2018 December Board Book

December 2018

Dear CMAB Board of Directors:

As you know, there have been many changes and some challenges at the California Dairy Research Foundation during the 2018 fiscal period. In December of 2017 our then-Chairman Gregory ‘Butch’ Dias passed away unexpectedly; shortly thereafter, in February 2018, our Director, Dr. Gonca Pasin also passed away, due to a brief and intense illness. Since that time, the CDRF Board members and CDRF staff have worked together to maintain our current research portfolio and create a real pathway forward that is aligned with the CMAB Strategic plan and the California dairy industry’s long-term sustainability needs. John Talbot, CEO of CMAB was added as an ex officio director on our Board. In May, I was appointed Interim Executive Director. In August, we completed and approved a new 5-year strategic plan effective 2019–2023 and have now begun to develop new research projects which align with our primary focus areas. We have a renewed organizational vision, mission and overarching philosophy about how we do business. Key elements of our strategy moving forward include:  Re-orientating our primary focus to Industry Sustainability (environmental, social + economic viability issues); within that, specifically increase spending on Environmental Management & reduce spending on Human Health & Nutrition projects  Maintaining a lean management structure; utilizing an Environmental Steering and Technical Advisory Committee to help develop and direct a comprehensive environmental research plan  Co-investing where-ever possible to leverage check-off dollars; maximize total research dollars managed while minimizing overhead as a percent of total budget  Prioritizing project issues that are unique to California dairy; where there is a clear and unmet need We are excited by the change in direction we have planned for the coming years and the opportunity to turn challenges into opportunities and benefits for our California dairy producers. We have a solid, committed staff and an engaged Board. Please see the following pages for our 2018 Corporate Overview, outlining our new focus areas; our proposed budget request from CMAB for the 2019 fiscal year; and a brief overview for each the 2019 research projects portfolio.  Tightening alignment/collaboration with other dairy industry organizations  Taking on a leadership/coordination role in the environmental research area

I look forward to your input and the chance to continually support our dairy farmers.

Thank you,

Denise Mullinax Interim Executive Director, CDRF

CDRF 2019 Proposed Budget Request

Page 2 of 10