August 2006

has lots of teen power.

AUGUST 2006 page 3

Published Monthly by:

Swiss Valley Farms, Co.P.O. Box 4493

Davenport IA 52808

563.468.6600 FAX 563.468.6613

www.swissvalley.com

Nancy FeeneyEditor/ Member Relations Mgr.

Karen BohnertMember Relations Assistant

Swiss Valley Farms, Co. will produce, distribute and sell value-added, quality products for our:

Customers & ConsumersOwner/MembersWorkforce

Swiss Valley Board Offi cersPresidentDonald Peterson....................................Cashton, WIVice PresidentRandy Schaefer....................................Blue Grass, IASecretaryPam Bolin................................................Clarksville, IATreasurerJames Schmitt.............................................Sherrill, IA

Swiss Valley DirectorsLoyde M. Beers.......................................Eastman, WIDonald Berlage......................................Elizabeth, ILSteve Klug.....................................Spring Grove, MNDale Humpal.........................................Ridgeway, IADonald Kowalski....................................Wausau, WIFrancis Leibfried..................................Cuba City, WIG. Joe Lyon....................................................Toledo, IAJeff Nimtz............................................Monticello, WIJim Oelfke............................................Hamburg, MNPatrick Schroeder..............................Lancaster, WIWilliam Strief..................................................Farley, IA

GARFIELD HITS THE SHELF add a little ORANGEORANGE to your brown

a message from Ron Schroder director of marketingNow appearing in theaters and grocery stores near you - - it’s Garfi eld the Cat!

Garfi eld began appearing on Swiss Valley Farms’ chocolate milk in early June. Chocolate milk items that carry his image include 2% gallons, Whole half gallons, and Whole pints. Volume of these items was up 5.6% in June vs. last year. Th e Garfi eld chocolate milk promotion will continue on these three items through December 2006.

Garfi eld’s new movie “A Tail of Two Kitties” opened in theaters

nationwide on Friday, June 16. So far the movie has taken in revenues of $26 million. During the next several weeks it is expected to be going out of theaters, and then it will return on DVD in November in time for Christmas.

Th ere has been a variety of marketing support to communicate Garfi eld on our chocolate milk. A coupon ad was run in the Sunday newspaper on June 18. A second coupon ad featuring Garfi eld will be delivered in Sunday newspapers on October 8. Garfi eld also shows off his muscles (powered by milk)

page 2 SWISS VALLEY FARMS DAIRYMAN

on a billboard that has been posted in 12 locations in Iowa, Wisconsin and Illinois. Radio advertising has been running featuring Garfi eld, and some radio stations have given away free movie passes and coupons for milk on the air to add excitement.

Garfi eld will appear on our cartons of chocolate milk again when school starts in mid-August, continuing the

program that was highly successful last year. Th e school chocolate milk that is involved in this promotion includes Skim and 1%. Almost all school districts have moved to Skim and 1% milk during the past year because of dietary guidelines that limit the amount of calories and fat in school lunches.

page 4 SWISS VALLEY FARMS DAIRYMAN AUGUST 2006 page 5

KLEIN DAIRY BENEFITS FROM member story

AUGUSTAUGUST 2006

Young people are the life blood of many Midwest dairy operations. Take the Gene

and Mark Klein dairy partnership in Rickardsville, IA. Up until a year ago, Gene and Mark milked 170 grade Holsteins together. When a sudden illness last year took Gene out of the workforce, his grandchildren, Stephanie, 17, and Eric, 14, eagerly fi lled in the gap in the workforce.

“Stephanie and Eric really stepped up to the plate when grandpa got sick,” Mark said. “Th ey got up at 4:15 to do the morning milking before they went to school.” When granddaughter Kelsey turns 9 this summer, she will begin handling some of the calf chores.

In fact, there is no lack of young people lending a hand in Mark and Kathy Klein’s dairy operation. Out of the 10 part-time workers on the farm, six of them are teenagers, mostly high school friends of Stephanie and Eric. Th ey use small bales of hay, contrary to the popular trend of using large round bales. Th e teens don’t mind the extra labor necessary to produce the small bales. “Th e teens use hay baling as a way to get in shape for football,” Mark says. Th e small bales are run into the barn on a conveyor belt, where they drop down into pile on the barn fl oor.

