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Sustainability Report 25 years of serving our mission and growing the organic movement CROPP COOPERATIVE

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The Cropp Sustainability Report outlines our ongoing work to serve our cooperative’s mission, guiding principles and our sustainability goals, as well as to share key learnings and accomplishments.

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Page 1: Cropp Sustainability Report

Sustainability Report

25 years of serving our mission and growing the organic movementCR

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Page 2: Cropp Sustainability Report

CROPP is a farmer-owned and–governed cooperative,

which produces and markets organic foods under the

Organic Valley and Organic Prairie brands.

Page 3: Cropp Sustainability Report

Hello Friend,As an organic farmers’ cooperative rooted in the sustaining truths of organic agriculture, we believe that a commitment to continual improvement combined with the important concept of transparency are essentials of organic and of our business model. 

Our cooperative has been a pioneering force in the organic movement for 25 years, and we’ve made much progress in raising the bar of organic standards. Organic farmers are at the forefront of effective sustainable farming techniques. We believe that the organic standards and practices of our cooperative are among the strictest standards in agriculture. However, perfection is never possible, even in organic. There is always room for improvement.

With this spirit, we are sharing this report to outline our ongoing work to serve our cooperative’s mission, guiding principles and our sustainability goals, as well as to share key learnings and accomplishments. The scope of information in this report includes benchmark sustainability information with regard to our cooperative’s impact and

contribution to our families, our earth and the wide array of communities we touch—a concept often called, “people, planet and profits.”

As an organic farmer-owned cooperative, sustainability has been ingrained in our mission from the start. We will always work to fulfill our mission in all its intentions, and continually learn as we go. This is our pledge to our members, employees, communities and future generations.

We are grateful to be on this mission and to all of you who share in this duty with us. From the farm fields to the grocery aisles, each choice is connected to the whole— organic in the truest sense. 

In Cooperation, 

George Siemon C E I E I O

| 1

INTRODUCTION

Cover Photo by Eric C Snowdeal III

Page 4: Cropp Sustainability Report

Introductionhese days , f o lks

typically think of

sustainabil ity in

relation to energy,

but it really factors into all of life.

In fact, life itself is the pursuit of

sustainability: a sustainable life

ensures one will wake up to live

another day.

CROPP Cooperative is grounded

in the pursuit of sustainability

in every way you define the

word—environmentally as well as

socially and economically. We believe

that being good community partners

and environmental stewards are

equally as important as meeting

profit goals—that social, intellectual,

financial and natural capital are

equally valuable.

We sustain farms and the families

who steward them by paying them

a fair price for the conscientious

production of our food. In return,

farm families sustain the land

and animals, and create healthy

sustenance for all. That cycle is

embedded in CROPP’s credo

celebrating 25 years of “cultivating

goodness” in our products, on

our farms and with our people.

Looking back, we see that our

business model and commitment to

organic agriculture have always

been inherently “sustainable”

and supported the “triple bottom

line” before the terms became

the buzzwords they are today. We

have been a sustainable business

since our inception in 1988. We

may be behind the curve when

it comes to data collection, but we’ve

been on track where it counts—in

our actions—for 25 years.

But the pursuit of sustainability

is always just that: pursuit. It’s

more about what’s to be done

than what is done. It is not static.

It is a minute by minute practice.

It is both spiritual and boots-on-

the-ground physical. We’re talking

about continual improvement.

Nearly 2,000 family farmer-owners

of our cooperative know this all

too well. When they go to bed

at night after working hard all

day to keep their families, land,

animals and communities safe

and healthy, they know their

rest is brief. Tomorrow brings

a whole new paradigm, a new

challenge to make it the best it

can be. The work is never done.

Since a foundation of CROPP’s

mission is continual improvement,

we know a job well done is great,

but that “doneness” is temporary.

We get up every morning because

there are always new ideas,

new technology, new bars to

set, reach and surpass. We are

happy with and proud of the

accomplishments set out in

this report, but you can bet

that we’re never satisfied.

Sustainability: Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Page 5: Cropp Sustainability Report

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INTRODUCTION

PROFITPLANET

PEOPLE

Page 6: Cropp Sustainability Report

ENVIRONMENT

Page 7: Cropp Sustainability Report

How We FarmPASTURE-BASED FARMING

asture-based farming

is the cornerstone

to producing food in

harmony with nature.

When animals graze, the land,

water, air and animals all benefit.

That’s why CROPP farmers have

had pasture requirements since

1997, twelve years before pasture

standards became a part of

organic certification.

So i l ex i s t s in a symbiot i c

relationship with plants and animals.

