CA Supply Chain Act

California Transparency in Supply Chains Act of 2010

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) (“Act”) will go into effect in the State of California. The Act requires that companies disclose their efforts (if any) to address the issue of slavery and human trafficking. As a responsible corporate citizen, Producers Dairy Foods, Inc. (Producers) continually seeks to ensure that quality and safety standards are maintained throughout its supply chain in accordance with all applicable laws. Producers works with legal counsel to conduct a thorough review of its product supply chain to evaluate and address any risks of slavery and human trafficking.

Producers conducts audits of its suppliers to evaluate their compliance with its Supplier Code of Conduct, which also addresses issues of slavery and human trafficking; audits may be independent or unannounced. Producers does require that its direct suppliers certify that materials incorporated into any product do comply with the laws regarding slavery and human trafficking of the country (or countries) in which they do business. Furthermore, Producers maintains internal accountability standards and procedures for employees or contractors who fail to meet company standards on human trafficking and slavery. Moreover, Producers does conduct training for its management and those employees who have direct responsibility for supply chain management on human trafficking and slavery, particularly with respect to mitigating risks within its supply chain.

This statement is not intended to create new or additional rights for any third party. Shehadey Family Foods reserves the right to modify this statement at any time.