Nestlé pledges $10 mil., becomes DMI’s first Net Zero ‘legacy partner to transform dairy’

By Sherry Bunting, Farmshine, October 23, 2020

CHICAGO, Ill. – On October 9, Dairy Management Inc (DMI) and Nestlé made big announcements. DMI’s Innovation Center for U.S. Dairy officially unveiled the Net Zero Initiative it calls “an industry-wide effort” to meet 2050 goals for carbon neutrality, optimized water usage and improved water quality.

On a DMI media call last week, Innovation Center chairman Mike Haddad and others discussed the Net Zero Initiative and the simultaneous announcement of a $10 million commitment and multi-year partnership by Nestlé to support the “scaling” of “access” to environmental practices and resources on farms across the country.

As clarified by Karen Scanlon, senior vice president of sustainability initiatives for DMI, this investment by Nestlé will have a “farm and field focus” and represents a five-year partnership.

Haddad suggested that other companies are looking to invest, including companies from the financial and technology sectors.

Although the press statements talk about the Net Zero Initiative (NZI) as supporting “access” for all farms of all sizes and geographies to meet the industry’s 2050 climate and environmental goals, the details are still sketchy in how this all will translate at diverse farm and industry sector levels.

California dairy producer and DMI vice president Steve Maddox noted that when times are good and producers have a good margin, they like to experiment and invest and test new ideas. He acknowledged that it’s “hard to go green when you’re in the red.”

Maddox said for 2050 goals to be met, technologies and practices have to positively impact the dairy’s bottom-line.

Krysta Harden, executive vice president of global environmental strategies for DMI and former undersecretary of agriculture under Tom Vilsack, noted that the Net Zero Initiative helps with this “affordability.” NZI will identify the pilot farms and test the ideas, the technologies and practices on those farms to show what pays.

She said Nestlé’s $10 million investment make “Nestlé our first legacy partner to come on board to really transform dairy.”

Harden explained that the funds will be used in three key areas: Foundational resources, new products (clarified as manure products), and on-farm practices.

Haddad noted that the financial and tech sectors are reaching out also, and Nestlé has pledged its expertise as well as the financial investment.

“We need capital and technology to do this,” he said. “We also need the experience and expertise of others. We believe Nestlé’s commitment is huge and hope it is the first of several.”

While the nuts and bolts are not clear, it does appear that investments, such as the $10 million from Nestlé, will help pay for the testing and development of technologies and practices on pilot farms.

What happens around that piece is called “scaling up” and “providing access” and “improving profitability,” but without a disclosed road map of how that ‘scaling’ will look to the rest of the non-pilot farms in the U.S.

“We are already talking to pilot farms,” Harden acknowledged. “We like to say that every farmer can do something, and they are already doing a lot. We talk about this at DMI board meetings to see where we are at, and the hands go up, we see that our farmers are already working on the list of things. They are already committed.”

Scanlon gave a little bit of a road map when she noted that there are three “buckets” that the Net Zero Initiative will need investment in order to address the barriers to meeting the 2050 goals:

1) Data and research gaps, the need for more dairy research with quantifiable outcomes,

2) Affordability, the need for economically viable technology and practice solutions so that farmers can make the choices that drive industry success, and

3) Accessibility, to reach scale across the diverse industry in terms of dairy size and geography, to enable farms of all sizes to access the technology and have the support to implement it successfully.

Harden explained there is “no one solution,” that technologies and practices will have to be “adapted” and “make sense.”

She listed the four areas Net Zero practices and technologies are divided into: 1) Feed production, 2) Manure handling and nutrient management, 3) Cow care and production efficiency, and 4) On-farm energy efficiency and renewable energy

According to Harden, “Net Zero is already possible on certain farms. The purpose of NZI is to expand our knowledge and adoption of policies to reduce GHG and water use.”

A bit of history

Haddad, chairman of Schreiber Foods, has been chairman of the Innovation Center for U.S. Dairy for two years and a member for 10. 