Soil nurtures plants, and plants

can improve soil quality. Animals

eat plants and step on them,

speeding up decomposition of

old growth and making room

for new growth. Their manure

fertilizes the plants and renews soil

nutrients. The result is grassland

that lives, dies and decomposes

in a sustainable cycle. Essentially,

plants cannot l ive without

animals; soil cannot exist without

plants; and animals need both for

proper nutrition.

Pasture-based farming fulfills

part of our mission to treat our

animals with care and respect

while producing high-quality

food. Eating grass and soaking

up vitamin D from the sun makes

our cows’ milk higher in omega-3,

more optimally balanced in omega-3

to omega-6 and higher in heart-

healthy amino acids such as

conjugated linoleic acid (CLA).

Finally, pasture-based farming

has a positive impact on the global

climate. Pasture plants take carbon

out of the air and sequester (store)

it for use in photosynthesis.

Amazingly, the Rodale Institute

has shown that healthy organic

soils can sequester more than

2,000 pounds of carbon per acre

every year.

"Instead of making them [natural systems] fit into

our box, organic works with the way things are.

I can’t really see any other viable way to farm."

Garin Smith,

Maine Organic Valley

dairy farmer-owner

Most of what’s on our

tables lived or grew on

a farm before it got to

the table. It’s our job

to ensure the creation

of human and animal

sustenance is better

for you, for animals,

and for the world.

| 5

ENVIRONMENT

We Never Use:Antibiotics

Toxic Pesticides

Synthetic Hormones

GMO Feed

Synthetic Fertilizers

Page 8: Cropp Sustainability Report

HOLISTIC ANIMAL CAREWhat does humane animal care

have to do with sustainability?

For one thing, keeping animals

free of toxins (in both their feed

and their environment) means

they are healthier. When animals

are well, they are stronger and

happier, their farmers spend

less money on veterinary visits,

and the food they provide us is

more nutritious.

But there’s more to this cycle

than good food for humans:

See below ...

This is a natural cycle that

sustains humans, animals and

our environment.

The efforts of CROPP farmers to sustain their

animals and their land in peak condition are

supported by a staff of professional holistic

veterinarians, animal nutritionists, humane

animal care specialists and agronomists.

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

• Healthy soil retains moisture.

• Soil and water erosion and run-off are reduced.

• Ground-and-surface- water is protected.

• Organic pasture builds soil health.

• The plant roots retain soil.

Page 9: Cropp Sustainability Report

2012 RAY HASS

Organic Pioneer - A W A R D -

Jim Wedeberg | CROPP’s Dairy Pool Director

The Ray Hass Organic Pioneer Award was established

in 2002—the year after Ray, one of the co-op’s founding

farmers, passed away—to recognize the pioneers and

visionaries who have made CROPP what it is today.

The 2012 award winner is Jim Wedeberg, CROPP’s

dairy pool director and one of our founding farmers.

Jim was involved in establishing the first organic

dairy standards, and he has been instrumental to

bringing more organic farmers “onto the truck” through

the past 25 years. His hard work and dedication to

making this business a success for its farmer-owners

has been an inspiration, not only to those he works

with here at CROPP, but also those he encounters

in the wider organic industry.

Jim Wedebergpast & present

Celebrating Heroes

| 7

ENVIRONMENT

Page 10: Cropp Sustainability Report

(Em)Powering OurselvesReducing our dependence on fossil

fuel and creating renewable

sources of energy are cooperative-

wide priorities. Our energy efforts

are focused in three areas:

1. OPERATIONAL SUSTAINABILITY

- energy efficiency - employee engagement

2. RENEWABLE ENERGY PRODUCTION

3. ON-FARM SUSTAINABILITY

Food businesses today target

a variety of markets—from local

farmers’ markets and direct-selling

from farm stands, to national

distribution into grocery stores.

CROPP’s brands Organic Valley,

Organic Prairie, and Stonyfield

fluid milk, are part of he latter,

shipping regionally and nationally

to distributors, large grocery

chains and small, independent

retailers. Unlike the markets

of yore that were mostly local

by necessity, today wares are

moved by many other more costly

means. While CROPP out-performs

the crowd when it comes to

exemplary, sustainable organic

farming practices, the overall

sustainability of our business

practices is a question of greater

complexity. How do we walk

this tightrope between farm

and market? As it turns out,

CROPP employees are making

a difference every day.

Page 11: Cropp Sustainability Report

2012 GREEN SPIRIT

- A W A R D -

Mary Ewing | CROPP’s Master Planner

The Green Spirit Award is an annual, cooperative-wide recognition of a CROPP employee who incorporates environmental sustainability into her/his work and personal life.

