INNOVATING WITH LEADING

SERVICESThe first high-growth opportunity zone for Dairy is Innovating with leading bio-based products and services and building new markets and models centered around the cow, waste, and circular opportunities across the chain

Bio-based products are composed largely of biological or renewable materials, like biofuel, bioplastics, biochemicals, or biotextiles made out of natural materials

Option 1

ZONE 1: INNOVATING WITH LEADING BIO-BASED PRODUCTS AND SERVICES The first high-growth opportunity zone for Dairy is Innovating with leading bio-based products and services and building new markets and models centered around the cow, waste, and circular opportunities across the chain

Bio-based products are composed largely of biological or renewable materials, like biofuel, bioplastics, biochemicals, or biotextiles made out of natural materials.

Option 2

Z ZONE 1 INNOVATING WITH LEADING BIO-BASED PRODUCTS AND SERVICES The first high-growth opportunity zone for Dairy is Innovating with leading bio-based products and services and building new markets and models centered around the cow, waste, and circular opportunities across the chain

Bio-based products are composed largely of biological or renewable materials, like biofuel, bioplastics, biochemicals, or biotextiles made out of natural materials.

Option 3

DAIRY TRANSFORMATION CHARTER INITATIVE BACKGROUND From Dairy 2030 research to Dairy Transformation strategic planning After all of the final research items were delivered, stakeholders involved in the 2030 research, who represented all parts of the chain, met for a three-day workshop to review Dairy 2030 and to distill insights into strategies that would lead to transformative change on behalf of industry. The link to the executive summary of the Dairy 2030 research can be found here with links to the work for more information. The workshop took place in the fall of 2020, after the pandemic began, which was critical timing as the pandemic placed greater significance on certain areas and research scenarios, as well as accelerated the trends forcing change.

This led to in-depth discussions on the implications of the work to uncover insights which lead to the identification of the five most urgent areas for growth — and threat mitigation — for the next decade. This workshop was the beginning of the transition from the Dairy 2030 research into the broader Dairy Transformation initiative, which would include resulting strategy from the research.

At this workshop, the collective arrived at the industry-wide strategic charter and future vision

• VISION: Live one health (this recognizes that there will be a new definition of health in the future that recognizes the interconnectedness between human health, environmental health, and animal health)

• MISSION: Build the leading circular economy through innovation, information, and technology to sustainably nourish the World

In addition, they identified five opportunity zones (in no particular order of importance but numbered for comprehension). The opportunity zones would serve to act as strategic priorities for planning and outline areas of growth for dairy.

Innovating with leading bio-based products and services – Building new markets and models centered around the cow, waste, and circular opportunities across the chain

Becoming a full-spectrum health provider – Moving from solely providing products to providing products and health and wellness services for human health

Demonstrating leadership in extreme resource efficiency and regeneration – Farming and creating products and services in an increasingly resourceless world that give back more than they take

Leveraging technology to create and capture value across the chain through data – Using data and technology to provide transparency to consumers, proof of quality, and find new value and business models

Contributing to connecting the urban-rural communities of the future – Connecting communities of the future through products, services, infrastructure, and programs to prove dairy's true value to society

Option 1

DAIRY TRANSFORMATION CHARTER INITATIVE BACKGROUND From Dairy 2030 research to Dairy Transformation strategic planning After all of the final research items were delivered, stakeholders involved in the 2030 research, who represented all parts of the chain, met for a three-day workshop to review Dairy 2030 and to distill insights into strategies that would lead to transformative change on behalf of industry. The link to the executive summary of the Dairy 2030 research can be found here with links to the work for more information. The workshop took place in the fall of 2020, after the pandemic began, which was critical timing as the pandemic placed greater significance on certain areas and research scenarios, as well as accelerated the trends forcing change. This led to in-depth discussions on the implications of the work to uncover insights which lead to the identification of the five most urgent areas for growth — and threat mitigation — for the next decade. This workshop was the beginning of the transition from the Dairy 2030 research into the broader Dairy Transformation initiative, which would include resulting strategy from the research. At this workshop, the collective arrived at the industry-wide strategic charter and future vision • VISION: Live one health (this recognizes that there will be a new definition of health in the future that recognizes the interconnectedness between human health, environmental health, and

animal health) • MISSION: Build the leading circular economy through innovation, information, and technology to sustainably nourish the World In addition, they identified five opportunity zones (in no particular order of importance but numbered for comprehension). The opportunity zones would serve to act as strategic priorities for planning and outline areas of growth for dairy.

