A29-Uncasttr Farming, Saturday, April 7,1990
Farmland Dairies Suggests
Processor Promotion Fund
Washington, DC The Presi
dent of New Jersey-based Farm
land Dairies has asked Congress
to consider mandating industry
financed efforts designed to bol
ster milk advertising, promotion
and product development.
Marc Goldman said in testi
mony before panels of both
houses of Cogress that, up until
now, “federal and industry poli
cies have focused almost exclu
sively on trying to examine and
regulate the output of the cow’s
udder while ignoring the input of
the consumer’s mouth.”
Goldman outlined several prob
lems facing the dairy industry.
’ Citing milk’s decline in bever
age market share, Goldman called
for a “Processor Promotion Fund”
which would finance a $5OO mil
lion annual advertising budget.
The fund would be based on a 35
cents per hundred weight of milk
charge to processors.
Since milk’s decline in the
market has come as soft drink
advertising efforts have exploded.
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Goldman feels the dairy industry
needs a boost in promotion of the
product with the best return to the
farmer, fluid milk.
“Milk can and should be posi
tioned as a more fashionable pro
duct ‘of choice’ to the consumer,”
the Farmland president testified.
Another feature of this plan for
expansion of the fluid milk market
would come with a research and
development fund financed by a
nickel-per-hundred weight of milk
charge to the farmer.
This money would be used for
development of new fluid milk
based products to meet consumer
preferences.
“New variations of each brand
of soda and even bottled water
varieties have increased sales and
shelf space. Dairy should be mak
ing the same efforts,” Goldman
said.
Implementation of the proposal
will mean an immediate gain of 10
cents per hundred weight of milk
to the farmer, since farmers now
foot the entire 15 cents per
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hundred weight levy for all adver
tising and promotion.
“In the face of predictions of
falling prices, this should be good
news for the farmer. When sales
of fluid milk products rise from
our promotional and R&D efforts,
all segments of the dairy industry
will profit and we’ll ensure a
bright future for local dairy
farms,” Goldman added.
The Processor Promotion Fund
and research efforts proposed by
Goldman have won support
among industry observers and
legislators. “I’m heartened by the
positive reactions I received from
farmers and members of
Congress.”
Goldman predicted success in
getting his ideas incorporated into
legislation now being considered.
Goldman’s testimony came
before the full Senate Agriculture
Committee on March 7 and before
the Subcommittee on Livestock,
Dairy and Poultry of the House
Agriculture Committee on the fol
lowing day.
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