Under the DMI umbrella: Fonterra CEO to chair Global Dairy Platform, Danone sustainability strategist to join GDP operating committee

Global Dairy Platform launched Pathways to Dairy Net Zero Initiative in September 2021, one year after DMI’s Innovation Center for U.S. Dairy launched the Dairy Net Zero Initiative (NZI) in October 2020 (A year prior to that in 2019, the current and former Ag Secretary Tom Vilsack testified to the Senate Ag Committee as a dairy-checkoff executive, serving then as president of the U.S. Dairy Export Council, and he foretold the nuts and bolts of the not-yet launched Dairy Net Zero Initiative and asked Congress to fund pilot farms. GDP has governance in and manages the Dairy Sustainability Framework that underpins what U.S. farmers, and their cows, will have to live up to — including how livestock methane is calculated, mitigated and monitored, which may be based on inaccurate math and science in terms of CO2 equivalents.

By Sherry Bunting, Farmshine, Friday, May 5, 2023

ROSEMONT, Ill. — Fonterra CEO Miles Hurrell has been named the new board chairman of the Global Dairy Platform (GDP), a non-profit industry association representing the international dairy sector. A portion of its revenue is from membership dues, but also from the 7.5-cents per hundredweight equivalent checkoff on U.S. dairy imports as well as grants for research and program services from Dairy Management Inc (DMI).

Fonterra’s Hurrell will replace Hein Schumacher, who is leaving his position as CEO of Royal FrieslandCampina to become CEO of Unilever.

In the April 26 news release, Hurrell cites Schumacher’s leadership in “accelerating climate action via the ground-breaking Pathways to Dairy Net Zero Initiative.” 

Announced in the same release is the appointment to the GDP operational committee of French multinational Danone’s senior vice president of sustainability strategy.

According to its 501(c)6 non-profit tax filings, “GDP is a pre-competitive collaboration,” and its governance groups — the board and the operational committee — “manage a ‘Dairy Sustainability Framework’ to unify the approach being taken by dairy organizations to the broad challenges of sustainability from environmental, social, and economic perspectives.”

The Dairy Sustainability Framework is part of the Dairy Sustainability Alliance of the Innovation Center for U.S. Dairy, another non-profit founded and funded by dairy checkoff organizations under the DMI umbrella. The Innovation Center sets U.S. Dairy Stewardship Commitments that are implemented through the FARM program and reviewed every three to five years to show U.S. dairy is, according to its website, “moving the needle toward achieving the Sustainable Development Goals (SDGs) of the United Nations.”

DMI, its Innovation Center, Dairy Sustainability Alliance, Dairy Sustainability Framework, and U.S. Dairy Stewardship Commitments are all located at Suite 900, 10255 W Higgins Road, Rosemont, Illinois, and the Global Dairy Platform (GDP) address of record is Suite 820 at the same street address.

Along with New Zealand’s Fonterra, CEOs from these top-15 dairy multinationals serve on the GDP Board: Dairy Farmers of America (DFA), headquartered in Kansas; Arla Foods, headquartered in Denmark; Leprino, headquartered in Colorado; China’s Mengniu Dairy Company; Moringa Milk Industry, headquartered in Japan; Royal FrieslandCampina, headquartered in the Netherlands, and Saputo, headquartered in Canada.

Along with the board of directors, the GDP operational committee provides governance and includes sustainability executives for Arla, DFA, Fonterra, Land O’Lakes, Meiji Holdings and FrieslandCampina.

In a separate April 2023 bulletin, GDP announced the May 1, 2023 retirement of Dr. Greg Miller from his position as research lead for GDP since its inception. Known as ‘Dr. Dairy’, Miller has served as the chief science officer for the National Dairy Council for nearly 32 years and as executive vice president of research, regulatory and scientific affairs for DMI. Miller will continue as a member of the UN Food and Agriculture Organization Scientific Advisory Committee.

Key paid staff for GDP is Donald Moore, the executive director since 2010. Before that, he was a Fonterra senior executive in business development and ingredients marketing for 20 years.

Moore also serves as chairman of the governance group for the Dairy Sustainability Framework since its inception in 2013.

With Fonterra’s CEO as the new board chairman of the GDP, and with a former Fonterra senior executive serving 13 years to-date as the executive director of the GDP and the chair of the governance group for the Dairy Sustainability Framework, it’s worth noting that Fonterra announced six months ago its new start-up company for alternative dairy ingredients. According to the October 2022 press release, Fonterra has partnered with Royal DSM, a Dutch company, in creating this start-up “to accelerate the development and commercialization of (animal-free) fermentation-derived proteins with dairy-like properties.” 

With Danone’s senior vice president of sustainability strategy now appointed to the GDP operational committee, it’s worth noting that in October 2022, Danone announced it would use artificial intelligence to reformulate 70% of its plant-based fake-milk products. This followed the 2021 earnings call where Danone executives outlined new fake-milk and dairy product launches with plans to use “new dairy-like technology” to “win over” the 60% of U.S. consumers not in the plant-based category because of taste and texture. The Danone executives told shareholders their Renew strategy identifies the U.S. as a “key plant-based market.” In January 2023, Danone announced it is eyeing sale of Horizon Organic, saying it falls outside of their key areas of focus.

Global Dairy Platform (GDP) was formed in 2006 as an alliance, according to its website. Its tax filings confirm incorporation as a 501(c)6 non-profit in 2012 and its address of record at Suite 820 at 10255 W Higgins Road, Rosemont, IL 60018.

According to the GDP’s most recent IRS 990s that are publicly available for 2017 through 2019, the years when former DFA CEO Rick Smith was its chairman, GDP had revenues between $3.7 and $4.2 million annually. This increased to $4.7 million in 2020, according to an available summary of the IRS 990 for that year.

The tax returns show approximately $1 million in GDP revenue came from membership dues and approximately $2.7 million annually from granted program services and research funds (checkoff). 

The GDP revenue also included approximately $500,000 in ‘import assessments.’ The 7.5-cent import checkoff, which was implemented in 2011 amid formation of the Innovation Center and its resulting alliances and frameworks.

GDP’s executive director Donald Moore is paid a salary package of nearly $600,000 annually. The top three independent contractors in 2018-19 included DMI receiving over $800,000 annually for program services and administration; Massey University in New Zealand $451,000; Emerging Ag in Calgary, Alberta, Canada $600,000 (for UN access), and Lindsey Consulting, in the UK nearly $300,000 with Brian Lindsey serving as the GDP’s sustainability lead.

According to GDP, its membership consists of more than 95 corporations, companies, associations, scientific bodies, and other partners, with operations in more than 150 countries, collectively accounting for approximately one-third of global milk supplies.

DMI manages the national nickel from the 15 cents per hundredweight checkoff deducted from U.S. milk checks for research, education, and promotion. DMI also manages the unified marketing plan many state and regional checkoff organizations contribute toward, and DMI manages the 7.5 cents per hundredweight equivalent import checkoff, handed off to the GDP.

DMI states in its 501(c)6 non-profit tax filing that it is “investing dairy producer checkoff funds in strategic, coordinated marketing programs designed to increase consumption of U.S. dairy products domestically and internationally.”

The Innovation Center for U.S. Dairy was initiated in 2008, but according to its tax filings, was incorporated as a 501(c)6 non-profit in 2012 under the name: The Dairy Center for Strategic Innovation and Collaboration Inc., doing business as Innovation Center for U.S. Dairy.

In 2017, DMI trademarked the names ‘Innovation Center for U.S. Dairy’ and ‘Dairy Sustainability Alliance.’

Leprino CEO Mike Durkin was elected chairman of the board of the Innovation Center in January 2023.

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AUTHOR’S NOTE: Why do these connections matter? Because the UN Food and Agriculture Organization is getting ready to make a decision about how livestock methane is calculated using GWP100, a 30 year old measure that the Intergovernmental Panel on Climate Change even agreed overblows the problem by 3 to 4 times, or GWP*, which includes not just the sources but also the natural sinks for methane as a short-lived greenhouse gas. Dr. Frank Mitloehner has written about this, and Farmshine readers have read my many articles about the differences between the calculations and what they mean for our cows in the future. The Global Dairy Platform put out a bulletin a few months ago and pinned it to their website exploring the differences in these calculations, saying that “GWP* is not appropriate as a benchmarking tool at less than a global level.” This is concerning because it means that global dairy multinationals have oversight through dairy checkoff non-profits and alliances into formulating and deciding what U.S. dairy farmers — and their cows — will be expected to live up to, even when the science behind the decision is highly debatable. As we now know, even scientists are becoming frustrated. It’s important to know that multinational companies investing in competing animal-free fermentation-produced DNA-altered dairy-like ingredients are in leadership positions in these collaborations.

Are we moving toward cow islands and milk deserts?

Opinion/Analysis

By Sherry Bunting, Farmshine (combined 2 part series Aug. 12 and 19, 2022)

In Class I utilization markets, the landscape is rapidly shifting, and we should pay attention, lest we end up with ‘cow islands’ and ‘milk deserts.’

Farmshine readers may recall in November 2019, I wrote in the Market Moos column about comments made Nov. 5 by Randy Mooney, chairman of both the DFA and NMPF boards during the annual convention in New Orleans of National Milk Producers Federation together with the two checkoff boards — National Dairy Board and United Dairy Industry Association. 

Mooney gave a glimpse of the future in his speech that was podcast. (Listen here at 13:37 minutes). He said he had been “looking at a map,” seeing “plants on top of plants,” and he urged the dairy industry to “collectively consolidate,” to target limited resources “toward those plants that are capable of making the new and innovative products.”

One week later, Dean Foods (Southern Foods Group LLC) filed for bankruptcy as talks between Dean and DFA about a DFA purchase were already underway. It was the first domino right on the heels of Mooney’s comments, followed by Borden filing Chapter 11 two months later in January, and followed by three-years of fresh fluid milk plant closings and changes in ownership against the backdrop of declining fluid milk sales and an influx of new dairy-based beverage innovations, ultrafiltered and shelf-stable milk, as well as lookalike alternatives and blends.

The map today looks a lot different from the one described by Mooney in November 2019 when he urged the industry to “collectively consolidate.” The simultaneous investments in extended shelf-life (ESL) and aseptic packaging are also a sign of the direction of ‘innovation’ Mooney may have been referring to.