Born and raised not far from CROPP headquarters, Mary Ewing walks the green walk, both at work and at home.

Seventeen years after Mary joined the co-op as a dairy program manager, she is CROPP’s Master Planner. It’s her job to match milk supply with market demand. Working with the Demand Management team, Mary’s Supply Management team must balance how much milk CROPP farmer-owners can supply with how much the market will demand. The most

challenging aspect of this balancing act is making it work within the confines of CROPP’s regional supply model.

Mary came up with a plan to increase utilization of milk produced on Organic Valley farms in the Northeast within that region. The plan significantly reduces the miles tanker trucks and semis travel, saving thousands of gallons of diesel fuel. Overall, this reduces the cooperative’s carbon footprint, saves money and reduces product waste.

Mary lives with her family on her husband’s family farm. The old farmhouse has been completely updated for energy efficiency and features a “pump-and-dump” geothermal indoor climate control

system. If Mary doesn’t catch a CROPP vanpool to work, she commutes in her trusty Honda Civic Hybrid.

As CROPP’s Chief Operations Officer Louise Hemstead points out, “Mary would say she’s just doing what anyone else would do, but I think she always adds a little more. Mary understands the value of the cooperative to the farmers. She quietly embraces the organic lifestyle at work and at home.”

Celebrating Heroes

▸ Storm water collection▸ On-site permaculture & habitat restoration▸ Parking lot lights use LED bulbs and

are designed to reduce light pollution▸ Bicycles for in-town trips▸ Priority to local, recycled building materials▸ Low VOC choices (paint, carpet, etc.)▸ Dual-flush toilets▸ Waterless urinals▸ Low-flow faucets

▸ Triple-paned windows▸ Solar cells in south facing windows▸ Solar tracking panels▸ Solar hot water▸ Solar roof panels▸ Occupancy sensors on lights▸ Natural day-lighting▸ Zero-CFC refrigerants▸ Occupant comfort surveys

| 9

ENVIRONMENT

Mary EwingCROPP's

Master Planner

Energy Efficiencies & Sustainability Features at CROPP’s La Farge Headquarters

Page 12: Cropp Sustainability Report

RENEWABLE ENERGYThough our operations use an

increasing percentage of renewable

biofuels like sunflower and canola

oils, we must also use a mix of

electricity, natural gas, propane

and petroleum to keep us up and

running. We’ve still got serious

work to do in order to achieve our

goal of energy neutrality in our

CROPP-owned facilities by 2020,

but we are up for the challenge!

W h e n i t c o m e s t o e n e r g y

production, it didn’t make sense

to put all our kilowatts in one

energy basket. We believe that

“distributed energy” networks

(also known as “decentralized

energy”) are the path to future

energy independence and security.

Creating such networks means

that a community or region’s

energy needs come from that

region, make the most sense for

that region, and come from

a variety of sources.

WIND

In collaboration with local health

care provider Gundersen Lutheran

Health System, we developed

Cashton Greens Wind Farm,

Wisconsin’s first community

wind farm. The two-turbine wind

farm generates enough electricity

to power 1,200 homes each year.

Or in our case, one turbine can

power our 81,000 square foot

headquarters and additional

warehouse faci l it ies in our

hometown of La Farge, Wis.,

plus our ten-story cold storage

distribution center and its 75

offices in Cashton, Wis. overlooking

the wind farm. In the first seven

months that the turbines were

operational, we produced enough

non-greenhouse-gas-emitting

wind power in Cashton to offset

68% of electricity used by our

CROPP-owned facilities.

SOLAR

Energy use at our La Farge

facilities is offset by a suite of

tracker-mounted solar panels,

roof-mounted solar panels, solar

hot water heaters and transparent,

solar cell windows. Together,

these instal lat ions create

approximately 86,000 kilowatt

hours of greenhouse-gas-free

energy per year.

BIODIESEL

We’ve been integrating biodiesel

into our local fleet vehicles (e.g.,

van pools, grounds maintenance

vehicles, etc.) since 2002 and

growing our own oil seed crops

since 2007. Oil extracted from

the “oil crops” grown by CROPP

farmers is processed into locally-

sourced, sustainable biofuel. The

byproduct is a nutritious, high-

protein supplementary livestock

feed. We grow it. We process it.

We use it. Cows eat it.

We learned that one 2.5 megawatt

wind turbine can provide clean

electricity to power 600 homes

for one year. So we got two!

