A3B-Lancaster Firming, Saturday, June 18, 1994
Promotion Groups Joi
(Contlnu*d from Pag* AST)
in the collection of milk promotion
funds from dairy producers.
The joint effort falls short of a
complete merger, in part because
of the laws governing the use of
mandatory dairy promotion funds,
but also because each group
desired to retain its autonomy as
independent boards.
The purpose of the joint effort is
to eliminate overhead costs of both
organizations through sharing
staff, which has already resulted in
the elimination of 10 employees,
and to better coordinate efforts to
achieve the goals of each organiza
tion without redundancy of promo
tion and research.
The joint effort is also seen as a
way for the entire dairy farmer
supported promotion effort to get
the most impact from the funds
spent attempting to maintain and
increase public desire and under
standing of dairy products.
In the news release, it states that
the USDA announced that the plan
did fall within the guidelines of the
Dairy and Tobacco Adjustment
Act of 1983 and the Dairy Promo-
tion and Research Order, which
are the body of laws covering the
producer-driven dairy promotion
and research effort
The new organization consist
ing of 10 members from each of
the existing boards, in effect is to
function somewhat like an execu
tive committee and make recom
mendations to each full board, for
each board to independently
review and approve.
The new board does not have the
authority to dictate what the NDB
approves or does.
However, it is envisioned that
with board members from each
organization working together and
with the same staff that mutual
goals will be able to be met and
more importantly the combined
strengths better support the effort
to position fluid milk and dairy
products better in marketplace.
The chairman of the DMI is
Herman Brubaker, who is also
chairman of the UDIA, and chair
man of the Mid-East UDIA a
UDIA-member promotion organi-
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Vice chairman of DMI is Robert
Giacomini, from Point Reyes Sta
tion, Calif., while Robert Gaebe, of
New Salem, N.D., is secretary, and
Elwood Kirkpatrick, of Novi,
Mich., is treasurer.
In addition to Giacomini and
Gaebe. DMI board members from
the NDB include David Noss, of
Port Royal; Mary Cameron of
Hanford, Calif.; Sylvia Hemauer,
of Plymouth, Wis.; Harold Howri
gan, of Fairfield, Vt.; David Krug,
of Owen, Wis.; Alice Moore, of
Frazeyburg, Ohio; Alvin Sherman,
of Coupeville, Wash.; and John
Sullivan, of-Superior, Nebraska.
From the UDIA, in addition to
Kirkpatrick and Brubaker, are
Claude Bourbeau, of Swanton,
Vt.; James Camerlo, of Florence,
Colo.; Raymond Johnson, of
Schaghticoke, N.Y.; Bucky Jones,
of Smithdale, Miss.; Edward Nier
man, of Concordia, Mo.; Bill
Thornton, of Carlisle, Arizona;
Lyle Tjosaas, of Kasson, Minn.,
and David Weitzer, of Poolesville,
Md.
According to the news release,
the purpose of the joint effort is to
increase overall efficiency. How- 1
ever, a number of changes need to
be made, and the already individu
ally approved 1994 agendas of
each organization have to be car
ried out before DMI comes into
full play.
“... many difficult decisions
have to be made regarding indivi
dual positions. Compounding the
difficulty of such decisions is the
need to maintain the capability of
implementing the respective 1994
work plans of botht he National
Dairy Board and UDIA a series
of programs and activities that
were agreed upon last year and that
must be honored to their fullest.”
In that light, the boards report
that they expect that a transition to
bring about the changes of effi
ciency will be happening over the
remainder of the year with DMI to
be in full function no later than Jan.
1. 1995.
In the meantime, 10 staffing
positions have already been cut.
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freeing up that money to be used
for promotional activities instead.
“More significant' that the
reduction in staff is the revised
structure of the merged organiza
tion. Two staffs have achieved a
blended reporting relationship
which marries the strengths of both
organizations.
“Business priority team (yet to
be established) will be an integral
part of the organization and will
revolve around the business priori
ties of the long-range plan,”
according to the release.
