Serving Our Mission and Growing the Organic Movement

Sustainability ReportSECOND EDI TION

T he United Nations has declared 2015 the

International Year of Soils. This is very

exciting for our cooperative because

we’ve built this business literally from the soil

up. Did you know that one handful of healthy soil

contains more living organisms than there are people

on earth? When you think about the hundreds of

thousands of acres collectively stewarded on our

family farms, that’s a lot of life in our hands—but

it’s out-of-sight life that most never think about.

We spend a lot of time thinking about soil. The great

complexity of soil life is not deeply understood even

though our existence relies on its healthy function.

This is the very foundation of all sustainability, and

on our farms we will continue to pioneer the field to

understand and protect living soil.

After 26 years working closely with the people

behind this incredible organization we call

CROPP Cooperative, I think about how many

people have worked in hidden roles here and

contributed essential energy to our success, similar

to how all the powerful elements within our soils

provide life for us all.

The business of CROPP Cooperative—everything

that happens each day after the milk and the

produce and the meat and the eggs leave the farm

to be prepared for retail shelves—is complicated,

difficult, time-sensitive work, and it is handled by

this amazing team of employees. We even have a

nick-name for ourselves: CROPPies.

The daily, earth-healing work of Organic Valley

and Organic Prairie farmers is at the core of our

mission. The continuous improvement of our

business's sustainability practices is our backbone,

and for this I thank CROPPies. In this report,

we proudly share some of our successes, but we

know we have many opportunities for improvement,

which we’ll also share with you. Transparency

allows us to keep our eye on the big picture of

environmental and economic sustainability that

our mission demands.

When CROPP was founded in 1988, there were

more than 200,000 dairy farms in the U.S.—

today there are less than 65,0001. There are many

causes for the decrease over time, and recently the

number of organic dairies has decreased as well, due

to farmer retirement, limited organic acreage, less

organic feed, and water scarcity. CROPP must

address these constraints in order to ensure the long-

term sustainability of our family farms and our

cooperative. We’re fortunate that so few CROPP farmers

irrigate to grow feed and pasture, but even so,

as weather extremes continue to intensify, we must

prioritize strategies to mitigate our future water risk.

I know that we’ll be successful because, more than

ever before, CROPPies and farmers are pulling

together toward our goal to be fully sustainable.

In these pages you will meet some folks and learn of

their accomplishments in sustainability, but many more

will remain unnamed. To me they are all heroes.

In Cooperation,

George Siemon

CEIEIO

CEIEIO

1 US Ag census 1987 and 2012

usda.mannlib.cornell.edu/usda/AgCensusImages/1987/01/51/28/Table-01.pdf

agcensus.usda.gov/Publications/2012/Full_Report/Volume_1,_Chapter_1_US/usv1.pdf

There are more organisms in one teaspoon of healthy soil than there are people on earth.

Dear Friends,*

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HOW WE'RE DOING

Successfully Pursuing Our Mission

Actively Improving Our Performance

Our Vision for Sustainability

Organic Requires More Tillage for Weed Control

Two Biodiesel Stations to Fuel CROPP Vehicles

Community Recycling Events

& Employee Vanpools

Generation Organic &

CROPP Staff

Training Incentives

Environmental Documentary

Films & Trainings

Water Strategy Needed

Procure and Transition Local Land to Certified Organic Status

Employee Garden Club

FARMS

CROPP COOPERATIVE

COMMUNITY

ECOLOGYsoil, water, grass, total

acreage, avoided chemicals

2014 EMISSIONSwaste, electricity, fuel

EDUCATIONyoung farmer, leadership

development

CROPP'S MISSION:

To create and operate a marketing

cooperative that promotes regional farm

diversity and economic stability by the

means of organic agricultural methods

and the sale of certified organic products.

OUR SUSTAINABILITY VISION

When we: • foster a culture of sustainability within the cooperative,

• optimize the use of resources (water, energy and waste) throughout our operations, and...

• increase farmer profitability through efficient, sustainable use of energy, water and waste products,

our farms, communities and CROPP become more environmentally, economically and socially responsible places to live and work.

MISSION

Soil is made of 45% Minerals, 25% Water, 25% Air & 5% Organic matter.

*

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Organic farming promotes water and air quality, prohibits the use

of toxic pesticides, insecticides and synthetic fertilizers, increases

biodiversity and builds soil fertility and structure.

ANIMAL CARECROPP’s Farm Resources Department combines the

technical support services of veterinarians, a nutri-

tionist, an animal care specialist and an agronomist

under one roof to provide advice and guidance to all

Organic Valley and Organic Prairie farmers.

