My view: Money spent, points missed.

By Sherry Bunting, Farmshine, Feb. 8, 2019

Even the video spots created by DMI for this year’s social media lead-up to the 53rd Super Bowl were long on NFL branding and short on dairy messaging. After all, America’s dairy farmers have this relationship with the National Football League (NFL) via GENYOUth and Fuel Up to Play 60 (FUTP60), why not advertise it, right?

But DMI’s “Dairy Rules” videos leave the viewer wondering what the point is.

The “Dairy Rules” content series represents a $100,000 media buy, alone, with production costs on top, according to Edelman, the agency doing creative and public relations work for DMI over the past 20-plus years. They say the two videos prepared for play on social media sites Feb. 1-4, “apply football rules in the context of dairy products to humorous effect.”

Honestly, I found them to be more annoying than humorous, maybe I didn’t get the point?

DMI sources say the “dairy replay booth” videos were viewed 6 million times on social media platforms. You can view them for yourself here and here .

(The number of views logged at these YouTube links as of February 4 is more like 200 and 500. And the embedded Facebook version showed 6,200 views. The Twitter platform counts were around 600 each.)

While the tagline is a good one: “Real Dairy is always the right call,” the substance of the skits is rapid-fire, dairy-name-dropping clothed in football jargon.

Except for this brief 1-second and chaotic glimpse at the “dairy replay” screens, the viewer is in the dark over why “Real Dairy is always the right call.”

In fact, “Grace under pressure,” the female referee in the first 30-second “dairy replay booth” video, reviews dairy-use fouls. Speaking rapidly and displaying a large 1% emblem on the back of her hybrid cow-print/referee-striped shirt, she points to screens the viewer can’t see saying: “That’s mom delaying ice cream night to answer a text. That’s parfait interference, too much fruit in the yogurt. That’s conduct unbecoming of an ice cream sandwich, inappropriate use of fondue forks, a butter block below the waffles… asiago more than 5 seconds on the floor and incomplete use of milk in the chicken tetrazini.”

From the front we see the “Undeniably Dairy” logo on her shirt. Cute. Funny, sort of. But what’s the message? 

The viewer is all set up for “Real Dairy is always the right call,” but no real substance emerges to sink their teeth into, even if the average person could understand half of the jargon.

The second video with a male referee takes the same approach. “All day, every day, dairy infractions are being committed. We’re here at the dairy replay booth to make the final call,” he says as the dramatic NFL-style intermission music plays.

He peruses a wall of screens. “The call is roughing the queso,” he nods, followed by a few more phrases that are hard to decipher — something about a ruling on the fontino? That’s a type of cheese.

And then, a perhaps redeeming line: “Okay Seattle, Dad’s drinking straight from the chocolate milk container, making it ineligible… again.”

Okay, that one at least creates a word picture of Dad swigging chocolate milk straight from the jug instead of taking time to pour a glass – because it’s that good. 

Disjointed and hard to follow, there’s plenty of NFL branding in these videos, and the creators for DMI made sure to display the 1% and 2% subliminal low-fat messages on uniforms and props.

But apart from a glimpse of the replay refs tapping the water cooler (containing milk instead of water with bright red lettering of 2%), there’s just no dairy visible in these Undeniably Dairy, Dairy Good spots.

Homemade ads about milk reveal and surprise community

By Sherry Bunting, published in Farmshine, Friday, January 4, 2019

“Everything helps… Anything helps,” said Nelson Troutman. The Pennsylvania dairy farmer gave consumers in his area an early Christmas gift, and this gift of knowledge keeps giving in the New Year.

Frustrated by the forced emphasis on low- and non-fat milk promotion and seeing the need to draw attention to the simple healthy truth about milk, while planting the seed that consumers can ask for local milk, Troutman came up with his own promotion idea.

On December 11, he painted a wrapped round bale with the words “Drink LOCAL Whole MILK 97% FAT FREE!”