Two months prior to Mooney issuing that challenge, I was covering a September 2019 industry meeting in Harrisburg, Pennsylvania, where dairy checkoff presenters made it clear that the emphasis of the future is on launching innovative new beverages and dairy-‘based’ products.

Here is an excerpt from my opinion/analysis of the discussion at that time:

“While we are told that consumers are ditching the gallon jug (although it is still by far the largest sector of sales), and we are told consumers are looking for these new products; at the same time, we are also told that it is the dairy checkoff’s innovation and revitalization strategy to ‘work with industry partners to move consumers away from the habit of reaching for the jug and toward looking for these new and innovative products’ that checkoff dollars are launching.”

These strategy revelations foreshadowed where the fluid milk markets appear to be heading today, and this is also obvious from recent Farmshine articles showing the shifting landscape in cow, farm, and milk production numbers.

When viewing the picture of the map that is emerging, big questions come to mind:

Are today’s Class I milk markets under threat of becoming ‘milk deserts’ as the dairy industry consolidates into ‘cow islands’?

Would dairy farmers benefit from less regulation of Class I pricing in the future so producers outside of the “collectively consolidating” major-player-complex are freer to seek strategies and alliances of their own, to carve out market spaces with consumers desiring and rediscovering fresh and local, to put their checkoff dollars toward promotion that helps their farms remain viable and keeps their regions from becoming milk deserts? 

What role is the industry’s Net Zero Initiative playing behind the scenes, the monitoring, scoring, tracking of carbon, the way energy intensity may be viewed for transportation and refrigeration and other factors in Scope 1, 2 and 3 ESG (Environment, Social, Governance) scores? 

Shelf-stable milk may provide solutions for some emerging (or are they self-inflicted?) milk access and distribution dilemmas, and maybe one view of ESG scoring favors it? But ultimately it also means milk can come from cow islands to milk deserts — from anywhere, to anywhere.

It also becomes clearer why the whole milk bill is having so much trouble moving forward. The industry machine gives lip-service support to the notion of whole milk in schools, but the reality is, the industry is chasing other lanes on this highway to ‘improve’ the school milk ‘experience’ and ensure milk ‘access’ through innovations that at the same time pave the road from the ‘cow islands’ to the ‘milk deserts.’ 

It is now clearer — to me — why the Class I mover formula is such a hotly debated topic. 

If major industry-driving consolidators are looking to transition away from turning over cow to consumer fresh, local/regional milk supplies by turning toward beverage stockpiles that can sit in a warehouse ‘Coca-Cola-style’ at ambient temperatures for six to 12 months, it’s no wonder the consolidators want the ‘higher of’ formula to stay buried. What a subversion that was in the 2018 Farm Bill.

In fact, if the industry is pursuing a transition from fresh, fluid milk to a more emphasis on shelf-stable aseptic milk, such a transition would, in effect, turn the federal milk marketing orders’ purpose and structure — that is tied to Class I fresh fluid milk — completely upside down.

Landscape change has been in motion for years, but let’s look at the past 6 years — Dean had already closed multiple plants and cut producers in the face of Walmart opening it’s own milk bottling plant in Spring 2018. The Class I ‘mover’ formula for pricing fluid milk — the only milk class required to participate in Federal Milk Marketing Orders — was changed in the 2018 Farm Bill that went into effect Sept. 2018. The new Class I mover formula was implemented by USDA in May 2019, resulting in net losses to dairy farmers on their payments for Class I of well over $750 million across 43 months since then.

(Side note: Under the formula change, $436 million of Class I value stayed in processor pockets from May 2019 through October 2019, alone. DFA purchased 44 Dean Foods plants in May 2019 and became by far the largest Class I processor at that time.)

These and other landscape changes were already in motion when Mooney spoke on Nov. 5, 2019 at the convention of NMPF, NDB and UDIA describing the milk map and seeing plants on top of plants and issuing the challenge to “collectively consolidate” to target resources to those plants that can make the innovative new products. 

One week later, Nov. 12, 2019, Dean Foods filed for bankruptcy protection to reorganize and sell assets (mainly to DFA).

Since 2019, this and other major changes have occurred as consolidation of Class I milk markets tightens substantially around high population swaths, leaving in wake the new concerns about milk access that spur the movement toward ESL and aseptic milk. A chain reaction.

What does Mooney’s map look like today after his 2019 call for “collective consolidation” and the targeting of investments to plants that can make the innovative products, the plants that DMI fluid milk revitalization head Paul Ziemnisky told farmers in a 2021 conference call were going to need to be “dual-purpose” — taking in all sorts of ingredients, making all sorts of beverages and products, blending, ultrafiltering, and, we see it now, aseptically packaging?

In addition to the base of Class I processing it already owned a decade ago, the string of DFA mergers has been massive. The most recent acquisitions, along with exits by competitors, essentially funnel even more of the market around key population centers to DFA with its collective consolidation strategy and investments in ESL and aseptic packaging.

The South —

The 14 Southeast states (Maryland to Florida and west to Arkansas) have 29% of the U.S. population. If you include Texas and Missouri crossover milk flows, we are talking about 37% of the U.S. population. 

The major players in the greater Southeast fluid milk market include DFA enlarged by its Dean purchases, Kroger supplied by Select and DFA, Prairie Farms with its own plants, DFA and Prairie Farms with joint ownership of Hiland Dairy plants, Publix supermarkets with its own plants, an uncertain future for four remaining Borden plants in the region as Borden has exited even the retail market in some of these states, and a handful of other fluid milk processors. 

In Texas, alone, DFA now owns or jointly owns a huge swath of the fluid milk processing plants, having purchased all Dean assets in the Lone Star State in the May 2020 bankruptcy sale and now positioned to gain joint ownership of all Borden Texas holdings through the announced sale to Hiland Dairy

The Midwest — 

Just looking at the greater Chicago, Milwaukee, Green Bay metropolis, the population totals are a lake-clustered 6% of U.S. population. Given the recent closure by Borden of the former Dean plants in Chemung, Illinois and De Pere, Wisconsin, this market is in flux with DFA owning various supply plants including a former Dean plant in Illinois and one in Iowa with Prairie Farms having purchased several of the Dean plants serving the region.

In the Mideast, there is Coca Cola with fairlife, Walmart and Kroger among the supermarkets with their own processing, and DFA owning two former Dean plants in Ohio, two in Indiana, two in Michigan, and a handful of other bottlers. 

In the West: DFA owns a former Dean plant in New Mexico, two in Colorado, two in Montana, one in Idaho, two in Utah, one in Nevada and one in California, as well as other plants, of course. 

The Northeast —

This brings us to the Northeast from Pennsylvania to Maine, where 18% of the U.S. population lives, and where consolidation of Class I markets, especially around the major Boston-NYC-Philadelphia metropolis have consolidated rapidly against the backdrop of declining fluid milk sales and a big push by non-dairy alternative beverage launches from former and current dairy processors.

DFA owns two former Dean plants in Massachusetts, one in New York, all four in Pennsylvania, one in New Jersey. The 2019 merger with St. Alban’s solidified additional New England fluid milk market under DFA. In 2013, DFA had purchased the Dairy Maid plant from the Rona family in Maryland; in 2014, the prominent Oakhurst plant in Maine; and in 2017, the Cumberland Dairy plant in South Jersey.

More recently, DFA struck a 2021 deal with Wakefern Foods to supply their Bowl and Basket and other milk, dairy, and non-dairy brands for the various supermarket chains and convenience stores under the Wakefern umbrella covering the greater New York City metropolis into New Jersey and eastern Pennsylvania. This milk had previously been supplied by independent farms, processed at Wakefern’s own iconic Readington Farms plant in North Jersey, which Wakefern subsequently closed in January 2022.

The long and twisted tale begs additional questions:

As Borden has dwindled in short order from 14 plants to five serving the most populous region of the U.S. – the Southland — what will happen with the remaining five plants in Ohio, Kentucky, Georgia, Louisiana, and Florida? What will become of Elsie the Cow and Borden’s iconic brands and new products?

What percentage of the “collectively consolidated” U.S. fluid milk market does DFA now completely or partially own and/or control?

Will the “collective consolidation” in the form of closures, sales and mergers continue to push shelf-stable ESL and aseptic milk into Class I retail markets and especially schools… and will consumers, especially kids, like this milk and drink it?

What role are rising energy prices, climate ESG-scoring and net-zero pledges and proclamations playing in the plant closures and shifts toward fewer school and retail milk deliveries, less refrigeration, more forward thrust for shelf-stable and lactose-free milk, as well as innovations into evermore non-dairy launches and so-called flexitarian blending and pairing?

Looking ahead at how not only governments around the world, but also corporations, creditors and investors are positioning for climate/carbon tracking, ESG scoring and the so-called Great Reset, the Net Zero economy, there’s little doubt that these factors are driving the direction of fluid milk “innovation” over the 12 years that DMI’s Innovation Center has coordinated the so-called ‘fluid milk revitalization’ initiative — at the same time developing the FARM program and the Net Zero Initiative.

The unloading of nine Borden plants in five months under Gregg Engles, the CEO of “New Borden” and former CEO of “Old Dean” is also not surprising. Engles is referred to in chronicles of dairy history not only as “the great consolidator” but also as “industry transformer.”

In addition to being CEO of Borden, Engles is chairman and managing partner of one of the two private equity investment firms that purchased the Borden assets in bankruptcy in June 2020. Investment firms fancy themselves at the forefront of ESG scoring.

Engles is also one of only two U.S. members of the Danone board of directors. Danone, owner of former Dean’s WhiteWave, including Silk plant-based and Horizon Organic milk, has positioned itself in the forefront on 2030 ESG goals, according to its 2019 ‘one planet, one health’ template that has also driven consolidation and market loss in the Northeast. 

Not only is Danone dumping clusters of its Horizon milk-supplying organic family dairy farms, it continues to heavily invest in non-dairy processing, branding, launching and marketing of alternative lookalike dairy products and beverages, including Next Milk, Not Milk and Wondermilk. 

