsbusinesses under theWinfield Solutions banner.with both Moody’s Investors Service andStandard and Poor’s were upgraded toInvestment Grade status. As we continueto expand our core, value-added brandedbusinesses, this Investment Grade ratingwill improve our access to capital.The Next Steps – An Integrated,Value-Added ApproachLooking ahead, Land O’Lakes willuse our operating company structure todrive growth. And just as the global businessenvironment changed in the past, itwill continue to change in the future –requiring us to frame growth opportunitiesdifferently and capitalize on our capabilitiesin a broader, more integratedway. The operating company transformationI just described positions us todo just that.Today, we’re better positioned thanever before to use our diverse capabilitiesacross the organization to capture highvalueopportunities. Rather than thinkingof a single opportunity for a single businessunit, we’re taking a broader view –looking for cross-functional and crossbusinessopportunities that leverage moreof our capabilities.This will open the door not only to traditionalgrowth initiatives, but to opportunitiesinvolving multiple businessesand requiring us to provideOur core businesses havebecome more results-orientedand focused. This has madeLand O’Lakes Dairy Foods,Land O’Lakes Purina Feed andWinfield Solutions leaders inthe marketplace.domestic and international customerswith a broader array of products, servicesand insights.In my column in the next issue ofgrowingtogether magazine, I’ll discuss morefully how we’re taking advantage of this integratedapproach, and how we’re usingour skills and capabilities to drive strategic,profitable growth. !Chris is the president and CEO ofLand O’Lakes, Inc. He has 30 years ofexperience in the food industry and hasbeen with the cooperative since 1997.He has been president since 2005.Chris is based in Arden Hills, Minn.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 5


PERSPECTIVESCHAIRMAN’S COLUMN by Pete KappelmanDairy Security ActIntroducedLand O’Lakes members encouraged to make their voices heardWhen Congress returned toWashington, D.C., after itssummer recess, membershad an important proposal toconsider. Rep. Collin Peterson (D-Minn.)and Rep. Mike Simpson (R-Idaho) – bothstrong supporters of American agriculture– introduced the “Dairy Security Actof 2011,” a measure based on the NationalMilk Producers Federation’s Foundationfor the Future (FFTF) recommendations.F F T F w a s c r a f t e d b y t h e d a i r yindustry – including representatives fromLand O’Lakes – and is viewed as our bestopportunity to reform U.S. dairy policiesand programs that are outdated and simplynot working for America’s dairy producers.Recently, the elected dairy leaders ofLand O’Lakes issued a “statement ofsupport” for a discussion draft of thePeterson-Simpson legislation, prior to itsintroduction in the House. And earlier thisyear, Land O’Lakes delegates approved aresolution at the 2011 Annual Meeting endorsingFFTF as the framework for a newU.S. dairy program.While the legislation introduced in lateSeptember differs somewhat from theoriginal FFTF recommendations, the essentialelements of FFTF remain intact andare compelling. You can get a detailed descriptionof the Dairy Security Act onlineat http://www.futurefordairy.com, but I’dlike to make two important points aboutthe legislation:• It is built on three key FFTF initiatives:A Dairy Producer Margin ProtectionProgram (DPMPP); a Dairy MarketStabilization Program (DMSP); andFederal Milk Marketing Order revisions.•The recent changes reflect what NMPFheard during producer meetings held thissummer (more than 1,300 producers tookpart) and, in general, expand producer optionsunder the programs.As Chairman of the Land O’Lakes Boardof Directors and a dairy producer, I recognizethat in an organization as diverse asours, there will always be differing views,and this has been true with FFTF. In membershipmeetings and one-on-one conversations,I’ve heard from my fellow dairymembers across the country. Some questionwhether FFTF will be effective and trulybring greater stability to a highly volatile industryand marketplace. Others are skepticalthat FFTF will gain the support it needsin Congress, and some members have toldme they don’t think FFTF goes far enough.To Land O’Lakes members who supportthe principles of FFTF, and to those whohave doubts, I have the same message –never has it been more important for us tostand together and support an initiative.The FFTF-based Dairy Security Act hasthe potential to dramatically improve theapproach to dairy policy and foster a moreeconomically-viable and secure future fordairy producers. It serves as a new roadmapfor dairy policy by focusing on marginprotection, rather than price. This strategicshift is essential to protecting producers’profit potential. It also assures equitabletreatment of producers, regardless of thesize or location of their operations.As those who would benefit from this legislation,I encourage all Land O’Lakes dairymembers to make their voices heard. Pleasecontact your members of Congress andexpress your support for the bill. Contactinformation for members of Congress isavailable on the Land O’Lakes, Inc. website.Just visit the Foundation for theFuture page within the Member section atwww.landolakesinc.com. A link for contactingmembers of Congress is also availableon the home page of the NMPF website at:http://nmpf.org/If we don’t make our voices heard andprotect our own interests, how can weexpect others to do this important workfor us? Let’s come together as strongand vocal advocates for the promise of abetter future. !Pete is the chairman of the Land O’LakesBoard of Directors. He milks 420 Holsteinsand farms 1,200 acres of crops inTwo Rivers, Wis.6 growingtogether www.landolakesinc.com


STEVE SCHNELL, senior cheese grader at the Land O’Lakes Kiel plant in WisconsinMaking the GradeSimilar to fine wine, aged Cheddar at the Kiel plant is sampled by experts to test qualityFruity, bitter, dry, full-bodied, youngand old – these terms often used todescribe a fine wine are also used bySteve Schnell, senior cheese graderat the Land O’Lakes Kiel plant, when describinga block of aged Cheddar cheese.Schnell has worked at the Kiel plant formore than 26 years, the past 11 as a cheesegrader. “The nuances of cheese grading aresomething you learn after years of practicerefining your tastes and learning from otherexpert cheese graders,” said Schnell whois also licensed by the Wisconsin CheeseGrading Association.The process of turning milk into cheesetakes place in enclosed tanks where the pasteurizedmilk is blended with culture blendsspecifically developed for the Land O’Lakes’Kiel facility. Each “vat” holds 40,000pounds of milk and produces approximately4,000 pounds of cheese. Total daily productionis approximately 210,000 poundsof cheese from 2.1 million pounds of milk.Three days after a batch is made, Schnelland his team perform several initial tests,looking at the baseline levels of moisture,salt, pH and fats. Seven days after the initialproduction, he officially “grades” thecheese and determines how each batchwill be used. Kiel cheese is aged for afew months to as long as several years –depending on the needs of each customer.Matching the right cheese to customerneeds is a big part of Schnell’s duties.“Our customers want cheese that has“Our customers want cheesethat has excellent Cheddarflavor. They look to us toprovide premium grade cheeseon a consistent basis.”– Steve Schnellexcellent Cheddar flavor. They look to usto provide premium grade cheese on aconsistent basis.”When it comes to grading cheese, thevast majority produced at Kiel will be setaside for long hold aging. All of this cheesefalls into one of the following categories:A Grade, B Grade, Under Grade, WashedCurd or Semi-Soft Part Skim. During thegrading process, Schnell takes one of theblocks of cheese from each batch and insertsa long metal tool, called a Trier, intothe block to pull out a six-inch sample thathe tests, looking at the color, aroma, texture,smell, moisture and pH levels, saltcontent and acidity.He then breaks off a half-inch piece andtastes a small sample without swallowingso he doesn’t affect his palate as he moveson to the next sample. “Cheeses that aretoo dry or too moist, are mottled or seamy(lines in the cheese), will fall lower on thegrading scale,” said Schnell.“I use all of my senses in the gradingprocess in order to make the best matchbetween the attributes of a certain cheeseSteve Schnell uses a Trier to test a six-inchsample of cheese, examining the color, aroma,texture, smell, moisture and pH levels, saltcontent and acidity.batch and each customer’s needs,” hesaid. “For instance, customers on theEast Coast like “fruity” cheeses, whileMidwestern customers don’t value thisattribute as highly.”According to Schnell, approximately 99percent of all cheese produced in Kiel meetsA Grade standards, of which about 85 to 88percent will be set aside for long hold aging.“Because we start with the highest qualitymilk from our members and continually testand refine our batches, we produce some ofthe highest quality Cheddar cheese in theworld. By providing this added-value, wecan bring more value to our members whoprovide milk for our cheese,” he said. “Thesystems we have in place to make sure ourmember milk is the highest quality ensuresthat our cheese will also be of the highestquality – and our customers understandthis about our brand.” !www.landolakesinc.com SEPTEMBER/OCTOBER 2011 9


