Organic Valley's new CEO rose from intern to co-op's top job

Shawna Nelson joined Organic Valley in 2005 as an intern.

Next week, the western Wisconsin native will become the cooperative's fourth CEO and the first woman to take on that role.

"When I think about what I bring to the table, it's continuity for our farmers and our employees to make sure that we continue to see the success that we've been seeing," Nelson said in an interview Wednesday. "Organic Valley is uniquely positioned to provide a stable and sustainable opportunity for family farms."

Based in La Farge, Wis., Organic Valley counts about 1,600 organic farmers as owners — many of them in Minnesota — and has roughly $1.2 billion in annual revenue.

Outgoing CEO Jeff Frank is leaving to take the reins at Tennessee-based Monogram Foods. He came to Organic Valley in 2023 after a 25-year career at Hormel Foods, headquartered in Austin, Minn.

"I'm incredibly proud of what we have accomplished together," Frank said in a statement.

The cooperative cut its debt in half, boosted profits and gained top market share among branded organic dairy during his short tenure.

Nelson said her plan is to pick up where he left off.

"Right now we have momentum on our side, and we need to continue that," she said.

Overseeing the cooperative's 800 employees, Nelson said her leadership style is about big-picture thinking and setting clear goals with clear outcomes. Her last role was as executive vice president for membership.

Board President Dave Hardy said Nelson's connection to farmers and employees made her stand out.

"She has shown dedication to the mission and to organic food, and with her vision, will lead our farmer-owned cooperative forward," Hardy said in a news release. "Jeff's achievements were remarkable, and we are enthusiastic about the opportunities ahead."

Nelson will start as chief executive March 28, and she'll be facing a tough market for the food industry overall.

The lingering effects of inflation and economic uncertainty are making consumers and businesses more cautious. As of last week, a half-gallon of organic milk cost $4.56, per the U.S. Department of Agriculture. That's $2.63 more than a conventional option. But the cost of organic milk has dropped 36 cents through the past year.

Those regularly buying organic milk aren't necessarily comparing prices with traditional cartons, however. It's the organic store brands and other competitors that Organic Valley is largely up against.

"We're seeing tremendous growth in organic consumers and the brand," Nelson said. "So we need to make sure that we have enough organic milk out there to satisfy all those consumers."

Overall, fluid milk has faced declining consumption for decades in the U.S., though cheese and butter are trending up. Nelson said it's her job to support organic dairy farms through any ebbs and flows in consumer tastes.

"Why this cooperative exists," she said, "is what fuels me."