There is plenty of food-for-thought to chew on here from the positives to the negatives of innovation, consolidation, and climate ESGs hitting full-throttle in tandem. These issues require forward-looking discussion so dairy farmers in areas with substantial reliance on Class I fluid milk sales can navigate the road ahead and examine all lanes on this highway that appears to be leading to cow islands and milk deserts.

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From GENYOUth to Gen-Z, dairy checkoff’s strategic integration game revealed

In what was billed as a “National Dairy Month” zoom news conference May 26, Gen Z was the focus as DMI activated its new thing: ‘strategic integration.’ Speaking were clockwise from top left, Scott Wallin, VP Industry Media Relations; Anne Warden, Exec. VP Strategic Integration; Barb O’Brien, DMI President; Jordan Maron (aka Captain Sparklez), popular Minecraft gamer; Nevin Lemos, Gen Z California dairy producer.

Who plays? Who pays? Who wins?

By Sherry Bunting, Farmshine, May 28, 2021

ROSEMONT, Ill. — Strategic integration. Gen Z Gamers. Point of origin for innovation. Dairy-‘based’ positioning. Virtual authenticity. Over a decade of planning.

My head is spinning after a DMI press conference this week on three new “activations” for June Dairy Month in the digital world of video games, including “Beat the Lag,” a gamer-recipe contest and the integration of Fuel Up to Play 60 into the virtual world of video gaming exercise.

Dairy Management Inc. (DMI) has been on a 12- to 13-year path to streamline, dilute, blend and innovate dairy with a focus squarely on Gen Z since 2008 in the schools, now integrating rapidly into the digital spaces where dairy checkoff leaders say Gen Z is changing the world of marketing for companies globally.

According to DMI, Gen Z is not interested in facts like vitamins and minerals. They want to know how foods and beverages will make them feel.

On the other hand, DMI leaders described Gen Z as “very capable of discovering facts,” of “looking deeper” for “authenticity” and “relatability,” that when communicating with Gen Z “you want to be really factual and transparent and tap into the emotions that they care about.”

(The paradox of virtual authenticity is hard to overlook.)

Taking center stage at DMI’s Undeniably Dairy website (usdairy.com) was the Beat the Lag Gen Z gamer competition in which this photo is the recipe contest centerpiece from which DMI will glean pathways to “launch future dairy innovations.” That tiny sprinkle of cheese makes this a dairy-based snack, says DMI in a special National Dairy Month media conference by zoom on May 26. usdairy.com screenshot

Dairy-based or ‘sprinkled’ is the future, some cheese on a pizza or snack. Butter in a cookie, splash of milk in a smoothie, a bit of cream added to a soda, a half ultrafiltered low-fat milk / half almond beverage blend. A little here, a little there. Don’t confuse or interrupt DMI’s ‘strategic integration’ flow by talking about having a glass of whole milk or a piece of cheese. DMI’s website has a few posts lately talking about how blending is the future of dairy — tailor-made for flexitarian messaging in the confusing and not-quite-factual climate-impact comparisons and discussion.

It’s all about innovation of new products, integrating (and diluting) milk as a component of beverages. Looking deeper, it’s really all about increasing margins for processors beyond the farmgate in the ramped up $100 billion dollar global “functional beverage” space, also known as ‘designer beverages.’

Gen Z has been DMI’s target for over a decade as the gateway, the point of origin for how strategic integration innovation will be accomplished with dairy farmer checkoff funds.

Anne Warden, executive vice president of Strategic Integration for DMI spoke in the zoom press conference May 26, explaining how DMI has been “focusing on the youth audience ever since making its commitment to USDA on school nutrition (in 2008).”

In fact, in a May 25, 2021 blog post by Warden, she talks about the future of dairy in schools, that Gen Z wants flashy packaging, unique combinations and sustainable dispensers.

According to Warden, Gen Z is the generation DMI has been working on since the launch of Fuel Up to Play 60, which was followed by the formation of GENYOUth and the signing of the memorandum of understanding (MOU) with USDA under Secretary Tom Vilsack in that 2008-10 time period.

This is the very same time period in which the option of whole milk as a beverage choice was removed from schools, even in the Smart Snacks rules governing ala carte beverage purchases and vending machines – paving the way for strategic integration. Put some milk in that soda, maybe? (That will make sense in a few minutes).

Last fall, Farmshine reported on the “partnering” DMI did with Gen Z ‘gamers’ in the popular Minecraft game, which included three dairy farms hosting three gamers to see how dairies operate. But the partnership that is now moving into integration warp-speed through three June Dairy Month “activations” has been years in the making.

Warden was hired by DMI in May of 2019 to head the strategic integration. Prior to that date, she spent three years at Edelman with DMI’s strategic integration as her primary project for Edelman. Warden’s resume at Linked-In notes DMI as one of Edelman’s largest and most integrated services clients.

This means ‘strategic integration’ — courtesy of all-knowing Edelman — has been underway at DMI for more than 5 years. Have we ever heard of it before now? No, because this is what the ‘precompetitive’ Innovation Center works on, where future strategies are decided upon via DMI’s ‘industry partners’ and quietly implemented with dairy farmer dollars.

Warden laid out the rationale for the three activations aimed at using Gen Z’s “love of video games to capture their attention and show how dairy products fit well within their gaming occasions during the day.”

DMI president Barb O’Brien stressed the point that DMI is looking at gaming as a platform with the objectives of communication and “research.”

“The work that’s coming through now with new product concepts, make this a consumer research method to understand where Gen Z will place their dollars in considering new products,” O’Brien related. “So it’s fantastic. (Gaming) is a channel, an occasion and a communications vehicle. It’s all about contemporizing how we do the work of the checkoff. It is the new advertising. Television is one-way. This is interactive.”

(Authentic, relatable, interactive content is deemed the key to communicating with Gen Z in a virtual digital world of gaming to bring forth new products. Let that paradox sink in.)

One of three activations discussed was “Beat the Lag.”

Lag is a term used to describe the frustration that happens when a video game’s graphics won’t load fast enough so the gamer has to wait (like the frustration of your computer screen freezing). DMI is taking that concept, partnering with Jordan Maron, known as Captain Sparklez to his 11 million followers to address “human lag.”

Over the past six weeks (ending May 29), DMI has been running a gaming recipe conest through Maron, soliciting “dairy-based” snack, beverage and recipe ideas from his followers, what do they eat to ‘Beat the Lag?’

DMI wants Gen Z to bring the ideas. “We don’t want to tell them what to eat (or drink),” said Warden.

During the press conference Maron noted that he got involved when approached by DMI because he “eats a lot of dairy.”

“One of my favorite foods is pizza,” said Maron. “I’m an especially huge fan of drinks that have added milk or cream in them, like sodas with cream added… They’re delicious. I love them.”

(A splash of milk or cream in a soda is something that had a hey-day three generations ago. Apparently, it’s making a comeback.)

Maron talked about doing some focus group work for DMI on “new product innovations” last fall along with a virtual farm tour.

“Me, and a few people who are followers of mine, got together in a call, and DMI shared their ideas for products they want to roll out down the line,” said Maron. “We took it to my focus group of three people and then turned that into Instagram story slides I was able to share out with a wider range of followers, and they were able to give their feedback as to what products would interest them, that they would buy or eat in the future.”

Maron said he hoped that his focus group gave DMI “some good insight.”

The press conference moderator, Scott Wallin of DMI, promptly steered away from the product innovation revelation and brought the conversation back to the farm tours and sustainability, saying DMI hopes to show Gen Z gamers the dairy story through Captain Sparklez and others.

Wallin introduced Gen Z dairy farmer Nevin Lemos of California. The 24-year-old fourth generation dairyman started his own 400-cow Jersey herd on a rented farm near his family’s dairy at the age of 20. Lemos admitted he doesn’t have much time for gaming over the past 10 years as his time and passion are spent working his dairy business.

Lemos observed that Gen Z is a generation able to “look behind the façade, to look deeper.”

Calling Gen Z a “savvy audience,” Warden said they exist almost entirely in the digital world, moving between multiple devices and media platforms daily, with 90% of Gen-Zers gaming.

They are aware of what companies are doing for good – beyond making money — and will turn away from products that “don’t match their values and their desire for authenticity,” said Warden, emphasizing Gen Z’s interest to know what companies are doing for the environment.

“We’re going to make sure farmers they can relate to (like Lemos) are showing up in their social media feeds to tell that story,” she said.

Gen Z gamer Maron talked about what it was like last fall to do the virtual farm tour with Gen Z dairyman Lemos, seeing how cows live and are fed and having one named after him: Sparklez.

The activation of DMI’s “Beat the Lag” is aimed at more than sustainability, said Warden, it is to “help re-position milk and dairy to meet Gen Z’s wellness needs.

“It’s about balance,” she continued. “Gen Z is less interested in the particulars of vitamins and minerals in their food or beverage. They are more interested in what that food is going to do for their bodies, how it is going to make them feel.”

Warden said DMI’s research shows that, “Some of dairy’s biggest opportunities with Gen Z are positioning as a food that will sustain their energy throughout the day or let them feel relaxed and recharged while doing the things that they love.”

“Beat the Lag” is themed around “dairy-based foods and beverages giving gamers an energy boost or a tasty pick-me-up after a long stretch of gaming,” said Warden. “We’re not going to tell them what to eat, we’re letting Jordan Maron (Captain Sparklez) and Rosanna Pansino, a gamer and culinary influencer, get gamers suggesting the ideas in ways they can relate to.”

Maron talked about ‘gamer fuel up’ youtube videos he did with Pansino, one being pizza pockets (with cheese).

“This is a contest, and when the (Beat the Lag) contest is all wrapped up, we’ll look at the recipes submitted,” he said, indicating that the winners will be shown in stages through the Minecraft game and win gaming prizes.

In addition to pizza pockets, other snack recipe ideas at the usdairy.com website under “Game On” and “Beat the Lag” include a bowl of vegetables and avocados, with the tiniest sprinkling of grated cheese. A demonstration is posted there also for making “Pixel Jam Heart” cookies. 

During the videos, Maron and Pansino talk about the contest suggesting smoothies, dips, protein drinks and things made with yogurt as ideas for creative contest submissions.

DMI’s O’Brien said: “This is today’s new form of advertising. It’s an opportunity to set the record straight on the nutritional side (vs. major advertising in all venues by plant-based dairy alternatives.)”