CONNECTIONSCONNECTING TO OUR MEMBERSBest TalentBusiness Development Services provides talent management programsto fuel co-op growthWith products and services rangingfrom agronomy, feed andgrain to fuel, retail and a conveniencestore, the WisconsinRiver Co-op serves as a great resource forits central Wisconsin customers. With rootsdating back to 1917 in Wisconsin Dells, 1922in Mauston and 1947 in Adams, the co-op isthe result of three mergers designed to betterserve customers in a wider geographic area.Participating in ongoing talent managementprograms offered by Land O’LakesBusiness Development Services (BDS) hashelped fuel Wisconsin River’s strong growth.“Better trained employees make betteremployees and that leads to happiercustomers,” said Wisconsin River Co-opCEO Tim Diemert.Bill Zuhlke, Land O’Lakes BDS North Centralregion director (left), and Wisconsin River Co-opCEO Tim Diemert work together to designprograms that drive overall business success.“Better trained employeesmake better employees and thatleads to happier customers.”– Wisconsin River Co-op CEO Tim DiemertAccording to Diemert, Land O’Lakesworks with Wisconsin River by leadingstrategic planning sessions, offeringleadership development for its seniormanagement team, spearheading mergerand acquisition studies and conductingfinancial analysis.“We have a listening ear to what theyneed at Wisconsin River,” said Bill Zuhlke,North Central region director for BDS.“We then design a customized programthat helps their team raise their skill leveland better understand the industry insightsin their respective divisions andthroughout the cooperative system.”Diemert said this customization hashelped his employees, which, as a result,has helped the overall business.“ O u r partnership w i t h B u s i n e s sDevelopment Services helps us grow,” hesaid. “We benefit from working with professionalswith management experiencewho pick up on things we should be doingdifferently. I see the confidence in our salesstaff grow every time we meet. You see it intheir step. They feel a lot more confident,and we’ve grown our business from that.”This approach, while beneficial to themember co-op, also serves as a driver ofLand O’Lakes overall success.“We partner with our co-op customersfocusing on building success together,”said Bob Cummins, BDS senior managerfor learning and development. “We workwith the cooperative management team tosee how we can tailor a program focusedon helping build management and leadershipskills to drive success.”According to Cummins, one of the mostpopular programs offered by BDS isFoundations of Leadership – a programthat outlines the fundamentals of supervisorymanagement and leadership. Othersessions focus on Financial Tools andConcepts and Crucial Conversations.“The session I attended helped me stepback and look at how to handle a situation,”added Dan Splinter, WisconsinRiver Applications/Chemical Supervisor.“I learned to look at the whole pictureand then to talk to employees not onlyabout what I’d like them to accomplish,but to listen to what they want, as well. Wework together as a team in order to makeWisconsin River a great place to work.” !For More InfoFor more information about Land O’LakesBusiness Development Services’offerings, visit the “Member” sectionat www.landolakesinc.com.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 7


PROFILESPURINA CUSTOMER TESTIMONIALSSee the DifferenceAnimal owners participate in the Purina ® 60-Day ChallengeThe Purina® 60-Day See TheDifference Challenge is promotedas creating “a difference youcan see.” Since the Challenge waslaunched in March 2011, more than 30,000animal owners have enrolled at least one oftheir lifestyle animals – horse, flock, rabbit,goat, cattle and show animals – in the feedtrial. Owners across the country are redeemingthe program’s coupons and reporting onthe weekly changes in their animals.Jenny Ley, who lives on a six-acre farmin Loganville, Ga., enrolled her 23-yearoldAppendix quarter horse, JT, in theChallenge to rehabilitate him after reclaiminghim from another owner.Jenny Ley and her 23-year-old Appendix quarterhorse, JT. Since enrolling in the 60-Day Challenge,Ley said JT is back to antics exhibited in his youth.“JT and I spent many years together andare old friends, so it tore my heart out tosee him in poor condition,” said Ley. “Hishooves and hair were dry and brittle, and hisribs were visible because he was so thin.”Under Ley’s care, JT gained weight over afew months but still had challenges.“His coat didn’t have a bloom and wasn’tlustrous or soft,” said Ley. “A friend whoboards horses changed her entire stableover to Purina® Strategy® GX horse feedand talked about how significant the differencewas and how she was able to discontinuesupplements. So I signed up forthe 60-Day Challenge.”Ley said JT is back to antics exhibitedin his youth. “He bucks and frolicsand squeals with enthusiasm when I turnhim out,” she said. “His coat has a goodbloom, and I’m showing him again. We’rein first place in our local riding club.”Horses occupy much of Paula Walker’slife, too. Walker, of Inola, Okla., ownsfour horses, was a veterinary technicianfor 27 years, and is a groom for a UnitedStates Dressage Federation instructor. As agroom, she closely inspects horses and hasseen the difference the right feed makes.“Purina feeds provide forage, fat androughage instead of grain,” said Walker.“Thinness is a symptom of inadequate nutrition,which affects energy and performance.When you provide a complete feed,horses get proper nutrition, and it shows intheir coat, hooves and temperament.”Walker favors Purina® Equine Senior®horse feed and feeds it to all of her horses.“Purina does the research. There’s no need tomess around with their formulas,” she said.Jamie Badgley agrees that the right feedmakes all the difference. She has 5-yearoldfainting goats, siblings Azeezah andAbu, and they are fed Purina® Goat Chow®“When I fed them a generic product, halfthe feed went uneaten, and I had to usesupplements,” she said. “It was a waste ofproduct and money because it didn’t nourishor please my goats.”Badgley, who lives in Marinette, Wis.,said she noticed changes about 50 days afterstarting the Challenge. “Their hair gotsmoother, silkier and shinier, and they weremore energetic and interactive,” she said.“Their appetite is much better than it used tobe, and they eat all their feed. They just seemmuch happier, and that makes me happy.”The Purina® 60-Day See The DifferenceChallenge continues through October.Challenge participants also can enroll in thePurina DifferenceRewards loyalty programto receive future feed savings offers. Todate, more than 1.2 million lifestyle animalsare enrolled in the loyalty program. !To Learn MoreTo learn more about the Purina 60-DaySee The Difference Challenge and toread testimonials from animal ownerswho are seeing the difference, visitwww.PurinaDifference.com.8 growingtogether www.landolakesinc.com


PROFILESLAND O’LAKES EMPLOYEE VOLUNTEERSEmployees Who GiveA sampling of the many Land O’Lakes employees who volunteer to make a differenceLand O’Lakes employees take great pride in donating their time. In 2010, more than 80 percentof Twin Cities-based employees volunteered for a total of more than 29,000 hours of service.This engagement speaks to the culture at Land O’Lakes – where employees are encouraged, andempowered, to give back to their communities by supporting the organizations of their choosing.Dewi BorntSystems Development Project Analyst, Quality AssuranceDewi has been a parent volunteer with Battle Creek Environmental Magnet School in St. Paul,Minn., for the past four years. She began volunteering to help in her son’s classrooms, but thenbranched out to help any teacher in need of assistance. Her volunteer activities have includedorganizing Friday folders, helping children understand math concepts, reading to the studentsand many other tasks.“I volunteer because I believe that one person can make a difference.I want to be someone that makes a difference. If every single persondoes just one thing every day to help others, just imagine how good itcan be for everyone.” – Dewi BorntMegan HartzellResearch Station Manager, Nampa, Idaho, Forage Genetics InternationalMegan has volunteered for five years with the Canyon County Idaho Relay for Life:American Cancer Society. She raises money for the Relay for Life events, primarily throughthe sale of plants. Megan is allowed to grow tomatoes and peppers in the companygreenhouses for the sale each year. Additionally, Megan is a member of a relay teamand annually participates in the walk.“One in four people die from cancer; this is an alarming rate. It isimportant for me to volunteer and raise money for research so we canimprove the survival rate. Members of my family have passed awaydue to this disease, and this is my way of honoring them.” – Megan Hartzell10 growingtogether www.landolakesinc.com