Innovating with leading bio-based products and services – Building new

markets and models centered around the

cow, waste, and circular opportunities

across the chain

Becoming a full-spectrum health

provider – Moving from solely providing

products to providing products and health

and wellness services for human health

Demonstrating leadership in extreme

resource efficiency and regeneration – Farming and creating products

and services in an increasingly resourceless

world that give back more than they take

Leveraging technology to create and capture value across the chain through

data – Using data and technology to provide

transparency to consumers, proof of

quality, and find new value and business models

Contributing to connecting the urban-rural

communities of the future – Connecting communities

of the future through products, services, infrastructure, and

programs to prove dairy's true value to society

Option 2

In addition, they identified five opportunity zones (in no particular order of importance but numbered for comprehension). The opportunity zones would serve to act as strategic priorities for planning and outline areas of growth for dairy.

Innovating with leading bio-based products and services – Building new markets and models centered around the cow, waste, and circular opportunities across the chain

Becoming a full-spectrum health provider – Moving from solely providing products to providing products and health and wellness services for human health

Demonstrating leadership in extreme resource efficiency and regeneration – Farming and creating products and services in an increasingly resourceless world that give back more than they take

Leveraging technology to create and capture value across the chain through data – Using data and technology to provide transparency to consumers, proof of quality, and find new value and business models

Contributing to connecting the urban-rural communities of the future – Connecting communities of the future through products, services, infrastructure, and programs to prove dairy's true value to society

After all of the final research items were delivered, stakeholders involved in the 2030 research, who represented all parts of the chain, met for a three-day workshop to review Dairy 2030 and to distill insights into strategies that would lead to transformative change on behalf of industry. The link to the executive summary of the Dairy 2030 research can be found here with links to the work for more information. The workshop took place in the fall of 2020, after the pandemic began, which was critical timing as the pandemic placed greater significance on certain areas and research scenarios, as well as accelerated the trends forcing change.

This led to in-depth discussions on the implications of the work to uncover insights which lead to the identification of the five most urgent areas for growth — and threat mitigation — for the next decade. This workshop was the beginning of the transition from the Dairy 2030 research into the broader Dairy Transformation initiative, which would include resulting strategy from the research.

At this workshop, the collective arrived at the industry-wide strategic charter and future vision

• VISION: Live one health (this recognizes that there will be a new definition of health in the future that recognizes the interconnectedness between human health, environmental health, and animal health)

• MISSION: Build the leading circular economy through innovation, information, and technology to sustainably nourish the World

Option 3

A new market will emerge for bio-based goods as the demand for more sustainable products grows from the private sector (e.g., USDA’s BioPreferred Program) and the public sector (e.g., the automotive and food and beverage industries). As of 2021, a growing global market for bio-based goods is projected to reach $85 billion by 20266

The circular economy and circular methods will become the new design principle, enabling new economic opportunities. Research shows that the global circular economy offers a $4.5 trillion economic opportunity through waste reduction, innovation stimulation, and employment creation5

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In 2021, the Biden administration approved a $65 billion plan to invest in and expand renewables and clean-energy technology. The EU declared the bio-based product sector to be a priority area developing various policies and programs to accelerate the market7

Consumers desire products that are made sustainably and are circular by design: 83% of global consumers demand that businesses aren’t just reducing environmental harm but are causing a positive impact on the planet8

Option 1

• The circular economy and circular methods will become the new design principle, enabling new economic opportunities. Research shows that the global circular economy offers a $4.5 trillion economic opportunity through waste reduction, innovation stimulation, and employment creation5

• Above footer

• A new market will emerge for bio-based goods as the demand for more sustainable products grows from the private sector (e.g., USDA’s BioPreferred Program) and the public sector (e.g., the automotive and food and beverage industries). As of 2021, a growing global market for bio-based goods is projected to reach $85 billion by 20266

• In 2021, the Biden administration approved a $65 billion plan to invest in and expand renewables and clean-energy technology. The EU declared the bio-based product sector to be a priority area developing various policies and programs to accelerate the market7

• Consumers desire products that are made sustainably and are circular by design: 83% of global consumers demand that business aren’t just reducing environmental harm but are causing a positive impact on the planet8

Option 2

A new market will emerge for bio-based goods as the demand for more sustainable products grows from the private sector (e.g., USDA’s BioPreferred Program) and the public sector (e.g., the automotive and food and beverage industries). As of 2021, a growing global market for bio-based goods is projected to reach $85 billion by 20266

The circular economy and circular methods will become the new design principle, enabling new economic opportunities. Research shows that the global circular economy offers a $4.5 trillion economic opportunity through waste reduction, innovation stimulation, and employment creation5

Above footer

Consumers desire products that are made sustainably and are circular by design: 83% of global consumers demand that businesses aren’t just reducing environmental harm but are causing a positive impact on the planet8

In 2021, the Biden administration approved a $65 billion plan to invest in and expand renewables and clean-energy technology. The EU declared the bio-based product sector to be a priority area developing various policies and programs to accelerate the market7

vOption 3

Emissions becoming the new plastic sources Mango Materials, a California startup, aims to convert methane into virtually anything currently made with conventional plastics or polyester — from toys and backpacks to flexible film packaging. They seek to turn methane into biodegradable plastic goods and may use other dairy by-products