She said this avenue allows for “the exchange of factual information,” but was quick to point out that those nutrition facts “are not what is driving Gen Z’s choices.”

Bottom line? The virtual digital world of Gen Z gamers is, according to DMI president O’Brien, “the forum for putting forward innovation, for putting forward innovative products that are relevant to today’s lifestyle. We will be leading with products that are designed for gamers, by gamers, we know will have a much bigger appreciation beyond just gamers…

“We’ll see those products at retail. We’ll see those products at traditional foodservice. This is the point of origin for that innovation, and the inspiration,” she stated matter-of-factly.

There’s a lot to digest here, pieces of a dairy transformation agenda funded by farmers through checkoff. It’s important to know what checkoff dollars are doing in the integration phase of a 12 to 13 year plan to join the milk-disruptors with dairy-based innovations, now putting Gen Z gamers virtually in charge of how DMI’s products that are ready to roll down the line, come to market.

Meanwhile, a Hartman Group survey recently showed Gen Z prefers fast food and familiar tastes with a much lower attention paid to local, fresh products than prior generations. It’s no wonder. This generation has been worked over by PepsiCo, Domino’s, Sodexo, General Mills, brought into schools by USDA via the MOU marriage of low-fat / high-carb Dietary Guidelines and low-fat / high-carb promotion through Dairy Checkoff’s ‘school wellness foundation’ GENYOUth.

In this game, the obvious questions are: Who plays? Who pays? And who wins? 

After that trip into virtual authenticity, I need a tall cold glass of real whole milk to relax and recharge.

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From DMI to NZI to DS4G: Harper, McCloskey explain how scale will drive dairy to net zero

Author’s Note: This is part one in a multi-part series about DMI’s Dairy Scale for Good piece of the Innovation Center for U.S. Dairy’s Net Zero Initiative.

By Sherry Bunting, updated from publication in Farmshine, April 23, 2021

ROSEMONT, Ill. — “Looking at the past 50 years of impressive achievement, everything ladders up to milk efficiency. It’s less land. It’s less manure. It’s less water and less carbon, but it’s all about that milk,” said Caleb Harper, executive director of the Dairy Scale for Good (DS4G) piece of the DMI Innovation Center for U.S. Dairy’s Net-Zero Initiative (NZI).

“For the next 50 years, what if it was all about everything other than the milk. As we continue to advance toward yield of milk… you’ll start to see a rise in the importance of everything else,” said Harper, posing a “value proposition” for the dairy industry.

Harper, along with Dr. Mike McCloskey, of Fair Oaks Farm, Fairlife and Select Milk Producers, talked about NZI and DS4G in an online Balchem ‘real science lecture series’ earlier this month. McCloskey is an officer on the board of National Milk Producers Federation and has chaired the DMI Innovation Center’s Sustainability Initiative since inception.

The future being created, according to Harper and McCloskey, is one of dairy being recognized as an “irreplaceable ecosystem asset — an environmental solution — inside a comprehensive management plan for emissions reduction inside of animal ag livestock.”

Citing the Nestle and Starbucks sponsorships and others coming on near term, Harper said the pilot projects associated with each company will be located in separate supply chains. The sponsorships are being made, he said, because these companies have made big commitments to reducing carbon.

“As checkoff, one of our limitations is the ability to do on-farm work, especially around technology acquisition or measurement, so we need these third-party dollars to come in and be the catalyst to get living laboratories set up,” Harper explained.

Before Harper’s presentation about how the Net Zero Initiative builds-out the ‘everything else’ pieces, McCloskey gave historical context about the birth of the Innovation Center for U.S. Dairy in 2007.

“The trajectory (since 1940) is just phenomenal when you lay out the statistics,” said McCloskey. “We came together – National Milk, DMI, USDEC – and had a great meeting of the minds (in 2007). We said this natural sustainability progress will continue, but we need to accelerate it and be catalytic in how we can become the organization to drive this at a faster speed to net-zero.”

According to McCloskey, 80% of the nation’s milk is represented at this NZI table, and the dairy industry is the one to “really come out of the gate on this.”

The whole value chain from distributors to processors to retailers and companies that create packaging (are represented), so we have a really good understanding of the entire value chain and can focus on how to eliminate carbon footprint to bring it to net-zero,” he said.

The baseline life-cycle assessments (LCA) were the first steps 10 to 13 years ago to figure out “exactly where” the carbon was coming from, and the April lecture discussion focused field to farm, noting that the processors have a separate working group looking post-farm through consumption.

McCloskey said the LCA categorized carbon in 4 areas:

1) Farming (feed production) practices
2) Manure management
3) Enteric emissions from cows
4) Energy intensity of the operation (including renewables)

“Once we knew where the carbon was coming from, we started initiatives to find processes and technologies to innovate and accelerate the process to net-zero even faster,” said McCloskey, explaining the heavy participation from companies serving on committees and through initiatives these past 13 years.

Then, a year and a half ago, “we committed to the term net-zero,” he said. “That was a big jump.”

This bit of history set the stage for Harper to talk about the part of the Net Zero Initiative he heads up: Dairy Scale for Good (DS4G).

Harper was hired by DMI last May for the DS4G position just weeks after exiting M.I.T.’s Media Lab April 30th, after his OpenAg Initiative there came under scrutiny and was quietly closed.

“Caleb is looking at the four areas and how we can take technologies and processes and innovate them into DS4G,” said McCloskey.

Harper noted that dairy and agriculture are not operating in a vacuum. He said the first “bold commitments” to net-zero time frames between now and 2050 were made by big tech companies like Facebook, Amazon, Google, followed by food brands, companies across the food value chain, and then the agricultural input sector.

Throughout his presentation, Harper referenced the Biden administration policies the work hinges on, using much of the same coordinated language that surfaces via the World Economic Forum Great Reset and United Nations Food Systems Summit and what is called “The Fourth Industrial Revolution” in which technology is already rapidly accelerating.

“We’re seeing a shift in philosophy and it’s being driven by all of these commitments,” said Harper, insisting that, “It’s being driven, of course, by consumers.”

He showed pre-Covid poll statistics from the Hartman group. One in particular noted that 88% of consumers surveyed “would like brands to help them be more environmentally friendly and ethical in their daily lives.”

“Dairy has made the commitment to being an environmental solution,” said Harper, which means becoming carbon neutral or better, optimizing water use while maximizing recycling, and improving water quality by optimizing utilization of manure and nutrients.

Three working groups or initiatives were formed within the field-to-farm Net Zero Initiative: 1) Research, analysis and modeling; 2) Viability study, which is DS4G headed by Harper; and 3) Adoption for collective impact.

The Adoption piece will distill and disseminate across the industry what is learned through research, modeling and Harper’s DS4G work.

It is all about driving consumer choices under this net-zero mantra. Industry consolidation also figures into this equation to “scale the process and drive out the risk,” said Harper.

Many of the numbers in Harper’s presentation were taken directly from the World Wildlife Fund (WWF) white paper An Environmental and Economic Path Toward Net Zero Dairy Farm Emission.”

Harper cited environmental pressure and animal activism pressure on the U.S. dairy industry. He said: “This program (Dairy Net-Zero) is being supported by the World Wildlife Fund and others in the environmental space as a path towards a solution on all of these issues.”

Insisting that the Net Zero Initiative and DS4G operate with a “counter-balance” of environment and economics, the examples discussed by Harper included estimates for what producers may expect as returns for various environmental products and services.

Illustrating carbon footprint for a gallon of milk across all sectors from field to consumer, Harper and WWF maintain that the field-to-farm portion represents the largest potential (70%) for reducing CO2 equivalent emissions more than retail, consumption, processing and distribution combined. Harper said he sees this as work and opportunity. McCloskey had noted earlier that the processors have their own working group looking at emissions from farm to consumption.

The WWF white paper lays out the “business case” for the Net Zero Initiative, based on a 3500 cow dairy (a Fair Oaks site with 3000 milking and 500 dry). In fact, Harper’s DS4G work will exclusively pilot and model on dairies of this size.

“This is to make maximum impact on the supply of milk in the short-term,” he said. “If we look at the kind of consolidation going on in the industry, the herd sizes above 1000 cows are a small percentage of the total herd; however, (they account for) 55% of the milk production.”

Harper explained the DS4G concept this way:

“The idea is to use scale to address these (net-zero) issues so we can drive down the risk of adoption, the risk of market-building, the risk of technology… to bring that down to a level and spread it across the industry, across the milk.”

Walking through the technologies and processes that the checkoff-funded DS4G is “thinking about,” Harper indicated that this is “evolving”, and all revenue potential figures are “approximate”.

He mentioned a billion dollars of investment in digesters over the last few years from private equity funds, pension funds, and venture investors, with digesters representing — “rule of thumb” — one-third of the revenue potential of net-zero going forward. The new market opportunities driving that revenue potential, he said, are natural gas prices and the increasing value of the low-carbon renewable fuel credit price. The combination is what is attracting investors, according to Harper.

Harper said he has visited 100 dairy farms in 17 states in his first 11 months as the dairy-checkoff employee heading up DS4G. Of the dairies he has visited with more than 2500 cows, he said not one did not either have a digester or was breaking ground for a digester or in the process of planning a partnership around one.

