On Board With The Chairman - July 2024

This month's Board of Directors meeting took place a week earlier than scheduled due to some travel conflicts with a handful of directors. Despite being a week early, it was a quick meeting, but it was also very productive, as usual.

Brad kicked the meeting off with some updates on where the markets are and how that affects our business on a day-to-day basis. Things are looking good for the future markets, but the team is still working diligently to make sure we stay at the top of those markets. Next, Brad informed us about the new plant, Valley Natural Beverages (VNB), and how the construction process is progressing. The contractor and our team there have done a fantastic job at keeping things moving to open it on time, but most importantly, they have kept it within the budget we set for them. We were informed about how the VNB team has been working on some cost-saving measures for power and what kind of returns we will see from those investments. Brad gave us an update on our scholarship program at CDI, and we were proud to announce 12 recipients of the scholarships. The scholarships are handed out to dependents of CDI employees, as well as dependents of CDI member-owner farms employees. Some bright young adults are in this group, and we wish them nothing but the best and success as they begin their college careers.

Jason Allen, our new CFO, presented our June financials, which were preliminary due to the early meeting. June was a strong month for CDI, with our core business showing consistent improvement. The staff's efforts to maintain production and keep our customers satisfied have contributed to our positive financial results, instilling confidence in our operations.

Patti Smith from our Ingredients division gave a presentation on our current powder inventory and where she sees the powder market headed. Patti and her team continue to improve our positions in the marketplace while also working on the goals set before them regarding where we'd like to be on inventory at the end of the year. Patti continues to improve her global team and strategically places them where we can execute more business.

This month, JP Hvizda presented from the Consumer Products division in place of Michael Burdeny, who was out of town. JP gave us updates on our butter business and some of the challenges in the market that they are seeing. Challenge was able to turn in a profit for June, which is always good to see. JP also updated us on the progress of getting more customers for VNB and the continued demand that that marketplace is seeing.

Dennis Bettencourt stepped into the meeting and gave us his updates on the plants and the projects that are taking place. The projects will help us continue to improve our efficiency at clearing milk and increase production of the higher-end products we produce in the future.

Rob was next to present and gave us an update on the FMMO and everything happening with the process. Rob has invested a lot of time and energy into this process, and we're definitely seeing the fruits of his labor. It's still some time before the final approval, but hopefully, with the help of others in the industry, we can get it across the finish line.

As always, we encourage open communication. Please feel free to reach out to me or any other director with questions or concerns you might have about our Co-Op. As summer comes to an end, and people try to get in one last family vacation before the school year starts, we pray for your continued safety and well-being.

All the best,

Cory Vanderham