Animals and their environment aren’t the only ones that benefit from proper care and good food. Human health and wellbeing benefit from positive interaction with animals.

AVOIDED PESTICIDESCROPP’s organic dairy farmers have kept more than

235 million pounds of toxins and synthetic fertilizers

off the land since 1988.

Fewer pesticides means more healthy critters

On-Farm Sustainability

• Cows grazing organic pasture are in their natural environment, eating what they’re meant to eat

• Healthy soil retains moisture

• Organic pasture builds soil health

• The plant roots retain soil

• Soil and water erosion and run-off are reduced

GRANT ASSISTANCE PROGRAM CROPP’s Grant Assistance Program helps secure

funding for innovative, mission-aligned programs

for the business and farmers.

ON-FARM RENEWABLES Organic isn’t the only good thing happening on

CROPP farms. Last year, over 850,000 kilowatts of

clean renewable energy were produced by our farmers

across the country, a number that has nearly

doubled since 2011.

on-farm renewable energy and energy efficiency projects funded with grants

in grants awarded to CROPP farmers and the business since 1988

$10 million

30 projects

Nearly

1 million kW of Energy Produced

Low-stress animals are safer to be around

for both humans and other animals

Animals at peak health resist illness and bounce back to peak health quickly

when stressed

• Ground-and-surface- water is protected

•

•

2009 2010 2011 2012 2013 2014

1M

800k

600k

400k

200k

0

ON-FARM

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BETTER INGREDIENTSWhile 100% of the dairy products that you enjoy

come from Organic Valley’s family farmers, some of

our products, such as chocolate milk, eggnog and

creamers, use cane sugar for a touch of sweetness.

It’s important to us that the farmers growing the

sugarcane used in your favorite Organic Valley

products are doing so with the same care and

respect for the environment as our dairy farms. That’s

why we source from the Native Green Cane Project.

Native’s farms have 23 times more biodiversity than

conventional sugarcane farms, and the growth and

production of their sugarcane is 100% carbon neutral.

Now that’s sweet!

BETTER HABITATSCROPP farmer-owners opened their farms to the

Birds and Beans Census Project.

“Often it’s through the back door that life’s

significant truths come to settle with us.

Such was the case with understanding our

relationship with the critters sharing our farm.”

Loretta Jaus CROPP farmer-owner from Minnesota

BETTER NUTRITIONOrganic Valley Pasture-Raised Whole Milk has more

of the heart-healthy fatty acids our bodies need for

good health than conventional whole milk. Organic

Valley Pasture-Raised Whole Milk has:

• 62% higher omega-3

• A nutritionally ideal ratio

of omega-6 and omega-3

essential fatty acids

• 18% higher conjugated

linoleic acid (CLA)

Learn more at:

www.organicvalley.coop/grassup/

ON-FARM

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PACKAGING

We don't label our milk cartons as recyclable—but they are. They don’t contain wax (and haven’t for many years), and are heat sealed—not glued.

Milk Cartons Are Made Of: • 80% paperboard and

• 20% low density polyethylene

(LDPE) #4 resin.

To feature a recycling symbol on a package,

recycling of that type of packaging

must be available to 60% of households

— and the United States is not there yet.

The problem isn't the carton; the problem

is access to recycling across the country.

The Carton Council is working hard to

increase carton recycling access across

the United States. Access has increased

from 18% of households in 2008 to

52% in 2014. Help them reach more than 60% in 2015!

Take Action!Contact recyclecartons.com/

carton-recycling/ to start recycling

cartons in your community today!

• Outer polyethylene (Liquid barrier)

• Inner polyethylene (Liquid barrier)

• Paperboard (Stability)

MILK CARTON

Packaging

OUR SUPPLY CHAIN IN BRIEF

Sustainable Operations

FarmersCROPP HQ

1,799 farms in 36 U.S. States, Canada, & Australia

Operations based at CROPP Headquarters in La Farge, WI – powered by wind & sun

SUPPLY CHAIN IMPROVEMENTS

www.epa.gov/smartway/forlogistics/index.htm

For more, visit:

Improved Load Fill/Truck Utilization

MORE THAN

20% as an EPA SmartWay

Transport Partner

80% Efficiency Gain with new pallet jack chargers

62

Quality Checks from cow to consumer

OPERATIONS

83% of the arable land in North and Central America is used for family farming*

By keeping our products as local as possible with regional pooling, we're able to connect consumers to their farmers and minimize our overall environmental footprint.

Processors

• Using rail whenever possible for transport.

