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Organic Valley Dairy Press Release Trumpets 2003 Achievements

Organic Valley, Only Independent National Organic Dairy, Achieves Record New England Growth in 2003
Offers New England Farmers "Lifeline" Model for Sustainable Success

LaFarge, WI - Mon., Dec. 8, 2003 --- By staying independent, practicing organic agriculture and being part of a cooperative, New England farmers can get more than 70 percent more pay and buck the trend that is putting 330 U.S. farmers out of business each week, according to George Siemon, founding farmer, Organic Valley Family of Farms, the only national organic dairy to remain independent.

"Organic Valley's goal is to plough our profits back into the earth and our rural communities. Remaining independent ensures our farmers stay on the land, preserve the environment and give consumers safe, delicious food," said Siemon, whose cooperative has been 100 percent farmer owned since its founding in 1988.

In 2003, Organic Valley generated record success in New England. It increased farmers by 28.8 percent, added 795 more cows and 1,988 more acres into the organic system, doubled the sales of its own locally-produced "New England Pastures" organic milk, and, together with Stonyfield Farm, piloted organic milk in healthy vending machines in Rhode Island.

Organic Valley Pays Farmers a Sustainable Price

"Organic Valley's success in New England is due to the fair, sustainable and stable price we pay our farmers. Unlike conventional farmers, we don't have to deal with an abusive price structure that fluctuates day to day," said Travis Forgues, an Organic Valley farmer who milks 80 cows with his father Henry on their 220 acre-farm in Alburg, Vermont.

In New England this year, Organic Valley paid a premium of $8.82 per hundredweight and realized an average regional farmer pay price for milk ($21.39 per hundredweight) that was 70.1 percent higher than the price paid to conventional dairy farmers ($12.57 per hundredweight).

"Organic Valley's New England sales for 2003 increased by 29 percent. National sales were $156 million, a 25 percent increase over 2002," said John Morrissey, Organic Valley Eastern Division Sales Manager. "Sales are expected to continue to climb at this rate due to ongoing consumer support for organic."

Regina Beidler, an Organic Valley dairy farmer who milks 35 cows with her husband Brent on their 150-acre farm in Randolph Center, Vermont, said, "Organic Valley's New England farmers don't measure our success in dollars alone. What counts for us is the number of farmers we're able to keep on the land. This year's New England total of 85 farmers is living proof that the Organic Valley model is a lifeline!"

Adding to this year's success was the kick-off of a powerful new brand identity for the co-op. Explained Marketing Director Theresa Marquez, "Organic Valley's new look - a red barn in a tranquil, rustic setting - showcases our deep farm roots and commitment to family, the two core values that resonate best with our customers whether they're shopping in natural foods stores or mainstream supermarkets."

Organic Valley's top accomplishments in 2003 included introducing Omega 3 eggs and winning the "Best Salted Butter" title at the World Dairy Expo. Other achievements included the launch of:

  • Organic Valley's new 11-ounce Plain or Chocolate Single Serve reduced fat milk in a Holstein-patterned package with a convenient screw cap - a delicious "grab and go" now available throughout the country.
  • Mothers of Organic (www.moomom.com) an inspirational web E-community providing insight about organic parenting from celebrity activists such as Erin Brockovich, Kelly Preston, Raffi and Sandra Steingraber, as well as authentic "mothers of organic" - Organic Valley farmwomen.
  • Educational partnerships with pro-organic organizations such as Farm Aid (www.farmaid.org), Children's Environmental Health Coalition (www.checnet.org), Center for Children's Health and the Environment (www.childenvironment.org) and Waterkeeper Alliance (www.waterkeeper.org).
  • An activist's tool on the Organic Valley's website (www.organicvalley.com) that helps visitors send instant messages to their elected officials on concerns such as animal cloning, genetically engineered food labeling and the need for organic research.
  • The co-op's new $4 million green design headquarters in the Village of LaFarge, Wisconsin. The 45,000 square foot building is designed to look like a barn and offers cost-saving energy efficiencies.

"Staying independent is our greatest accomplishment," said George Siemon, Organic Valley's founding farmer. "It enables farmers to survive and thrive, ensures the health of our rural communities, and, in turn, helps keep urban America more healthy by delivering delicious, safe foods while protecting our environment for future generations."

2004: A Year for Farm Friends

Next year will bring an emphasis on getting organic milk into the schools, a challenge the co-op is already meeting in Montana, Wisconsin and Minnesota - a first in the industry. Look for increased presence in vending machines and on college campuses, as well as new kid-friendly cheeses and Strawberry and Vanilla flavors of Single Serve milk. E-commerce will launch on the website as well.

The co-op will also introduce the Organic Valley Farmers Speakers Bureau to increase the farmer-consumer connection. Farmers will speak at community meetings, retail stores and business organizations to heighten awareness of the organic benefit. (Call 1-888-444-MILK to arrange a visit.)

Organized 15 years ago, the Organic Valley cooperative today is made up of 633 organic farmers in 16 states and one Canadian province. Stewards of the earth who use nature as their teachers, Organic Valley farmers produce 130 delicious organic products. Look for their organic milk, cheese, butter, spreads, creams, eggs, produce, juice and meats in food cooperatives, natural foods stores and supermarkets throughout the country. For further information, contact Organic Valley, 507 West Main Street, LaFarge WI 54639, tel. (608) 625-2602, or visit www.organicvalley.com.

ORGANIC VALLEY 2003 YEAR-END NEW ENGLAND FACT SHEET

Organic Valley Premium		National	New England
2003 estimated organic price $20.17 $21.39
2003 estimated conventional price $12.07 $12.57
Premium paid per hundredweight $8.10 $ 8.82

Organic Valley Sales (in millions) National New England
2004 sales projected $189 $24.4
2003 sales estimated $156 $18.3
2003 percent increase over 2002 24.8 31

Percent of Sales Paid Direct to Organic Valley Farmers (in millions)
2003 estimated 51 percent $79.56
2002 actual 51 percent $63.75

Organic Valley Farmers National Maine Vermont New England
2003 new Organic Valley farmers 118 7 12 19
2003 total Organic Valley farmers 633 40 45 85
Percentage Increase over 2002 22.9 21.2 36.4 28.8

Organic Valley Organic Acreage National Maine Vermont New England
2003 new organic acres 20,000 788 1,200 1,988
2003 total organic acres 95,000 3,712 4,500 8,212
Percentage Increase over 2002 26.7 26.9 36.4 31.9

Organic Valley Organic Cows National Maine Vermont New England
2003 new organic cows 2,675 315 480 795
2003 total organic cows 20,475 1,485 1,800 3,285
Percentage Increase over 2002 15.0 26.9 36.4 31.9