In the meantime, the staff is to
immediately start working from an
organizational transition chart that
uses DMI as the pivotal organiza
tion for communication and direc
tion of acitivies with oversight
from the USDA and NDB on one
hand and the UDIA and its mem
ber organizations on the other.
The formation of DMI is in line
with what is occuring in almost
every other segment of the dairy
industry.
Currently, dairy breed oraniza
tions have been reviewing and
adopting practices of sharing staff
and headquarters, Dairy Herd
Improvement Associations have
been merging and reforming, dairy
cooperatives have been doing the
same.
PDPP Joins
Mid-East UDIA
The news of DMI comes also at
a time when the board of directors
of the Pennsylvania Dairy Promo
tion Program have approved mem
bership under the Mid-East UDIA.
As a member of Mid-East
UDIA, the PDPP board then auto
matically becomes a member of
UDIA and will have representation
on that board, and the new DMI.
According to PDPP Manager
Brian Ross, what it means is that
for the first time, the dairy promo
tion industry in Pennsylvania can;
access marketing and promotion
information unbefore unavailable.
tie into national program materials
of aquaHtyunbefore unaffordable,
and also concentrate on using its
own funds and designing its own
program to better serve its rep
resentative region.
‘The information PDPP now
has access to. I’m not sure I can put
a dollar value on the information
used in planning. It’s invaluable.
“It gives us access to program
ing and market research that
there’s no way we could spend the
money to” access as a totally inde
pendent group, Ross said.
He said anothe benefit “... is that
they have some good people out
there. It’s a good resource.
“As a single promotion prog
ram, we don’t have the money to
do the market studies (that mem
bership will now provide). If we
tried, that’s all we would do and
we wouldn’t have any money left
for promotion.
“When you join with everybody
else in the country you can (get that
information), and you need that
information when you evaluate
how well you’re doing.”
Ross compared the benefit of
being tied directly into a national
resource as similar to what many
newspapers do when they become
subscribers to international news
associations, such as the Asso
ciated Press. Left to providing
world news on a small town news
paper budget, without affordable
news services, most newspapers
would be without story coverage,
since budgets wouldn’t permit hir
ing reporters to travel abroad.
“That’s the way I see it,” Ross
said, “it’s another resource. They
put programs together based on
sound marketing principals and
sound research. And let’s face it.
there’s a cost to that And if we can
do it together, you’re going to
come out ahead.”
According to Ross, each UDIA
or NDB member local promotional
organization will now be able to
access the same type of programs.
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lor mora Information
, J *Eath ot|airtization tbit's a
member, they can pick and choose;
whaf to getinvolve’d in,,
Each one of us will develop our
own programs. We feel we need*
that Not everything we do will be
a DMI program, but we will have
access and know what is going
on”
Up until now, dairy promotion
organizations have come up with
their own ideas, and some have not
been as open to sharing those ideas
with members of different prog
rams. In fact, some boards and
managers of promotional groups
have been secretive about how
much money and what percent of
the budget has been allocated tow
ard a certain promotional program.
Further, many independent
promotion group programs were
approved based almost solely on
the basis of board member’ opin
ions, which vary greatly in scope
and depth of knowledge and
understanding.
With the new program, local
organizations can know what
national programs are underway,
what other groups are doing, have
access to expensive marketing
reports and surveys, and be able to
create higher quality local efforts.
“We’re being outspent 6:1 by
other beverages. The way they
approach marketing is very inte
grated from the national level
down to the local level. We’re
competing with diem head-to
head. What we’re seeing now is a
more integrated marketing
approach within the dairy indus
try,” Ross said.
“It’s a smarter way of doingbus
iness. A better way of doing
business.”
He said the PDPP membership
with Mid-EAST officially goes
into effect January 1995.
“As a manager, it’s paid,
dividends already in knowing
what’s going on nationally, how it
fits in. It’s just laid things out a lot
nicer. It really helps when doing
our own programs to be able to
look at what they’re doing.”
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