He explained how the Innovation Center got started first as a “globalization initiative” followed by safety and social responsibility initiatives, but that “sustainability” was one of its main active committees from the start in 2008. Haddad said that the Sustainability Committee has operated 12 years under the continuing leadership of its chairman Dr. Mike McCloskey of Select, Fair Oaks and Fairlife.

“The Innovation Center for U.S. Dairy was created by DMI (in 2008-09) at the urging of farmers,” said Haddad. 

“DMI wanted to bring together a forum of many stakeholders — dairy farmers, processors, NGOs (like WWF), retailers and foodservice — to function as a voluntary board. Farmers wanted to be connected at the middle level to collaborate with those that sell milk and milk products,” Haddad related.

Today, 27 companies have representation on this board, and over 300 companies are “engaged in the journey, along with our shoppers, citizens and neighbors around the world,” he said.

Globalization first initiative

“It started initially with a globalization initiative,” Haddad explained, adding that even though the current talk in the industry since Covid is about “re-shoring” and local, “we do not exist in an island,” he said.

According to Haddad, the original globalization initiative of the Innovation Center for U.S. Dairy back in 2008-09 started with the Bain Study. Back then, the Bain Study was touted as showing opportunities for trade.

However, Haddad said Wednesday that the Bain Study — as part of the original Innovation Center globalization initiative — “showed us that we could be informed and enlightened together and raise all boats together pre-competitively.

“The globalization study showed we need to go together. This got into our blood that we can work together on certain platforms and go farther, together than we can go alone,” he said.

By 2015-16, the Innovation Center for U.S. Dairy had evolved into a “social responsibility platform,” and Haddad said food safety was among the next pieces. Once the industry could see how to collaborate on food safety, the “pre-competitive” techniques were applied to animal care and sustainability.

In other words, the members of the Innovation Center for U.S. Dairy wanted the industry to first “go together” toward globalization, then food safety, now animal care, for which FARM is the driver, and sustainability, for which Net Zero Initiative is the driver.

“We don’t want to compete with each other in these areas,” said Haddad. “We should only compete on the attributes of our products. We should not be saying ‘mine is safer than yours’ (or more sustainable than yours), because that undermines confidence and trust in dairy.”

Haddad explained that the Innovation Center works closely with National Milk Producers Federation (NMPF) and International Dairy Foods Association (IDFA).

Part two continues next week in Farmshine.

DMI integrates the dairy industry through its unified marketing plan and the various nonprofit organizations, alliances, committees and initiatives — beginning with the Innovation Center for U.S. Dairy. The IC was formed in 2008-09, launching the industry’s structural drivers beginning with the globalization initiative (Bain Study 2008), then social responsibility (FARM program 2015) and now ‘sustainability’ (Net Zero Initiative 2020). Graphic by Sherry Bunting, source USdairy.com

Food system transformation: DMI at globalization table where big players plan Great Re-set ‘land grab’ targets

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By Sherry Bunting (Updated as published in Farmshine, Oct. 1, 2020)

Most of us don’t even know what’s being planned for our futures. Big tech, big finance, big billionaires, big NGO’s, big food, all the biggest global players are planning the Great Re-set (complete with land grab and animal product imitation game) in which globalization is the key, and climate change and ‘sustainability’ — now cleverly linked to pandemic fears — will turn the lock.

The mandatory farmer-funded dairy and beef checkoffs — and their overseer USDA and sustainability partner World Wildlife Fund (WWF) — have been at this global food system transformation table since at least 2008 when DMI’s Innovation Center for U.S. Dairy was formed and put together the Sustainability Alliance for U.S. Dairy.

DMI says there is a difference between WWF-US and WWF-EU, but it’s really one big thing connected to these same global corporations that are driving the emerging government policies of the Great Re-set — like the Green Deal in Europe and the Green New Deal in the U.S.