Mark’s grandfather was milking cows on this farm in 1942. In 1961, Gene bought the farm up the road, where Mark was born. In ’72, Gene bought the home place, so Mark, then 8, moved back to this home farm.

In ’85, Mark married Kathy and moved back to the farm up the road

barn from the home) was too close to the barn.”

Th e purchase last year of a new TMR has really been good for the cows, and for the Kleins, as well. “We replaced our 12-year-old TMR with a bigger one. We now mix two times a day instead of four,” Mark said. “Th e cows are eating better and producing more milk. Th ere is less sorting at the bunk.” After installing the new TMR in November, Mark says that in January, he sold more milk than ever. “At this rate, the new TMR will pay for itself in about a year or so,” he said.

Currently, the rolling herd average is 24,500 with a 3.85 Butterfat and a 3.1 Protein. Th e SCC is 240,000.

Mark is a fi rm believer in the Cooperatives Working Together (CWT) program. He thinks the co-op should be all in the program. But he still thinks the milk price will go

where he was born. Finally, in ’96, Mark and Kathy moved back to the home farm and Gene moved into a new house just over the hill. Th is enabled Gene to continue to help out with the milking until health concerns slowed him down last year.

Th e Klein Family has made many well-thought out decisions during their marriage. Kathy used to help Mark with the milking, but in ’91, it was decided that it would better serve the family if she went back to college. Mark hired help to replace Kathy’s on-farm labor. Kathy is now a software engineer, working in Dubuque.

In ’90, Mark and Gene were milking 65 cows. Th is number gradually increased to 190. Th e double-six parlor soon proved inadequate. In ’99, they added on to that parlor ending up with a Double-11. “We wanted to make a Double-12, but the road (which separates the

SWISS VALLEY FARMS DAIRYMANDAIRYMAN

Above: Gene Klein. Top Right: Mark, Stephanie, Kelsey and Eric hang out with some cows.Center: Kathy, Eric, Kelsey, Stephanie and Mark Klein pose for a family picture.

low again, while farm inputs will remain high. “More dairy farmers may be exiting the business,” he says.

But he still has hopes for the dairy industry. “I hope dairying will continue to off er opportunities for those who wish to be a part of it, on whatever scale. Dairying allows a family to raise their children on a dairy farm and to teach them the values necessary to live a successful life. But everyone needs to maintain a viable fi nancial return.”

Dairying allows a family to raise their children and teach

them the values necessary to live a successful life.

“ “

HARD WORKING TEENS by Nancy Feeney

page 6 SWISS VALLEY FARMS DAIRYMANpage 6 SWISS VALLEY FARMS DAIRYMAN

SWISS VALLEY GALSIt’s time to speak out

What's the best way to avoid a hot load?

On Our SNAP® Heater Block!

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For more information or to place an order, call Swiss Valley Farms

at 1-800-397-7669.*Tax and shipping not included.

Offer expires December 31, 2006.

With a hot deal…Midwest Dairy Association

knows that the dairy production story is best told by the dairy farmers who live it everyday. “People Behind the Product” is a new comprehensive program designed to give consumers facts about dairy production. If you’re a woman involved in a Swiss Valley Farms dairy operation, then you’re invited to be among the fi rst to hear this innovative new program from MDA.

Th e Swiss Valley Gals are invited to come hear Donna Moenning, Director of Industry Relations for MDA, give you the tools to tell your own dairy story to your neighbors and friends. Come to her “Speak Out!” workshop at the next Swiss Valley Gals meeting and receive training on good presentation skills, what are the key dairy messages and how to help promote good community relations for dairy.

Th is is good information for any woman involved in dairying and Donna is well versed in how to talk to the media and has presented similar

workshops at our Swiss Valley Farms Young Cooperator conferences. A former radio broadcaster, Donna is more than pleased to be sharing her presentation pointers with the Swiss Valley Gals, who are truly the “People Behind the Product”.

Who is a Swiss Valley Gal? Any woman who is a Swiss Valley Farms co-op member or who works for

a Swiss Valley Farms member is considered a Swiss Valley Gal and is invited to participate.

Look for the meeting closest to you and mark your calendar now. Contact other Swiss Valley Farms members in your area and see about car-pooling. Come join in the fun and camaraderie of being with your fellow Swiss Valley Farms members.

