U.S. dairy leaders call for collaboration
Checkoff efforts paying off in domestic, global marketplace.
The importance of increased collaboration across the dairy community, defending the good name of dairy foods, and pursuing innovative new marketing strategies were key themes this week at the National Milk Producers Federation’s (NMPF) 101st annual meeting, where 800 attendees heard from their policy and promotion organizations on how to create more opportunities for the U.S. dairy industry.
Hosted jointly by NMPF, the National Dairy Board and the United Dairy Industry Association, this year’s event was themed “We Are Undeniably Dairy,” building on a campaign launched earlier this year. NMPF’s leaders, in their remarks to members, stressed the need for America’s dairy companies to do more in collaboration with other marketing cooperatives.
“We have to stop looking at other U.S. cooperatives as if we’re competitors,” said NMPF chairman Randy Mooney in his remarks. “We have to recognize that in a globalized dairy market, our competitors are outside of America’s borders, and we have to work together to fight for a larger share of those markets.”
NMPF’s annual Town Hall event featured presentations from staff on the latest policy issues affecting the industry, including efforts in Congress to address immigration reform, the fight against misbranded dairy imitators, and NMPF’s extensive work this year to achieve a positive outcome in the ongoing NAFTA negotiations. Later in the day, NMPF president and chief execute officer Jim Mulhern discussed the organization’s work this year to improve the dairy safety net in the coming farm bill, as well as its new campaign, Peel Back the Label, which challenges the misleading marketing practices used by certain food companies.
“To surmount the hurdles that we face, and carry these efforts across the finish line, we must stand together as a united industry,” Mulhern said. “Our dairy community is unstoppable when we engage on these important issues.” He said major grassroots efforts will be needed in support of proposed congressional reforms to immigration laws. He also discussed how NMPF will be working more closely in the coming year with dairy processors on farm policy improvements.
Keys to industry’s future
The checkoff’s mission of growing sales and building trust is also key to assuring a prosperous future for the dairy industry, Dairy Management Inc. (DMI) CEO Tom Gallagher said during the meeting.
He showcased how the checkoff has grown per capita consumption through several key areas, including exports and foodservice partnerships.
Additionally, he shared how DMI’s “go-to-market” approach proactively works in partnership with the supply chain to expand dairy markets and helps to fill a market need. He said DMI, which oversees the checkoff, allocates funds to stimulate unmet demand through product development, innovation and marketing.
“Our job is to figure out where to use resources in the market chain,” Gallagher said. “Unmet demand is the key. Demand is not the function of what people buy – it’s the function of what we offer them. If we offer innovative products, whether it’s global or domestic, we know we can increase consumption.”
Gallagher said, according to NMPF, U.S. per capita dairy consumption reached 591 pounds in 2016 – up from 566 in 2010 – and credited cheese and butter as the primary drivers for this growth.
Cheese reached its highest consumption level ever in 2016, fueled by at-home use and out-of-the-home ingredient use, especially at foodservice. Per capita cheese consumption in 2016 was 36.3 pounds.