DMI leaders say WWF is ‘helping’ farmers by providing a seat at the table to be sure sustainability will be profitable.

It will be profitable, for sure, but for whom?

The answer to that question came into focus after listening to more than a half dozen livestreamed sessions of the World Economic Forum’s Sustainable Development Impact Summit Sept. 21-24 as part of the Great Re-set.

More light was shed on the ‘we will pay you’ carrot-before-club concept of ‘land banks’ in the U.S., when listening to former Vice President Joe Biden answer a farmer’s question about environmental regulations during CNN’s Town Hall in Moosic, Pennsylvania Sept. 18.

More illuminating yet is the flurry of global food company press announcements in recent days as they position themselves ahead of the Sept. 30 United Nations Biodiversity Summit in New York City. That’s where global leaders and the global business community will adopt targets to “restore” (re-wild) 30% of the earth’s land as Protected Areas by 2030 and 50% by 2050.

That’s half the world’s land by mid-Century, and leading this charge is WWF, along with companies like Walmart, Amazon, Nestle, Danone, Unilever and others involved in checkoff-funded pre-competitive collaboration through DMI’s Innovation Center for U.S. Dairy.

According to Survival International, an organization defending indigenous people and smallholder farms, these 2030 and 2050 sustainability targets of the Great Re-set “will be the biggest land grab in world history and will reduce hundreds of millions of people to landless poverty.”

The new narrative is that this massive target of land transfer is needed not just to “restore a trillion trees” as carbon sinks to cool the earth, but to end the Covid-19 pandemic and prevent future pandemics by creating more separation between humans and animals to avoid zoonotic disease transfer. These land targets call for a “critical overhaul of the food production system,” according to the summit agenda.

Even as California wildfires burn out of control — collectively emitting more GHG than tens of millions of cars annually and largely influenced by environmental policies that have led to neglect of the forests in terms of land management — re-wilding of more land is big on the Great Re-set agenda.

Meanwhile, as consumers prioritize health and economics over the ‘planetary diets’ hatched by the Silicon Valley billionaires funding fake meat and fake dairy, the ‘biodiversity’ angle on these land targets is the new hook linking pandemic fears to climate action and the UN Sustainable Development Goals (SDGs) through diet.

Some of the themes are familiar in dairy industry discussions about DMI’s Sustainability Framework and Net Zero Initiative — both rooted in the Great Re-set they have been participating in planning for over a decade through alliances with WWF and its World Resources Institute doing the benchmarking for the global corporations driving it.

(Remember Starbucks’ announcement earlier this year? They are a DMI partner, and so is WWF, but after their WRI benchmarking, they announced ‘moving consumers away from dairy and toward plant-based options’ in their coffee beverages as the biggest of four areas of action! They even borrowed the ‘flat white’ name reserved for their lattes made with whole milk instead of default reduced fat milk to launch a new signature almond-‘milk’ latte. Talk about confusing the customer into making a choice desired by the diet-and-sustainability-elite-ruling-class.)

During a recent DMI ‘open mic’ call, CEO Tom Gallagher stated that these are the rules today and globalization is the world we live in. On the same call, president Barb O’Brien revealed dairy checkoff’s 13-year alliance with Walmart, a two-year partnership with Amazon, and on the Net Zero Initiative, she frequently mentioned Nestle, Unilever, Danone and Starbucks.

What do they all have in common?

They are the key global brands ramping up into plant-based and cell-based dairy and meat alternatives, and they are among the top global corporations that have set goals to ‘move consumers to planetary diets’ and to change the way food is produced.

During the WEF livestream Tuesday Sept. 21 on 2030 land targets, Walmart’s Chief Sustainability Officer Kathleen McLaughlin described it this way:

“What we are talking about is massive transformation of societal systems — financial services, retail consumer goods, the things we bring into our home to eat or to wear or to decorate our homes with. Changing the way all of that gets produced is a massive systemic undertaking that will take business action. It will take philanthropy. It will take government action,” she said.