2006 Swiss Valley Gals Meeting Dates:

Tuesday, Sept 19................ Huckleberry’s, Prairie du Chien, Wis

Wednesday, Sept 20..........Country Junction Restaurant, Dyersville, IowaThursday, Sept 21................Pickwick Mill Restaurant, Winona, MN

Registration begins at 11:15 amLunch is served at 11:45 amSpeaker begins at 12:30 pm

Adjournment is at 2 pm

MANUFACTURER’S COUPON EXPIRES 9/30/06

CONSUMER: Limit one coupon per purchase as specified on this coupon. No othercoupon may be used in conjunction with this coupon. RETAILER: You as our authorized agent will be reimbursed for the face value plus 8¢ handling in accordance with our redemption policy (copy available upon request). Coupon void if transferred, assigned, copied or where prohibited, taxed or restricted by law. Consumer must pay any sales tax. Cash value 1/100 cent. Mail coupons to: Swiss Valley Farms, P.O. Box 880483, El Paso, TX88588-0483www.swissvalley.com©2006 Swiss Valley Farms, Co.

5 570504 00040 (8100)0 10057

100572

Any OneOn Any One Swiss Valley Farms® Product

AUGUST 2006 page 9

PRODUCER LOGIN REFRESHERyour farm info is just a click away

Junior T-Shirts in Two-Tone Blue with capped sleeves. Great for the young ladies. These ladies’ sizes run VERY small.S – XL = $9 2XL = $10

Light Yellow T-Shirts with SVF logo. S – XL = $7.50

Red T-Shirts with SVF logo.S – XL = $7.50 2XL & 3XL = $8.50

Brown T-Shirts with SVF name across front and small cow logo on back below neckline “Better Cows. Better Milk”. Darker brown cuff s and neck binding.S, L & XL $9 3XL $10Youth Sizes S-M $8

Light Blue Golf Shirts. Stripes on cuff s and collar. Embroidered logo. M – XL = $17 2XL = $19 3XL =$20

Blue Denim Long Sleeve Shirts look greatanytime. Logo embroidered left front pocket.

Adult 2XL = $20 XL- S = $18

Sage Green Golf Shirts Still Available. Logo embroidered left front.Price: Adult 3XL, 2XL $25 S $22

“Swiss Valley Sunrise” note cards featuring the Bonnie Mohr print: 10 cards in a pack. Great for “Thank you’s” and invitations. Price: 2 packs for $5

Blue and white oven mitts Reach up to the elbow. Price: $3

Royal Blue Padded Portfolio with SVF logo embossed on the top. Price: $4

White Plastic Cheese Wire with two cutting sizes. SVF logo on the handle. Price: $2

SVF Stocking Cap warm, knit stocking caps, navy blue with red stripes & SVF name woven into cuff .Price: $5

Barbeque Tool Set large metal spatula, fork and tongs in gift box. Price: $5

ITEM QTY SIZE PRICE TOTALTwo-Tone BlueYellowRedBrownLight Blue GolfSage GolfDenimBonnie MohrNotecardsWire cheese cuttersPortfolioOven MittsStocking HatBarbeque Tool Set

TOTAL AMOUNT ORDEREDADD SHIPPING CHARGESTOTAL AMOUNT DUE

Shipping Charges

Purchase AmountUp to $20$20.01 to $40$40.01 to $60$60.01 to $80Over $80

Add$5$7$8$9$10

SEND CHECK OR MONEY ORDER TO:Swiss Valley Farms, Sales ItemsP.O. Box 4493, Davenport, IA 52808All prices include tax. Allow 3 weeks for delivery.

COLORFUL TSHIRTS FOR SUMMER!

If you haven’t yet logged into the Swiss Valley Farms member-only section of www.swissvalley.com, you are missing out on tapping into a wealth of information that’s important to your operation.

Once you are logged into this SVF member-only section, information is just a keystroke away. You will be able to look up information regarding your milk tests, look at your check history and any assignments you may have that are active. Also available is current information regarding forward milk contracting.

Once into the Producer Test Data section, you can view 90 days worth of milk pick up tests. You can view information here for your Butterfat tests, Protein tests, Solids tests, SCC tests, Plate Loop CT, PI counts and MUNS tests.

