Voluntary and Open Membership

In May 2009, Ralph Dietrich, Chair of the Gay Lea Foods Board of Directors announced that effective for the start of Gay Lea’s 2010 fiscal year the following principles will be in place for the Gay Lea Foods membership model.

• Membership will open for both dairy producers and any interested investors.
• The $17 share value for both member producer shares and investor shares will remain the same.
• The $1 share value for patronage shares will remain the same.
• To hold a fully paid up investor membership, the minimum investment requirement will remain at 100 investor shares. To hold a fully paid up producer membership, the minimum investment level will remain at 3 member producer shares per 1,000 litres of annual milk production.

Dairy producers applying for a new producer membership must fulfill one of the following two commitments:

1. Between November 1 and June 30 of a fiscal year, a producer can apply for membership in Gay Lea Foods by completing the following:
   • Submit the necessary paperwork to apply for membership.
   • Purchase upfront by cheque a minimum of 10% of their estimated minimum investment.
   • Commit to deduct a minimum of 1% of their gross milk cheque towards the purchase of member producer shares (deduction not required if producer purchases 100% of their estimated minimum investment upfront by cheque).
2. If a producer does not want to purchase upfront the minimum 10% of their estimated minimum investment, they can apply for their membership to become effective at the beginning of a new fiscal year (approximately Oct. 1) by completing the following:
   • Submit the necessary paperwork to apply for membership.
   • Commit to begin deducting their first 1% gross milk cheque deduction on their November 15 milk cheque (for October’s milk). Deductions of more than 1% gross are acceptable.
   • Gay Lea Foods must receive the necessary paperwork and commitment from a producer no later than October 31 in the same fiscal year that the membership is to be effective.

These changes are for all new producer members to the co-operative. As an existing member of the co-operative, your membership requirements remain unchanged. If you know someone who is interested in a Gay Lea membership please contact a Member Relations Representative.

*Co-operative Principle #1 states: Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Producer Membership Options and Examples:

OPTION 1

Minimum of 10% down payment + minimum 1% of gross Milk Cheque Deduction

If you choose this option to apply as a Gay Lea Foods Producer Member, you must have the paperwork in place between November 1st and June 30th of the current fiscal year. If you currently ship 500,000L of milk per year, your minimum requirement in the co-op as a producer member would be: 500,000L x 3 shares/1,000L = 1,500 shares x $17/share = $25,500.

Based on $0.70/L gross milk price, your approximate deduction would be $300.00 per month PLUS a minimum 10% down payment ($2,550.00) at the time of application, which would be invested towards your minimum requirement. The monthly milk cheque deduction would continue until you reach your minimum required investment of 3 shares/1,000L of milk shipped (1,500 shares). The minimum 10% down payment will require proof of production at the time of the application. If your future milk production increases above 500,000L, your minimum requirement would increase relative to that production.

OPTION 2

Minimum 1% Gross Milk Cheque Deduction (With no down payment)

If you choose this option to apply as a Gay Lea Foods Producer Member, you must submit the paperwork by no later than October 31st of the current fiscal year. If you currently ship 500,000L of milk per year, your minimum requirement in the co-op as a producer member would be: 500,000L x 3 shares/1,000L = 1,500 shares x $17/share = $25,500.

Based on $0.70/L gross milk price, your approximate deduction would be $300.00 per month. The first deduction must come off the November 15th milk cheque (for October’s milk).

Investor Membership

Purchase a minimum upfront

Applications for Investor Membership will be accepted beginning October 4, 2009. To become an investor member, you are required to purchase upfront a minimum of 100 Investor Shares (100 x $17/share = $1,700).

All memberships must be approved by the Board of Directors.

If you have any questions, please contact Member Relations.