He also talked about feed additives to address enteric emissions, cropping practices, and manure management technology, including ultrafiltration of manure as part of a “technology train” for the future. To be continued

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(Author’s Notes: The WWF Markets Institute released its dairy white paper Jan. 27, 2021. A mid-February Farmshine report revealed the WWF mathematical error that had inflated the magnitude of CO2 equivalent pounds contributed by all U.S. milk production. WWF on Feb. 25, 2021, corrected this baseline to show the much smaller collective impact of 268 billion pounds CO2 equivalent (not 2.3 trillion pounds). Both Harper and McCloskey serve on the WWF Market Institute’s Thought Leadership Group. Harper also served as a board member of New Harvest 2017-19, a global nonprofit building the field of cellular agriculture, funding startups to make milk, meat and eggs without animals. DMI confirms that dairy checkoff had an MOU with WWF from the inception of the Innovation Center for U.S. Dairy around 2008 through 2019. McCloskey has chaired the Innovation Center’s Sustainability Initiative since 2008. In 2008-09, two MOU’s were signed between DMI and USDA via former U.S. Ag Secretary Tom Vilsack — the Sustainability Initiative and GENYOUth. At the end of the Obama administration, Vilsack was hired by DMI dairy checkoff to serve as president and CEO of USDEC 2016-2021, and earlier this year he became Secretary of Agriculture again after President Joe Biden said Vilsack ‘practically wrote his rural platform and now he can implement it.” McCloskey and Harper also have another connection. According to the Sept. 2019 Chronicles of Higher Education, Caleb Harper’s father, Steve Harper, was a grocery executive. He was senior vice-president of marketing and fresh product development, procurement and merchandising from 1993 to 2010 for the H-E-B supermarket chain based in Texas. According to a 2020 presentation by Sue McCloskey, H-E-B was their first partner in the fluid milk business in the 1990s, followed by Kroger. According to the Houston Chronicle, the McCloskeys also partnered with H-E-B in 1996 to produce Mootopia ultrafiltered milk, an H-E-B brand. This was the pre-cursor to fairlife, the ultrafiltered milk beverage line in which DMI invested checkoff funds through the Innovation Center for U.S. Dairy partnering with the McCloskeys, Select, and Coca Cola.)

DMI’s NZI fits globalist agenda; How are ‘life cycle assessments’ developed? What do they value?

As Stewardship Commitments and Net Zero Initiative flow through to the FARM program’s Environmental Stewardship module, a user guide developed by NMPF covers what has already begun in terms of data collection. A farm’s cattle inventory of various classes and milk production, component production, feed ingredients, crop inputs and other data will be used to figure the farm’s GHG emissions relative to a regional average and relative to a national average. The guide can be read here, and additional information is available here 

By Sherry Bunting, Farmshine, December 4, 2020

Where do the life cycle assessments come from that are being used to benchmark progress on U.S. dairy’s impact on climate and environment? How might this “collective” method of measurement affect dairy diversity and geography in the future?

When dairy leaders talk about the Net Zero Initiative goals, they are using analysis by well-known animal scientists comparing data over time to benchmark industrywide collective progress using a determined scope of collective measurement that fits the controlling globalist view.

The idea is to peg dairy’s progress at one value that the global supply chain can then plug into their own brand impact measurements. Yes, this is both simple and complicated.

DMI leaders are quick to point out that this pathway was decided upon by dairy farmers, dairy cooperatives, and dairy processors and that dairy checkoff is simply providing the science. But it is also clear that DMI provides the staff and structure for implementation. The national dairy farmer checkoff organizations provide the science, the staff and the structure so that the entire dairy industry can be described as one unit – not multiple units competing with each other on the aspect of ‘sustainability.’ That’s the point, they say.

Along with the Net Zero carbon neutrality goal by 2050, DMI’s Innovation Center for U.S. Dairy offers this report on a decade of progress:  “The effects of improved performance in the U.S. dairy cattle industry on environmental impacts between 2007 and 2017,” was published in the January 2020 edition of the Journal of Animal Science

This report showed dairy used 30% less water, 21% less land, produced 21% less manure nutrients and produced 19% less greenhouse gas (GHG) emissions — referred to in press statements as carbon footprint — per metric ton of energy-corrected milk over the decade of 2007 to 2017.

The research by Jude Capper and Roger Cady, along with other animal scientists, observed that, “As dairy systems become more productive, efficiency improves via the dilution of maintenance effect (Bauman, VandeHaar, St. Pierre) and both resource use and GHG emissions are reduced per unit of milk.”

The researchers indicated that monitoring changes in food production processes, yields, and environmental impacts is a time-consuming and expensive undertaking, which they took to a higher level in this study as compared to 2006 and 2009 studies that looked at how efficiency gains reduced the environmental footprint of dairy from 1944 to 2007 based completely on animal productivity gains.

In the 2007 to 2017 study, researchers only looked at dairy’s impact from the manufacture and transport of crop inputs to milk at the farm gate. Excluded from the scope of collective farm progress are the impacts of milk transportation, processing and retail.

Dairy systems were modeled using typical management practices, herd population dynamics and production data from U.S. dairy farms (USDA NASS and Dairy Records Management System-DRMS). Crop data were sourced from national databases, including NASS. Modeling and training ration formulation software was used as well as a host of data from public sources to determine water recycling, electricity and other energy usage, for example.

“The U.S. dairy industry has made remarkable productivity gains and environmental progress over time,” write Capper and Cady. “To maintain this culture of continuous improvement, dairy must build on gains and demonstrate commitment to reducing environmental impacts while improving both economic viability and social acceptability.”

At the same time, Dr. Frank Mitloehner of University of California-Davis CLEAR center has been instrumental, mainly in evaluating – and putting into perspective – accurate greenhouse gas (GHG) emissions for dairy and livestock as well as participating in research on how various technologies could further reduce U.S. dairy’s current contribution of just 2% of total GHG emissions.

Progress to reduce GHGs is measured per unit of milk production, but as Dr. Mitloehner frequently points out, a better way to pinpoint it would be to incorporate the nutrient density of milk and meat in calculating the impact of dairy and livestock industries per nutritive value.

For example, almond beverage might have a smaller footprint, the experts say, but what is the nutritive value of selling water with the equivalent of two almonds per serving? Much of the climate impact discussion around food is not an apples to apples comparison in terms of nutrition and calories delivered.

The FARM program’s Environmental Stewardship guide prepares dairy farmers for collection of energy use data to compare a farm to a regional and national average for energy use as a part of its carbon footprint per unit of milk production. The guide can be read here, and additional information is available here.

There are other positive aspects of “environmental impact” at local levels that fall outside of the collective global method of impact measurement. How far food travels within local or regional food systems versus national and global supply chains is not part of the farm-level Net Zero Initiative.

Meanwhile, the Innovation Center for U.S. Dairy is working on product innovations at the processing level from a centralized or global supply chain perspective to reduce environmental impacts on a global scale. How do these ‘global’ vs. ‘local’ pathways intersect in the future in terms of a farm’s real contribution to the surrounding community vs. its contribution to a global impact model?

Where do the 2007 to 2017 gains from this research come from? First off, milk production increased 16% over that decade, and the number of dairy cows increased 2.2%.

Researchers explain the environmental impact was assessed using “a deterministic model based on animal nutrition, metabolism, and herd population parameters founded on life cycle assessment (LCA) principles.”

Those principles first establish the scope (in this case the scope was from crop input to milk output and did not include processing and distribution to consumers). Then inventory is established (input and output). Then the impact is established (input versus unit of output). Then the relative change is figured (improvement or reduction).

The researchers attributed a large portion of the gains to the continued dilution of ‘maintenance’ requirements per head of cattle and milk volume via these measurements: 

1) A 22.3% increase in energy-corrected milk production per cow as the 12% increase in fat yield and 10% increase in protein yield were factored in, 

2) Lifetime milk yield was figured to have increased 18.7% as a combination of shorter calving interval, shorter dry periods, increased replacement of mature cows with heifers, shortened days of life, and earlier calving age, 

3) increased productive-animal-days across the cattle population, 

4) reduced SCC as a proxy for reduced milk waste, 

5) How animals are fed, how water is used, and how inputs factor into the land and carbon footprint equation, collectively.

The research showed that even though total cattle numbers have increased slightly from 2007 to 2017, the number of productive-animal-days and lifetime milk increased by more during that time due to the way all of these factors combine to show reductions in environmental impact by reducing the inputs for non-productive cattle that are counted against the productive cattle population at points in time.

Life cycle assessment of environmental impact is all about data modeling and allocation. The age at first calving is a prime example. Until a dairy animal calves, she is using resources without delivering a product. Growth rates can improve these impacts in the modeling by getting cattle to production, faster. Once the animal has a calf and begins producing milk, she is now contributing to reducing carbon footprint by supplying milk yield and component yield in the national figures against the resources she is consuming. Length of dry period, calving interval, and other reproductive efficiency also affect this. Longevity, oddly enough, has less of an effect because of how the data are assembled and used.

As for land use and manure production, researchers looked at dairy rations without full consideration of the wide range of commodity byproducts. They included some common byproduct feeds like distillers grain for both 2007 and 2017. More could be done to show the relative feed value vs. environmental impact of many byproduct commodity feedstuffs, particularly if credit could be given for keeping fiber and carbohydrate from the food processing sector out of landfills.

Double-cropping (cover crop forages) are common practice on dairy farms today, which reduce environmental impact of milk production, but are not really quantified in this life cycle assessment research at this point.

In pasture systems, the intensive rotational grazing methods used today reduce the land to milk ratio within the context of grazing-based production, but may have a smaller positive impact on the industrywide collective figure if production per cow is below benchmark. That will need to be considered because there are clear sustainability benefits to these grazing systems that fall outside of this collective model.

All of these factors being analyzed and allocated to one U.S. dairy figure are calculated to paint one picture of reduced environmental footprint. This includes water recycling. Water that is used to cool milk is also used to wash down parlors and milking equipment and in some cases, a third time in manure flush systems before being recaptured as nutrient-rich effluent to irrigate crops. In some regions and some management styles, water recycling is not measured, but natural. Take grazing operations in rainfed rolling hills. Their recycling isn’t measured, but it’s happening.

Unfortunately, when it comes to all of these measurables, including the impact of productive-animal-days vs. animal population vs. energy-corrected milk volume, it is the increased consolidation of milk production to fewer and larger farms from 2007 to 2017 that has had, perhaps, the most significant positive impact on the collective industrywide dairy environmental footprint calculations.

Why? Because as more milk production is brought into heavily controlled confinement environments, it becomes easier to measure to directly influence the model. On the other hand, pasture and drylot systems offer other sustainability and animal care positives that consumers care about but are not as easily measured by this global supply chain model of environmental footprint.

The elite globalist view seeks to control every aspect of food, agriculture, and energy. It’s important to keep sight of other sides of the ‘sustainability’ equation. Local and regional food systems provide benefits to local economies, local land use and local ecosystems that are not reflected when we measure a national or global model.

