Over the past year, we continued investing in practical, incremental improvements across our operations because we know lasting change in sustainable dairy production happens one project, one site and one team at a time.

Key achievements from 2025 include: 

• The formal opening of Hilmar’s new processing facility in Dodge City, Kansas, designed with advanced water reuse and energy-efficient systems to help lower our greenhouse gas intensity over time.
• Continued water and energy efficient projects at our Dalhart, Texas, operations, including initiatives that build on our long-standing efforts to recover and reuse water multipole times in our processes.
• Upgrading equipment in California to reduce natural gas consumption and lower greenhouse gas emissions by approximately 1%, while maintaining the high quality our customers expect.

These efforts are all part of a broader approach: integrating environmental responsibility into everyday operations while continuing to reliably deliver high-quality cheese and whey ingredients to customers around the world.

As one of the world’s largest producers of American-style cheese and high-quality whey ingredients, we understand both the essential role dairy plays in nutrition and feeding a growing population and the responsibility we share to help reduce its environmental footprint.

In 2025, we continued to:

• Advance water stewardship and water circularity through conservation, reuse and reclamation projects.
• Strengthen energy management practices and pursue opportunities to increase efficiency and lower emissions.
• Collaborate with dairy farm families to support responsible agriculture and align with industry effort to achieve Net Zero by 2050.

By partnering across the value chain, we can help make sustainable dairy production more achievable and scalable for the future.

Sustainability also means investing in the people and communities behind our products.

Across Hilmar, our teams continued to improve safety, quality and operational performance while fostering a culture rooted in teamwork, integrity, excellence and continuous improvement, the values at heart of The Hilmar Way

In the communities where we live and work, we continued to support education, charitable giving, employee volunteerism and community partnerships. These efforts reflect our purpose of Improving Lives Together, both inside and outside our facilities.

As our Chief Executive Officer, Greg Schlafer, shares in this year’s report, sustainability is not a separate initiative, but a core component of how Hilmar operates and creates value.

Guided by our purpose, vision and values, our teams look for better ways to run our operations, support customers, partner with dairy farm families and contribute to local communities every day.

We’re encouraged by the progress we’ve made and acknowledge that the journey is ongoing. Our focus remains on continuous improvement, transparency and innovation as it works toward a more sustainable future for dairy production and food manufacturing.

This overview only scratches the surface of the work happening across our network. In the full 2025 Corporate Sustainability Report, you’ll find deeper detail on:

• Water stewardship and water use
• Renewable energy and energy efficiency
• Greenhouse gas reduction and climate goals
• Employee safety, engagement and culture
• Community partnerships and impact