Energy neutrality by 2020:

CROPP will produce enough

renewable energy to offset the

equivalent of 100% of its

total energy (fuel and

electricity) needs for

owned facilities.

Page 13: Cropp Sustainability Report

* Think of “fuel sheds” like watersheds—an area where water flows to a larger body of water in patterns according to the natural

topography. With fuel sheds, oil seed crops would be grown, pressed and used in an area that benefits the most people with the least

environmental and financial impact.

32% of diesel fuel used by CROPP’s local fleet is bio-based or straight veggie oil

GOAL ONEIncrease biofuel use to 60% by 2015

GOAL TWODevelop “fuel sheds”* in the Midwest and eventually all regions where we have farmers

GOAL THREEContinue development of organic, non-GMO oil crop seeds to further supply our growers

| 11

ENVIRONMENT

Page 14: Cropp Sustainability Report

ON-FARM SUSTAINABILITY The On-Farm Sustainability

program helps CROPP farmer-

owners who are interested in

self-sufficiency. The cooperative

provides energy eff iciency

audits to farmer-owners at no

cost to help our farmers identify

areas for improvement and

renewable energy sources that

would work well on their farms.

Support is available for projects

ranging from energy efficiency,

renewable energy, biofuels and

waste agricultural plastic recycling,

to manure management and

composting. Since 2008, the

sustainability team has helped

more than 100 farmers complete

farm energy audits and more

than 50 farmers to obtain

renewable energy site assessments.

The cooperative has secured

approximately $3 million in grant

funding on behalf of our farmers

to implement various renewable

energy projects. In 2012, CROPP

facilitated an agricultural plastic

recycling program for our members

in Northern Indiana; nearly 30 farms

participate in this program. Total

cooperative-wide on-farm renewable

energy installations now generate

572,506 kWh annually.

Our cooperative defines organic as a philosophy

and system of production that mirrors the

natural laws of living organisms with emphasis

on the interdependence of all life.

Page 15: Cropp Sustainability Report

2012

LEADERSHIP IN SUSTAINABILITY

- A W A R D -

Eric & Cathy Paris | Tamarlane Farm | Lyndonville, Vermont

The Leadership in Sustainability Award honors a farmer within the cooperative who has demonstrated an outstanding commitment to sustainable agriculture by stewarding the land, knowledge and resources for the next generation.

Tamarlane Farm is a thriving 420-acre diversified farm in Lyndonville, Vermont, where an underlying respect and love for the land and animals is evident in all aspects of the farm. The Parises produce milk, beef, chickens, turkeys, vegetables and compost. They also own and operate the Freighthouse, a farm-to-table restaurant in Lyndonville. The farm supplies organic meat and vegetables to the restaurant, as well as to the local hospital and schools.

Minimizing the need to use “inputs” that come from somewhere else is what diversified farming is all about—and what used to be the norm in farming. Tamarlane Farm employs the most sustainable a g r i c u l t u r e m o d e l p o s s i b l e , implementing rotational grazing, utilizing farm-made compost as

fertilizer and growing feed on the farm for their own animals rather than purchasing from out-of-state. The farm also follows a comprehensive nutrient management plan, and they have a high tunnel for four- season vegetable production.

The Paris’ composting operation takes in 5 tons of organic waste per week from local schools, restaurants and businesses. Some of the compost is sold off farm. And as part of the farm’s continual improvement ethic, Eric is working to install a pole-mounted solar electric array to provide renewable electricity for the farm.

Eric enthusiastically shares his experiences with sustainable agriculture by speaking at agriculture workshops, local schools and during the pasture walks he hosts at Tamarlane Farm.

ENVIRONMENT

| 13

Celebrating Heroes

Paris Family (above)Tamarlane Farm

Photos on this page by Elizabeth Ferry

Freighthouse Restaurant (top)Lyndonville, Vermont

Page 16: Cropp Sustainability Report

Our farmers produced

572,506 kwh through on-farm renewable energy

projects in 2012.

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77/100 EPA Energy Star Performance for original headquarters building

(before addition), which qualifies

for LEED EBOM certification.

The NumbersWe produced enough to offset*…41% of our total energy needs68% of our electricity needs*For CROPP-owned facilities in 2012

Page 17: Cropp Sustainability Report

33 acres of oil seed planted in 2012

2009 2010 2011 2012

32%

22%18%

14%

CROPP’s organic dairy farmers kept more than

91.25 million pounds of toxins and synthetic fertilizers off the land since 1988.

water consumption reduced in 1 year thanks to a new water filtration system

at our Chaseburg Creamery in 2010,

paired with new cleaning techniques.