As the industry moves toward controlled environments where inputs and outputs can be precisely measured, smaller less concentrated dairy farms may not be fully appreciated for what they contribute to a community’s environmental footprint in terms of how far food travels or how local economies and ecosystems are affected. This divergence needs to be addressed.

Remember, Net Zero Initiative fits the globalist view and aligns with World Economic Forum’s Great Reset. It also aligns with language in the Green New Deal.

Viewing footprint progress on a national or global scale across all cattle and all milk volume brings positive messages but also the aforementioned concerns.

It’s important to see ‘industry’ progress, and most dairy farmers welcome the opportunity to talk to consumers about what their industry has done collectively to be good stewards. However, when the dairy leaders at DMI and all of its organized underlings tell us that food safety, sustainability and animal care are NOT areas in which brands should compete, what they are really telling us is that these are areas that will be controlled by one message using their one collective measurement method in scope and calculation.

Farm size and geography will be considered, and they say diversity is a strength, but the bottom line is measurement toward a national model seeking to meet a global goal.

By their own admission, the dairy checkoff has pursued globalization since 2008, implemented FARM to keep animal care from being a marketing factor, and they admit they are implementing Net Zero to be sure dairy comes completely into alignment with the globalist view having collective measurement that fits the United Nations Sustainable Development Goals, while discouraging other forms of ‘sustainability’ marketing between brands.

Case in point, cattle longevity has little if any positive bearing on the life cycle assessment for water use, land use, manure produced and greenhouse gas emissions in the context of total-industry-collective measurement of inventory input vs. output.

In fact, the research cited in this article that is the basis for the DMI Innovation Center life cycle assessment actually shows a benefit for continual throughput of cattle with faster growth rates for calves and earlier age at first calving being more significant on the front end than the age of the cattle on the back end when applied to a collective industrywide measurement.

That’s because the total inventory of cattle in the dairy industry at any given time includes non-productive animals. Research models focus on the collective data about productive animal days vs. total cow numbers vs. milk production for input and output at given points in time — not over the lifetime of animals in the herd. Logic doesn’t always apply in this scenario.

In short, the way the industry looks at collective industrywide progress on environmental impact may differ from how an individual dairy producer or community of producers view their contribution by other equally valid measurements.  

Both methods can be supported by sound scientific data, but the industrywide collective method fits the global supply chain perspective. Thus, it is the approach for the Net Zero Initiative embraced by DMI’s Innovation Center for U.S. Dairy and the 27 companies that represent its board and the over 320 companies that are part of its Sustainability Alliance. 

The companies at the forefront are the largest global dairy companies and food retailers. They are also positioned as leaders and drivers of the World Economic Forum’s Great Reset, seeking to have food, technology, finance and energy sectors of the global economy work together to transform food, farming, energy, and our lives.

It will be important for individual dairy producer ideas, regional food systems, and their positive impacts on a more local scale to have a voice in how they are measured and evaluated within this truly global agenda. Speak up and stay tuned.

This document composed by the DMI Innovation Center for U.S. Dairy in November 2019 shows the “Stewardship Commitment” at a glance for each sector of the dairy supply chain involved in the Sustainability Alliance. Interestingly, under processing, there is a line item to quantify gallons of water captured from milk for use within the facility per pound of production output. 

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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

Fair Oaks, fairlife co-founder paints picture of dairy’s future as seen by partner DMI

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By Sherry Bunting, Farmshine, February 14, 2020

STATE COLLEGE, Pa. — The big question Sue McCloskey gets about fairlife is “How did you think of it?”

As co-founder with her husband Mike of Select Milk Producers, Fair Oaks Farms and the fairlife brand, McCloskey spoke about “the spark of innovation” to a crowd of over 500 at the 2020 Pennsylvania Dairy Summit in State College last Thursday, Feb. 6. She was among the featured speakers that were sponsored by ADA Northeast.

“We are all innovators in agriculture,” said McCloskey, telling how they learned of reverse osmosis when a well on their New Mexico dairy backed up 25 years ago, and RO membranes were used to separate solids to restore water quality. That experience introduced them to the concept of filtering solids by molecular size, but her larger message was about the concept of innovation in allowing companies to differentiate in a generic category like milk.

For example, she said, who would think, years ago, that water would become the multi-billion-dollar industry that it is today? And coffee? She cited Starbucks as a catalyst for the rise of coffee houses and coffee drinks and blends today.

As in these examples, someone was the first innovator to bring value to those generic categories. She said for milk, the parallel is fairlife.

“Innovation – thinking outside the box — that’s what grabs people,” she said.

McCloskey maintains that as consumers, “We are all waiting for the next new thing. We want more. We want new. That’s where we have seen success with fairlife.”

The journey

McCloskey talked about her husband’s journey from being a dairy veterinarian to a dairy producer and innovator. They started with 300 cows in California and a partner they still have today in Tim DenDulk. One by one they bought dairies, fixed them up and rolled them over.

Once they got to New Mexico with a 3000-cow dairy, that was the real beginning of it, she said. That’s where they founded Select Milk Producers 25 years ago, which is today the sixth largest cooperative on a milk volume basis with 99 members.

They formed to focus on high quality milk with low somatic cell counts and to sell that concept direct to retailers instead of being part of a co-op that commingled their milk to blend-down the somatic cell counts. That’s where they were introduced, she says, to the concept of what has become fairlife through the use of RO membranes to ultrafilter the milk. She explained that the milk going in must be very low in somatic cell counts because the process of ultrafiltration concentrates the solids – including somatic cells.

She pointed to the “incredible success” of building different plants and beginning to build the fairlife brand, which led them to their next opportunity in the Midwest – Fair Oaks Farms.

When the McCloskeys came to Indiana, DenDulk, their original partner in California, was already in Michigan.

McCloskey said the housing technology had developed by that time to where they felt they could do larger dairies in the Midwest climate. They built the first of the original four 2800-cow dairies in 1999. Today, there are 13 separate dairies totaling over 36,000 cows that are owned and managed by a few families on the roughly 30,000 acres, including the new 800-cow robotic dairy that opened at the end of 2019.

In fact, she spent part of her time talking about the innovations coming out of Fair Oaks to recycle and recover nutrients and to address greenhouse gas emissions to improve the “sustainability” and carbon footprint of dairy.

“There are cool things happening and things we are doing that we really need to embrace,” she said.

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(Sue’s husband Mike, who spoke in March at the PDPW virtual business conference on U.S. Dairy’s goals for GHG emissions, was the first chairman of the Sustainability Initiative when it was launched under DMI’s Innovation Center for U.S. Dairy in 2009-10, and the checkoff’s research and development and marketing assistance for fairlife and Fair Oaks came from DMI through the Innovation Center where such partnerships are born.)

The process

Establishing fluid milk supply relationships with large retailers like H-E-B and Kroger, McCloskey said they have worked over two decades to move closer to consumers as they began using RO and ultrafiltration as early as 1995 to reduce the water moving loads of milk to cheese plants, while at the same time beginning the high protein, low sugar milk proposition partnering with H-E-B in Mootopia in 1996, before what is fairlife today.

They saw other protein drinks in the market they could compete with – by concentrating the protein in milk.

So began the process of building the brand from coast to coast as new products have been added continually. While most people are familiar with fairlife ultrafiltered milk, the CorePower fitness recovery drink was among the first that was created as a competitor for Muscle Milk.

Today, there are flavored Yup drinks, snack drinks that pair ultrafiltered milk with oats and honey, new coffee creamers, and a full line of weight management and healthy lifestyle products that are just emerging under the fairlife brand.

While Select Milk Producers sold its remaining half-interest in fairlife to its early partner Coca-Cola a few weeks ago, McCloskey remains a spokesperson for the brand. Also, the research and development teams remain intact and are still located in Chicago.

The spotlight

What Coca-Cola did for fairlife, said McCloskey, is to provide a nationwide distribution network that the Select co-op could not have achieved on its own.

“The hardest thing in consumer goods is to get a product in front of the people who want to buy it,” said McCloskey. “Our challenge was distribution. So, we formed a partnership with Coca-Cola. With Coca-Cola as 100% owner of fairlife, what happens now is that they are just going to run with it.”

This means that, “Milk is in the spotlight. While we hear the bad news from Dean’s and Borden, the good news is that the Coca-Cola, a top-five company, is involved in milk,” said McCloskey.

With an ultrafiltration plant producing fairlife in Michigan, she explained that the east coast and midwestern markets could be served and that the new Select plant in Arizona will serve the west coast market. A plant is also being built in Canada.

Answering a question about whether fairlife, or this direction of milk innovation, would ever “play ball” with the smaller average size farms in Pennsylvania, she replied that any milk supply for fairlife must be very low in somatic cell counts and will have to meet with flying colors all of the new levels of audits and animal welfare requirements that Select Milk Producers and Coca-Cola have implemented since the undercover animal abuse video at McCloskey’s original farm at Fair Oaks this past summer.

When asked how producers are compensated for these additional measures, she did not disclose proprietary information about how producers are paid.

The proposition

She said the fairlife story shows “there is still room for investment and innovation in milk, innovation that makes milk relevant to consumers.”

McCloskey explained how the ultrafiltration process raises the protein and calcium levels, removes the lactose and reduces the natural sugars in milk without adding anything.

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“And it is still real milk… but better,” she says, explaining that fairlife is finding “amazing growth in differentiation,” that fairlife’s entire proposition to consumers is the concept of  “believe in better.”

“Our core tenets of the master brand are better taste, better nutrition, and better values,” she said.

“The brand is created around values, and these values are not new, but they are done in a way that is a little more creative to today’s consumers.”

She explained that Select Milk Producers sends milk that goes into a jug at Krogers and sends milk to fairlife, “but it’s the innovation and sharing the values that leads to growth.”

Sharing consumer surveys showing 90% of fairlife consumers are satisfied and 69% are repeat customers, McCloskey said this growth and innovation “mean bigger things for dairy than just fairlife.”

She said that 45% of the fairlife market share is coming from within the milk category and 55% of their consumers are coming over from outside of the milk category.

While fairlife’s ultrafiltration process is patented, McCloskey said a dozen new products have come on the market since fairlife that use similar technology or other means of delivering high protein, low sugar outcomes.

This allows these products to differentiate themselves next to the gallon of milk as a generic staple, she explained.