Then he placed the round bale in his pasture, where it is visible at the intersection of Wintersville and Stouchsburg Road near Richland, in the Lebanon/Berks area of Pennsylvania.

After all, whole milk is standardized to 3.25% fat content, making it virtually 97% fat-free — a point on the minds of consumers that milk labels and checkoff promotion have not been able to tap into.

“It was the cheapest and easiest thing to do, and I’ve gotten a lot of very nice and interesting comments,” said Troutman in an interview with Farmshine. “Today, I saw two ladies walking down the street. They had just passed the bale. I had no idea who they were. They saw me coming out the farm lane and waved. I am sure they were talking about the bale.”

Nearly three weeks after his round bale billboard was placed for the community and those passing through to see, Troutman said the gift keeps giving with new and continuing conversations.

“I am amazed at talking to people about this educational bale,” Troutman said Monday (Dec. 31). “People say to me that they did not know any milk is 97% fat-free, much less that the whole milk is 97% fat-free!”

Troutman uses their surprise at this revelation as a teachable moment.

“I explain that fat-free milk is 100% fat-free, 1% milk is 99% fat-free, 2% milk is 98% fat-free and whole milk — at 3.25% fat — is basically 97% fat-free. They are astounded,” he affirms. “So, I ask them what they thought any milk is, and they tell me that they never thought about it. When I ask them what they think the fat percentage of whole milk is, most answers were 10% to 20% fat. I actually had one man say he thinks whole milk is 50% fat! His wife made him drink 2% milk for that reason.”

So what is being gained with this message? Troutman gives an example. He said the man who confessed that he thought whole milk was 50% fat — upon hearing the truth — said he will never again drink 2% milk and has switched to whole milk while also being made aware of the local ties and how to find local brands.

What does all the milk confusion tell us about the success — or failure — of mandatory checkoff promotions? People are confused about so many things where milk is concerned. But the fat content should not continue to be one of their confusions. It is standardized and easy to demystify with a simple message, a simple sign, that opens the door to conversations that matter.

Troutman said he knows that the dairy farmers’ mandatory checkoff promotion organizations of American Dairy Association Northeast (ADANE) and Dairy Management Inc (DMI) — and even Allied Milk Producers — cannot advertise milk as 97% fat-free. He says there are government rules about putting this on the label or in a checkoff-funded campaign.

But, he believes it is high time for a grassroots promotion.

“We farmers can do this! It’s real education, and it sure beats the price of the milk mustache. Advertising is expensive, but we farmers have an edge. We live along roads and highways where we can put up signs, use our bales, silage bags, silos, barns, and wagons,” says Troutman.

“We also have friends that have agribusinesses in town that could use a sign. And there is Facebook, which is very powerful to the consume. We need the consumers in Pennsylvania to ask for whole Pennsylvania-produced milk at our restaurants, schools and stores,” he adds.

Troutman is definitely on to something, as people across the state and in other regions as well have complained all year on social media and at meetings and with photos of supermarket dairy shelves that whole milk is often not stocked to the density of the fat-free, low-fat and reduced fat milks.

In fact, as one producer in northern Pennsylvania noted recently, she has to order whole milk on ahead at her local store if she wants more than three gallons for an event. When asking the store manager why whole milk is not made more available in the dairy case, the store owner told her the reason is because it isn’t as healthy and contains too much fat!

Nelson Troutman’s simple idea is borne of frustration but with education and truth at its core, and it is easy to implement.

He says that dairy farmers are fed up with decades of their product being thrown under the bus by dietary guidelines and promotion restrictions leading people to believe — over time — that whole milk is full of fat. The labels do not even say 3.25% fat! And this has led to people having all kinds of inflated ideas about how much fat is in whole milk to begin with.

It is no wonder that even well-educated pediatricians mindlessly follow blindly the lies of omission — telling mothers to put their children on lower fat milks at age two because they falsely believe whole milk is more than 10% fat!