Juliana P. Martinez-IbarraGrain and Grain By-product Buyer, Land O’Lakes Purina FeedJuliana has volunteered for the last six years with Animal Humane Society in St. Paul, Minn.She provides foster care for animals that are sick, recovering from surgeries or that are toosmall for adoption. The animals live with Juliana until they heal, or grow enough to be spayedor neutered. Additionally, Juliana serves as a dog-walker and volunteers at a number ofevents held by the Humane Society throughout the year.“Volunteering is important to me because I get a chance to makea difference. Even if it’s a very small one, I know that I’m givingsomething back. I think I’m very lucky to have found a place whereI’m not only helping animals that really need it, but I’m also doingsomething that I’m really passionate about.” – Juliana P. Martinez-IbarraJayne HattererMaintenance Buyer, Land O’Lakes CarlisleJayne has been a volunteer with the fire department for 30 years, first with the MinquasFire Company in Downingtown, Pa., and now with the Newberry Township Fire Departmentin Etters, Pa. Working nights and weekends, she is a certified Emergency Medical Technician,responding to calls in an ambulance and providing emergency care to patients. Jayne alsoserves as Recording Secretary on the department’s Board of Directors, keeping the minutesand helping process Board membership applications, and also aids in fundraising efforts topay for department utilities, equipment and training.“I love the interaction and how it makes you feel to be able to helpsomeone in need, or just being out in the community interacting withresidents. My husband, Gary, serves as Fire Chief, and our 16-year-oldson, Brandon, is a Junior Firefighter, so it’s nice that we can spendtime together as a family and help others in need.” – Jayne HattererFrancis CobianDirector of Operations, Dairy Foods (Retired)Francis has volunteered for the last 12 years at the St. Peter Claver Parish Food Pantry inSheboygan, Wis. He helps clean donated, non-perishable food items, stocks the shelves andassists in purchasing food for the pantry. Twice a month, Francis also provides assistance toclients of the food pantry while they shop for their groceries.“I volunteer because there are a lot of people in need and, whenyou’re retired, I think you should do something to help others. Plus, itprovides a good opportunity to interact with a lot of different people.It’s rewarding to see that you’re helping those in need.” – Francis Cobianwww.landolakesinc.com SEPTEMBER/OCTOBER 2011 11


MEMBERSHIP2011 Corporate Board ElectionsDairy Region candidatesCANDIDATE BIO WORK HISTORY LEADERSHIP PHILOSOPHYDAIRY REGION 52Dan MainsNewville, Pa.Dairy producer with 900-cowJersey herd. Crops 1,400 acresand runs a trucking corporationthat hauls milk and grain.“My experience on the Ag Choice [Farm Credit] boardgave me a feel for how a large board operates acooperative. Being president of several boards hastaught me leadership and delegation skills. At home,growing my business from 60 cows and one employeeto 900 cows and 20 employees has taught me manyleadership, personnel and business skills.”TomWakefieldBedford, Pa.B.S., DelawareValley Collegeof Science &AgricultureDairy producer, JTJ WakefieldFarms Inc., owned with brother,Jim. Dairy herd of 160 cows and160 heifers. Crops 600 acres ofcorn, alfalfa, grass hay, soybeansand barley. Custom bales largesquare hay bales.“My leadership skills have been shaped and developedover time by experiences and mentors. Leadershipis about honesty, integrity and earning respectfrom your peers. My peers have asked me to serveas chairman in various organizations, including mychurch consistory, county DHIA, county cooperativeextension and Land O'Lakes Dairy Committee.I strive to lead by example.”DAIRY REGION 65LynnBoadwineBaltic, S.D.B.S. Agriculture,South DakotaState UniversityMark ClarkRollingstone,MinnA.D. FarmManagement,Winona AreaTechnicalCollegeDairy producer managing afamily partnership that includesa 1,500-cow dairy, heifer-raisingenterprise and croppingoperation that provides mostfeedstuffs for the dairy. Also apartner in a 3,000-cow dairy ineastern South Dakota.Dairy producer milking 380Holstein cows and raising alfalfaand corn on 600 acres, whilebringing his son into the thirdgenerationbusiness.“I have been fortunate to have had the opportunity tolearn and contribute on various boards of directors.During my term on the Land O'Lakes Corporate Board(1999-2008), I developed a better understanding ofthe national and international dairy industry. Thistime also prepared me with a tremendous amountof institutional knowledge of Land O’Lakes.”“During my 10 years on the local school board, I havehad experience with working on a public board and thescrutiny associated with public interests. Throughoutmy many years as an area and unit delegate, I learneda great deal about the co-op system. I am currently theCorporate Board representative for Region 65 andserve as vice chair of the Audit Committee and am onthe Finance Committee.”12 growingtogether www.landolakesinc.com


DAIRY REGION 80To Learn MoreTo read complete biographies, and election details, visit theMember section at www.landolakesinc.comCANDIDATE BIO WORK HISTORY LEADERSHIP PHILOSOPHYCornell KasbergenTulare, Calif.Studied Ag Business,Cal-Poly at San Luis ObispoDairy producer with3,500 milking cows, 3,000replacement heifers and2,000 crop acres.“Through my involvement with Land O'Lakesand the National Milk Producers Federation,I have had the opportunity to be involvedin many issues that affect our co-op andmembership. I have been involved in theformation of Cooperatives Working Together,and am currently involved in NMPF’s Foundationfor the Future program. My foremost concernhas been and will continue to be the well-beingof our co-op and our membership.”Note: Because Ag Region corporate board elections will take place in conjunction with the annual meeting, look for candidate informationin the November/December issue of growingtogether.Where simple goodness begins. ®Mornings Made Sweeter©2011 Land O’Lakes, Inc.NEW Cinnamon Sugar Butter Spread starts your day out right.To discover new products, recipes and more, visit landolakes.com.


SUCCESS IN THEMARKETPLACELEGISLATIVE NEWS by Steven KrikavaBudget Process AltersFarm Bill ScenariosSuper committee could dictate timing of new billAs Land O’Lakes’ grassroots representativestraveled to Washington,D.C., this year, one of their majorconcerns has been the new FarmBill. Even if the nation were not in a deficitcrisis, we knew that the Farm Bill would facesevere budget pressure. Several provisionsand programs included in the last Farm Billdo not have a budget baseline beyond 2012.So from the start, Congress has less money toallocate to agriculture programs.But we are in the midst of a deficit crisis.And Congress has launched a process tocut the deficit by $1.5 trillion over the next10 years. Any way you add it up, that’s a lotof money.Agriculture will have to share a portion ofthe cuts. Land O’Lakes’ position has beenthat cuts in ag programs should not be disproportionate.The outcome of the deficitreduction process will determine how muchagriculture has to cut. That, in turn, will affectthe timing of writing a new Farm Bill.There are three scenarios that will determinethe timeframe of when the Farm Billwill be written.Scenario 1: Regular orderThis is the scenario preferred by Rep.Frank Lucas (R-Okla.), Chairman ofthe House Ag Committee. The currentFarm Bill expires at the end of September2012. He would like to use the spring andsummer to hold hearings, go through formallegislative mark-up and debate, andput a final bill on the President’s desk beforethe end of September. This scenariooccurs only if the budget process preservesthe framework of the Farm Bill.Scenario 2: Super Committee CutsThe deficit reduction plan passed byCongress on Aug. 2 established a committeeof six Democrats and six Republicans(three each from the House and Senate)that will propose a plan to reduce the federaldeficit by $1.5 trillion. The House andSenate Ag Committees will provide inputto the committee. No one knows howmuch this super committee will ultimatelycut from agriculture spending. Estimatesrange from $11 billion to $50 billion. Ifthe super committee plan “preserves theframework of the Farm Bill” as ChairmanLucas prefers, and if Congress passes thesuper committee plan, that would allowScenario 1 to proceed. But it’s possiblethat the super committee could order drasticcuts or mandate immediate changes toagriculture programs. If Congress passessuch a plan, it could require writing thenew Farm Bill before the end of 2011.Scenario 3: Across-the-board cutsIf the super committee fails to reach anagreement, or if Congress does not passthe super committee’s plan, then automatic,across-the-board cuts would be triggered.According to Rep. Collin Peterson(D-Minn.), the ranking Democrat on theHouse Ag Committee, agriculture’s shareof automatic cuts would be about $16 billion.That likely would require rewritingthe Farm Bill. Under this scenario, the newbill could be written during the first threemonths of 2012.Land O’Lakes will work closely withNCFC, NMPF, and other agriculture organizationsin Washington as the budgetprocess proceeds. The cooperativewill aggressively represent our farmermembersregardless of the scenario thatultimately prevails. !Steve is the director of GovernmentRelations for Land O’Lakes, Inc. He has beenwith the company since 1976, when he washired at Midland Cooperatives. Steve isbased in Arden Hills, Minn.For More InformationNew multimedia story highlighting“A Day on Capitol Hill” with the Land O’LakesPolicies & Resolutions Committee!Visit www.landolakesinc.comor search for LandOLakes2010 onGet updates from Steven via Twitterat twitter.com/SPKrikava14 growingtogether www.landolakesinc.com


