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Crystal Farms Division Our Crystal Farms Division, comprised of our wholly owned subsidiaries Crystal Farms Refrigerated Distribution Company and Wisco Farm Cooperative, markets a wide range of refrigerated grocery products directly to retailers and wholesale warehouses. While we do not produce cheese, we operate a cheese packaging facility in Lake Mills, Wisconsin, which processes and packages various cheese products for our Free sex dating in young america mn 55567 Farms brand cheese business and for various private-label customers. The Division has expanded its market area using both company-owned and leased facilities and independent distributors.

The Division maintains a fleet of refrigerated tractor-trailers to deliver products daily to its retail customers from nine distribution centers centrally located in its key marketing areas. Potato Products Division Refrigerated potato products are produced and sold by our wholly owned subsidiaries Northern Star Co. The balance of potato requirements are purchased in the spot market. The Division maintains a high percentage of its contracted supply from irrigated fields and also has geographical diversification of its potato sources. However, weather remains an important factor in determining raw potato prices and quality.

Sales, Marketing and Customer Service Each of our three divisions has developed a marketing strategy that emphasizes high quality products and customer service. An internal sales group at Michael Foods, Inc. A group of foodservice brokers is used by us to supplement its internal sales efforts. Furthermore, the Egg Products Division maintains a small sales group which handles certain food ingredient and international egg product sales. Our foodservice marketing staff executes egg and potato products marketing plans in the foodservice market. A separate retail marketing staff executes plans for national retail egg and potato products brands and Crystal Farms, utilizing additional resources from outside marketing and advertising agencies and consultants as needed.

Customers The Egg Products Division has long-standing preferred supplier relationships with many of its customers. Our customers include many of the major broad-line foodservice distributors and national restaurant chains that serve breakfast. As the largest processed egg producer in the industry, we offer our customers a broad product selection, large-scale multi-plant manufacturing capabilities and specialized service. The Crystal Farms Division has customer relationships with large food store chains that rely on us to deliver a variety of dairy case products in a timely and efficient manner.

The Division serves over 11, retail locations, inclusive of stores receiving products through warehouse delivery. The Potato Products Division leverages existing relationships with national foodservice distributor customers of the Egg Products Division. The Division provides foodservice distributors the convenience of centrally sourcing many different types of refrigerated potato and egg products. Competition All aspects of our businesses are extremely competitive.

In general, food products are price sensitive and affected by many factors beyond our amrrica, including the economy, changes in consumer tastes, fluctuating input prices, changes in supply mm to weather, and production variances. The egg-processing industry is particularly competitive, owing to the large number of national players, the wide variety of product offerings, and the fact that egg products compete maerica the first instance on shell eggs. Cargill Kitchen Solutions, a division of Cargill, Incorporated, is our largest higher value-added egg products competitor. We position Crystal Farms products as an alternative mid-priced brand, operating at price points below Spirituele datingsite nederland brands and above store private-label brands.

We believe Free sex dating in young america mn 55567 are the largest processor and distributor of refrigerated sed products youbg the U. Certain companies, rFee as Ore-Ida Foods, Inc. Proprietary Technologies and Trademarks We use a combination of patent, trademark and trade secrets laws to protect the intellectual property for our products. We ,n patents Frew have exclusive license agreements for several patents americz technologies. Food Safety We take extensive precautions to ensure the safety of our products. Each of our adting also has in place a hazard analysis critical control 555567 plan which identifies critical pathways through which contaminants younng enter our facilities and mandates control measures that must be used to prevent, eliminate or reduce all relevant food-borne hazards.

Each of our divisions has also instituted a product recall 555567, including lot identifiability and traceability measures that allows us to act quickly to reduce the risk of consumption of any product that we suspect may amerkca a problem. We maintain general liability insurance, including product liability coverage, which we yount to be sufficient to cover potential product liabilities. Government Regulation All of our divisions are subject to federal, state and local wmerica regulations relating to grading, quality mm, product branding and labeling, waste disposal and other aspects of their ij. Our Egg Products Division processing plants that break eggs, and some of our other egg processing operations, are subject to continuous on-site USDA inspection.

Crystal Farms cheese and butter products are affected by milk price supports established by the USDA. The support price serves as an artificial minimum price for these products, which may not be indicative of market conditions that would prevail if these supports were abolished. Environmental Regulation We are subject to federal and state environmental regulations and requirements, including those governing discharges to air and water, the management of hazardous substances, the disposal of solid and hazardous wastes, and the remediation of contamination. Our environmental management and compliance programs are led by our Director of Environmental Engineering.

Additionally, we have an ongoing relationship with an environmental consulting firm, and we use other consultants as may be required. As a result of our efforts, we believe we are currently in material compliance with all environmental regulations and requirements. We have made, and will continue to make, expenditures to ensure environmental compliance. For example, in early we completed a new mechanical wastewater treatment facility in Wakefield, Nebraska. We dispose of our waste from our internal egg production primarily by transferring it to farmers for use as fertilizer.

We dispose of our solid waste from potato processing by transferring it to a processor who converts it to animal feed. The Egg Products Division had 2, full-time and part-time employees, none of whom are represented by a union. The Crystal Farms Division employed persons, none of whom are represented by a union. Our corporate, sales, supply chain logistics and information systems groups collectively had employees. We believe our employee relations to be good. Information included on our website is not deemed to be incorporated into this Form K. Sign up for a free swimming lesson assessment!

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