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TWENTY-SIXTH SOUTHERN DAIRY CONFERENCE Change In Milk and Cheese Promotion In the South.

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Presentation on theme: "TWENTY-SIXTH SOUTHERN DAIRY CONFERENCE Change In Milk and Cheese Promotion In the South."— Presentation transcript:

1 TWENTY-SIXTH SOUTHERN DAIRY CONFERENCE Change In Milk and Cheese Promotion In the South

2 COVER THIS MORNING: uSouth In Perspective uProgram Overview uChanges uSales Summary

3 PRODUCER/PROCESSOR-FUNDED PROMOTION IS BIG BUSINESS! uProducer $* Local 10¢/cwt = $155,330M NDB 5¢/cwt = 77,675M $232,995M uProcessor $* 100,000M TOTAL $333MM! *1998

4 PRODUCER-FUNDED PROMOTION IS BIG BUSINESS! uPromotion in the South is: wDAIRY MAX wDAIRY FARMERS, INC. wLA DAIRY INDUSTRY PROMOTION BOARD wSOUTHEAST UNITED DAIRY INDUSTRY ASSOCIATION

5 DAIRY MAX

6 LOUISIANA DAIRY INDUSTRY PROMOTION BOARD

7 DAIRY FARMERS, INC.

8 SOUTHEAST UNITED DAIRY INDUSTRY ASSOCIATION

9 SOUTHERN REGION

10 PRODUCER INVESTMENT* IN PROMOTION IS VERY BIG! uDAIRY MAX$7,561,000 uDAIRY FARMERS, INC.$2,261,000 uLA DAIRY INDUSTRY$ 861,000 PROMOTION BOARD uSUDIA$9,963,000 5¢/cwt$10,323,000 GRAND TOTAL$30,969,000 13% of U.S.! *1998 Reported Expenditures

11 CONSUMER MARKET IN THE SOUTH IS VERY BIG! Population (000) uDairy MAX27,363 uDairy Farmers, Inc.15,570 uLA Dairy Industry Promotion Board 4,895 uSUDIA44,951 TOTAL92,779 35% of U.S.! (22.3¢/capita)

12 PROMOTION PROGRAM IN REGION IS VERY BIG! uCommunications wConsumer wIndustry uNutrition Marketing wSchools wHealth Community

13 PROMOTION PROGRAM IN REGION IS VERY BIG! uRetail wIn-store Promotions ÞFame Game ÞChocolate: The Wilder Side of Milk wSales Training

14 PROMOTION PROGRAM IN REGION IS VERY BIG! uProgram Extension wState Fairs wAg-In-Classroom wSports Marketing uSchool Foodservice wCold Milk! wChocolate Milk

15 PROMOTION PROGRAM IN REGION IS VERY BIG! uMedia Advertising wFM: TV Print Outdoor wCH: TV Print

16 CHANGE STARTED TO DEVELOP IN 1999 uVery Big Change! uVery Positive Impact in South!

17 DMI Dairy Management, Inc. (24 Producers) MilkPEP Milk Processors Education Program (20 Processors) UDIA United Dairy Industry Association (10¢) NDB National Dairy Board (5¢) NATIONAL MILK PROMOTION ORGANIZATION STRUCTURE

18 DMI CHECK-OFF COMMITTEE uAppointed by DMI Chairman uComposition wProducers wCo-op management wS/R managers wDMI senior staff uMeetings February-July 1999

19 FROM THE SOUTHERN REGION: uJoe Bavido, Tennessee uCharles Beckendorf, Texas uGerald Feiser, Florida uJack Hardesty, Virginia uBuckey Jones, Mississippi uRobert Shore, Maryland/Virginia uJoe Wright, Florida

20 DMI CHECK-OFF COMMITTEE uVERY, VERY important committee uOutcomes, recommendations will impact the Southern Region

21 EXTERNAL ISSUES uMergers and shift to national/international scope uDairy industry shift to added value product line uBranded approach by processors uCompetitive products and spending uIncreasing attacks by advocacy groups

22 INTERNAL ISSUES uInflationary pressures on check-off since 1983 uCost of marketing uMilk production vs consumer location uLack of consistent impact levels uNeed to enhance dairy farmer, co-op, other dairy leaders involvement in program

23 OVERALL EXPECTATIONS uDairy farmer involvement and control uMore consistent implementation uEqual consumer impact uMore focused plan for 2001 wOne unified marketing plan uMore responsive to industry needs uPositive results

24 THE UNIFIED MARKETING PLAN uProvision will be made to provide the necessary resources (financial, staffing, etc.) in all areas of the country to effectively implement the marketing plan. uOrganizations providing funding for programming will be fully informed as to the utilization of their funds and the results of any programming initiative.

25 The Unified Marketing Plan (cont) uOrganizations provided funding for programming will be responsible to effectively implement the marketing plan. uThe authority of S/R organizations to direct and budget their promotion funds will be maintained.

26 THE UNIFIED MARKETING PLAN(cont) u The marketing plan development and implementation will be a collective effort of the organizations funding the plan. uThe spending objective of the plan will be to provide for an equivalent per capita level nationwide.

27 WHAT DOES IT MEAN?……….. uIncreased, better-funded programs in South! wCheese wFluid Milk u$-To-Market uGreater results! wSales wConsumption

28 Region #1 Region #2 Region #3 Region #4 Region #5

29 REGIONAL DIRECTORS FORUM uMarch 20-21, Atlanta uBoards of: SUDIA Dairy MAX Dairy Farmers, Inc. (FL) LA Dairy Industry Promotion Board uDirectors input to 2001 marketing plan

30 DAIRY SALES/CONSUMPTION Fluid milk: +0.9% Cheese: +2.5% 99 vs. 98

31 SUMMARY uDairy picture remains bright wBoth cheese and milk posting sales increases w1999 improved picture from 1998 uPositive changes coming with 2001 Unified Marketing Plan


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