Change in resource use per employee from 2009-2012:

kwh less electricity gallons less water

82

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1st certified organic native prairie in

the country.

| 15

5 million gallons

Keep on TruckingPercentage of Biofuel Used

in CROPP Diesel Fleet

Vehicles

6,000 5,500

Page 18: Cropp Sustainability Report

SOCIAL RESPONSIBILITY

21**

Different pesticides found in babies’ umbilical cord blood at birth.

1.2 Billion*

Pounds of pesticides used annually in the United States.

DDT****

This toxic pesticide still exists in the environment, food, and Americans’ cells, 30 years after being banned.

Pesticide***

Levels in children’s urine decrease to undetectable levels immediately after switching to an organic diet.

Page 19: Cropp Sustainability Report

Growing the Good Food MovementEATING ORGANIC MATTERS

ot only do you avoid

consuming antibiotics,

toxic chemicals ,

synthetic hormones

and genetically modified organisms

(GMOs), but you reduce the impact

of a “cocktail effect” on your

body, where toxins and other

unnatural ingredients in our food

combine in a real-life imitation

of a high school chemistry

experiment. Just as prescribed

synthetic medicines can interact

badly in our bodies, so can a

cocktail of synthetic chemicals,

building up to eventually surpass

our bodies’ tolerance thresholds,

resulting in allergies or even illness.

When it comes to our health

and the health of our families,

personal action is so important.

Ideally, we would grow all of our

own food, but when that’s not

possible, we can take responsibility

for learning the story behind our

food and making informed decisions.

CROPP is working hard to

bring this awareness to people—

especially parents and children.

We do this through our public

education initiatives such as

Earth Dinner (www.earthdinner.org)

and FrogTV (www.frogtv.com)

and by partnering with mission-

aligned non-profit organizations

o n p r o g r a m s a n d p u b l i c

outreach efforts.

Through this varied work,

we believe we are helping people

to make the connection between

the food we eat, the environment

and our health.

* Environmental Protection Agency. “Pesticide News Story: EPA Releases Report of Pesticide Use in the United States.” Press Release. 17 Feb 2011. http://epa.gov/oppfead1/cb/csb_page/updates/2011/sales-usage06-07.html

** Environmental Working Group. “Body Burden: The Pollution in Newborns.” 14 July 2005. www.ewg.org/reports/bodyburden2/execsumm.php

*** Lu, C. et al. “Organic diets significantly lower children's dietary exposure to organophosphorus pesticides.” Environmental Health Perspectives Vol. 114, No. 2:260-263. 2006. abstract: http://ehp.niehs.nih.gov/docs/2005/8418/abstract.html - Environment Programme and the World Health Organization, 2013.

**** Benbrook, C. "Simplifying the Pesticide Risk Equation: The Organic Option: State of the Science Review," The Organic Center. March 2008. www.organic-center.org/reportfiles/

† Benbrook, C. "Simplifying the Pesticide Risk Equation: The Organic Option: State of the Science Review," The Organic Center. March 2008. www.organic-center.org/reportfiles/Pesticide_SSR_2008.pdf

‡ “Pesticide Exposure in Children,” Pediatrics, Official Journal of The American Academy of Pediatrics; Nov. 26, 2012; http://pediatrics.aappublications.org/content/early/2012/11/21/peds.2012-2757

SOCIAL RESPONSIBILITY

“…the influences of low-level

exposures [to pesticides] on child

health are of increasing concern.

Children encounter pesticides

daily in air, food, dust, and soil

and on surfaces through home and

public lawn or garden application,

household insecticide use,

application to pets, and

agricultural product residues.

For many children, diet may

be the most influential source.”

(emphasis added)

The American Academy

of Pediatrics‡

If just 3% of U.S. cropland was converted to organic production, it would reduce

pesticide exposure risk by 97%.The Organic Center†

| 17

Page 20: Cropp Sustainability Report

Strategic Philanthropy & PartnershipsFrom the beginning, CROPP has

recognized that part of doing

good business is giving back to

the communities who support us.

Just like organic farming, when

we give back more than we take

out, we all reap the benefits.

CROPP supports hundreds

o f g rass roo t s non -pro f i t

organizations each year that

share in our mission. Collectively,

these groups—representing

millions of people—are leading

the good food movement and

growing positive change.

ORGANIC FARMERS GIVE BACK

Farmers Advocating for Organics

(FAFO) is a phi lanthropic

organization within CROPP’s

farmer membership that is dedicated

to protecting and promoting

organic farmers by investing in

organic research, education and

advocacy. The funds are contributed

entirely by farmers, and projects

funded are chosen by farmers.