ECONOMIC OUTLOOK by Tom WegnerMeeting the Needs of aGrowing Global MarketA look at the United States’ and New Zealand’s approachesto dairy exportsHistorically, a small handful ofcountries supply the majority ofdairy products to the world market.Combined, New Zealand,the European Union, the United Statesand Australia supplied nearly three-quartersof the dairy products traded globallyin 2009. New Zealand and the EU-27 eachhad roughly a 27 percent share, the U.S.had a 12 percent share and Australia hadan 8 percent share of global dairy trade.New Zealand’s Role in SupplyingGlobal MarketsA t 3 7 b i l l i o n p o u n d s ( l e s s t h a nCalifornia’s annual production), NewZealand dairy farmers produce less than3 percent of the world supply of cow’smilk. Their pasture-based, seasonal dairyingkeeps their production costs belowother major milk producing countries,but their annual production per cow of9,000 pounds is roughly 12,000 poundsless than the U.S. average. Unless dairyfarmers start growing feed to supplementtheir pastures and extend their seasonalproduction, New Zealand’s growth willdepend on adding cows, thereby limitingtheir maximum milk producing capacity.With a small domestic population of 4.3million people, New Zealand has to annuallyexport more than 90 percent ofits milk production. Accordingly, mostWith a small domesticpopulation of 4.3 million people,New Zealand has to annuallyexport more than 90 percentof its milk production.growth in their milk supply will end upentering the global market. Market analystspredict growth of 5 percent in NewZealand’s milk supply in 2011-12, whichwould likely add 1.7 billion pounds to theglobal dairy market.With the largest dairy marketing interestin the world, New Zealand’s dairy cooperative,Fonterra, sells dairy products in 140markets and has established trade offi cesand manufacturing interests all over theglobe. Fonterra sets the world standard forglobal dairy trade and has taken strategicsteps to source milk outside New Zealandto meet their global customers’ needs.U.S. Dairy’s Growing Role inGlobal MarketsEven though U.S. dairy has a smallerstake in global markets, its importance todairy farmers has grown significantly in recentyears. During the five-year period from2006 to 2010, U.S. dairy exports have expandedat a rate of roughly 9 percent peryear. In 2010, U.S. dairy exported nearly 13percent of annual milk production, whichtranslates to 25 billion pounds of milk—that’s nearly two-thirds of New Zealand’stotal production.In stark contrast to New Zealand, U.S.dairy farmers have exhibited an unparalleledability to grow their milk supply byincreasing milk per cow, adding cows orboth. This vigorous productivity growthpositions U.S. dairy and Land O’Lakesto meet the needs of a growing global demandfor dairy products.An important component in helpingto aid the growth of U.S. dairy exportshas been National Milk ProducersFederation’s (NMPF) CooperativesWorking Together (CWT) program, whichis funded by voluntary contributions. In2011, CWT has assisted in the sale of 62million pounds of cheese to 20 countrieson four continents.This program has helped Land O’Lakesgain access and build market sharein countries throughout the world. Seethe related article (page 26) on howLand O’Lakes has taken steps to growyour cooperatives’ global business indried milk products. !Tom is the director of Economics and DairyPolicy for Land O’Lakes, Inc. He has been withthe cooperative since 2005 and holdsa master’s degree in applied economics.Tom is based in Arden Hills, Minn.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 15


SUCCESS IN THEMARKETPLACELOCAL CO-OP NEWS by David CramerSustainability Is a DrivingPhilosophy for United CooperativeSharing knowledge and setting an example sets the stage for increased productivityfor future generationsFor 75 years, United Cooperativehas consistently strived to makesure our patron owners can relyon their cooperative for financialstability, excellent customer service,and the latest in agricultural productionpractices and equipment. These effortshelp ensure their farming operationsprosper financially and efficiently fromone generation to the next and, in turn,enables their cooperative to prosper foryears to come.One of the important ways that wework to ensure a strong future for ourNote: United Cooperative recentlywas honored with the 2011 NationalEnvironmental Respect Award. UnitedCooperative was recognized for its environmentalstewardship efforts in liquidcrop nutrient storage, spill preventionand safety in the area of dry fertilizer.The co-op was one of five regionalfinalists from across the U.S. competingfor this prize. Sponsored by CropLifemagazine and DuPont Crop Protection,this award program is designed torecognize and promote environmentalstewardship in farm supply retailersacross the U.S.cooperative is by focusing on implementingindustry-leading sustainabilitypractices in our daily work, and passingalong these new practices to our customers,helping them spread throughout thecooperative system.We are only on this earth for a shortperiod of time; the land, water and airwe breathe needs to remain of excellentquality for generations to come.With this in mind, our agronomistswork hard to establish efficient sustainabilitypractices with our customersto make sure this happens. In addition,the latest United Nations Foodand Agriculture Organization estimatespredict the growing world populationwill reach 8 billion people by 2030, and9 billion by 2050. Practicing efficientand sustainable crop management withour customer-owners and their land willhelp make sure the soil we use to producefood for this growing populationremains productive.United Cooperative utilizes the latestin production agriculture and follows industry-leadingenvironmental practicesfor crop production so we can pass thatknowledge on to our crop growers. Partof our sustainability efforts is sendingagronomists onto our customers’ farmsto sample soil, find where the deficienciesare, and then develop field-specificUnited Cooperativeutilizes the latest inproduction agriculture andfollows industry-leadingenvironmental practices forcrop production so we canpass that knowledge on toour crop growers.and site-specific crop plans, as well asnutrient management plans. These planshelp even the largest of our dairy-producerpatron members minimize theirenvironmental impact while maintaininggood stewardship.Sustainability is also having state-ofthe-artcustom application equipmentand qualified applicators to make surethe cooperative can apply nutrients andcrop protection products to our growers’soil only where and when it’s needed. Byutilizing integrated pest management,16 growingtogether www.landolakesinc.com


agronomists and crop growers are ableto decide what product to apply whereand when by taking into considerationthe presence of pests, product performanceand return on investment for thecrop grower.Most recently, United Cooperativeis taking advantage of the WinfieldSolutions R7® Placement Strategy tool,which precisely matches crop inputs withfield conditions, helping us reach evenhigher levels of precision.Even early in the planning and buildingstages of additions at the cooperative,sustainability and environmentalsafety are always a priority. UnitedCooperative’s facilities and operationshave been built and managed to greatlyreduce our environmental footprint.Concrete containment pads and dikes,double-wall tanks, covered load-out facilities,pavement to improve dust control,container recycling, and grain dustcontrol all work together to make our locationsenvironmentally friendly.Today, all involved in production agriculturehave learned what is needed tobe good stewards of the land, and thisEnvironmental RespectAward WinnersIn total, three Land O’Lakes co-op memberswere recognized by the AgriculturalRetailers Association (ARA) as statewinners of the Environmental RespectAward. The following member co-opsreceived the state award:• Ceres Solutions LLP – Rockville,Indiana• Wheat Growers –Aberdeen,South Dakota• United Cooperative – Beaver Dam,WisconsinUnited Cooperative’s South Beaver Dam, Wis., location features state-of-the-art grain, agronomy andmaintenance facilities and equipment.continues to improve. Basic suppliersof agricultural inputs, distributors, agriculturalretailers, cooperatives and,most importantly, crop growers have allEven early in the planning andbuilding stages of additions atthe cooperative, sustainabilityand environmental safety arealways a priority.made huge progress in the last 30-plusyears. We need to continue this journeyso that future generations will continueto benefit.Each step of production agriculture hasnow been reviewed and redesigned to efficientlyimprove stewardship of the land,and cooperative leaders need to continueto implement these practices. Yesterday’sapplication rate of gallons per acre hasbeen replaced with ounces per acre. Cropnutrient manufacturers have evolvedtheir products to include additives thatreduce the potential of denitrificationand leaching of nitrogen. This assurescrop growers their product stays availableto the crop, helps water quality andreduces nitrous oxide emissions.I am excited about the future of agriculture.As crop production technology continuesto improve, our agronomists willbe able to expand the use of sustainabilitypractices with our customers, allowingtheir crop land to produce food for futuregenerations and to become more and moreefficient in doing so. !David has served aspresident and chiefexecutive officer forUnited Cooperative,based in Beaver Dam,Wis., since 1984, andUnited Ethanol, Milton,Wis., since its inception.Under his leadership, United Cooperativehas grown aggressively, with revenues of$7.2 million in 1984 to more than $325 millionin 2010. He has led United Cooperativethrough multiple mergers, acquisitions andconstruction projects over the past 27 years.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 17