By clicking on the Check History link, you will be able to choose which pay period you wish to view and whether you need to see the earnings, deductions

or weight/test information for that check. You are able to choose which part of the check you want to see and click that row.

When you click on Assignments, you will see any active assignments. Th e displayed information will also show the amount or percent that will be deducted, and whether it is paid by your settlement check, advance check, or both.

When you click on Forward Milk Contracts, various information regarding the Swiss Valley Farms forward milk contracts program will be displayed, including the information you need to

help you decide when or if to contract your milk. You can click your way into looking at the 10-Day Monthly Program History or the 10-Day Annual Program History.

When your fi eld representative brings out your PIN, he or she can help you log on and show you the ropes, so to speak, of this member-only section. It has been designed to help you. Don’t miss out on using this wonderful, online tool to help you get fast access to important statistics regarding your dairy operation.

Eff ective March 15, 2004

Antibiotic PolicyIf a member suspects antibiotics in his or her bulk

tank & calls a SWISS VALLEY FARMS fi eld representa-tive to report this before dumping the milk:

•1st time in a calendar year, the coop will pay 80% of the milk.

•2nd & 3rd times in a calendar year, the coop will pay 50% of the milk.

•Over 3 times in a calendar year, the coop will pay zero.

On the 1st off ense, if a member has purchased a test kit and detects the positive antibiotic milk, SWISS VALLEY FARMS, CO. will reimburse that member $75.00 toward the cost of the test kit.

All claims must be received by the corporate offi ce for payment no later than 60 days after the milk was dumped.

The earliest dated claim turned in will be paid at 80% payment.

If antibiotics are found to be present in a farm truckload as a result of a screening test, the member will NOT be paid for that shipment of milk, and will be assessed as follows:

Full cost of net loadplus the cost of disposal.

Net load = total pounds on the load minus the mem-ber’s pounds.

SWISS VALLEY FARMS, CO ANTIBIOTIC PROGRAM

How do I log onto this SVF producer-only section? To log on, you will need either your farm ID or your producer ID, both of which can be found on your milk check. You will also need a Personal Identifi cation Number (PIN) that you must get from your fi eld representative.

page 10 SWISS VALLEY FARMS DAIRYMAN AUGUST 2006 page 11

TAKE A LOOK AT FIELD PERSONNEL & STATISTICS AT

SWISS VALLEY FARMS, CO.Field Department & Procurement Division Directory

J. GORDON TOYNE V.P.MEMBERSHIP & PROCUREMENT

Offi ce: 563.468.6644Home: 563.289.3535

LeClaire, IA 52753

NANCY FEENEY MEMBER RELATIONSOffi ce: 563.468.6640Home: 563.359.9100

Bettendorf, IA 52722

KAREN BOHNERT MEMBER RELATIONSOffi ce: 563.468.6641

Mobile: 563.320.2895East Moline, IL 61244

TIM GENTHE LAB & SAFETY MANAGEROffi ce: 563.583.7669Home: 608.744.3515

803 S. School St.Cuba City, WI 53807

MARV THOMPSONRAW MILK SALES & TRANSPORTATION

Offi ce: 608.366.1770Home: 608.269.4850

617 Monroe St.Sparta, WI 54656

RON BRENNER FIELD SUPERVISOROffi ce: 608.366.1770Home: 608.782.0012

204 Goddard St.LaCrosse, WI

THOMAS TEGELER FIELD SUPERVISOROffi ce: 563.583.7669Home: 563.875.2059

1320 11/2 St. S.W.Dyersville, IA 52040

DOUGLAS ANDERSONHome: 715.948.2183451 Clayton Ave. W

Clayton, WI 54004

RANDY HEISELHome: 608.625.2045259 E. Lakeview Dr.