Troutman made his round bale sign and placed it in his pasture by a busy intersection to educate his community and to encourage other farmers and agribusinesses to use his idea to educate their communities.

“Maybe they want to do something on a bale or a wagon or a silage bag,” he said. “Everything helps… anything helps.”

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Global dairy thoughts Part II: Who’s being creative?

Part Two of Five-part “Global Dairy Thoughts” Series in Farmshine

wGDC18-Day1-56By Sherry Bunting, from Farmshine May 4, 2018

BROWNSTOWN, Pa. — Everywhere we turn, we receive the message that fresh fluid milk is a market of the past and exports of less perishable dairy products are the wave of the future. As discussed in Part One of this ‘global dairy thoughts’ series, that seems to be the trend if you look at the markets.

Yet, could a portion of the reason we are in this fluid milk decline, be the effect of USDA-regulated pricing, USDA-imposed restraints on the ability to promote competitively in the beverage space, and the resulting industry neglect of this regulated commodity category — fresh fluid milk?

The government — USDA — and the checkoff and cooperative leadership have no appetite for significant change to any of these factors. USDA gets to pay less than it otherwise might for milk in its nutrition assistance programs, while both the proprietary and cooperative processors get to pay less than they might otherwise for components in a range of products.

Meanwhile, dairy farms see the first product to come from their herds — milk — declining, and their futures along with it.

Yes. We all know it. Fresh fluid milk — the most nutritious and natural option — is in the fight of its life. In meeting after meeting, presentation after presentation, we hear the messages from the industry and university economists — both subtly and outright.

Like this: “The fluid milk market is the dead horse we need to stop beating.”

Or this: “Do we want to hitch our wagon to a falling rock?”

And so forth, and so on.

It is difficult to question the industry and its economists on anything to do with the Eastern U.S. or the fluid milk market. Some have gone so far as to say that if the East is relying on fluid milk, they are out of luck.

Meanwhile, dairy farmers in eastern regions suggest that if fluid milk does not stabilize its losses or restore its market share — at least partially — they see their value as producers vanishing.

And in fact, this has an impact on our global advantage — that being the U.S. having a large consumer base at home to anchor the base production while growth is said to be the reason why we need exports.

As mentioned briefly in Part One, the Federal Orders are designed to move the milk from surplus regions to deficit regions, and that is what the proposed USDA change in Orders 5 and 7 will do further, the experts say.

Meanwhile, who is being creative to figure out how the deficit regions of the East can use or regain their primary competitive advantage — having a base of consumers within a day’s drive. This line of thinking is analogous to how the U.S. fits as an exporting nation with quite a large consumer base at home.

What really requires our creativity is the U.S. product mix and how milk resources are priced and sourced.

Here are some numbers. U.S. dairy protein disappearance has had average annual growth of 6.3% over the past five years, though it has been a bumpy ride, with U.S. production of milk protein concentrate (less exports) at its lowest levels over that five-year period in 2014.

Meanwhile, demand for fat is increasing as consumers heed the dietary revelations and switch from lowfat and fat-free milk to whole milk and have their butter without guilt.

Mentioned last week in part one is that global milk production increases are beyond the stable rate of 1.5% per year. According to the U.S. Dairy Export Council (USDEC), the combined growth rate from the EU-28, U.S., New Zealand, Australia and Argentina was double that collective 1.5% threshold. Looking at 2018, however, reports are surfacing to show spring flush is delayed in Europe just as it appears to be in the U.S.

Or is global production reining in? The markets are trying to figure that out with quite a rally going in powder right now.

One thing rarely mentioned in these reports is that Canada’s production has also grown with increased quota to account for the greater demand they see in their domestic market for dairy fat.

In fact, despite its supply management system, government figures show Canada’s milk production had year-over-year growth between 3 and 6% for each of the past three years, and 2018 production is off to a 5% start.