Consumers

Milk from the farm is bottled in partner plants as near to farms as possible

Finished products are then shipped to retailers within the same region

RENEWABLE ENERGY BIODIESEL

www.epa.gov/greenpower/toplists/top30onsite.htm

For more, visit:

81% Green Power

Used in 2014! An increase from 69% in 2013!

Top 30

Sourced Enough Certified Organic Oil

to meet all of the

cooperative's

Biodiesel needs

in 2014

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EVERYTHING'S CONNECTED

CROPP Cooperative recognizes and nurtures eight wellness dimensions in a holistic approach to health and well-being.

Holistic Wellness

FINANCIAL PROFESSIONAL

S

OCIAL

I

NT

ELLE

CT

UA

L

E

NV

IRO

NM

EN

TAL

P

HYSI

CAL

EMOTIONAL SPIRITUA

L

Well Workplace Award

Wellness managers accepting

the “Well Workplace” Gold

Award from the Wellness

Council of America, recognizing

CROPP for quality and excellence

in worksite health promotion.

CROPPies taking classes in new fitness center

CROPPies at the Dirty Girl Mud Run

Farmer wellness booth at Annual Meeting 2014

Farmers need TLC, too! At

CROPP annual meetings,

farmers have access to free

wellness screenings.

Bob Goonin Green Spirit Award

Recognizing a CROPPie who demonstrates exemplary sustainability leadership at work and in the community.

Bob Goonin is such a leader—

he truly embodies sustainability.

He drives a hybrid car, has a solar

photovoltaic array at his home

and has been a biodiesel advocate

for years. But that’s just the

beginning. In 2014, Bob led the

development of a loan program

—administered through a local

credit union—which offers low-

interest loans to other community

members for solar, wind or

geothermal installations, as well

as energy conservation upgrades.

Bob even facilitated a deposit by

CROPP to support the program.

CROPPies IN ACTION

CELEBRATING HEROES

Businesses save from 3 to 10 dollars

for every dollar spent on employee

wellness initiatives!

www.organicvalley.coop/about-us/careers/benefits/

A great place to work:

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WELLNESS

As a cooperative of organic family farmers on a

mission, CROPP joins hands with mission-aligned

businesses and organizations across the country to

support local communities and create a better food

system for all.

Beyond its mission to provide a sustainable living

for family farmers, CROPP gives 5% of its profits to

hundreds of grassroots organizations that:

• Support organic family farmers

• Grow organic food systems

• Promote environmental sustainability

• Foster health and wellness through organic

• Do good in their communities

Visit ov.coop/powerofwe to read stories of the partners

we’re working with (like Vida Verde, at right) to

cultivate a healthier future for people and planet.

Together, there’s no limit to the change we can create. We call it the Power of We.

Imagine the rare opportunity for inner city children

to get out into nature and explore the great

outdoors. For so many kids around the nation,

sitting around a campfire, swimming in lakes and

streams or hiking through the mountains is just a

dream. Fortunately, there’s Vida Verde, a non-profit

organization based in the San Francisco Bay Area

of California, that provides environmental learning

experiences to get young people out of the city.

www.organicvalley.coop/power-of-we www.vveducation.org

Vida Verde: Changing Children's Lives, One Farm Animal at a Time

For more, visit: For more, visit: 95% of our food comes from soil!*

Over 1,000 causes supported

in 2014!

GIVING PROGRAM

ON E OF O U R 2014 H E ROES

Philanthropy & Partnerships

PHILANTHROPY & PARTNERSHIPS

The National Farm to School Network is a grass-

roots advocacy network for communities working to

bring local food sourcing and food and agriculture

education into school systems and preschools.

Nearly 30 million Americans lack access to healthy,

affordable foods. Wholesome Wave initiatives

provide tens of thousands of families annually

with the opportunity to purchase affordable,

healthy, locally grown food.

OUR STRATEGIC PARTNERS

www.farmtoschool.org

40k schools

$385M spent on local food

23.5M students engaged

&

For more, visit:

300farmers markets & food hubscommunities

25 states

With programs

in

+D.C.

www.wholesomewave.org

For more, visit:

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+

&

Organic Leadership

$2.5M in grants donated since 2007,

to projects in these four categories

80%of CROPP farmers donate to FAFO

to build a megaphone for organics

For more, visit: www.organicvalley.coop/about-us/donations/fafo-fund/

CONSUMER EDUCATION

What’s so great about organic?

RESEARCH Proving organic

is better.