Transportation and logistics en route to carbon neutrality – Amazon's natural gas-powered fleet Amazon ordered hundreds of trucks that run on compressed natural gas as it tests a way to shift its U.S. fleet away from fossil fuels. The trucks can run on renewable natural gas from manure and/or food waste

Carbon-capture ethanol and sustainable beauty products and scents Coty, the world's largest fragrance company and owner of global beauty brands CoverGirl and Rimmel, has partnered with biotech company LanzaTech to use carbon-captured ethanol emissions (from industrial sources like steel mills) in fragrances

Option 1

Mango Materials, a California startup, aims to convert methane into virtually anything currently made with conventional plastics or polyester — from toys and backpacks to flexible film packaging. They seek to turn methane into biodegradable plastic goods and may use other dairy by-products

Amazon ordered hundreds of trucks that run on compressed natural gas as it tests a way to shift its U.S. fleet away from fossil fuels. The trucks can run on renewable natural gas from manure and/or food waste

Coty, the world's largest fragrance company and owner of global beauty brands CoverGirl and Rimmel, has partnered with biotech company LanzaTech to use carbon-captured ethanol emissions (from industrial sources like steel mills) in fragrances

Option 2

Emissions becoming the new plastic sources Mango Materials, a California startup, aims to convert methane into virtually anything currently made with conventional plastics or polyester — from toys and backpacks to flexible film packaging. They seek to turn methane into biodegradable plastic goods and may use other dairy by-products

Transportation and logistics en route to carbon neutrality – Amazon's natural gas-powered fleet Amazon ordered hundreds of trucks that run on compressed natural gas as it tests a way to shift its U.S. fleet away from fossil fuels. The trucks can run on renewable natural gas from manure and/or food waste

Carbon-capture ethanol and sustainable beauty products and scents Coty, the world's largest fragrance company and owner of global beauty brands CoverGirl and Rimmel, has partnered with biotech company LanzaTech to use carbon-captured ethanol emissions (from industrial sources like steel mills) in fragrances

Option 3

As consumers shift their choice from conventional plastics to alternative materials not created with fossil fuels, dairy has the opportunity to turn methane emissions into new products, like bio-based plastics

With an electric vehicle pilot underway Via Newtrient (where biogas is used to "fuel" electric vehicles), dairy has the opportunity to scale the pilot with additional car companies

With renewable energy on the rise and companies seeking to reduce their carbon footprint, dairy has the opportunity to use biogas to "power" a variety of businesses, such as data centers, schools, restaurants, etc.

JOINT VENTURE/ PARTNERSHIP Aviation is one of the largest contributors to global greenhouse gases and climate change. Dairy has the opportunity to provide a greener biofuel to help the airline industry achieve its sustainability goals and emissions targets

Option 1

As consumers shift their choice from conventional

plastics to alternative materials not created with fossil fuels, dairy has the opportunity to

turn methane emissions into new products, like

bio-based plastics

With renewable energy on the rise and

companies seeking to reduce their carbon

footprint, dairy has the opportunity to use biogas

to "power" a variety of businesses, such as data

centers, schools, restaurants, etc.

With an electric vehicle pilot underway Via

Newtrient (where biogas is used to "fuel" electric vehicles), dairy has the opportunity to scale the pilot with additional car

companies

Aviation is one of the largest contributors to

global greenhouse gases and climate change.

Dairy has the opportunity to provide a greener

biofuel to help the airline industry achieve its

sustainability goals and emissions targets

Option 2

Option 3

With an electric vehicle pilot underway Via

Newtrient (where biogas is used to "fuel" electric vehicles), dairy has the opportunity to scale the pilot with additional car

companies PI LO

As consumers shift their choice from

conventional plastics to alternative materials not created with fossil

fuels, dairy has the opportunity to turn

methane emissions into new products, like

bio-based plastics PR O

With renewable energy on the rise and companies seeking to reduce their carbon footprint, dairy has the opportunity to use biogas to "power" a variety of businesses, such as data centers, schools, restaurants, etc.SE

Aviation is one of the largest contributors to global greenhouse gases and climate change. Dairy has the opportunity to provide a greener biofuel to help the airline industry achieve its sustainability goals and emissions targetsJO

Option 3 With an electric vehicle pilot underway Via Newtrient (where biogas is used to "fuel" electric vehicles), dairy has the opportunity to scale the pilot with additional car companies PI

As consumers shift their choice from conventional plastics to alternative materials not created with fossil fuels, dairy has the opportunity to turn methane emissions into new products, like bio-based plasticsPR

With renewable energy on the rise and companies seeking to reduce their carbon footprint, dairy has the opportunity to use biogas to "power" a variety of businesses, such as data centers, schools, restaurants, etc.SE

Aviation is one of the largest contributors to global greenhouse gases and climate change. Dairy has the opportunity to provide a greener biofuel to help the airline industry achieve its sustainability goals and emissions targetsJO