LaFarge, WI 54639

MIKE HOWALDHome: 815.938.2651

FAX: 815.938.91517105 N. Freeport RdForreston, IL

FRED IMDIEKE

Home: 320.256.493236356 Roanoke LaneMelrose, MN 56352

KARA KOOPMANN Plant: 563.563.7669

Home: 563.876.39006142 Roller Coaster Rd.Epworth, IA 52045

ROGER LENIUSOffi ce: 319.352.5463Home: 319.352.5015

319 9th St.Waverly, IA 50677

KEN LEY Plant: 608.348.3932

Home: 608.943.6240225 S. CliftonLivingston, WI 53554

LYNNE MELCHERT

Offi ce: 563.926.2363Home: 563.926.2794

117 Culver Rd. N.E.Hopkinton, IA 52237

JIM MURPHY Home: 563.422.5789Mobile: 563.380.0393

430 LindenWest Union, IA 52175

MARK J. PINCH Home: 608.943.6039

Plant: 563.583.7669298 Rundell Rd.Livingston, WI 53554

JIM SCHMITZ Offi ce: 563.925.2321Home: 563.925.2015

202 Bechner St.Greeley, IA 52050

CHERYL ZABLOCKIWAGNER Offi ce: 920.822.2933Home: 920.822.2887

W1919 Hofa Park DrSeymour, WI 54165

BOB ZIELSDORF Offi ce: 608.366.1770Home: 608.269.5452

309 North StreetSparta, WI 54656

Somatic Cell Range % of A Farms0 - 100,000......................................................3 %100,001 - 200,000.......................................15 %200,001 - 300,000......................................27 %300,001 - 400,000......................................23 %400,001 - 500,000.....................................14 %500,001 and above...................................18 %

Somatic Cell Range % of B Farms0 - 100,000.......................................................2%100,001 - 200,000.........................................13%200,001 - 300,000......................................21%300,001 - 400,000......................................19%400,001 - 500,000.....................................8%500,001 and above...................................37%

During the Month of June, these Swiss Valley Farms Members

averaged below 100,000 for their somatic cell count.

Darwin & Dulci Arends 76,000Frank Belt 58,000Dennis Bierschenk 90,000George & Judy Cadden 55,000Mike Deaver 62,000Larry Gilbertson 95,000Paul & Donna Hellenbrand 81,000Hendel Farms 88,000Bernard Jorstad 95,000Robert Ketchum 97,000Gerald Kress 86,000Koty Laufenberg 71,000Mike & Cheryl Meier 60,000Meyer Farms Dairy LLC 91,000Randy Mikshowsky 70,000Meryln Miller 98,000Robert & Loree Nies 91,000Helen Nowaskey 86,000Kenneth & Marlus Schmitz 72,000Walter Selke 84,000William Selke 84,000Donald Stoehr 94,000Frank Stoehr 94,000Larry & Liane Thompson 93,000Traetow, Roger 73,000Steven & Sherry Vlasak 93,000Joel & Jan Wormley 54,000Leighton Yoder 81,000

approved. • Th e Board approved the accounts receivable write-off s for the 3rd quarter. • Th e Board approved to pay the 1995 Deferred Allocated Earnings. • Toyne reported on the comparative milk report. • Th e Board approved the capital budget through June 27, 2006.• Th e Executive Session was opened and closed.• Th e Board approved the resolution declaring Wisconsin funds forfeited.• Jim Schmitt, Sherrill, IA reported on the Budget & Finance committee meeting.• Th e Board approved the minutes on the Member Relations, Industry and Public Relations committee meeting reported by Pam Bolin, Clarksville, IA. • Toyne reported on CMPC.• G. Joe Lyon, Toledo, IA, Schmitt and Bolin’s reported on the MDA meeting.• Don Berlage, Elizabeth, IL reported on the Illinois Milk Association meeting.• Peterson reported on the NMPF summer Board meeting.

Upon motion and second, the meeting was adjourned at 4:27 p.m.

Th e Swiss Valley Farms, Co. Strategy meeting was held June 28, 2006. Th e meeting was called to order at 8:10 a.m. All Board members were present. Th e

Co-CEO Team of J. Gordon Toyne and Donald Boelens also were present.• Chris Hoeger, Director of Sales, reviewed our sales strategy. He reported that there is a strong demand for cream cheese. He also reported on new opportunities and that we need to watch the market for new competition.• Greg Rexwinkel, Vice President of Manufacturing, updated the Board on operations. Th ere is a need to drive accountability into every practice. • Barb Easley, Director of Finance, gave an update from the fi nance department. Th e 2007 Budget project is underway.• Tom Stontz, Vice President of Information Technology, reviewed the IT projects that are ongoing. Our Swiss Valley Farms website is being updated. Swiss Valley Farms is moving technology from our offi ces to the plants.• Don Boelens gave a Human Resources report for Deb Sullivan, Director of Human Resources. He reported that a computer training for employees is underway. • Gordy Toyne and Boelens reviewed our general company strategy.Respectfully submitted by Pam Bolin Board Secretary.

