1. 2014 Ag Economic Outlook Conference Cornell University – Ithaca, NY
Craigs Station Ventures Farm Partner in WNY Enterprise LLC d/b/a Craigs Station Creamery
2014 Ag Economic Outlook Conference
Cornell University – Ithaca, NY

2. Craigs Station Ventures
Family owned and operated dairy farms located in the western New York milkshed
Producing high quality raw milk products
More than 13,000 cows housed on dairies located within 25 miles of the plant
Producing approximately 110,000 gallons of milk/day for delivery to local processors

3. Craigs Station Ventures
1) Noblehurst Farms, York 2) Lawnel Farms, York 3) Mulligan Farm, Avon
4) Coyne Farms, Avon 5) Synergy, Wyoming 6) Southview Farm, Castile
7) Baker Brook Dairy, Attica 8) McCormick’s Dairy, Bliss

4. Craigs Station Ventures
Noblehurst Farms, York
Lawnel Farms, York
1,650 cows
1,500 cows; two sites
Mulligan Farm, Avon
Coyne Farms, Avon
1,200 cows
1,000 cows

5. Craigs Station Ventures
Synergy, Wyoming
Southview Farm, Castile
2,100 cows
2,000 cows, two sites
Baker Brook Dairy, Attica
McCormick’s Dairy, Bliss
1,600 cows
2,300 cows

6. Craigs Station Ventures
Craigs Station was a stop on the DL&W (Delaware, Lackawanna and Western) railroad. It was located about a mile to the east of the plant site.
Dairy farmers used to bring milk and cream in 10 gallon cans to stations like this one for collection. The train would transport those cans to a creamery for bottling and shipment to New York City, Boston, and other Northeast cities.

7. WNYE/CSC Joint Venture
Dairy Farmers of America (DFA) and Craigs Station Ventures (CSV) formed JV in mid-2013
DFA is nation’s largest dairy cooperative
CSV comprised of eight cow dairy farms located in the heart of western NY milkshed
Broke ground in mid-September 2013 on cold milk separation facility
Commissioned early October 2014
Operational on October 17, 2014

8. View from Above

9. Expanded View from Above

10. First load saleable milk – 10/17/14

11. First load saleable milk – 10/17/14

12. More pictures from the first day

13. More pictures from the first day

14. More pictures from the first day

15. Products It all starts with consistent, high quality farm milk
Grade A rBST-free
Skim milk / Standardized milk
40% butterfat heat-treated cream
Cold bowl separated
Reduced protein denaturing (standardized/skim)
Enhanced cream functionality
Kosher certified
Product fortification available (i.e. Vitamin D)

16. Attributes Locally produced New York milk
All eight farms located within 25 miles of WNYE/CSC
Traceability back to these farms
DFA Gold-standard-plus production
WNYE powered by on-farm green energy
Reduced carbon footprint
Low hauling miles, green energy, modern/efficient milk production and processing

17. Sustainability
Members committed to sustainable, efficient farming practices
One of the CSV member farms has largest on-farm digester in New York state
Noblehurst operates anaerobic digester next to milk plant that:
Recycles facility’s waste effluent
Provides green energy to facility
Reduces plant’s carbon footprint
Synergy Biogas
1.4 MW Bigadan A/S owned and operated on-farm co-digestion plant
Also processes local dairy plant effluent (whey)
Future expansion to 2.0 MW
Noblehurst Green Energy
440 kw on-farm co-digestion plant
Arranged to accommodate 2nd digester and doubling of energy output

18. Operational Efficiencies
Tanker washing capability at WNYE/CSC
Milk scheduling advantages
100% loads at 60,000+ lbs milk per load
Quality checked loads before shipment
Reduced shrinkage at buyer’s plant

19. Relationship
Farm-direct relationship with the added protection of a $12 billion dairy cooperative
Periodic meetings with WNYE/CSC plant management and CSV farmer representatives
Relationship with DFA, America’s leading dairy cooperative
Key New York state regulatory relationships
Global business connections
Price risk management opportunities
Improved price predictability
Reduced price volatility
Better performance to budgets

20. 33 DFA Affiliated Plants Nationwide
Ingredients–Cheese
Ingredients–Protein
Contract Manufacturing
Consumer Brands
Fluid Milk and Ice Cream
Turlock, Calif.
Beaver, Utah
West Middlesex, Pa.
New Wilmington, Pa.
Hughson, Calif.
Fort Morgan, Colo.
Schulenburg, Texas
Springfield, Mo.
Cabool, Mo.
Mechanicsburg, Pa.
Ventura, Calif.
Winnsboro, Texas
Goshen, Ind.
Reading, Pa.
St. Albans, Vt.*
Houston, Texas
Cedarburg, Wis.
Zumbrota, Minn.
Fargo, N.D.
Farmington, Minn.
Winthrop, Minn.
Minneapolis, Minn.
Portales, N.M.
Fallon, Nev.
New Britain, Conn.
Rochester, Minn.
Frederick, Md.
Cass City, Mich.
Adrian, Mich.
Middlebury Center, Pa.
Linwood, N.Y.
Plymouth, Wis.
Portland, Maine
* The plant in St. Albans, Vt., is a St. Alban's Cooperative Creamery plant. St. Albans is a member cooperative of DFA.

21. WNYE/CSC Joint Venture
Why? (cooperative perspective)
Increasing demand for high quality milk components in the Northeastern U.S. dairy market
Consumers/retailers calling for more traceability and sustainability from their suppliers
In dairy, much of this falls back to the farm level
DFA customers focusing more on marketing and product development and less on manufacturing
This JV offers those customers a supply chain partner

22. WNYE/CSC Joint Venture
Why? (farmer perspective)
Expand local dairy marketing opportunities
Diversify direct investments beyond the farm
Provide a different opportunity to work with like-minded producers
Reduce the cost of hauling farm milk to market
Connect food, cows, milk, farmers and family farms with consumers’ families

23. Industry Response So was this!
We understand that some say this project is:
Non-traditional, out-of-the-box, or even risky
Others will say this is:
Disruptive to orderly milk marketing
So was this!

24. Next Steps Northeast Dairy Market Development
Catalyze add’l dairy processing investments (particularly small to medium sized operations) using the milk supplies from this facility
Harnessing value for milk/plant attributes
Additional investment
Niche opportunities within existing footprint
Phase II expansion