In Canada, as in the U.S., fat fortunes have changed over the past four years, so the belt has been loosened to serve that market, leaving more skim swimming around.

Canada’s new export class (Class 7) mainly pertains to this excess skim, which has reduced the amount of ultrafiltered milk they now buy from U.S. processors.

In addition, as pointed out by Calvin Covington in his presentation at the Georgia Dairy Conference in January, milk can be purchased at lower prices for this Canadian export Class 7 because the excess skim is used in products that are then exported.

This means the resulting products in the Canadian export class can be sold at globally competitive prices. While not in huge volumes, some of this product is going to Mexico.

This brings us to Mexico — currently the largest buyer of U.S.-produced nonfat dry milk, making the outcome of NAFTA negotiations a sticky issue for industry leaders, especially as Mexico recently signed a trade deal with the EU to include dairy.

The two forks come together in regions like the Northeast, where Class IV utilization has become an increasing part of the blend price and a more important balancer of the shrinking Class I.

While March showed a surprising jump in Class III utilization to a 15-year high in the Northeast, the overall trend over the past four years has been a blend price with increasing Class IV utilization and decreases in Classes I, II and III.

Dairy economists indicate the U.S. is making more world-standard skim milk powder for export, but in reality, the U.S. still makes a high percentage of nonfat dry milk (NFDM), which is still the largest domestically-produced milk powder category and it is the only milk powder that is used in the Federal Order pricing formulas.

NFDM is primarily made in conjunction with butter. As butter demand has grown and prompted greater butter production in the U.S. over the past four years, more NFDM has been made and stored (or the skim is dumped) as a result.

The market issue in the U.S. has been compounded by the EU having a mountain of intervention powder stocks in storage, some of it aging.

After the European Commission sold over 24 metric tons two weeks ago, global and domestic powder markets moved higher. It was the largest chunk to come out of that mountain to-date and was offered at reduced prices to attract buyers. But by the time the bidding was done, it sold at or above the GDT price for SMP powder.

It’s really true. Inventory depresses prices. Having a big chunk of a huge inventory gone, is, well, big.

The flip side of the coin is that European processors have shifted from powder production with their excess to making more cheese and butter.

Next in Part Three, we will look specifically at some differences between the products made in the U.S. vs. what is traded globally, and at the differences between the U.S. and global trading platforms.

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PHOTO CAPTION

GDC18-Day1-56

While attending the 2018 Georgia Dairy Conference in January, a large global cargo ship on the Savannah River, passed by the glass windows at lunchtime on its way out to sea. Several dairy producers walked outside for a closer look, we all hoped there was plenty of powder on board. Photo by Sherry Bunting

Reinventing milk… promotion

MilkMarketMoosHeader070914.jpg

Reprinted from FARMSHINE, April 8, 2016

Fewer Americans eat breakfast today, adding to the milk consumption woes created when families stopped eating sit-down dinners, for the most part. Both were the staples of commodity fluid milk consumption that have been diminishing over the past two generations and four decades to where we are today.

Forecasters say it will only get worse. They are projecting continued declines in ‘white milk’ consumption while consumption of milk alternatives is predicted to increase dramatically through 2021.

A major reason is that the majority of urban consumers — up to 90% — do not view white milk (aka Vit. D whole milk) as a protein drink, when clearly it is the original, the natural protein drink.

But what is DMI working on? Alternatives. Checkoff dollars continue to flow through DMI to alternatives milks. Yes they are dairy products, but they are further processed, as in the case of Fairlife, which is ultrafiltered, for example.

I have had dairymen involved in these boards excitedly tell me: “We finally have a product consumers want!”

If they are referring to Fairlife, that may be true for consumers we’ve lost to Muscle Milk (which does contain some whey) or Almondmilk (which is the equivalent of eating an almond and chasing it with water full of thickeners, sugar and chemically added calcium and vitamins.)

