Dairy Management

Grow New Opportunities for Domestic & International Sales In 2022, dairy checkoff innovation and sales-driving efforts focused on accelerating dairy sales today, while keeping an eye on the future. To accomplish this checkoff partners with leaders across retail, foodservice and e-commerce to drive incremental sales through product innovation and dairy marketing programs. Domestic checkoff foodservice partners Domino's, McDonald's and Taco Bell continue to see three percent average growth - an increase that has happened every year since the start of the partnerships. 3x national milk production growth average of 1%* (from 2012-2022 as reported by USDA). Channel partner innovation advances sales. In total, 32 dairy-based products (21 national and 11 state and region) launched in 2022. New products launched included Taco Bell's Toasted Breakfast Burrito, Island Berry Freeze and Mango Whip Freeze, plus Cinnabon coffee with real dairy creamer. The real dairy creamer replaced non-dairy creamer. While partner McDonald's launched a Chocolatey Pretzel McFlurry. Checkoff also collaborated with Amazon to activate dairy marketing programs supporting dairy recipes and usages at key holiday periods. In e-commerce, Checkoff's category captain efforts yielded dollar sales growth of +13.3% for natural cheese +8.3% for dairy milk, respectively at Amazon. Finally, at retail, checkoff's partnership with General Mills helped launch three new products: Yoplait Cereal Toppers, Oui Whole Milk French Style yogurt, and Ratio Keto style yogurt. In addition to innovation, checkoff also supports category management and dairy promotion programs at Amazon for the "Fresh" retail and e-commerce division. Specific to fluid milk, checkoff focus on value-added milk innovation partnerships contributed to a $1 billion growth in value-added milk sales that includes high-protein, lower-sugar and lactose-free products over the last five years. This growth is more than all dairy alternative beverages combined during the same period. 2022 partner innovation of 13 new, value-added dairy-centric products with fluid milk and retail partner launches included Shamrock Foods Birthday Cake milk and Kroger's Strawberries and Cream flavored whole milk. From 2018 to 2022, value-added milk has grown +2.7% annually and +62.5M gallons driven, in part, by checkoff's historical and current investments in the space. U.S. dairy export markets also spurred sales growth. International checkoff partners Domino's and Pizza Hut saw U.S. cheese use grow more than 10 percent from 2019 through 2022, and international partners launched or relaunched 11 products in 2022. The checkoff continued its partnership with dairy cooperatives Associated Milk Producers Inc., Dairy Farmers of America, Darigold and United Dairymen of Arizona to help build export capabilities, strategies and market expansion to help U.S. dairy become a leading choice among international customers. Exports continued to serve as an important sales driver, accounting for 18 percent of total U.S production. This means that more than one in six milk tankers are used by those outside of the United States. Led in large part by the work of the U.S. Dairy Export Council (founded by and funded in large part by the dairy checkoff), export sales grew 4.3 percent in 2022 with U.S.-produced cheese, butter and milk powders driving volume growth. Utilized channel leading partners to deliver new products, product experience and marketing programming that resulted in catalytic and incremental sales growth.

