A24-Uncaster Fanning, Saturday, December 10, 1994
DMI Sets Budget, Prioritizes Spending
ROSEMONT, 111. —The boards
of directors of United Dairy Indus
try Association (UDIA) and the
National Dairy Promotion and
Research Board (NDB) have
approved a Dairy Management Inc.
(DMI) 1995 program budget of
$93.5 million that represents a sig
nificant move toward greater impact
of dairy promotion programs.
UDIA state and regional pro
motion groups will supplement
those monies with up to $6O mil
lion that will extend DMI pro
grams on the local level.
“This budget reflects the ongoing
effort to unite the nickel collected by
NDB and the dime held by state and
regional dairy promotion groups,”
said Herman Brubaker, a West
Alexandria, Ohio dairy producer
and DMI chairman. “It represents
the blending of national and local
promotion to develop and imple
ment successful promotion pro
grams on behalf of dairy farmers."
The 1995 budget addresses six
key business priorities that were
identified in DMl’s strategic plan
ning process: fluid milk, cheese,
butter, industrial uses for milkfat,
exports and maintaining a positive
dairy marketing environment for
dairy products.
These priorities were developed
based on current market trends, how
and where consumers buy dairy
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products, competition from other
products and, perhaps most impor
tantly, the value of each product cat
egory to dairy producer income.
In addition to reflecting a con
tinuing commitment to successful
ongoing programs, the new budget
also represents a significant dollar
savings that can be applied to pro
grams, said Tom Gallagher, DMI
chief executive officer.
“Starting this year, the DMI
joint venture will offer savings of
more than $4 million a year
through lower agency commis
sions, consolidated media buys of
national advertising and reduced
overhead expenses,” he said.
The overhead savings will be
realized through a 17 percent
reduction in staff between 1994
and 1995, and through consolidat
ed meetings of the NDB, UDIA
and DMI boards of directors, Gal
lagher said.
Staff consolidation has been
achieved through the formation of
a new organizational structure
comprised of five groups: New
Business and Technology Devel
opment, Marketing Communica
tions, Strategic Information, Cor
porate Relations and Finance and
Administration.
“We have organized staff with
one major goal in mind—to
increase consumption of dairy
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Export
$1.7 Milli>
Cheese** $
Marketing Environment
Milkfat $3 Million $7.3 Million
The boards of directors of both the National Dairy Board and the United Dairy Indus
try Association have approved of a $93.5 million budget for the 1995 Dairy Manage
ment Inc. program. The program was formed by the two dairy promotion, research and
marketing groups. The budget reflects anticipated spending on six market priorities
that were identified by the organizations fluid milk, export, cheese, milkfat, butter,
and the ‘dairy marketing environment.*
Million
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“ ot thla, 1010,000 haa boon laigatad tar uaa with tiean baby praducla marhattns, primarily within tha taedcarelca mariiat
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ADD-A-RINGS AVAILABLE
Dairy Management Inc. is a
joint venture between the National
Dairy Board and United Dairy
Industry Association that conducts
Dairy Management
1995 Budget
$93.5 Million*
Fluid Milk $39.2 Million
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