McLaughlin cited Danone, Nestle and Unilever as the suppliers “in the lead” on this.

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“This is total ecosystem transformation,” said McLaughlin. “Our suppliers have stakeholders wanting this, and if there isn’t alignment among their stakeholders (for instance dairy), they are glad to be able to say: ‘Hey, Walmart wants us to do this so we have to do it.’ We help them figure out what to do and how to go faster on some of these things.”

She referenced Walmart’s Sept. 18 announcement that it will be net-zero by 2040 and will become a “regenerative” company “restoring” land to meet 2030 and 2050 targets.

“We will work at the landscape level with suppliers and philanthropy to restore 50 million acres of land — to change the way it gets managed, to decarbonize the supply chains, and change the way consumer products work in retail, as an industry, with traceability and transparency tools,” said McLaughlin.

She talked about Walmart having projects already for all three scopes of the Environmental, Social and Governance reporting (ESGs) that are being mainstreamed into financial markets in 2021. This is how the flow of capital will go to companies progressing toward these global targets.

McLaughlin talked about working with WWF to implement more standards and more certifications for suppliers and to move away from “segregated commodities” to “blended approaches” that use global traceability and transparency systems and document ESG reporting and progress on the SDGs each step of the way.

“It is clear we are exceeding boundaries of the planet, and as a company that sells food and apparel made of cotton, the business case is clear for the SDGs, said McLaughlin.

Asked what is Walmart’s ‘why’? McLaughlin revealed: “The benefits are clear: cost reductions, supply security, risk management, so that’s why we’re doing it.”

livestream screenshot

Speaker after speaker and company after company throughout the WEF Forum talked about how all business sectors will be collaborating on these global ESGs (capital) and SDGs (land).

Kristina Kloberdanz, Chief Sustainability Officer for MasterCard even talked about using their platform of over 3 billion customers interacting with retailers and merchants to “inform, inspire and enable consumers to take action, themselves, against their own carbon footprint.”

What is clear is that consumers will be led to where global companies want them to go. These global business leaders stated that “moving consumers” (not just suppliers) toward these goals is what they are working on.

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Bank of America’s CEO Brian Moynihan (top, center), who is also chair of the International Business Council, sat with heads of the four big accounting firms in one of the WEF livestream sessions about the launch of Stakeholder Capitalism Metrics, which they affectionately refer to as “accountant as activist” or “warrior accountants.”

Moynihan said that financial accounting for the investment sector — even lending — will be predicated on progress toward carbon-neutral and carbon-negative goals.

A glimpse of how land targets would be set in the U.S. was seen in former Vice President Biden’s response to a farmer’s question at the CNN Town Hall in Pennsylvania about environmental regulation, referencing the Obama-era WOTUS rules and the Green New Deal.

“We will have land banks,” said Biden. “You will be paid to put your land in land banks to create open space and be in a position where you will be paid to grow certain crops we want you to grow to sequester carbon from the air.”

He talked about his home state of Delaware with a $4 billion poultry industry and stated that, “manure is a consequence of chickens and it is polluting the bay. But we recently found out we can pelletize the manure and remove the methane,” said Biden.

Though Biden states that his climate policy is not the Green New Deal, the overlaps are there. The Green New Deal includes such references to “land banks”, where government will purchase land from “retiring farmers” and make it available “affordably to new farmers and cooperatives that pledge certain sustainability practices.”

Analyses of the Green New Deal’s land policies suggest rented ground — which comprises up to 40% of agricultural land — would be targeted first because environmentalists assume the active farmers renting this ground don’t care as much about its stewardship because they don’t own it.

Landlords who rent ground to active farmers and ranchers for cropping and grazing are easy targets for such a plan.

However, on the production side, rented ground is incredibly important to active farmers in many dairy states, like Pennsylvania and Wisconsin, for example, and it is how new and beginning farmers get a start.