But I find myself confused. Isn’t dairy promotion supposed to promote what contributes most to the dairy farmer’s milk check? I mean, it is the dairy farmer’s money, is it not?

As long as the Federal Order milk pricing scheme puts the value on Class I utilization, then the milk checkoff organizations should be most diligently promoting regular, straight-from-the-cow (pasteurized of course and maybe even flavored) milk as the healthy high-protein beverage it is, naturally, because I’m sorry to tell you friends, consumers just don’t know this information.

Milk: The protein drink that’s right under our noses and costs a lot less than fancy packaged and advertised alternatives — some of them complete frauds in that they are not even milk!

Why is it that milk alternatives can claim all sorts of things, but milk is not even allowed to advertise itself as 96.5% fat free! Why can’t the milk bottle say “8 times more protein than almondmilk per 8 oz serving!”

Why can’t it say: “Want Protein? Get Milk!”

Do we really need Coca Cola to revolutionize our branding? Or should dairy farmers take the bull by the horns and demand great packaging, savvy catch phrases, eye-catching point-of-purchase education, head-on comparisons to the fraudulent beverages that so wish to be milk that they call themselves milk.

No, USDA does not allow dairy farmers to promote their product comparatively with those other commodities that have stolen some of their market share by stealing the name milk. You dairy folks must play nice of course!

That’s hardly fair since dairymilk is losing market share. If you can’t defend your own market turf with your own collected monies, then what’s the point of collecting the money? All of these joint partnerships to sell cheese on pizza and mixes through frappes at McDonalds might move some more milk, but the value is in the Class I fluid milk, so unless we’re going to change the complicated milk pricing formula and glean more value and a guaranteed minimum for the manufacturing milk via its products, then we might just as well use the money to buy-back our own fluid milk and donate it to the poor to keep the demand for Class I tight vs. the supply.

Or put the money in a kitty to develop better fluid milk labels. Make them cool and splashy with P-R-O-T-E-I-N in large letters.

Milk: The original protein drink!

Milk: Protein drink of champions!

Milk: Why pay more? We’ve got what your looking for!

I could go on all day.

If the growth of our Class I milk markets rely on the USDA school lunch program, then we’re sunk and USDA is once again to blame for this dismal failure by tying the hands of school districts who want to serve 2% and whole milk.

Analysts say that the strong growth in the milk markets of emerging countries like Chile is attributed to their school milk programs.

In the U.S., milk is stigmatized as a “commodity.” We sure don’t help that with plain white bottles and lackluster graphics.

Milk alternatives such as soymilk and almondmilk (aren’t they so tricky in creating their own new words by paring their commodity to the word milk as one word) are increasingly viewed as ‘fashionable drinks’ and a more health-conscious choice compared to white milk.

Let’s reverse this trend by making dairymilk fashionable again!

Let’s call it dairymilk (a tricky combined word!) and come up with a new standard of identity that allows us to say 96.5% fat free instead of “whole.”

Maybe even come up with a standard for protein and say to call it dairymilk it must meet that protein standard and then colorfully package and protein-promote the heck out of it.

Analysts say that consumers like innovation in their drinks and they are finding “innovation” in the “newer milk categories” which are so much more attractive than the “mature” white milk category.

Okay then, let’s give the consumer what they want. Great tasting real milk but let’s reinvent the packaging and the promotion and the name… not the beverage itself.

Just think how much money we can save on fancy equipment if all we have to do is reinvent the promotion of milk, not reinvent the milk itself. After all, it is nature’s most nearly perfect food.

Maybe instead of fighting each other for Class I sales by moving milk all over to get the best price and utilization (see chart on page 13 showing that picture for the beleagured Northeast Order)… we should be fighting, instead, together, to save our beverage from its continued depreciation at the hands of internal politics, external politics, USDA rules upon rules, fraudulent not-milk-milks whom regulators ignore and even patronize, and other assorted casts of characters.