Hank Puch, department manager of the Large Animal Metabolism Unit at LongView Animal Nutrition Center, prepares a sample prior to examination undera microscope. LongView has been a leader in animal nutrition research since 1926.First in ResearchA look at the LongView Animal Nutrition CenterThe year 1926 marked the opening of Purina ResearchFarm, 40 miles west of St. Louis in Gray Summit, Mo.Since renamed LongView Animal Nutrition Center, thisfarm is still producing innovative products and solutionsfor today’s animal owners and is recognized as a world researchleader in animal nutrition and management. Land O’LakesPurina Feed has been the first in many innovations, includingmilk replacer pelleted feeds for calves (including the first to usecarbohydrate balancing in milk replacers), intake modifiers forcattle and gels for baby pigs.“The mission of LongView Animal Nutrition Center is to developinnovative and proprietary products and programs, and to serveour customers,” said Dr. Cindie Luhman, director, Research andDevelopment, Land O’Lakes Purina Feed. “Each day we do researchon animal nutrition in an attempt to meet the needs of ourcustomers, the animal owners, in innovative and profitable ways.”At LongView, scientists and researchers are continuallyworking to create new and better ideas in animal nutrition.The staff is committed to providing the products, programtechnologies, services and information that will provide valueand the best total solution. For example, baby pigs becomedehydrated at weaning, thus slowing their growth and makingthem susceptible to disease. Researchers saw this problemand came up with baby pig gels – a product that gets pigs on18 growingtogether www.landolakesinc.com


feed sooner and enhances dry feed intakeduring all of lactation.In another instance, dairy cattle that aremilking heavily have accelerated body weightloss, which decreases milk production.Purina invented a solution called Propel®Energy Nuggets, a highly-palatable, high-energyproduct specially formulated to be usedas a nutritional supplement for lactating andpost-fresh transition cow diets.“We consistently offer a return onLand O’Lakes Purina Feed’s investmentin R&D by uniquely meeting the needs ofour customers, by developing productsthat perform, and by helping to build andmaintain our reputation for deliveringanimal nutrition in ways that none of ourcompetitors can,” Luhman said.At LongView, scientists and researchersconduct about 80 studies per year,ranging from experiments in nursery,Purina’s Early DaysTo best appreciate how the inventionof commercial animal feeds transformedAmerican commerce and transportation,imagine all of the cars and trucks on theroad today—but no gas stations. That isoddly similar to the dilemma horse ownersfaced in the late 1800s. Keep in mindthat, until the 20th century, horses andmules were the very engines that droveprogress. They cleared and plowed theland. They transported goods to market.They moved families westward.When traveling, wagon and buggy driverswould need to stop in town after townto buy corn, grain and hay to feed theteam. The next challenge was to blendthese random ingredients in the properproportions—a bit too much corn, forinstance, could cause colic in a horse andtragically derail the itinerary.In 1894, 24-year-old William H. Danforthcould see that commerce was being constrainedlargely by one fundamental thing– the lack of a reliable supply of available,portable and nutritionally balanced animalfeed. Purina Mills grew out of his desire tooffer a solution to this challenge.grow/finish, gestationand lactation. For example,when studyingpig starters, scientistslook for improvementsin growth, efficiency, littersize, uniformity andhealth. When they studyhorse feeds, they arelooking for rapid musclerecovery, longevity, evenor moderate growth offoals, good bone developmentand palatability.LongView’s unique swineresearch facility allowsthem to evaluate and developproducts and feeding programs forevery stage of pork production.“Land O’Lakes Purina Feed prides itselfin providing nutritional feed optionsto support the needs of many animals,and we guarantee that animal ownerswill see a difference with our feeds,”said Chris Goodwin, marketing manager,Land O’Lakes Purina Feed. “Every day, wefeed more than 100 million animals. Ourend goal is to lead the industry in innovationsthat are important to our customers.These could be innovations that improveanimal health, animal behavior, efficiency,convenience or whatever parameter is importantto a specific animal owner.”Emphasis on QualityFrom its inception, the primary differencebetween Purina and its competitorswas an insistence on quality. In 1916,Purina was the first in the feed business toestablish an analytical laboratory to testthe final product before it went out to customers.As the largest feed manufacturerin the United States, Purina was able toinsist on top quality ingredients from sellersand, to this day, maintains a list of “approvedsuppliers.” Through LongView,Purina has also spearheaded the industry’smost innovative system for testingLand O’Lakes Purina Feed feeds more than 100 million animals per day.“Land O’Lakes Purina Feedprides itself in providingnutritional feed options tosupport the needs of manyanimals, and we guaranteethat animal owners will see adifference with our feeds.”– Chris Goodwin, marketing manager,Land O'Lakes Purina Feedingredients and monitoring nutritionalconsistency. Purina delivers quality interms of feed/food safety and consistency,meaning the feeds are unadulterated andwill provide nutrition with no risk to healthor well-being.“This is where Land O’Lakes PurinaFeed really separates itself from the competitorsand where R&D comes into play,”said Luhman. “When those physical andperformance attributes are met every time,the animal owner knows that the animalwill eat the feed and perform consistentlyon the feed. For the animal, it means thatevery mouthful will be the same every singletime they eat. Consistency is very important,and it also means that there is lessrisk of nutritional upsets when feed is highquality and consistent.” !www.landolakesinc.com SEPTEMBER/OCTOBER 2011 19


In the summer of 2011, the Land O’Lakes Foundation and Winfield Solutions created a new program to alleviate rural hunger. Through the Answer Plot ®Community Garden program, students from six FFA chapters partnered with local co-ops and Answer Plot ® agronomists to grow and harvest fresh produceto donate to their local food shelves.Cultivating an Answer for HungerAnswer Plot ® Community Gardens producea really nice feeling being able to help people in our community,”said Tyler Herman, Bangor, Wis., FFA student.“There are a lot of people who aren’t as fortunate as a lot“It’sof us are, and it’s nice to know that there is food available ifthey need it to support their families.”During the summer of 2011, the Land O’Lakes Foundation andAnswer Plot® agronomists from Winfield Solutions launched anew program to alleviate hunger in rural communities.The Foundation team identified six locations across the countryand partnered with local co-ops, FFA chapters and WinfieldSolutions agronomists to create Answer Plot® Community Gardensdesigned to grow and harvest 14,000 servings of fresh produce todonate to local food shelves.An addition to the Feeding our Communities initiative introducedby Land O’Lakes in late 2009, the gardens are located inMinnesota, Wisconsin, Nebraska, Illinois and Mississippi.“We are excited to combine Land O’Lakes’ ongoing commitmentto fighting hunger with the expertise of our Answer Plot®professionals. In partnership with local FFA chapters and localco-ops, we are helping deserving families throughout the countryput food on their tables,” said Lydia Botham, executive directorof the Land O’Lakes Foundation.PHOTOGRAPHY BY DEAN RIGGOTT20 growingtogether www.landolakesinc.com


For their participation in this project,the six FFA chapters were each presenteda $1,000 grant from the Land O’LakesFoundation and a toolkit to assist them withtheir plot. Along with the grant money andtoolkit, students participating in the programhave benefited from valuable learningopportunities, among which are the value ofhard work and community involvement.“This project has taught us a great deal oftime management skills and a greater respectfor the agriculture industry,” said JenelleThorman, Bangor FFA advisor. “Many of thestudents farm themselves, but taking timeout of their schedules with their own farmsand coming out here to help others has taughtthem that community building is important.”The students also gained a better understandingof the hunger needs in their area.“We are making a difference, not just inthe lives of people who are going to be receivingthe produce from this garden, butit’s making a difference in the lives of thestudents,” said Jesse Cornelius, Nettleton,Miss., FFA advisor.Despite a variety of challenges, whether itwas flooding, hail, a tornado, early frosts ora late planting, these gardens have all beena huge success. As of the end of August, thegardens had produced more than 4,300pounds of fresh product – approximately17,000 servings – for their communities.Among the produce harvested was corn,cucumbers, lettuce, potatoes, tomatoes,onions, squash and radishes.The food pantries receiving this food aregrateful, and are particularly appreciativeof the ability to offer fresh produce totheir clients. With budgets stretched thinnerand thinner, these pantries have beenforced to become more selective in howthey spend their money. This fresh producehas allowed for some food pantriesto save money for other needs.“Our food pantry does not use its fundsto purchase fresh produce, and it’s rare forus to have the opportunity to receive any, sowhen it’s donated, it makes a tremendous“We are making a difference,not just in the lives of peoplewho are going to be receivingthe produce from this garden,but it’s making a difference inthe lives of the students.”– Jesse Cornelius, Nettleton, Miss., FFA advisordifference,” said Wafer Food PantryExecutive Director Heidi Blanke. “Whenfresh produce comes into the pantry, itleaves almost immediately. Clients headstraight for it, and we’re very happy to seethem take it.”This need for fresh produce was somethingmany of the program’s participantswere unaware of, and something they won’tforget. “It’s great to know that all of thiswork we’ve been doing this summer is reallyhelping those in need,” said Thorman.“Because I think a lot of us in the agricultureindustry take for granted how manypeople don’t have the luxury of eatinghomegrown produce. Knowing that you’regiving those chances to other people is a reallygreat feeling.”Whether based on harvest results, learningopportunities or lives impacted, theAnswer Plot® Community Garden programhas been an overwhelming success for everyoneinvolved.“Several of this year’s participants arecommitted to helping expand the programnext year, including members ofthe Winfield team, some of the local coopshave come forward, along with newFFA groups,” said Kevin Eye, directorof Answer Plot® and Agronomy-SeedServices for Winfield Solutions. “Sothe response from everyone involvedhas been very, very positive. It’s justa really good thing to do. It’s the rightthing to do.”Preparation is underway for the AnswerPlot® Community Garden program to continue,and expand, next year. Based on currentinterest, the plan is to double the numberof plots in 2012.“I would definitely encourage other FFAchapters to take part in this program, it’sbeen a tremendous learning opportunityfor the students, the community and me astheir teacher,” Thorman said.Applications are currently being acceptedfrom FFA chapters to manage a gardenfor the 2012 growing season. Please visitwww.landolakesinc.com for more informationand an electronic application. !Left to right: Bangor, Wis., FFA students Katyra Von Ruden, Andy Manke, Austin Mikshowsky, BenSchmidt and Tyler Herman take a break from harvesting crops. The Bangor Answer Plot ® CommunityGarden was a joint venture with the West Salem Farmers Co-op.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 21


