CEO of Dairy Management Inc. (DMI) Barbara O’Brien is updating the checkoff strategy with a new organisational structure, a new three-year plan and budget, and results that can be seen right away. This will help farmers and importers in the long run.
O’Brien’s spoke to more than 750 dairy farmers and industry representatives at the 2022 joint annual meeting of the United Dairy Industry Association, National Dairy Promotion and Research Board, and National Milk Producers Federation, which was held outside of Denver on Oct. 25 and 26.
The DMI’s priorities are based on the acronym ASPIRE, which stands for driving action through sustainability, people, innovation, reputation, and exports. Even though these are not new areas of work, O’Brien, who became CEO in October 2021, said they provide a way for the checkoff as a whole to focus and reach the same goals. She said that the priorities are based on what farmers and other business leaders told her during her first 100 days as head of DMI.
O’Brien took advice from farmers and turned it into requirements for the 2023-2025 unified plan. This lets the checkoff adapt to unknowns in the market and changing consumer expectations, such as:
Programming that is less complicated and more focused, so that more can be done with less.
Clearly stated goals and responsibilities
A focus on projects that have the biggest effects on the dairy industry
Strategies that work with and through the value chain and other partners for more impact
A very strong category
Even though the world is complicated and changing quickly, O’Brien said that the future of U.S. dairy is bright. She used data to back up her claim, such as the recent USDA per-capita consumption numbers of 667 pounds, which is 15 pounds more than in 2019. She said that 96% of U.S. homes have some kind of dairy, and that for the last two years, dairy has been the most popular food aisle at stores, beating out snacks, carbonated soft drinks, sport and energy drinks, and meat. She also talked about how the U.S. Dairy Export Council, which was started with money from a checkoff, has been able to help sell about 18% of U.S. milk abroad.
“Customers and consumers around the world are voting with their dollars to have dairy foods and drinks on their menus, as a key ingredient in their products, and in their homes,” O’Brien said.
She also talked about other good things about the checkoff from the past year, like a new partnership with Raising Cane’s to help chicken and cheese grow in the fast-growing QSR channel. O’Brien said there was a lot of room for growth because the top five U.S. chains make about 3 billion chicken sandwiches every year, but only about 2.3 billion of them have a slice of cheese. Gen Z people like to go to Raising Cane’s, and the partnership will also focus on drinks, sides, and sauces made with dairy.
Other important events in 2022 include:
Scientists from the dairy checkoff came up with Taco Bell’s new Freeze products, which use real dairy creamer, and the Grilled Cheese Burrito, which is back on the menu.
Putting together a group of social media influencers whose reach or number of followers is greater than that of any major U.S. newspaper or TV station. One of the things they did was start the recent butter board craze with a TikTok video that has been seen by millions of people.
A partnership with gaming and YouTube star Jimmy Donaldson, also known as MrBeast, who has more than 100 million followers and started a contest with his thoughts on farm stewardship from a recent visit to a farm.
Dairy sales on Amazon have grown by 18% in the last 52 weeks. DMI has worked with Amazon for free for the past four years and continues to ask checkoff experts for advice on marketing and product insights.
Undeniably Dairy’s “Reset Yourself with Dairy” campaign is back for its second year. It is aimed at Gen Z consumers. The work includes funny videos that have been seen more than 255 million times on Gen Z channels. This helps make the health benefits of dairy more well-known.
Investing in the checkoff sets the stage for the next 10 years.
O’Brien said that the plan for the checkoff will “double down” on research by putting more money into health and wellness, product research and development, and environmental science. This commitment led to the announcement earlier this year of a 5-year partnership with the well-known Mayo Clinic. O’Brien said that this partnership adds to the decades of research done by the National Dairy Council.
The checkoff is working with scientists, doctors, and others from the Mayo Clinic to do research on milkfat and dairy’s benefits for chronic diseases. They are also looking for new ways to make claims about immunity, calm, energy, and digestive health.
O’Brien said that digital technology and data are also becoming more important in business. The checkoff is digitising its health and wellness science and using artificial intelligence and new social listening technology to improve marketing communications and media buying.
O’Brien said that another focus of the checkoff is on sustainability and farmers’ long-term commitment to taking care of the environment. DMI’s work includes more than 140 research projects on farms, both big and small, that are meant to keep building proof. Continued third-party and partner investment includes more than $4 million in the Greener Cattle initiative, a multi-national study of the most promising ways to cut enteric emissions. In addition to the $10 million from the Foundation for Food and Agriculture Research (FFAR), there is an additional $13 million from partners in the Dairy Soil and Water Regeneration programme. This programme is focused on managing soil and making products from manure.
O’Brien said, “This work is all about U.S. dairy as a solution for the environment that is backed by science and proof and is good for farmers, markets, and society economically.”
O’Brien said that her first year as CEO has been good, and she and the rest of the DMI team are excited about the new direction of the organisation.
“It’s been a great time to be DMI’s CEO, and it’s been a great chance for farmers to give us the power to look at the checkoff business as a whole to make sure we stay strong and have an impact for the next ten years,” she said. “The support I’ve gotten from farmers all over the country in my first year has really made me feel honoured and motivated.