Since FAFO’s first granting cycle

in 2007, approximately $2.3 million

has been granted to support

young and transitioning farmers,

on-farm organic research and

anti-GMO initiatives—all of

which impact organic farmers

and consumers alike.

GROWING DEEP PARTNERSHIPS

We believe long-term partnerships

are the way to real change in our

food and farming system. Over

time, some of our partnerships

have evolved to be quite deep,

resulting in close friendships

as well as good mission-driven

work. For our partners like the

Rodale Institute, Environmental

Working Group, Holistic Moms

Network, Bioneers, and many more

national and local organizations,

we’re in this for the long haul.

These organizations are just a few of the hundreds

that CROPP is proud to support each year.

Photo on the next page by Mike Griffin

Page 21: Cropp Sustainability Report

SOCIAL RESPONSIBILITY

Supported

1,000 organizations in 42 states with

more than $2.2 million of food or funding

Donated

403 “year of free organic product”

kits to fundraiser

silent auctions and raffles

Gave 20 f a r m e r owners

disaster relief assistance through the Art Wedig Fund

Donated $97,300 to Hurricane Sandy relief in the form of food, equipment,

trucking and people-power

Donated $300,000 to anti-GMO and GMO labeling advocacy

- IN 2012 CROPP -

| 19

Ward & Rosie Burroughs (left) dairy farmer-owners from CA

Mike Griffin (right) CA division pool manager

March to support labeling of GMO foods in California

Page 22: Cropp Sustainability Report

Written by employees, the

CROPP Employee Values

Statement embodies what

the co-op values in its staff

and what drives our past

and continued success:

Common sense, commitment,

customer focus, inspiration,

remembering our roots,

and of course, fun.

CROPPieshighway clean-up

Resilience: the ability to recover from or adjust easily to change.How

We WorkWhat do employees—fondly

referred to as CROPPies—have

to do with sustainability? And

what does sustainability mean to

employees? A heck of a lot, as it

turns out. Providing meaningful,

gainful employment for folks is a

foundation of resilience. But there

should be a lot more to the

relationship. At CROPP, we believe

in supporting our employees’

growth beyond their job description.

The Employee Growth Incentive

(EGI) program encourages

employee growth, both personal

and professional. Throughout

the year, employees earn points

for participating in training,

community service, wellness and

sustainability activities. At the

end of the year, all participants

receive an accrued-points-based

bonus check rewarding them for

their efforts.

CROPP’S

WELLNESS - P R O G R A M -

This program offers educational

programming designed to provide

resources and encourage positive

lifestyle choices and participation

in self-improvement—and it goes

well beyond fitness to include the

mind and spirit as well.

CROPPiespracticing yoga

Road clean-up photo by Rhett Adams

Yoga photo by Amber Werre

Page 23: Cropp Sustainability Report

MINDThe Organic and Mission Education

Program is designed to align and

engage CROPPies in the co-op’s

mission. Classes on organic food,

organic agriculture, our products,

production of the business, and

sustainability are available to all.

As part of our ongoing sustainability

educational offerings, Practically

Green is a social network that

CROPPies use to connect their

green spirits and thumbs, including

tools for developing sustainability

plans for home and work. Currently,

nearly half of our staff are members.

Speaking of green thumbs, all

CROPPies are encouraged to

grow their own food in the organ-

ic garden, just outside the head-

quarters building in La Farge

Finally, in-house trainings and

professional development

consulting are regularly available

to help CROPPies develop new skills

and meet their professional goals.

BODY To support bodily health, CROPPies

have access to free or discounted

exercise classes, gym memberships,

weight loss programs, smoking

cessation support, on-site health

risk screenings to catch health

problems early (like diabetes, skin

and breast cancer, cholesterol and

others), and on-site chiropractic,

massage and acupuncture.

You can see employees taking

walks around our campuses in

almost any weather.

As an organic food company,

CROPP wouldn’t be walking the

talk if we didn’t make organic

food available to as many CROPPies

as possible during working hours.

Our La Farge, Wis., headquarters

houses an organic café, and our

other facilities in Cashton and

Chaseburg, Wis., have daily access

to free organic dairy and sandwich

fixings. The plans for a new office

building in Cashton (to be completed

in 2014) also include a new

organic café. CROPPies can also

order organic foods in bulk directly

from a distributor through the

Buying Club, helping reduce the

cost of eating organic.