GLOBAL FOCUSINTERNATIONAL DEVELOPMENTQuality FocusPromoting quality milk helps alleviate poverty in RwandaFor Rwandan farmers like LambertNkurunziza, dairying has longbeen a challenging economicproposition. Living in the dairybelt in Nyagatare district, a minimumthree-hour drive from the main marketsin Kigali, it was difficult to find a reliablecustomer base and prevent the persistentlosses resulting from poor quality milk,or products that went bad along a poorlyfunctioning cold chain.“The buyers who used to come to uswere increasingly purchasing their milklocally from kiosks in Kigali,” Nkurunzizaexplained, regarding his milk sales andthose of the 234 other farmer-membersat his cooperative, called Matwoki. “So,we started looking for customers on ourown in Kigali. But, without a milk truckwith an insulated cooling tank, our milkwould spoil along the way.”Between 85-95 percent of urbanRwandans purchase boiled, raw and culturedmilk from kiosks that provide productsof varying quality, and owe their popularityin large part to the cheaper price theyprovide to consumers. In Kigali alone, thereare 1,350 such kiosks, which generally sellmilk that is one-third less expensive thanmilk processed through ultra-high temperatureprocessing or Pasteurization.The struggles Lambert and fellow farmersat Matwoki experienced in findingThe Rwandan government established Milk Collection Centers(MCC) at cooperatives such as Matwoki to facilitate timely milkcollection, transport and regular sales to processors…A member of Matwoki Cooperative cleaning milk cans using the clean water point provided throughLand O’Lakes USAID Dairy Competitiveness (UDC) program in Rwanda.a sufficient base of regular customerswere echoed by countless other farmersin this Land of a Thousand Hills. TheRwandan government established MilkCollection Centers (MCC) at cooperativessuch as Matwoki to facilitate timelymilk collection, transport and sales toprocessors, and enable dairy developmentto be a realistic means of povertyalleviation. But processors were reticentto purchase MCC milk because ofthe poor quality.“In the past, the bacteria in our milkwould be as high as 5-10 million total24 growingtogether www.landolakesinc.com


Formal Milk Market Quality Incentive Prices for FarmersQuality Milk, Quality LivelihoodsBacteriaplate count (TPC). But now, with thetraining we received from Land O'Lakesand the installation of a clean water tap atour MCC, our bacteria counts have fallento a point where they are often below500,000, due to substantial hygiene improvementswe have been able to make,”noted Nkurunziza.Since 2007, Land O’Lakes InternationalDevelopment has been working throughthe USAID Dairy Competitiveness (UDC)Project to substantially improve quality allacross the dairy value chain, from farmer toprocessor. Through UDC, Land O’Lakesinstalled fresh water points at 11 milk collectioncenters in Nyagatare and Gatsiboprovinces, provided in-depth training onhygiene, assisted with product testing,helped address shortfalls, and worked tostrengthen the entire cold chain.UDC has also played a formative rolein developing the institutional infrastructureto make processing more efficient,enhancing the financial incentivesfor producing milk meeting qualitystandards, and improving the industry’scompetitiveness in local and export markets.Part of this was enabled through theSolids Non-Fat% (SNF)Milk Grades TPC/ml 8.2% 8.3% 8.4% 8.5% 8.6% >8.7%Grade 1Grade 2less than500,000500,000 to1 million170 170 170 210 210 210170 170 170 200 200 200Grade 3 1-5 million 170 170 170 170 170 170Not Acceptable over 5 million 130 130 130 130 130 130Grade 1=Grade 2=Needs Improvement=Not Acceptable=Price in Rwandan Franc (RWF) per literEffective May 1, 2011Through the USAID Dairy Competitiveness Project, farmers receive financial incentives for producingmilk meeting quality standards.UDC-Land O'Lakes launch in June of theRwanda National Dairy Board (RNDB)and a new Dairy Quality AssuranceLaboratory (DQAL) located just outsidethe capital of Kigali.Comprised of milk producers, processorsand sellers – including the popularBut now, with the training wereceived from Land O'Lakesand the installation of aclean water tap at our MCC,our bacteria counts havefallen to a point where theyare often below 500,000,due to substantial hygieneimprovements we have beenable to make.”– Rwandan farmer Lambert Nkurunzizamilk kiosks – RNDB is working to fostermarket growth, monitor industry trends,facilitate coordination among stakeholdersand help the entire dairy industryreach its full potential. Meanwhile,DQAL is equipped with high qualityequipment for testing milk quality, andoffers a range of services that provideproducers, processors and others withthe quality assurance services they needat an affordable price.Along with these substantive qualityimprovements, UDC worked throughRNDB to facilitate a historic pay-forqualityplan with Inyange, Rwanda’s largestprocessor. All MCCs working throughUDC now have a guaranteed buyer oftheir raw milk – at a preferential price –provided it meets quality standards. Now,instead of traveling to Kigali to find buyers,and helplessly watching their milkspoil, Inyange partner Savannah Dairypicks up the MCCs’ milk every day, andtakes care of assembling it for transportto Inyange.“Before we had this kind of guaranteedmarket, farmers weren’t putting mucheffort into production, because we hadno way of knowing if our products wouldactually be sold,” Nkurunziza recalled.Through the UDC deal with Inyange,Nkurunziza is now earning about $13.50per day, compared to about $8.20 before.“This has made a real impact in my life,because it means my income is secure.Now, I can go to the bank and get a loan ifI want, and I can save up for high-qualitysemen to further improve my herd.”Nkurunziza and other members ofMatwoki expressed their gratitude toLand O’Lakes for supporting their cooperativewith a better understandingof hygiene and milk quality, and also forfacilitating the quality payment systemwith Inyange. But, he noted, more workneeds to be done to raise Rwandans’ understandingof what quality milk means.“People used to think that because milkwas white, that meant it was good. At ourMCC, we now understand that there arebacteria inside, but it will take time totruly raise awareness nationwide.” !www.landolakesinc.com SEPTEMBER/OCTOBER 2011 25


GLOBAL FOCUSINTERNATIONAL BUSINESSMilk Powders: A Key Ingredientto SuccessIngredients team builds strategic, global partnerships and drives growthAs a value-added marketing orga n i z a t i o n , L a n d O ’ L a k e sis committed to looking fornew and innovative ways tomaximize the value of member milk.Capitalizing on an opportunity to meetthis commitment, Land O’Lakes made astrategic decision to exit DairyAmerica,a milk powder marketing organization,in 2010 and began marketing its ownmilk powders at the beginning of 2011.This action allows Land O’Lakes to directlymarket milk powder as a branded,value-added ingredient to strategiccustomers – domestically and internationally– with the idea of becoming thepreferred global supplier of dairy ingredients,while at the same time improvingreturns for members.“The decision supported the overallstrategy of Dairy Foods Industrial tobuild direct relationships with large,progressive and global food manufacturers,”said John Schmitz, vice presidentof the Dairy Foods Ingredientsbusiness. “Milk powders are an importantcategory purchased by thesecustomers, and exiting DairyAmericahas enabled us to build and strengthenthese relationships.”This major shift in strategy was madewith the knowledge that customerswould value a direct relationship withLand O’Lakes for a number of reasons,including access to:• Quality ingredients• A reliable supply• Excellent customer service• Risk management solutions that helpreduce price volatility• The ability to service customers directlyin international markets• Strong technical capabilitiesIn keeping with the strategic approach,Land O’Lakes set two main objectives formarketing its milk powders. The first is tobuild direct relationships with strategiccustomers and to leverage those relationshipsto sell a portfolio of dairy ingredientsand create value-added opportunities. Thesecond is to improve the profitability of thecompany’s largest ingredient product categorythrough a mix of customers who valuetheir relationship with Land O’Lakes,improving the product mix to higher marginproducts, and strengthening risk managementand hedging capabilities to minimizevolatility.In order to accomplish these objectives,Land O’Lakes created a new team“The decision supportedthe overall strategy of DairyFoods Industrial to builddirect relationships with large,progressive and global foodmanufacturers.”– John Schmitz, vice president of theDairy Foods Ingredients businessto establish relationships and marketmilk powders around the globe.“We have a dedicated internationalsales force and marketing manager currentlyfocusing on three key geographies– China, Southeast Asia and Mexico –with a sales manager assigned to eachregion,” Schmitz said. “The sales manageris responsible for developing direct,in-market relationships and servicingour customer base in those markets,w i t h o u r I n t e r n a t i o n a l M a r k e t i n gManager supporting our efforts in alloverseas markets.”After the Ingredients team was assembled,the next major step was to establisha customer base which, accordingto Schmitz, is being accomplished intwo ways.26 growingtogether www.landolakesinc.com


