Corporate Responsibility Report FROM FARMS TO FACILITY: Our Journey of Quality & Sustainability

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1 Corporate Responsibility Report FROM FARMS TO FACILITY: Our Journey of Quality & Sustainability

2 OUR STORY Our Commitment to Responsibility It s not enough to simply provide great products; we strive to be great neighbors, as well. We operate as sustainably as possible, utilizing energy efficient measures and waste management efforts during every step of the process, while also contributing to the health of the regional economy, and supporting the communities we call home. At our core... We are an agricultural company, founded, owned Every day our facility takes in three million pounds and operated by local family dairy farmers. We live of fresh, raw milk that is chilled immediately after directly from the land and our livestock, and believe collection and delivered to our plant by a fleet of it is our responsibility to be conscientious stewards dedicated tankers. We fractionate the milk into its of the environment. Through considered choices macronutrient components protein, carbohydrate, and active resource management, we manage our fat and water through a series of steps utilizing business in a way that prioritizes the protection and standard dairy technologies, but in new and conservation of the air, water and soil in a way that innovative ways. sets new standards for quality, supports our employees, contributes to a healthy economy, and gives back to our communities. Local family dairies Three million pounds of milk per day Dedicated state-of-art plant The power of fresh, delivering on the vision of Idaho Milk Products. We strive to set new industry standards by providing the freshest, highest quality and safest milk products available. We utilize the most efficient and environmentally friendly processes possible. We provide our employees with a safe and dynamic environment that fosters input, innovation and career fulfillment. We work to maintain our region s economic viability. We support the communities in which we live, work and play. Pg 2

3 MADE IN THE USA MADE IN THE USA EFFICIENCY & ENVIRONMENTAL IMPACT All Products Process Flow Raw Milk Received from Owner Dairies Separation S Skim Pasteurization Ultra Filtration C R P Production Process Cream Drying Concentration Retentate Permeate Once the milk arrives at the plant, we transfer it into GRADE A IdaPro our refrigerated raw milk silos and immediately begin Pasteurization Packaging Final QA Testing MPC/MPI Shipping Reverse Osmosis the separation process. Because we have a dedicated facility that makes GRADE A IdaPro Evaporation only three product types, our plant and people are all Cream Load Out Packaging Drying Crystallization aligned around a single goal: delivering the highest quality, most consistent products possible. MPP Shipping Final QA Testing Water Re-use* RO Water Polishing Water Our facility captures 2.5 million pounds (1.1M kgs) of water from milk per day, which is used for cleaning. By The Numbers MILLION PRODUCTS MILLION MILLION MILLION Pounds of raw milk (1.4M kgs), arrives at the Idaho Milk Products plant every day. Produced at the Idaho Milk Products plant (IdaPro MPC/MPI, IdaPro Cream & IdaPro MPP). Pounds of IdaPro Milk Protein (18.1M kgs) we process each year. Pounds of IdaPro Milk Permeate (25M kgs) we produce each year. Pounds of IdaPro Pasteurized Cream (40.1M kgs) we produce each year. 1 Independent study completed by The Dairy Products Technology Center, California Polytechnic State University, led by Dr. Phillip Tong. Pg 4

4 Active Resource Management FARMS PLANT Renewable Energy Creation With the opportunity to design and build the Idaho Milk Products production facility from the ground up, we set out to create a plant that would be as energy efficient as possible. Reduction in methane emissions into the atmosphere Reduction in odor Creation of bedding for the livestock Creation of nutrient-rich water for irrigation Creation of renewable energy The EEMs we implemented in the design of our facility include the following: General Sustainability Efforts From our owner farms, to our production facility, to our administrative offices, we are committed to carrying out sustainable business practices whenever possible, including: Process Pumping Variable Frequency Drives (VFDs) The process has 24 pumps, which can be controlled with either a control/throttling valve or a VFD. This measure includes selecting VFDs on the pumps where either option is possible. Two-Stage Variable Speed Compressors Two-stage compressors produce more air for the same power, allowing the compressors to operate at a lower percentage of full load. This technology also includes a cycling dryer instead of a non-cycling dryer. Lighting This measure upgrades the plant lighting from a system designed primarily around metal halide fixtures to a system designed primarily with fluorescent T8 fixtures. Also, lighting controls are specified to turn off the lights when possible, using occupancy sensors. We keep chemical usage to a minimum and implement sustainable options when available. We have reduced the amount of packaging for our finished products. We use a cardboard baler, rather than a dumpster, to make recycling cardboard more efficient. We recycle all of our office paper and provide aluminum recycling receptacles for our employees. Cooling Tower Fans and Control Upgrades The refrigeration system provides chilled glycol to the plant. The system has four chiller packages and four corresponding cooling towers. This measure includes variable frequency drives to control the cooling tower fans. Also, the control algorithms for sequencing the cooling towers and for determining the temperature control set point are modified. Boiler Feed Water Pump VFDs The boiler feed water pumps are designed to provide the required pressure at the maximum flow rate. As the required flow decreases, the pump discharge pressure increases. By reducing the pump speed, the required flow can be provided without increasing the pressure above the minimum requirement. Pg 6

5 SUPPORTING OUR EMPLOYEES & COMMUNITY The family dairy owners of Idaho Milk Products have made South Central Idaho their home for generations. Idaho Milk Products is committed to providing a safe and fulfilling workplace for its employees. We employ a number of programs to ensure the safest possible work conditions including our Southern Idaho Manufacturing Safety and Health Association membership, Employee Wellness Program, Employee Development, Training and Tuition Reimbursement and Scholarship Program. Our dairy owners, along with the entire company, are committed to contributing to the economic well-being of the region. We are 100% committed to keeping Idaho Milk Products locally based, to employing as much local talent as possible and to having the company contribute substantially to the economic well-being of the region Idaho Milk Products Economic Impact by the Numbers Number of Idaho Milk Products Employees by the Year Number of employees 337 Number of dependent jobs created by our operations 4 $13.1M Impact of wages on regional economy 4 Pg 8 4 Based on EMSI, Inc. economic modeling multipliers.

6 Idaho Milk Products 2249 South Tiger Drive, Jerome, Idaho Idahomilkproducts.com / Idaho Milk Products. All Rights Reserved.