SPIRITFor truly holistic wellness, we

must feed and support our spiritual

selves, as well. The co-op offers

confidential counseling services,

as well as weekly mindfulness-

based stress reduction classes

that incorporate the easy movement

of Tai Chi with breathing exercises

and coaching. The co-op is also host

to regular Red Cross blood drives.

“Last year I decided to shed some

pounds. Using Weight Watchers

I lost 30 pounds and 2 dress/pant

sizes. My cholesterol dropped

from 214 to 173. This past May

I ran my first 5K, and in July

I completed my first triathlon

at age 59. I am in the best shape

of my life, and my energy level

is through the roof. CROPP’s

commitment to wellness inspired

me and gave me the boost

I needed for a lifestyle change.” 

Mary Fleming programmer analyst II

| 21

SOCIAL RESPONSIBILITY

BODY

MIND SPIRIT

Page 24: Cropp Sustainability Report

ORGANIC FARMERS

IN THE CLASSROOM Connecting the Next Generation to Food at P.S. 41

P.S. 41, a K-5 public school, lies within the

peripheral view of Manhattan skyscrapers.

But inside the classrooms, it is all about the

farm. CROPP farmers Susan Hardy and Maureen

Knapp are visiting. Butter is churned, cream

is transformed into ice cream, and ducklings

and chicks peep in the children’s hands. Susan

and Maureen will spend all day at P.S. 41

visiting all the class sections for several different

grades. And at the end of a full day of food and

farm fun and learning, they will promise the

more than 140 children that they’ll be back soon.

CROPP’s relationship with P.S. 41 sprang from

a sponsorship in 2005 of the National

Gardening Association’s adopt-a-school-garden

program. After CROPP gave P.S. 41 a $3,000 grant

toward their rooftop garden, parent Vicki Sando

reached out to say thank you and asked if the

cooperative ever sent farmers to schools.

CROPP responded with support for Susan and

her husband, David, to visit. Since then, the

Hardys and now Maureen have been visiting the

school four times a year, twice in fall and twice

in spring. Every grade gets a different activity.

Photos courtesy of P.S. 41

Page 25: Cropp Sustainability Report

SOCIAL RESPONSIBILITY

David Hardy teaching P.S. 41 kids about gardening (left)

Susan & David Hardy, CROPP New York farmer-owners (right)

| 23

The children look forward to graduating from

butter churning to ice cream making to eventually

hatching ducklings and chicks. And they know

that “their farmers” will continue coming back

to share these experiences with them.

P.S. 41 stands as a tribute to the changes

dedicated people can make. A relatively small

commitment of time and resources has resulted

in a priceless investment—teaching the next

generation where their food comes from and

connecting the urban community to its rural

farm neighbors.

Page 26: Cropp Sustainability Report

ECONOMICSTABILITY

2001

Pay Price ComparisonAverage Base Pay Price - CWT

Organic Valley*

Conventional†

Page 27: Cropp Sustainability Report

For People’s Sake

here’s no point in

starting a business if

you have no plans to

make it last. In 2013,

CROPP celebrated i ts 25th

anniversary—25 years of

producing the highest quality

organic products, nurturing

health and harmony between

human and natural communities,

and supporting local economies

by striving to keep our food in

the region it was produced—from

farm to shelf. Looking at all we’ve

become in such a short period of

time is hard to believe, but our

founding farmers had a vision—

a sustainable vision—that has

served the cooperative well for all

these years.

PEOPLE COME FIRST

CEIEIO George Siemon has often

said that people are CROPP’s

greatest asset. This means we

must support our people first

in order to have a healthy,

economically sustainable business.

The business operates on a very

small profit margin so that the

farmer-owners can get the most

back for their hard work. They

are paid first (most marketing

cooperatives pay their farmers

last), ensuring that they get the

pay price they’re promised, and

the business operates on the

remainder. A fair and stable

pay price allows our farmers to

be financially secure today and

to plan for tomorrow.

LOCALE LOYALTY

Even through its recent years

of fast-paced growth, CROPP

has remained loyal to the rural

Wisconsin communities who

first accepted the “hippies” and

“back-to-the-landers” in 1988.

As the largest employer in

predominantly rural Vernon County

(one of the most economically-

depressed counties in Wisconsin),

CROPP is vital to sustaining

a healthy rural culture through

its jobs, patronage of local goods

and services, philanthropy and

community service.

For CROPPies, this stability

means no worries of being

uprooted and moved across the

country in order to keep a job.