As a testament to their hardwork and excellent customerservice, the Ingredientsteam was presented with theHershey’s Galaxy Award at theLand O’Lakes Annual Meetingin early March.In 2011, Land O’Lakes made a strategic decision to directly market milk powder as a branded, value-addedingredient to strategic customers.“First, we are following our strategic customersaround the globe. Companies likeNestle and Hershey who are focusing ondeveloping in the same parts of the worldto fuel their growth. The relationships weare building with them are allowing us togrow with them,” he said. “Our second approachis to target key, in-market companieswith leading positions in their respectiveregion that value our capabilities.”In less than a year since the company’sexit from DairyAmerica, the team hasmade excellent progress on their twoobjectives by building a customer basethat includes Nestle and Hershey, whilestrengthening financial results througha better customer product mix and improvedrisk management. Additionally,the team has accelerated a dialoguew i t h t h o s e c u s t o m e r s t o e stablishcommitments to supply product and towork toward value-added offerings.As a testament to their hard work and excellentcustomer service, the Ingredientsteam was presented with the Hershey’sGalaxy Award at the Land O’Lakes AnnualMeeting in early March. The award recognizesthe team’s outstanding work insuccessfully shipping product to Hersheyin China.“Winning the Hershey’s Galaxy Awardwas a significant accomplishment becauseit came from a very important customer,”Schmitz said. “It acknowledgesthe hard work put in by Land O’Lakes toservice Hershey at a very high level. Italso was a tangible demonstration of thetype of teamwork that the entire crossfunctionalteam has put into the milkpowders ‘go-it-alone’ initiative.”Although proud of their accomplishmentsto date, Schmitz said the teamis constantly looking for ways to continuedriving success and add value formembership.“Our goal is to leverage our successand accelerate the level of engagementwith our strategic customers,” Schmitzsaid. “This will involve high level, ‘topto-top’discussions around long-termpartnerships that focus on supplying avariety of dairy ingredients and valueaddedopportunities. It is not clear yetwhat those opportunities will be, but thediscussions are on-going.” !John Schmitz was recently promoted tovice president, Dairy Foods Ingredientsbusiness – a business with $1.5 billion inannual sales. He has a master’s degreefrom the Tuck School of Business atDartmouth and a bachelor’s degree inAccounting from the University of MinnesotaCarlson School of Management.Schmitz joined Land O’Lakes in 2007 andhas previously held the roles of director ofCorporate Strategy and Business Developmentand director of Marketing, DairyIngredients. Prior to joining Land O’Lakes,Schmitz held leadership roles with RedWing Shoes and General Mills, Inc.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 27


CO-OP NEWSNews HeadlinesUpdate on recent First Run donation, John Brandt Memorial Foundation scholarshiprecipients and Policinski receiving Spurgeon Award.Land O’Lakes Donates Mac &Cheese to Three Food Banksas Part of First Run ProgramLand O’Lakes recently donated 113,400pounds, or nearly 57 tons, of macaroni andLeft - Right: Kendall Hanna, Executive Director of CentralPennsylvania Food Bank, Tom Wakefield, Land O’ Lakes Boardof Directors, and Congressman Tim Holden pose in front of theFirst Run product donation.cheese to three food banks across the countryto feed those in need of assistance. The foodbanks that received the donations were in Harrisburg,Pa., Cleveland, Ohio, and St. Paul, Minn.The donations were part of Land O’Lakes’ FirstRun program.The summer timing of the donations was appreciatedby the food banks. “During the schoolyear, many children receive freebreakfast and lunch throughschool programs,” said AnneGoodman, president and CEO,Cleveland Foodbank. “In thesummer, they are dependenton more food from home andsometimes go hungry withoutthe school-provided meals.”According to Feeding America,the nation’s largest domestichunger-related charity, manymore children are served by itsprograms in summer months,and 62 percent of the householdsits food bank membersserve include children underthe age of 18 who participate inschool lunch programs.“As a national, farmer-ownedc o o p e ra t i ve , L a n d O ’ L a ke sis committed to helping theg r ow i n g n u m b e r o f p e o p l es t r u g g l i n g t o p u t f o o d o ntheir table,” said Land O’LakesFoundation Executive DirectorLydia Botham. “The First Runp r o g ra m p r ov i d e s a u n i q u eopportunity for Land O’Lakesto provide fresh, nutritiousproducts to families in need.”In addition to Land O’Lakes members andemployees participating in the donationevents, U.S. Representatives Tim Holden andMarcia Fudge helped to unload the trucks andspoke to media and others gathered aboutthe need for awareness about hunger in theUnited States. Rep. Holden, from the 17thCongressional District of Pennsylvania, is amember of the Committee on Agriculture anda member of the Subcommittee on Livestock,Dairy, and Poultry. Rep. Fudge, from the 11thCongressional District of Ohio, is a memberof the Committee on Agriculture. !Midwest Graduate StudentsAwarded Land O’LakesFoundation ScholarshipsThe Land O’Lakes Foundation has announcedthe 2011 winners of the John Brandt MemorialFoundation scholarship: Sarah Engstrom, M.S.student at the University of Wisconsin-Madison;and Kevin Herrick, Ph.D. student at SouthDakota State University.The John Brandt Memorial Foundation scholarshipprogram supports graduate studentspursuing work in dairy animal, food scienceor agribusiness at one of four eligible institutions:Iowa State University, South DakotaState University, University of Minnesota andUniversity of Wisconsin-Madison.This year’s winners are both studying dairy science.Engstrom is currently working on modelingthe survival and growth of certain strains of bacteriain order to develop a predictive methodologyfor cheese handling and storage. Herrick isstudying the effect of enhancing the butyrate28 growingtogether www.landolakesinc.com


content of feed for lactating cows in an effort todrive lactation and milk production.Engstrom and Herrick will each receive$25,000 to help them continue their importantdairy research. !Policinski ReceivesSpurgeon Award forCommunity LeadershipIn recognition of his career achievements,community leadership and service to youth,Land O’Lakes President and CEO Chris Policinskiwas recently recognized as a Spurgeon Awardrecipient by the Northern Star Council BoyScouts of America (BSA).The award was presented to Policinski at theNorthern Star BSA’s annual Community BuilderCelebration. The Community Builder Celebrationand Spurgeon Award program publiclyhonor men and women whose career excellenceand community service make them role modelsfor young people.At the ceremony, Policinski was recognized forapplying his results-focused approach to businesssuccess to the company’s many community serviceinitiatives. Among the programs cited were:• The Feeding Our Communities initiative,which generated more than $700,000 in newfunds for hunger relief in its first year;• The First Run program, which has deliveredmore than 500 tons of fresh product to foodbanks across the country;• An employee volunteerism program thatresulted in 80 percent of Twin Citiesbasedemployees volunteering in theircommunity in 2010;• The Land O’Lakes International Developmentdivision’s involvement in public and private initiativesthat promote economic development,better health and nutrition, and the reductionof poverty in developing nations; and• The Land O’Lakes United Way campaign,which generated more than $1 million for theTwin Cities United Way last year. !25 Year CooperativeCEO/General ManagerAward ProgramThe Land O’Lakes 25 Year CooperativeC E O / G e n e ra l M a n a g e r Awa r d p r o g ra mrecognizes the exceptional service of localcooperative CEOs and General Managers.These leaders have helped to strengthentheir businesses, Land O’Lakes and the cooperativesystem as a whole. To be eligiblefor this program, you must be a current CEO/General Manager of a Land O’Lakes membercooperative, have managed a cooperativefor the last 10 years, and have completed 25years of service to the cooperative systemon or before Dec. 31, 2011.All award recipients will be honored at the2012 Land O Lakes Annual Meeting, duringthe Cooperative CEO/General ManagersLuncheon. !CEO Chris Policinski accepts the Spurgeon Award at the Northern Star Council BSA’s annualCommunity Builder Celebration.For More InfoIf you qualify, contact your BusinessDevelopment Manager today to help youcomplete and submit the nomination form.Or e-mail to request a nomination form atLandOLakesBDS@landolakes.com.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 29