Fuel up to play 60 (futp 60) is one of Dairy's best success stories when it comes to advancing health and wellness among youth. At its core, futp 60 is an in-school health and wellness program designed to engage and empower youth to take action for their own health by implementing long-term, positive changes for themselves, their schools and beyond. Customizable and non-prescriptive program components are grounded in research with youth, including tools and resources, in-school promotional materials, a website, student engagement activities and grants to fund sustainable changes especially in providing incremental access to school nutrition - with an emphasis on Dairy. Futp 60 was founded in 2009 by the national Dairy council (ndc) and the national football league (nfl), in collaboration with the u.s. department of agriculture. Since that time futp 60 has become the largest in-school health & wellness program in the united states with more than 70,000 schools enrolled, reaching millions of students. The program has helped to change school environments to better support proper nutrition and physical activity, and because of fuel up to play 60, millions of students are eating healthier and are more physically active. The program has not only been well received by schools as it helps them improve the school health and wellness environment, especially in underserved schools, but it also has been embraced by those outside of the Dairy industry who see the value of engaging in the program including many other health and nutrition organizations. Our success with futp 60 goes beyond healthy eating and physical activity in schools. It is about the total health of the child, and the positive impact on communities. The ndc and dmi also work with the Dairy community to surround this program with other in-school activations that further promote its mission to improve youth wellness through nutrition. As part of its mission to protect and grow sales and trust in Dairy, Dairy Management Inc. (dmi), national Dairy council (ndc) and the innovation center for u.s. Dairy lead programs designed to educate consumers about the nutrition of Dairy products and u.s. Dairy's commitment to produce them responsibly. A primary vehicle for this effort is undeniably Dairy. In its fifth year, during 2021, undeniably Dairy serves as the Dairy community's industry-wide, multi-stakeholder campaign that helps consumers and other stakeholders recognize the important role Dairy plays in their lives. Undeniably Dairy does this by building on consumer insights that indicate people increasingly want to know more about where their foods come from. The campaign connects people with the farmers and the Dairy community behind the real, nutrient-rich and responsibly produced milk and Dairy foods they love, while also bringing a bit of Dairy joy during culturally relevant moments. Each year, undeniably Dairy and other storytelling efforts leverage an integrated multi-channel approach to expand reach, raise awareness and build participation and ultimately, trust, through: -integrated communications - a comprehensive approach that includes media and other channel partnerships, digital (websites, search, and social strategies), earned and social media, and through events and experiences. -influencer outreach - establishing and/or strengthening relationships with critical media, reputational (e.g., dietitians, health professional organizations, environmental and animal care leaders) and cultural influencers (e.g., food and lifestyle content creators) that reach consumers and those who influence them. -community engagement - rallying the Dairy, food and other relevant communities to amplify, customize and create content to further unify and strengthen Dairy's voice, including engagement among farmers, processors and manufacturers, retailers, and agribusiness. In its first five years, these efforts have made an impact. The undeniably Dairy campaign has earned over 5 billion media impressions, including satellite media tours, desk-side visits and other media relations to reach targeted consumers and thought leaders, and has led to significant lift in the perceptions of Dairy.

THE DMI SUSTAINABILITY PROGRAM IS CRITICAL TO DMI's MISSION TO INCREASE DEMAND FOR DAIRY. THE PROGRAM DEMONSTRATES THAT DAIRY IS AN ENVIRONMENTAL SOLUTION - BACKED BY SCIENCE AND PROOF - AND ECONOMICALLY ADDITIVE FOR FARMERS, MARKETS AND SOCIETY. THE PROGRAM IS COMMITTED TO SUPPORTING SCIENTIFIC RESEARCH AIMED AT UNDERSTANDING, MEASURING AND IMPROVING THE ENVIRONMENTAL IMPACT OF DAIRY OPERATIONS THAT WILL SUPPORT INDUSTRY EFFORTS TO DRIVE CONSUMER DEMAND FOR PRODUCTS THAT ARE BOTH GOOD FOR HUMAN HEALTH AND THE ENVIRONMENT. SUSTAINABILITY RESEARCH FOCUSES ON GREENHOUSE GAS EMISSION REDUCTION OPPORTUNIITIES, LIFE CYCLE ASSESSMENTS, WATER USE EFFICIENCY AND WATER QUALITY, SUSTAINABILITY MEASUREMENT AND REPORTING, AND TECHNOLOGY TRANSFER AND KNOWLEDGE SHARING TO IMPROVE FARM ADVISOR ACCESS TO SCIENCE BASED TECHNICAL RESOURCES. COLLABORATING WITH PARTNERS IS NECESSARY FOR SUCCESS. KEY PARTNERS INCLUDE FARM ADVISORS, UNIVERSITIES, NON-GOVERNMENTAL ORGANIZATIONS, FOUNDATIONS, GOVERNMENT, AGRICULTURE INDUSTRY AND VALUE CHAIN. TOGETHER, THESE INITIATIVES SERVE THE PUBLIC INTEREST BY PROMOTING ENVIRONMENTAL SUSTAINABILITY, COMBATING CLIMATE CHANGE AND PROTECTING WATER RESOURCES.

Export dmi partners with food/retail/dairy companies to implement marketing programs and initiatives to facilitate the sales of u.s. Produced Dairy products and Dairy ingredients outside the united states across various key international markets.