And the co-op’s robust wellness

program and emphasis on

prevention has helped some

employees reduce their personal

health care costs: lifestyle education

has encouraged many to adopt

healthier eating habits and lose

weight, and health risk screenings

have indentified pre-illness

conditions in a few people, allowing

them to manage the condition

through diet and exercise or

get treatment before the illness

manifested, avoiding the potential

for costly medical care.

ECONOMIC STABILITY

2013 (Projected)

20122011

* Midwest base price without butterfat or quality premiums.

† Based on annual FMMO average blend price and 2013 estimate.

When profit goals are achieved,

CROPP shares with the farmers,

employees and the community.

It’s our way of honoring the

hard work of everyone involved in

making CROPP an economically

sustainable business.

| 25

$26.55

$16.90

$26.55

$24.55

$19.00

$19.81

Page 28: Cropp Sustainability Report

FORWARDTHINKING

Page 29: Cropp Sustainability Report

THE FUTURE IS ORGANICAmerica lost 4.7 million farmers

since 1935, and most of the 2.1

million who remain are over

55 years old. In contrast, the

average age of CROPP farmers is

much younger, with a growing

number of farmer-members

under 35 years old. They are our

Generation Organic™.

“Gen-Os” are the next generation

of stewards of the earth. They’re

the young people who wi l l

preserve and practice previous

generations of organic wisdom.

CROPP supports its young

farmers with a slate of initiatives,

from educational programs,

scholarships and regional

gatherings, to a farmer support

hotline and on-staff organic

veterinarians. And every year

we recognize a young farmer in

each region with Gen-O Awards.

Our crop of Gen-Os spread the

word about organic and CROPP

through outreach events and

conferences, and the co-op has

been a longtime sponsor of

the national Future Farmers

of America (FFA) organization

as well as numerous local chapters.

Recognizing the

importance of

s a f e g u a r d i n g

CROPP’s future,

i n 2 0 1 2 t h e

co-op’s board of

directors and management team

approved the formation of the

Generation Organic Executive

Committee (GOEC). Like other

CROPP all-farmer executive

committees, the GOEC serves as

an advisory committee for the

board of directors, providing

recommendations on important

issues affecting the Gen-O

Program and network members.

The seven representat ives

currently serving on the GOEC

have been active in CROPP and the

organic agriculture movement

for many years, some since they

were children. These passionate

young farmers are our next gen-

eration of leaders—both for our

cooperative and for the nation’s

organic future.

Tomorrow, We Begin Again

ustainability is about

h o w w e c o n d u c t

ourselves today so that

we’ll be here tomorrow

to continue the good work. Daily,

farmers are always engaged in

the moment because the natural

world in which they operate is

constantly changing around them.

But farmers are always thinking

forward, too. For example, the

question of legacy is never far from

their thoughts. After carefully

tending their land, the desire

for someone to continue that

stewardship is only natural. The

same is true of the cooperative

built by those farmers.

So it’s no surprise that we think

about legacy when it comes to the

many actions and organizations

we support and the efforts we

make to maintain forward

momentum and plan for the future.

FORWARDTHINKING

| 27

Laura Boere, CA (left)Adam Holter, MD (top)Jared Luhman, MN (bottom)Gen-O Award Winners

Page 30: Cropp Sustainability Report

LONG-TERM MISSION REQUIRES LONG-TERM VISIONOur vision for the cooperative

and the world around us is

not about activism or policy or

advocacy, it’s about a culture shift.

“Mainstream culture in the

United States is dominated by

greed, self-centeredness and

materialism,” said Theresa Marquez,

CROPP’s longtime chief marketing

executive and now the cooperative’s

mission executive. “How do you

change that?”

It all comes back to the cooperative’s

ph i l o sophy o f con t inua l

improvement. CROPP is constantly

working toward new goals, reaching

them, raising the bar and doing it

again. The changes from year to

year may be incremental in some

areas and leaps in others, but it’s

all positive change, and that’s

what counts in the end.

CULTIVATING LEADERSHIPWe are a farmer-owned and-

governed business. Leadership by

CROPP farmer-owners keeps us

focused and effective. So how do

we keep this good thing going?

This question generated the

creation of CROPP’s Farmer

Leadership Symposium, an

educational and networking

summit for potential leaders

in all areas of the cooperative.

Attendees focus on CROPP history,

business operations, mission and

culture, and communication and

leadership skills. They also tour

CROPP facilities to get a better

sense of both the scope and the

intricacies of their business.

Page 31: Cropp Sustainability Report

“What I hope we can do is help to shift our culture.

We don’t have to shift hugely to make a change.

We just have to move.”Theresa Marquez

CROPP's Mission Executive

Page 32: Cropp Sustainability Report

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