The U.S. Dairy Sustainability Commitment. Dairy Farmers Leadership Collaboration

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1 The U.S. Dairy Sustainability Commitment Dairy Farmers Leadership Collaboration 0

2 The Dairy Farmer Dairy s History of Environmental Stewardship We don t inherit the earth from our ancestors, we borrow it from our children.

3 Leadership: Innovation Center for U.S. Dairy Anderson Erickson Dairy Davisco Foods Hilmar Ingredients Maryland/Virginia Milk Producers Association Schreiber Foods Inc. Associated Milk Producers Inc. Dean Foods HP Hood LLC Michigan Milk Producers Association Select Milk Producers California Dairies, Inc. Foremost Farms International Dairy Foods Association Milk Processor Education Program Shamrock Farms Dairy Farmers of America Glanbia USA/Nutritionals Kraft Foods Inc. National Dairy Products Southeast Milk Dairylea Cooperative, Inc. Grupo LALA Land O Lakes National Milk Producers Federation Swiss Valley Farms Dairylea/DMS Hilmar Cheese Company Leprino Foods Prairie Farms Dairy United Dairymen of Arizona Darigold, Inc. U.S. Dairy Export Council

4 Priority: Sustainability Consumers Leaning Green Green Purchase Rate by Retail Format Source: 2009 GMA/Deloitte Green Shopper Study

5 Priority: Sustainability Other factors:

6 What does sustainability mean to you? Energy Natural Resources Human Health Water Greenhouse Gases Biodiversity Community Waste 5

7 Dairy and Sustainability Definition for dairy: Providing consumers with the nutritious dairy products they want in a way that makes the industry, people and the earth economically, environmentally and socially better now and for future generations.

8 Sustainability: A Life Cycle Perspective v Waste & Pollution Resources &Energy Consumer/ End of Life

9 U.S. Fluid Milk Life Cycle Assessment 16.5 million 6% electricity 35% manure methane GHG Emissions for fluid milk = 28 Million Metric Tons CO 2 e Footprint measured in metric tons of CO 2 e* 5.8 million 12% fuel use 24% fertilizer 64% soil NO 2 Crop Production 59% enteric methane Milk Production 2.0 million 2% refrigerant 23% fuel 75% electricity Processing Entire dairy industry = 2% of total U.S. greenhouse gas emissions 1.9 million 35% container formation 65% raw material Packaging 0.8 million 100% Diesel Transport/ Distribution 1.0 million 28% refrigerant 72% energy Retail 8

10 2020 GHG Reduction Goals Overall Goal: 25% CO 2 e reduction Equal to taking 1.25 million passenger cars off the road every year 9

11 Strategic Stakeholders Community B2B The Future Kids CEO/Peers Suppliers Competitors Health Professionals Academics Dairy Industry Consumers Employees Industry Shareholders Insurers Markets Banks Regulators Think Tanks NGO s Media Politicians Source Green to Gold pg 97

12 GHG Reduction Projects Dairy Feed Systems Cow of the Future Dairy Power Dairy Underground FEAP D-CREE Non-Thermal UV Next Generation Clean-In-Place Dairy Delivery Systems LCA E-SMART

13 Innovation Center and USDA Sustainability Memorandum of Understanding A Partnership for Sustainability

14 Supporting Sustainability Seeking additional funding, volunteers, and resources to support project areas: Crop production Milk production Dairy processing Dairy packaging Dairy distribution Transportation

15 Where Do We Go From Here?

16 A Bright Year Ahead Reach key milestones Finalize and publish fluid milk LCA Additional research: cheese, packaging Work toward our greenhouse gas reduction goals Project teams working together Individual companies establishing their own goals and action plans Best practices and case studies shared on USDairy.com/sustainability Decision-support tools Continue to tell the story of our commitment: past, present, future

17 Dimensions of Sustainability Energy Natural Resources Human Health Water Greenhouse Gases Biodiversity Community Waste 16

18

19 Thank You! Any questions?

20 Greenhouse Gas Reduction Projects On-Farm Cow of the Future Partnering with the U.S. Dairy Forage Research Center Researching innovations in feed efficiency practices to reduce enteric emissions and increase yield

21 Greenhouse Gas Reduction Projects On-Farm FEAP In 2009, 67 on-farm energy audits were conducted Helps identify ways to reduce energy use and cut utility costs Dairy Power Summit convened in New York State to develop plan for overcoming barriers to anaerobic digesters Brought together producers, regulators, utilities and suppliers Goals and action plan established to benefit farms of all sizes Summits in other regions to come

22 Greenhouse Gas Reduction Projects Processing D-CREE Energy efficiency best practices Refrigeration, lighting, steam systems Non-Thermal UV Technology University of California Davis testing pasteurization alternatives Non-thermal technologies could save industry over $30 million annually Next Generation Clean-in-Place Reduced-temperature cleaning being tested New technologies could reduce processor energy use by 50 percent

23 Greenhouse Gas Reduction Projects Packaging & Transportation Dairy Delivery Systems LCA Life cycle assessment of packaging alternatives currently under way Will identify opportunities for decreased material use and improved environmental performance E-SMART Innovation Center and several partner organizations became EPA SmartWay Affiliates SmartWay helps identify opportunities for reduced fuel use Goal to expand participation in SmartWay Innovation Center project team is developing dairy-specific best practices

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