The Great Re-set driven by climate goals and sustainability linked to pandemic fears and the Covid-19 impact on the global economy holds significant impacts for food and agriculture production. The “solutions” we see discussed are things former Secretary of Agriculture and current DMI executive Tom Vilsack has worked on for at least 13 years, maybe longer.

DMI leaders tell farmers that they are the reason farmers have a voice at the table to keep regulations from coming in that are unprofitable. But more apparently, DMI leaders are at the table helping to shape the dairy re-set that mirrors the global Great Re-set as pursued by WWF and global corporations like Walmart, Amazon, Nestle, Unilever, Danone. They are driving food system transformation in the Great Re-set — a one-world-order clothed in climate goals.

DMI has longstanding alliances with these partners, including WWF. But whose interests are counted at the table where the food system transformation game is being played? The global companies that partner with checkoff through DMI’s Innovation Center for U.S. Dairy and its Sustainability Alliance? Or the farmers mandatorily funding DMI’s existence?

Are farmers and ranchers really at the table? Their powerful integrator (checkoff) and buyers (global processors) most certainly are.

Who will stand for farmers and consumers at the grassroots level? What happens when food production is fully integrated and digitized under globalized control by fewer entities? The role of USDA’s Dietary Guidelines is just the tip of the iceberg, facilitating dietary control of the masses through institutional feeding — working to move us all to the pre-ordained ‘planetary diets.’

The public at large has no idea what’s coming and how their food choices are being manipulated.

Given DMI’s alliances with the big players in food system transformation, the answers should be clear.

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‘Unify or die’ concept doesn’t cut it

Time for transparency on where dairy checkoff’s partnerships are leading

By Sherry Bunting, Farmshine, August 28, 2020

Partnerships and proprietary information stop many conversations from moving forward when it comes to the direction of dairy checkoff leadership under Dairy Management Inc. (DMI).

Meanwhile, contrary to DMI CEO Tom Gallagher’s assertions in the Aug. 5 ‘open mic’ call, consumers DON’T know the nutritional benefits of milk. That’s why grassroots efforts to promote milk (like the Drink Whole Milk 97% Fat Free effort) get so much action. People really know very little about milk and dairy after decades of dairy farmers spending hundreds of millions of dollars annually in promotion and education.

But that’s okay, according to Gallagher, DMI is a supply chain expander.

We keep hearing this theme that consumers will deal with fewer players, shop at fewer stores, become less brand-loyal, learn to accept pre-planned food categories and assortments, realize ‘generics’ are just as good as brands, and will focus more on how diets affect the planet, while spending more for new innovative products… We have to stop a minute and wonder:

What does all of THAT mean?

First off, the math is not adding up.

More than one report or webinar has hit on the indicators showing consumers are focused on food purchases that address their concerns about health and economic value, and they are finding comfort in traditional choices – like real milk and dairy products.

Furthermore, the food disruptions of the pandemic have created more interest among consumers in where their food comes from – is it local, regional, produced in the U.S.? They are more in touch with the importance of local and regional food systems, and less keen on global supply chains nor globalization — not just of food, but also medicine and other necessities.

While rank-and-file consumers and farmers find opportunity and security in building localized or regional food systems, that is the last thing the big players want to see happen. So what do they do? They mine consumer data, something DMI will help with, to twist consumers’ health- and value-focused concerns to fit a ‘planetary’ values system that steers consumers straight into the jaws of the global suppliers that have checked all their pre-planned criteria boxes.

They want consumers to prioritize planetary diets so supply chains can be centralized and globalized — pure and simple — and our own industry checkoff organizations are participating at best, helping them accomplish it, at worst.

In fact, the “good for the planet” mantra — as defined by World Wildlife Fund (WWF) and its World Resources Institute (WRI) is what global corporations and Silicon Valley tech food investors are all about. They are creating the boxes, checking them off, and then trying to convince consumers that this is what is important to them when making decisions about their food.

