2012 Annual Report

The Hershey Company

Land O’Lakes dairy members have always taken pride in producing the high-quality milk responsible for helping build the trusted LAND O LAKES brand and its family of products. That quality raw material has also enabled Land O’Lakes to form strategic partnerships with other major players in food production, including The Hershey Company.

Each year, Land O’Lakes ships nearly 500 million pounds of fluid milk and close to 50 million pounds of non-fat dry milk to Hershey’s manufacturing facilities, providing key ingredients for the company’s portfolio of iconic brands that include Reese’s®, Kit Kat®, Heath®, Whoppers® and many others. “The partnership between Land O’Lakes and Hershey is a long-term, historical relationship that’s built on trust and a close day-to-day relationship,” said Frank Day, vice president of Global Commodities for The Hershey Company. “Land O’Lakes is a trusted business partner that provides operational excellence and the highest quality products.”

The ongoing relationship has been overwhelmingly positive for both companies, as well as Land O’Lakes producer-members. “We all know fluid milk has a short shelf life, and The Hershey Company is dependent on having a high-quality and reliable supply,” Day said. “And dairy farmers need to have a trusted partner to purchase their milk on a consistent basis, so it is a symbiotic relationship that benefits everyone involved.”

In recent years, the partnership has expanded with Land O’Lakes providing ingredients to not only all of Hershey’s manufacturing facilities in North America, but also the company’s facility in China. A development that, Day said, is attributable to Land O’Lakes’ ability to consistently meet customer needs. “Land O’Lakes is on the forefront of providing industry-leading services, such as supplying Hershey’s international needs and providing cutting-edge risk management solutions.”

That ability to meet expectations was recognized in 2011 when Hershey presented Land O’Lakes with the Hershey Galaxy Award, which acknowledged Land O’Lakes’ outstanding work in successfully shipping products to Hershey’s in China.

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