“If someone is on food stamps and can’t afford these new products, that’s okay,” McCloskey said. “They can buy milk. People will still buy milk.”

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The next phase

McCloskey stressed the “tremendous value checkoff organizations bring to dairy farmers to promote how to innovate dairy and make it better.”

She explained the next phase, how DMI is sitting down with young urban-suburban consumers to “learn how they make food choices, to learn what they look for. This is leading us into sustainability and carbon footprint,” said McCloskey.

“We also sit down with the different NGO’s (like World Wildlife Fund for example). We all sit at the table and talk about the challenges that face dairy farmers,” said McCloskey. “The Net Zero Initiative coming out of that is one of the coolest things, and we are a collaborator on what is needed for dairy to get to net zero. It’s a big stake in the ground, but it’s got to be the place where we need to go.”

She explained the Net Zero Initiative under DMI’s Innovation Center for U.S. Dairy has a catalog of technologies to help producers deal with environmental issues.

“What if 37,000 dairy farmers could have net zero greenhouse gas emissions? This is what we have to chase,” she said. “The innovation can’t stop. The whole genome of the dairy cow has been mapped. Manure can be fractionated. There is innovation that is so exciting for us to think about what dairy can look like in the future.”

The forward-looking picture McCloskey painted for Summit attendees includes even more fractionization and extraction of milk’s elements, more use of specialized GMO crops and more consolidation of farms and processors with fewer cows producing more milk to meet new sustainability benchmarks.

McCloskey said the innovation from fluid milk to cheese to fractionating protein into “all kinds of other products” — while reducing the overall dairy carbon footprint — is the road to 2050.

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The ‘perfect laboratory’

“We have only begun to know milk’s power and the different vitamins and elements we are just discovering how to use and extract,” she said.

“And it all happens in nature’s perfect laboratory – the dairy cow.”

On the flip side, McCloskey acknowledged that DMI has also learned consumer choices come back to this bottom line:

“It’s got to taste good and it’s got to do something for me,” she noted. “This is why dairy is not going away. Dairy is real and it tastes great and it makes you feel good.”

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New face, new position, ties ‘Undeniably Dairy’ to ‘milk without cows’

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By Sherry Bunting, Farmshine, July 31, 2020

CHICAGO, Ill. – A new face has “joined” Undeniably Dairy with direct ties to the effort to produce milk without cows.

Caleb Harper is the new hire for a new position via Dairy Checkoff. It was created within the DMI Innovation Center for U.S. Dairy’s Net-Zero project. His title as of May 1, 2020 is executive director of Dairy Scale for Good (DS4G).

On April 30, 2020, as reported last week in Farmshine, Harper left his position as the principle researcher at the M.I.T. Media Lab where he spearheaded the Open Agriculture Initiative, described as a “food computer” project. The lab came under scrutiny last fall for certain financial ties.

According to the May 13 New York Times, Harper’s OpenAg project “was quietly closed amid allegations that its results were exaggerated to sponsors and the public, the university confirmed. The Massachusetts Institute of Technology also announced that it would pay a $15,000 fine to the State Department of Environmental Protection because the project… improperly disposed chemicals into a well at a research center outside Boston where it conducted some experiments.”

For dairy farmers, that’s not even the worst of it. Harper has been a prolific writer and speaker touting cellular agriculture – milk, eggs and meat without animals.

Public Disclouser Copy for New Harvest.pdf

According to the most recent IRS 990s (2017 and 2018) for New Harvest Inc., Harper was a New Harvest board member during those two years.

This new DMI executive will head the work of scaling up the ‘climate-friendly’ practices dairy farms will implement in the future, when his past is rooted in cell ag to replace them. His direct association with New Harvest as part of their 5-member board is troubling.

New-Harvest-screenshot

New Harvest describes its purpose as “support for education and scientific research that advance technologies that make animal products (meat, eggs, milk, etc.) without the animals in order to reduce animal suffering, improve human health, and protect the environment.”

We reached out to DMI through Scott Wallin, vice president of industry media relations and issues management. We also sent questions to the DMI chair.

— We asked whether this newly created position filled by Harper had been advertised and if other candidates had been interviewed.

— We asked what are the responsibilities and qualifications for this “executive director of Dairy Scale for Good (DS4G)”? (For his part, Mr. Harper has the following description listed on his resume at Linked-In, that he is “part of an initiative working to help U.S. Dairies pilot and integrate new technology and management practices to reach net zero emissions or better while increasing farmer livelihood.”)

— We asked whether Harper had prior connections to DMI or any member of staff or leadership before getting this position.

— We asked for confirmation of how Mr. Harper’s salary is paid, through what sub-agency of DMI or partnership?

— We asked to know his starting salary, given his listing with a speakers agency showing he charges between $30,000 to $50,000 as a speaker – a speaker who frequents events side-by-side with the executive director of New Harvest, such conferences sponsored by the United Nations, World Government Summit, EAT Forum and other entities on planetary diets, “future of food” and cellular agriculture – milk without cows, eggs without hens, beef without cows.

— We also messaged Mr. Harper to ask him how a board member of New Harvest that funds research and supports technology specifically for milk without cows gets a job paid by mandatory checkoff funds from American dairy farmers who feed, care for and milk cows?

— We asked him what are his interests and qualifications in dairy?

— We asked if he was tapped for this position by someone within the DMI organization or one of DMI’s “partners” or did he simply respond to a job posting and interview for the position?

— We asked DMI how it came to be that a person who is an obvious supporter of technology to create milk without cows became the person hired by dairy checkoff — with dairy farmer money — to help develop, scale and implement environmental practices for real dairy farmers?

So far, the only response we have received was a brief general email from DMI’s Wallin, as follows: “Caleb Harper joined on May 1 to support U.S. dairy’s growing commitment to environmental stewardship and the development of new, scalable technologies and practices to support U.S. farmers.”

Harper, who goes by the handle @CalebGrowsFood on Twitter, has deep connections to cellular agriculture, a new sector populated with Silicon Valley “tech food” startups that the largest global dairy and meat integrators and food giants are now investing in to ramp up to scale. They use false science on human health and environment, especially climate change, as the angle to push these new product investments so they take root in retail and foodservice sectors across the nation, the world.

In fact, the continuation of status-quo low-fat and fat-free diets via the Dietary Guidelines Advisory Committee’s unscientific “Scientific Report,” July 15 is a key in the cell ag arsenal. A primary vegan on the saturated fats subcommittee alluded to “making way for new foods coming” that will deliver the nutrients the government-sanctioned meal patterns leave lacking.

New Harvest has funded and supported research with donations to companies making bovine DNA-altered yeast that excrete “dairy replacement” proteins that companies claim are “interchangeable” with real dairy protein in any food processing application. Companies like Perfect Day tout their B2B model of working with large dairy companies to scale, to provide replacement dairy protein that reduce the need for real dairy protein and thus reduce the need for cows and the “pressure” on the environment.

These “cell ag” companies and non-profits work together to seek from FDA the ability to label their creations as the dairy and meat they replace because they declare them to be biological replicas — achieved through gene-editing and modifying.

They seek the new “healthy” icon FDA is creating with its ongoing development of a Nutrition Innovation Strategy to meet dietary goals, such as low-fat. They say their replacements are superior because they reduce the impact of livestock on the planet and can be genetically customized to meet goals for the low-fat DGA recommendations.

Even the USDA bio-engineered (BE) labeling implemented in January is all set and ready for this, and guess what? Dairy producers helped lobby for it, thinking it applied to the crops they grow. Our industry leaders used producer reactions to non-GMO labeling to get grassroots support for label language that now does not require bio-engineered replacements to be labeled as such unless the engineered DNA is detectable within the final edible food.

A visit to the New Harvest web page at new-harvest.org will make your hair stand on end. Seeing the motto so boldly proclaiming: “Milk without cows. Eggs without Hens. Beef without Cows,” offers the realization that their goal – in concert with World Wildlife Fund (WWF), DMI’s “sustainability partner” — is the end of animal agriculture through cell agriculture.

Don’t get angry and don’t be depressed. Have hope. Be bold.

If every Farmshine reader does some of the suggestions below, maybe the Titanic can be steered away from the iceberg:

1)      Send this article to your Congressional representatives with a short note stating that this is just one example of how your rights as an American dairy farmer are being violated by the 15-cent mandatory dairy checkoff. Ask for his or her help in getting you an exemption from paying the checkoff, or in allowing you to assign your checkoff “tax” to another promotion, research and education entity.

2)      Call, email, or write to the cooperative director who represents you and ask what your cooperative is doing to protect its members from even more FARM requirements, considering an obvious supporter of “milk without cows” will be implementing the “Undeniably Dairy” environmental piece as executive director of DS4G.

3)      Call your state or regional dairy promotion representative or CEO and ask them to keep all of your dime in regional promotion instead of sending those 2.5 to 3 extra cents to DMI’s Unified Marketing Plan. They have the nickel. That’s enough.

4)      Watch for opportunities to support a dairy checkoff referendum. The law states that when 10% or more of the dairy producers and importers subject to the checkoff request a referendum, the Secretary of Agriculture must oblige.

At best, DMI did not do its homework on this, and other decisions that have influence over the future of rank-and-file dairy producers footing the bill.

At worst, DMI’s “pre-competitive” alliances with global food giants and WWF are steering efforts toward dilution in order to meet some ethereal environmental goal.

Meanwhile hard working, conscientious dairy farmers have done and are already doing more good for health, climate, water and soil than the combined efforts of billionaire Silicon Valley ‘tech-food’ startup investors, multinational food corporations, gene-altering animal replacers, plant-based imitators, high-paid future food fast-talkers, sly and cunning dietary do-gooders, cows-and-climate catastrophe exaggerators, and so-called ‘sustainability’ WWFers.

In times like these, dairy checkoff unity could mean circling the wagons to protect dairy farmers with a locked-and-loaded promotion, education and research front that keeps the cunning wolves from getting in, but instead it gives them an opening and some leverage to devour.

Business is business. But dairy farmers should not be forced to fund their own dilution and demise.

