Tough Editor’s Note: The following Q. & A. col umn addresses many of the issues the Pennsylvania Dairy Promotion Program (PDPP), the American Dairy Association & Dairy Council Mid East (ADADC Mid East) and Dairy Management Inc.™ (DMI) face in deter mining programs and prod ucts to promote with nation al dairy farmer check-off funds. Scott E. Higgins is CEO, American Dairy Association & Dairy Council Mid East. Pennsylvania Dairy Promotion contracts with the American Dairy Association & Dairy Council Mid East to work closely with Dairy Management Inc.™, the national check planning and management organization, to implement dairy promotion and research programs nation wide. PDDPP represents dairy farmers in 33 counties in western and north central Pennsylvania. As CEO of American Dairy Association & Dairy Council Mid East, dairy farmers regular ly ask me how we determine where our national checkoff funds are spent. I’m getting that question a lot more since we made some key changes m allo cating our promotional dollars this year. Our dairy promotion spending in 1998 is based on some of the most comprehensive market research the industry has ever seen. This research identified which consumer tar- KING CONSTRUCTION CO. Customer Design And Construction 0f... Broiler Houses, Pole Barns, Dairy Barns, Heifer Facilities, Horse Bams, Equipment Sheds, Etc. *■ * '» * Heifer & Beef Barn Featuring Ventilated Curtains * '' 'V 3 Row Freestall Barn WE KING CONSTRUCTION 601 Overly Grove Rd., New Holland, PA 17557 (717) 354-4740 • Phil Van Lieu (Home) (717) 259-9077 Dairy Decisions Don’t Stop at the Farm Gate gets will provide the greatest benefit long-term for the dairy farmer It was a critical piece in determining how to spend our limited resources to ensure we are making the wise, and some times difficult decisions required to increase dairy sales. To help all checkoff partici pants better understand how we developed our national market ing plan for 1998, here are the most common questions (and answers) I’ve been asked in recent months. Q. As CEO of American Dairy Association & Dairy Council Mid East, what are some of the hardest deci sions you’ve had to make recently? A. The biggest question we have faced is deciding which direction to take - where to spend the dairy farmer checkoff dollars - to have the greatest impact in sales of milk. Sometimes farmers become con cerned about the decisions that are made because the products •we ultimately promote may not be the same ones an individual farmer receives the most return on when selling his milk. As an organization responsi ble for leading promotional efforts for dairy products, we knew we needed j;o make our decisions based on information that told us where we could build the strongest markets for dairy products, now and in the future. That’s why we invested in a nationwide survey of con sumers. This was a landmark : V K 7 . UILD IN PA, MD, DE NJ study that helped us clearly define which types of products and target consumers offer the highest growth opportunities. When we saw the results of that study, it was clear that the whole industry could benefit most over the long term by pro moting fluid milk consumption in kids and higher cheese con sumption among certain cus tomers. To do that right and make a difference, it meant we couldn’t put money in other pro grams or we’d be spreading our selves and farmer dollars too thin. Making these tough calls is just like the decisions dairy farmers all the time. When mak ing purchases, whether equip ment or cows, farmers must do their research. They get data, ask questions and solicit input from experts. They never have all the dollars they’d like to have to buy all they need, so they 'have to choose the route they think is best and stay with their choice long enough to evaluate the benefits. Our decision to market spe cific f}airy products is no differ ent. Only with time will we see how it works. As an organiza tion, we’re committed to making the best decisions we can based on facts and sticking with them to build the best future we can for all dairy farmers. Q. What other decisions have made big changes in the way dairy products are promoted? A. Another big decision we 240 Cow, 6 Row Free Stall Barn with Milking Center made recently was to work more closely with the fluid milk processors through the Milk Processor Education Program (MiIkPEP) to promote milk. It was time to make a commitment to work with the processors in a manner that ensures ALL dairy promotion dollars are getting in a coordinated way to increase sales and be competi tive with other beverages That meant we could put $lBl million toward promotions designed to impact milk drinking among young children and pre-teens with dairy farmer-funded “got milk 9 ®” campaign, and reach teens and adults through the processor-funded “milk mus tache” campaign. Part of this coordinated cam paign calls for addressing some of the major fluid milk market ing obstacles, such as packaging and distribution, that can only be handled by the processors We did the research that identi fied the problems and possible solutions Now the processors are taking those solutions to the market We plan to take this coordi nated farmer/processor effort another step forward. The DMI Board of Directors recently decided to begin working with the processors to construct one integrated campaign to promote fluid milk in 1999. Q. What have been the biggest challenges in making those decisions on dairy pro motion? A. In any organization that has nearly 100,000 business USED/REBUILT MOTORS FOR SALE 1 and 3 phase l/2 to 10 HP WRSH6V s r MB MM EQUIPMENT CO, INC '(emceloul SYCAMORE IND. PARK Homs 6 10 SPM ° nCa 255 PLANE TREE DRIVE n „ ~Q „ t 24 Hrs LANCASTER, PA 17603 Closed Sal h Sun 7 Days a Week 717-393-5807x3050 TST FAX 717-291-1534 Cowtown Rodeo I Cowtown , NJ. "Cow Capital of the First Frontier" Delaware Memorial Bridge in Salem County MAY 23 THRU SEPTEMBER Every Saturday Night ★ ★ 7:30 Rain or Shine . Admission $lO Adults ★ ★ $5 Children 12 and under Free Parking ★ ★ ★Refreshment Stands Group Rates Available: Call 609-769-3200 Lancaster Farming, Saturday, June 6, 1998-827 owners, which the dairy indus try does, there are going to be differences of opinion Our chal lenge was gaining regional con sensus on a national plan No national corporation, product or industry can survive with 20 or more different marketing plans. We can’t either Fortunately, since the merger of UDIA and NDB under DMI, we have been able to work together and it’s making a big difference Total dairy sales continue to rise despite increases in production, and surplus inventories are non existent. Q. What do you hope to accomplish long term by making these tough deci sions? A. We believe that if we all work together with a singular focus to our promotion efforts, then we’ll sell more dairy prod ucts. A healthy and growing dairy industry means opportuni ty, a more secure future and potentially a more profitable business for dairy farmers today and tomorrow. Q. What response can you give to dairy producers who have questions about how their checkoff dollars are being spent? A. At ADADC Mid East, we know that dairy farmers are concerned that the checkoff dol lars they invest are being well spent. Our Board of Trustees are dairy farmers, too. We are work ing hard to ensure that farmer dollars are supporting efficient programs and getting results.
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