PHOENIX, Ariz. - Through their checkoff, the nation's dairy farmers and importers have the "collective power" to innovate, change and grow sales and trust, said Tom Gallagher, CEO of Dairy Management Inc. (DMI), which manages the national dairy checkoff program.
"While it's difficult to imagine one person affecting demand for their product, through the checkoff they have a voice, a very loud voice that can dominate the marketplace," Gallagher
Dairy farmers and importers can realize this power through their checkoff.
Through its numerous partnerships, DMI
is turning potential sales into actual sales by innovating product, packaging and consumer messaging, Gallagher
made these comments this week at the joint annual meeting of the National Dairy Board
, National Milk Producers Federation
, and United Dairy Industry Association
said the checkoff works to "multiply the checkoff's investment with other people's resources and money, to increase sales and build consumer trust, and ensure homes for increasing dairy production."
Where will those homes be?
offered examples in global and domestic markets.
Export market - Studies by Rabobank and the Bain Company
project that billions of potential dairy sales are available globally.
This includes 1.3 billion pounds of potential sales of UHT milk in China by 2020.
Domestic market - "This is still where the vast majority of your product goes," Gallagher
"The domestic market is not a mature market - there are substantial areas for growth."
Closing that gap is a "great opportunity for the checkoff," he
"We do this by innovating so we can get people - whether in Singapore or Atlanta - the dairy products they want, where they want them and how they want them.
Our goal is to stimulate the industry to turn potential sales into actual sales," he
Sales increase when companies innovate product, packaging and messaging to consumers, he
The checkoff's role is to "get companies to do things they wouldn't have done, or do them faster, and to use other people's resources to meet dairy checkoff priorities."
offered these examples of how the checkoff has turned potential sales into actual sales.
"In the past two years, the Innovation Center's
Food Safety Committee has trained more than 1,200 people at plant level - at no cost to the checkoff," Gallagher
6) USDA Grants to Farmers and Universities - Earlier this year, as a result of the work of the Innovation Center's
Sustainability Council, USDA awarded $10 million to land grant universities to fund on-farm research programs in sustainability.
This is in addition to $110 million in grants the checkoff has received for conservation improvements, research, renewable energy and improved efficiency, Gallagher
7) Nutrition and Product Research - In addition to a $13 million investment from DMI
, the dairy checkoff has brought in another $75 million of funding from government grants, companies and countries.
"That $88 million goes to dairy centers and land grant universities to accelerate important research, such as the value of milk fat in the diet," Gallagher
The models "give students a better product experience, increase sales and create the positive life-long values toward dairy," Gallagher
Partner contributions to expand FUTP 60 have reached $5.5 million.
This includes $250,000 from Domino's several years ago and money from other companies, including Quaker
, Jamba Juice
"These examples are just part of the story of how the dairy checkoff is turning potential sales into actual sales," Gallagher