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What’s this? DMI hires ‘director of DS4G’, Resume looks impressive if the goal is to keep on diluting dairy

By Sherry Bunting, Farmshine, July 24, 2020

CHICAGO, Ill. – Dairy Management Inc (DMI) has a new hire at the Innovation Center for U.S. Dairy, under the leadership of Tom Vilsack and Mike McCloskey,  as part of the big push to make “sustainability” center of the plate. The definition could surprise us.

We know the goal on climate is to get “U.S. Dairy” to “net-zero” emissions across the supply chain by 2050 or sooner, but for me, this looks like a smoke screen to ramp up the rate at which the dairy food industry giants seek to scale dairy production and fill in the gaps with a little Perfect Day.

No announcement, but an occupation change and new Undeniably Dairy logo’d cover photo on his twitter feed signals that Caleb Harper — the former principle researcher and founder of the now closed Open Agriculture Initiative at M.I.T.’s embattled Media Lab — is the new DMI “Executive Director Dairy Scale for Good.”

Our initial inquiry for DMI’s vice president of media relations and issues management about the position and whether other candidates were interviewed — and other questions — was emailed earlier this week and not answered.

Harper has a long history of advocacy for urban food production in the sense of digitized, software-programmable, particalized and reconstituted food.  He wrote opinion pieces and did TED Talks about how the cutting edge of this movement is agri-‘culturing’ companies making lab-created dairy protein from DNA-engineered yeast and meat replacements from gene-edited muscle cells, stating that these are the food innovations needed to be sure the world does not go hungry.

In a National Geographic opinion piece in 2017, Harper even mentions and advocates for companies like Perfect Day and Modern Meadow, makers of replacement dairy protein from bovine-DNA-altered-yeast, as the future of food production because, according to Harper, people will move to cities and the rural lands will lose population.

Yes, he’s a guy who believes in true factory farms, the kind of factory farms where fermentation vats feed yeast and collect their excrement to separate out interchangeable dairy components, like protein, and where gene-edited muscle blobs grow in bioreactors instead of as animals on farms.

All part of the WWF (World Wildlife Fund) plan, I might add. They want to move everyone to the cities, re-wild the farms and rural lands, and they’ve already begun.

Harper, who goes by the handle “CalebGrowsFood” on Twitter, is part of the WWF “Thought Leadership Group.” In fact, Mike McCloskey of Fair Oaks, fairlife, and Select Milk Producers as well as a key leader in DMI’s Innovation Center for U.S. Dairy is also on the WWF Thought Leadership Group. Harper’s association with WWF goes back a long way.

For his part, Harper’s OpenAg Project at MIT set out to prove people in cities could grow their own food in LED boxes controlled by computers. Trouble is, it appears that despite the glowing reviews in 2016-18 when models were featured, the boxes never really worked. Some of the photos and demonstrations were allegedly fudged with plants purchased from local stores, according to Oct. 2019 and May 2020 articles in the New York Times, Propublica, WBUR public radio and several reports in science and technology publications.

On April 30, 2020, Caleb Harper left his position as the lead researcher for the OpenAg Project at MIT.

His departure coincides with the Institute’s investigation into the entire Media Lab at MIT amid the brewing scandal that first came to light last fall when the MIT Media Lab’s main director Joichi Ito was found to have financial ties to Jeffrey Epstein. Epstein is the international financier and socialite, who was a previously-convicted sex-offender and committed suicide last year in prison awaiting trial on new charges of human trafficking.

According to the New York Times, and other sources, the OpenAg project, led by Harper, was being used through various meetings between Ito and Epstein to get Epstein to invest more than the half million the MIT Media Lab was already receiving from him in “discretionary” funds — funds MIT was not aware of. As this became known, the work of the lab itself came under scrutiny, and that scrutiny is still in progress even though the lab shut down at the end of April with Harper’s departure.

Here’s the clincher. MIT began a thorough investigation of its Media Lab after firing the director over the Epstein financial ties, and along with that, is investigating Harper’s OpenAg project. Portions of the investigation were reported on in May of 2020 by various science journals and even the New York Times, indicating Harper’s OpenAg project released water from its “computerized plant boxes” with too much nitrogen, well beyond the levels they were permitted to release, and it went to an underground well. A researcher on-site blew the whistle with local authorities, resulting in a $25,000 fine. He was reprimanded in an email from Harper for jeopardizing the future of the project, the report indicated.

In addition, Harper’s computerized artificial intelligence plant boxes, that were showcased on 60 Minutes and National Geographic as well as other high profile outlets, never really worked, according to researchers in the lab, who were interviewed by ProPublica, a non-profit journalism entity judged high in their accuracy based on evidentiary reporting.

What we are learning is concerning. Harper, in this Undeniably Dairy Scale for Good position, may be the very person to work with Vilsack and McCloskey on what practices dairy farmers (most likely via the FARM program) must implement in order to remain part of “U.S. Dairy” by meeting their environmental benchmarks on soil, air, and water. That’s being funded with dairy producer checkoff funds, and there is a big question mark behind the name of the new hire on implementation. Does he really know anything about those three resources – and how to really produce real food while stewarding those resources?

To be continued in the July 31, 2020 edition of Farmshine

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Coca-Cola now sole owner of fairlife, beyond the headlines

lead-fairlife (2)By Sherry Bunting, Farmshine, Friday, Jan. 10, 2020

CHICAGO, Ill.  The Coca-Cola Company announced Friday (Jan. 3) that it has acquired the remaining stake in fairlife LLC from its joint venture partner Select Milk Producers, a 99-member cooperative run and founded by Dr. Mike and Sue McCloskey. Mike McCloskey is also co-founder and chairman of the board of Fair Oaks Farms, and he was chairman of the Sustainability Initiative of DMI’s Innovation Center for U.S. Dairy in 2014, when fairlife was officially launched.

As a result of the recent transaction, Coca-Cola now owns 100% of fairlife, up from its previous 42.5% minority stake, according to company statements.

Financial terms were not disclosed.

According to a company statement, fairlife will continue to operate as a standalone business and will continue to be based in Chicago, where the brand got its start as a joint venture of Select Milk Producers and Coca-Cola, and received partnership grants for research and promotion through the Innovation Center of the checkoff-funded Dairy Management Inc. (DMI).

“We are excited for the next chapter of fairlife’s growth and innovation,” said fairlife CEO Tim Doelman in a press release, emphasizing the strength and scale of the Coca-Cola Company.

“It’s important for fairlife to continue to operate as a standalone business based in Chicago,” stated Jim Dinkins, president of Coca-Cola North America in a press release. “This will continue to give Tim and his team the space and running room they need to innovate and build the fairlife brand in a unique and fast-changing category.”

The fairlife LLC launched in 2012 to make use of a patented cold-filtration process known as ultrafiltration, which removes some natural sugars (lactose) while concentrating milk’s protein and calcium. The launch began with a high-protein milkshake called Core Power and has grown to offer a portfolio of products in what Coca-Cola calls “the fast-growing value-added dairy category in North America.”

In addition to Core Power, the line of products includes fairlife ultrafiltered milk with 50% more protein and 50% less sugar, fairlife DHA with DHA Omega-3 fatty acids, fairlife (drinkable) smart snacks, fairlife nutrition plan (shakes), and the new fairlife creamers for coffee.

Coca-Cola reports fairlife sales have grown by double-digits each year since 2014, playing a big role in what the company sees as steady growth of value-added dairy products in contrast with the traditional fluid milk category. The brand has been supported by the reach of Coca Cola’s distribution, both through the Minute Maid system and Coca-Cola bottlers across the country.

According to IRI data, fairlife’s first-year sales were $62 million, representing 0.36% of market share in 2014. According to Nielsen AMC, fairlife surpassed $500 million in retail sales last year, an 8-fold increase and representing just shy of 3% of market share.

A new fairlife milk facility is under construction in Goodyear, Arizona to expand production beyond its current plants in Waco, Texas and Coopersville, Michigan. In 2018, fairlife launched its products for sale in Canada and will begin local production and sourcing in Ontario this spring.

According to Dinkins, Coca-Cola “will continue to ensure that fairlife has the best distribution possible and will be here to provide resources and expertise in areas such as sustainability and supply chain management to make the brand stronger and better for the future.”

In the same week as the Coca-Cola announcement on acquiring whole ownership of fairlife, a joint public statement was released by fairlife and Fair Oaks Farms announcing their new and evolving four-part animal and worker care platform as their long term response to the animal abuse videos that became public last June involving one of the 12 separate dairies at Fair Oaks Farms. This was also mentioned in the ownership transaction press packet.

“To guide this journey, we’ve assembled a fairlife Animal Welfare Advisory Council to ensure we are both learning and leading for the short- and long-term,” Doelman stated in a public statement. “We’re working with our supplying farmers to outline more detailed animal welfare policies… investing with and in our farmers … And we continue to require that every farm in our supply chain is subject to regular third-party unannounced audits with clear action plans for learning and improvement after each audit.”

DMI officials have indicated funding promotion and exhibits at Fair Oaks Farms’ visitor center an hour south of Chicago in Indiana. However, DMI indicates that its financial grants to fairlife for promotion ended in 2019. To receive DMI promotion funding, companies with approved innovations must spend a comparatively larger amount of their own funds.

Available tax forms for 2017 and 2018 list DMI grants to fairlife of $8 million for promotion in each of those years, and prior support was available from affiliated research and development resources in the Chicago suburbs of Rosemont where DMI and Fonterra are both located.

Ultrafiltration is a process that can vary by dairy product application and is used around the world. A 2018 Transparency Market Research report pegged Coca-Cola among the companies it listed as “key players operating in the global ultrafiltered milk market, along with HP Hood LLC, Idaho Milk Products Inc., Fonterra Co-operative Group, Kerry Group, Tatura Milk Industries Ltd., Darigold Ingredients Company, Erie Foods International Inc., Enka Sut Company, Grassland Dairy Products and others.”

In 2017, the FDA said ultrafiltered milk could be used to make any fresh cheese product.

While fairlife milk is still considered a fresh product with a 90-day shelf-life, some products in the lineup are shelf-stable and aseptically packaged.

Dr. McCloskey confirmed in a presentation on “the road to innovation” at the 2016 Georgia Dairy Conference that fairlife ultrafiltered milk was at that time designated a Class I fluid milk product; however, some of the other beverages in the lineup are Class II.

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