FROM OURTEST KITCHENSFall FavoritesCANDY BAR CARAMELAPPLESThese apples are dipped in fudgycaramel and then into your favoritechopped candy bar. What a treat!Preparation time: 1 hourTotal time: 2 hour 20 minutes8 wooden craft sticks8 large apples, washed, dried1 cup chopped your favoritechocolate-covered candy bars¼ cup LAND O LAKES ® Butter¼ cup milk1 (11-ounce) bag caramel bits*1 cup milk chocolate & caramelswirled baking chips**2 (1-ounce) squares white bakingchocolate, melted* Substitute 45 caramels, unwrapped.** Substitute 1 cup milk chocolate chips.Insert 1 wooden stick into stem end ofeach apple; set aside. Line baking sheetwith waxed paper; spray with no-stickcooking spray. Set aside. Place choppedcandy into medium bowl; set aside.Combine butter, milk and caramel bits in3-quart saucepan. Cook over medium heat,stirring occasionally, until caramel is meltedand smooth (5 to 7 minutes). Remove fromheat; stir in baking chips until smooth.Place pan over low heat; dip apples intomelted caramel mixture until evenly coated,spooning mixture over apples as needed.Shake gently to allow all excess caramelmixture to drip off. Roll bottoms of applesinto chopped candy. Place onto preparedbaking sheet.Drizzle each apple with melted whitechocolate. If necessary, lift each applefrom waxed paper and press caramel andchopped candy back onto bottom of apples.Place back onto waxed paper.Refrigerate at least 1 hour. Wrap each applein waxed paper; store refrigerated. Let standat room temperature 1 hour before serving.TIP: Make sure to allow all excesscaramel mixture to drip off into pan.• Wrap 2 colors of festive ribbon aroundwooden sticks for a special touch. Tie atends to secure.• Wooden craft sticks are available incraft stores, or you can check in the producesection for caramel apple sticks.• Leftover caramel sauce can be re-heatedand served over ice cream.Makes 8 caramel applesNutrition Facts (1 caramel apple)Calories 520 • Fat 23g • Cholesterol 25mgSodium 220mg • Carbohydrate 77gDietary Fiber 4g • Protein 6g©2007 Land O'Lakes, Inc.RATATOUILLE WRAPSWhole wheat tortillas are filled withflavorful sautéed vegetables in this wrap.Preparation time: 15 minutesTotal time: 35 minutes1 tablespoon LAND O LAKES ® Butter1 small (2 cups) eggplant peeled,cubed1 medium (1 cup) green, red and/oryellow bell peppers, cut into¼-inch strips1 small (1 cup) zucchini, halvedlengthwise, sliced1 teaspoon finely chopped fresh garlic1 teaspoon cornstarch1 (14½-ounce) can Italian-style dicedtomatoes, undrained6 (8 or 9-inch) whole wheat tortillas,warmed6 (¾-ounce) slices LAND O LAKES ®Provolone CheeseMelt butter in 10-inch skillet until sizzling;add eggplant, bell pepper, zucchini and garlic.Cook over medium-high heat, stirringoccasionally, until vegetables are crisplytender (6 to 8 minutes).Stir cornstarch into tomatoes; add mixtureto vegetables. Cook until mixture isslightly thickened (1 to 2 minutes).Top each warm tortilla with about ½ cupvegetable mixture and 1 slice cheese. Roll up.TIP: If you’d like to boost the protein inthese wraps, add a can of drained and rinsedgarbanzo beans when you add the tomatoes.Makes 6 wrapsNutrition Facts (1 wrap)Calories 180 • Fat 7g • Cholesterol 15mgSodium 670mg • Carbohydrate 27gDietary Fiber 3g • Protein 9g©2001 Land O’Lakes, Inc.30 growingtogether www.landolakesinc.com


SEVEN VEGETABLE SOUPIt’s the creamed spinach that givesthis soup a light and creamy base.Preparation time: 20 minutesTotal time: 8 hours 20 minutes2 (14-ounce) cans vegetable orchicken broth2 cups shredded cabbage1 (15-ounce) can diced tomatoes1 (15-ounce) can extra-thick andzesty seasoned tomato sauce6 medium (2 cups) new red potatoes,cut into ½-inch cubes2 medium (2 cups) carrots, sliced¼-inch thick1 medium (½ cup) onion, chopped2 ribs (1 cup) celery, chopped2 bay leaves½ teaspoon dried basil leaves½ teaspoon salt½ teaspoon ground black pepper1 (10-ounce) package frozencreamed spinach, thawed4 ounces (1 cup) shreddedCheddar cheeseCombine all ingredients in slow cookerexcept creamed spinach and cheese.Cover; cook on Low heat setting for8 to 10 hours or until carrots and potatoesare tender.Increase heat setting to High. Stirthawed spinach into hot soup mixture, stirringconstantly. Cook, stirring occasionally,until soup is thickened (6 to 10 minutes).To serve, spoon into individual servingbowls; sprinkle with cheese.TIP: For an easy shortcut, you cansubstitute coleslaw mix in place of theshredded cabbage.Makes 8 (1 1 /3-cup) servingsNutrition Facts (1 serving)Calories 150 • Fat 5g • Cholesterol 15mgSodium 1070mg • Carbohydrate 21gDietary Fiber 5g • Protein 8g©2003 Land O'Lakes, Inc.ROASTED VEGETABLEPANINIFocaccia bread is spread with a spicy redpepper spread and then piled high with roastedvegetables and a lower sodium Americancheese for a tasty and colorful grilled sandwich.Preparation time: 20 minutesTotal time: 30 minutesRoasted red pepper spread(Makes approx. ½ cup)1 /3 cup roasted red peppers,well-drained, pureed¼ cup light mayonnaise¼ teaspoon granulated garlic¼ teaspoon granulated onion¼ teaspoon lemon JuicePinch cayenne pepperFor each Focaccia1 10-inch Focaccia bread¼ cup roasted tomatoes, peeled,cut into 1-inch strips½ cup grilled portabella mushrooms,drained, cut into ¼-inch slices½ cup frozen roasted pepper andonion mixture , thawed¼ cup frozen whole kernel corn,thawed12 (½-ounce) slices or 6 ouncesLAND O LAKES ® 30% Less SodiumAmerican Deli Cheese ProductTo prepare roasted pepper spread, combineall ingredients. Refrigerate until use.Cut bread in half vertically, slice eachpiece in half horizontally.Combine all remaining ingredientsexcept cheese in large bowl; stir tocombine.To assemble sandwich spread 1½tablespoons chilled roasted pepperspread onto each cut side of focacciabread. Layer bottom half of focacciawith 3 slices cheese and ¾ cupvegetable mixture. Top with 3 slices ofcheese and top half of focaccia.Heat panini grill or 10-inch skillet on mediumheat. Spray sandwiches with no-stickcooking spray. Place ½ sandwich ontopanini grill. Grill until golden brown(5 to 8 minutes). Repeat with remainingsandwich; cut each into 3 wedges.Makes 6 ( 1 /6 sandwich wedge) servingsNutrition Facts (1 serving)Calories 355 • Fat 17g • Cholesterol 35mgSodium 701mg • Carbohydrate 36gDietary Fiber 2g • Protein 10g©2010 Land O’Lakes, Inc.Find More RecipesGet more recipes, tips and techniques from the Land O’Lakes Test Kitchens atwww.landolakes.com and on Facebook at www.facebook.com/LandOLakes.www.landolakesinc.com SEPTEMBER/OCTOBER 2011 31


TMLand O’Lakes, Inc.PO Box 64101MS 2020St. Paul, MN 55164-0101growingtogether@landolakes.com(800) 328-1341 www.landolakesinc.comFind us on Facebook Search for Land O’Lakes, Inc. / On YouTube Search for LandOLakes2010 / And on Twitter Search for Land O’Lakes, Inc.YOU RAISE YOUR CROP.WE RAISE ITS POTENTIAL.CROPLAN GENETICS ® seed combines diverse, proven genetics and the newesttraits with local expertise to provide customized solutions for each grower’sfield. Contact your CROPLAN GENETICS ® seed agronomist for more information,or visit croplangenetics.comCROPLAN GENETICS is a registered trademark of Winfield Solutions, LLC. © 2011 Winfield Solutions, LLC

More magazines by this user
Similar magazines