The regular Board of Directors meeting of Swiss Valley Farms, Co. was held June 27, 2006 at

the Wasserbahn Holiday Inn in Amana, IA. President Donald Peterson, Cashton, WI called the meeting to order at 12:55 p.m. All Board members were present. Th e Co-CEO Team of J. Gordon Toyne and Donald Boelens also was present.

Th e following business was transacted:

Director Loyde Beers, Eastman, WI opened the meeting with the invocation.• Th e minutes of the May 31, 2006 Board of Directors meeting were read and approved as read.• Toyne addressed communications to the Board.• Th e Board approved to nominate Peterson for the WFC Co-op Builder Award.• Th e Board approved to donate $100 to the Iowa College Foundation. • Th e Board approved to donate $100 to the Scott County Y.• Th e Board approved to donate $100 to the Breast of Friends campaign.• Directors concerns and comments were addressed by Toyne• Boelens gave an update on the Garfi eld promotion and new trailer graphics. • Th e Management and Financial reports were presented by Boelens and

WHILE YOU WERE FARMING June 2006 Board Minutes

Sonberg Farms, LLCOsage, Iowa

WELCOMENEW MEMBERS

CLASSIFIED ADSHelp Wanted: Bonnie and Vance Haugen of Springside Farm, a successful grazing dairy farm since 1993, are looking for an

employee interested in growing into an intern and/or share milker arrangement for building equity to go farming on their own.

Email springsidefarm@yahoo.com, call 507-743-8326 before 8:30 p.m., or write Bonnie and Vance Haugen,

12620 Deer Rd., Canton, Mn. 55922.

FOR SALE: Patz 4205, 3 auger, Stationary Mixer with scales in excellent condition used 4 years. $7,000 OBO. We purchased a

Portable mixer when we built the free stall barn and no longer need the stationary mixer. For more info, call Lonnie at 608 538 3208 or

email us at kepridge@yahoo.com

MDA SCHOLARSHIP WINNERS

Your copy of

Post Offi ce Box 4493Davenport, IA 52808

Address Service Requested

PRSRT STDU.S. POSTAGE

PAIDPermit No. 141Davenport, IA

Justin MardorfHopkinton, Iowa

Aaron NunnikhovenOskaloosa, Iowa

Two Swiss Valley Farms members were among students who received 2006 Iowa Division of Midwest Dairy Association Educational

Program scholarships, an annual initiative to assist dairy farm families with college expenses. MDA awarded $7,000 in scholarship money to students in Iowa and Illinois this year.

Th e scholarship program has received an enthusiastic response from dairy producers.

“Not only do they value the dairy-funded check off programs striving to increase the demand for dairy products, but they strongly support youth with dairy backgrounds,” said Joe Lyon, Iowa Division Chair for Midwest Dairy Association. “Th is is a means to show that support.”

Justin Mardorf, son of Leslie and Linda Mardorf, Hopkinton, Iowa, received a $500 scholarship. He studies natural resource management at Iowa State University, Ames, Iowa and is a 2005 graduate of Monticello High School. At school, Mardorf is a Dean’s list student. He cares for the environment and aspires to work in the planning, developing and managing of agricultural and wildlife areas.

Th roughout high school, Mardorf was active in 4-H, his church youth group, FFA and band, among others. He is responsible for calf chores and raking, baling and moving hay.

Aaron Nunnikhoven, son of Lyle and Sharon Nunnikhoven, Oskaloosa, Iowa, also received a $500 scholarship. He is a dairy science major at Iowa State University, Ames, Iowa and a 2003 graduate of Oskaloosa High School. While in college, Nunnikhoven is active in the FFA, Farm Operations Club, Dairy Science Club, the Food at

First Homeless Program and the Christian ministries, Campus Christian Fellowship and Th e Salt Company.

Nunnikhoven worked on his family farm throughout high school and now works there on weekends and school breaks. He has worked in every aspect of the dairy operation and helped with raising and harvesting of crops.