FARMER EDUCATION

On-farm dynamics

SUCCESSION PLANNING

Bring on the next generation

www.organicvalley.coop/about-us/generation

-organic/about-gen-o/ | 15

Sustainable farms are multi-generational. CROPP’s

Generation Organic1 (Gen-O) program supports

over 300 young farmers as they begin managing

their own farms and helps attract new young

farmers into organic farming.

LEADERSHIP

Gen-Os in The Classroom Connected with kids in 88 elementary school classrooms across the country.

1 Generation Organic consists of young

CROPP farmers aged 18-35.

"We need to get ahead of the

curve of the retiring farmers in

our cooperative and in the nation

at large. There is going to be

serious competition for the

next generation of farmers in

the next 20 years."

Sarah Holm Gen-O Executive Committee Member

For more, visit:

Regional Gathering

Gen-Os want boots-on-the-ground info they can use

on the farm. Regional gatherings focus on learning

opportunities with guest experts.

GOVERNMENT AFFAIRS

“The new Farm Bill recognizes several key priorities we've been working so hard toward in the past two years. We believe organic is an important part of our future food system, and we will continue to encourage Congress and USDA to support this critical system.”

George Siemon CROPP CEIEIO

ORGANIC GAINS IN 2014 FARM BILL

CROPP is committed to engaging lawmakers and

the public on strong farm policy and has joined other

organic activists in the debate over the new Farm

Bill. In early 2014, Congress passed and President

Barack Obama signed the 2014 Farm Bill that

included many wins for organic.

• $20M/yr organic research

• $20M/yr new farmer training programs nationwide

• $13M/yr offset farmer organic certification costs

• Continued funding of on-farm organic conservation activities

• Organic farmers exempted from mandatory check-off assessments

Right Top Two: CROPP farmers Theresa and Ceara Westaby conducting congressional meetings in Washington, D.C. on the need for genetically engineered food labeling

Right Bottom: Organic Valley farmer and employee Kristina Ralph meeting with Congressman Ron Kind during Farm Bill visits

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LEADERSHIP

Sunny Slope Farms, Egg Harbor, WI

Doug & Sharon accepting their award

Gary Mosgaller Leadership in Sustainability Award

The young farmers of Generation Organic have

recognized Gary Mosgaller of Sunny Slope Farms

for his outstanding commitment to sustainable

agriculture by stewarding the land, knowledge and

resources for the next generation.

Gary is a third-generation farmer and became

a member of the CROPP Dairy Pool in 1995. He

believes that investing in renewable energy is akin

to investing in a sustainable future, and harvesting

the sun and wind is just like harvesting another

crop that Mother Nature offers.

In 2011, he installed a 19.6 kW solar electric system,

the county’s largest at the time. Two years into his

10-year contract, Gary’s utility attempted to lower

the reimbursement rate that he receives for excess

energy generated by the system.

With the help of a local attorney, Gary won his case.

The utility even admitted that they had no right

to dissolve his contract. The case set a precedent

in Wisconsin and the nation. Gary went above

and beyond to protect the viability of his farm

and the viability of the renewable energy industry

in Wisconsin.

Doug & Sharon Sinko Ray Hass Organic Pioneer Award

Recognizing the pioneers and visionaries who have made CROPP what it is today. The 2014 Award winners are Doug and Sharon Sinko from Coos County, Oregon.

In 1994, the Sinkos became the first certified

organic dairy in the Pacific Northwest. By 1999,

Doug and Sharon had convinced five other

farmers in the area to go organic. The Sinkos

remain tireless advocates for organic agriculture.

Today there are 14 dairy farms remaining in Coos

County and 12 are organic.

CE L E BR AT I NG H E ROES

CE L E BR AT I NG H E ROES

SOIL FACTS

Soil Health INTERNATIONAL YEAR OF SOILS

The Food and Agricultural Organization of the United Nations has declared 2015 the International Year of Soils to promote

healthy soils for a healthy life.

Sustainable Soil Management Could

Produce 58% MORE FOOD

Read the full study at: journals.plos.org/plosone/article?id=10.1371/journal.pone.0012346

A recent study found that:

Organically farmed soils have

More Carbon Nitrogen,

Microbial Biomass & Activity

Strawberries grown in organic

soil have Higher Antioxidants, Longer Shelf Life,

& Better Taste

compared to conventional soil.

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For more on the Year of Soils, visit: www.fao.org/soils-2015/en/

CREDITS

Design by Modern Species

CROPP Farm Photography by David Nevala & Shawn Linehan

WWW.ORGANICVALLEY.COOP© CROPP COOPERATIVE 2015 OPS-P02433

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