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Finning, Saturday, Novambar 26, 1994
Dairy
ROSEMONT, 111. Fueling
new momentum for product de
mand by partnering with leaders
from farm to marketplace is the
thrust behind an aggressive, five
year industry-wide marketing plan
announced by Dairy Management
Inc.
Dairy Management Inc. (DMI),
a joint venture of the National
Dairy Board (NDB) and United
Dairy Industry Association
(UDIA), will work with state and
regional promotion groups to ad
vance six priorities:
• Halt the decline in total per
N.Y.-N.J.
ALBANY. N.Y.-
Dairy farmers who sup
plied regulated milk
dealers (handlers) under
the New York-New Jer
sey marketing orders
during October 1994
will be paid by handlers
on the basis of a uni
form price of $12.97
per hundredweight
(27.9 cents per quart).
The price for the corre
sponding month last
year was $12.83 per
hundredweight.
Market Administra
tor Ronald C. Pearce
said that the price was
$12.85 in September
1994. The uniform
price is a marketwide
weighted average of the
value of farm milk used
for fluid and manufac
tured dairy products.
A total of 11,560
dairy farmers supplied
handlers regulated
under the New York-
New Jersey marketing
orders with
947,875,173 pounds of
milk during October
1994. This was an
increase of 4.4 percent
(about 40 million
pounds) from last year.
The gross value to dairy
farmers for milk deliv
eries was
$124,120,022.65. This
included differentials
required to be paid to
dairy farmers but not
premiums, deductions
authorized by the
farmer, or assessments.
Regulated handlers
used 419,152,677
pounds of milk for
Class I, 44.2 percent of
the total. This milk is
used for fluid milk
products such as
homogenized, flavored,
low test, and skim
milks. For October
1994, handlers paid
$14.15 per hundred
weight (30.4 cents per
quart) for Class I milk
compared with $13.59 a
year ago.
Handlers used
151,167,355 pounds of
milk for Class II prod
ucts, 15.9 percent of the
total. Class II products
include fluid cream,
eggnog, ricotta and cot
tage cheeses, ice cream,
and yogurt. Handlers
paid $12.15 per hun
dredweight for this
milk.
Milk used to manu
facture Class 111 prod
ucts including butter,
Management Inc. Announces Marketing Plan
to position itself as an industry to the CEO as DMI general man
marketing resource for increasing agcr, taking the lead in strategic
milk sales.” he said. planning and evaluation, product
To ensure nationwide involve- research, nutrition research and
mcnt, the DMI board announced education, issues anticipation/
the formation of a board commit- management, corporate public re
tee, chaired by Bob Giacomini, lations and industry relations.
California dairy producer and ‘Tom and Cynthia worked hard
DMI vice chairman, to work out and long in sizing up each other’s
the details for involving non- overriding strengths prior to the
UDIA members in the industry- recommendation.” said Giacom
wide plan. ini. ‘Tom has a solid business
The DMI board has expressed a head and is a bottom-line guy, and
strong commitment to reaching this fits with managing staff and
out to non-UDIA members and resources. Cynthia has demon
seeking their participation in the strated that she can bring smart,
national effort. “Our minds are creative people together and suc
open and our interest clear to seek cessfully lead them to strategically
opportunities to allow all units to making a difference for the indus
participate in leveraging all our re- try.”
sources,” said Giacomini. The DMI board also reviewed
Until this new committee can recommendations regarding re
work with the non-UDIA mem- sources necessary to implement
bers to address their involvement, the strategic plan,
the DMI board recommended that “A Washington marketing pre
non-UDIA members have access sence is prudent in light of the is
to programs at member unit cost sues the industry faces and the br
and be invited to participate in all fluence that organizations housed
meetings. there have on the marketing of
The DMI board unanimously milk and dairy foods,” Brubaker
approved a two-person executive said. In addition to the Washing
office at the recommendation of ton office, a centrally located of
chief executive officers Cynthia fice will also be maintained in
Carson of NDB and Tom Gal- Chicago,
lagher of UDIA. Gallagher will The strategic plan was develop
serve as DMI chief executive offi- ed through a joint planning pro
cer, managing all staff and finan- cess including NDB and UDIA
cial resources, market research boards and staffs, along with
and marketing. Carson will report UDIA member managers and their
staffs.
capita consumption of fluid milk
and restore total fluid growth to
equal population growth.
• Continue to expand per capita
cheese consumption.
• Expand per capita consump
tion of butter.
• Utilize 240 million pounds of
milkfat through new uses.
• Make non-subsidized exports
a significant and ongoing business
for U.S. dairy product suppliers.
• Create/maintain a positive
dairy marketing environment to
enable advertising, promotion and
research programs to achieve
Milk $12.97
cheese (other than ricot
ta and cottage cheeses),
and whole milk powder
totaled 369,390,520
pounds (39 percent of
the total). Handlers paid
$ 12.35 per hundred
weight for this milk.
Milk used to manu
facture nonfat dry milk
(Class 111-A) totaled
8,164,621 pounds (.9
percent of the total).
Handlers paid $10.42
per hundredweight for
this milk.
V/itnr lumm Amcu
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“This organization is charting a
bold, fresh approach to dairy mar
keting with one thought in mind
making a major difference in
milk sales, ** said Herman Brubak
er, Ohio dairy producer and DMI
chairman.
"This plan attempts to acceler
ate the industry’s movement to
ward becoming more customer
driven by challenging the status
quo and facilitating the changes
necessary to capitalize on the de
mands of the marketplace. The
new enterprise is moving quickly
The uniform price is
based on milk contain
ing 3.5 percent butter
fat. For October 1994,
there was a price differ
ential of 6.3 cents for
each one-tenth of one
percent that the milk
tested above or below
the 3.5 percent stan
dard.
All prices quoted are
for bulk tank milk
received from farms in
the 201-210 mile zone
from New York City.
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Apple Creek, OH 44606
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15357 Georgia Rd.
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Christiana, PA 17509
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Millersburg, OH 44654
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Kinzere, PA 17535
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59547 CR3S
Middlebury, IN 46540
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460 Woodbum Hill Rd.
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