Data clouds, omnichannel marketing, digitized food, personalized experiences, purpose-driven marketing, planetary diets – these are but a few of the buzz terms and technologies driving future of food transformation.

Through GENYOUth, the dairy checkoff is actually facilitating transformation, grooming schoolchildren to make choices that will eventually pad the wallets of billionaire tech-sector food investors and give them control under the guise of planetary diets and climate change. The future-of-food players need a global ‘value-driver’. It was climate change. 

Then came Covid, and people were forced home and began to turn inward to the health and economic needs of themselves and their families. They began to see the importance of communities and began to recognize that farmers are connected to their communities.

To bring them back “on-task”, WWF recently launched a campaign to link Covid-19 to the already set goals. In fact, according to its website, WWF explains that, “A big possible casualty of COVID-19 are the world’s Sustainable Development Goals (SDGs).

In a July 22 report on the pandemic and planetary health, WWF scientist Robin Naidoo states that, “In 2015, the United Nations adopted (Sustainable Development) goals to improve people’s lives and the natural world by 2030.The success of these SDGs depends on two big assumptions: sustained economic growth and globalization.

“COVID-19 has now torn both assumptions to shreds,” the WWF report states. “This has fundamental implications for how we conceive of and prioritize sustainability in a post-pandemic world.”

The report then goes on to twist the narrative on these UN SDGs (that are also part of DMI’s Net Zero Initiative) to say 30 of the targets “would help to lessen the likelihood of another global pandemic.”

Like a chameleon, the big players adapt the plan by changing the picture to shift consumer focus back onto the planetary diets and by honing in on post-Covid concerns about health and economics from a different angle. Easier to do this when people do not know much about milk and dairy.

Yes, there is a tug of war emerging from the pandemic in which consumers seek and grassroots farmers can deliver real, whole, healthful foods in regional, national and international food systems that are in direct competition with centralized global supply chains that want to streamline, limit options and control diets.

While DMI leaders are busy convincing dairy farmers to get with the program of unified marketing in order to compete – as one — in a big marketplace, what is DMI actually doing with their empowerment?

— DMI has a close working relationship with WWF to write the rules of the ‘sustainability’ and ‘net-zero GHG’ playbook – the driver.

— DMI’s marketing and public relations contractor Edelman has close ties to WWF, the EAT Lancet forums, and is developing new terms for brands in the plant-based alternative milk sectors.

— DMI partners with DFA to help launch a 50% milk 50% oat or almond juice beverage with pretty packaging and marketing that make it appear superior to the milk produced and bottled from dairy farms.

— DMI’s GENYOUth program facilitates access to schoolchildren so global corporations and other partners can groom schoolchildren into future decision-making consumers focused on “planetary diets” – their global value system.

DMI recently hired a digital food and cellular ag proponent as its vice president of Dairy Scale for Good. Caleb Harper’s hiring has brought many questions but is merely one more cog in the supply chain wheel being built with dairy farmer checkoff money. His focus will be large dairies. His background is controlled environment horticulture through computerized plant boxes that several science publications, and even public radio, pointed out were “smoke and mirrors.” His father has ties to the early rendition of fairlife through Mike McCloskey, and both Harper and McCloskey are part of WWF’s thought leadership group

Innovation is normally something to be enthusiastic about. Technology is progressive and something farmers embrace. Competition is healthy and provides entrepreneurial opportunities.

But when it comes to mandatory promotion dollars, gone are the days of managing content that everyone can see, as it all goes digitally underground to meet proprietary consumer targets of partners. Gone are the days of education to promote the benefits of dairy to meet the needs and questions of consumers.

When farmers are forced to fund an entity with the power to set parameters on how they do business, an entity that is overseen by USDA and yet is partnered with activist groups, large multinational companies and global supply chain consolidators, and an entity that can pay for research that then becomes proprietary and could involve diluted dairy products such as butter that is mostly water, and an entity that begins to see its role as the expander of the supply chain… yes, transparency and vigilance are most definitely needed.

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