USDA: Dairy Checkoff Partnerships Benefit Producers

September 17, 2013 09:00 AM

Source: Dairy Management, Inc. 

Dairy checkoff partnerships formed by Dairy Management Inc. (DMI) have a positive impact on sales, according to the U.S. Department of Agriculture’s annual Report to Congress.

An analysis of DMI’s partnership with Domino’s Pizza from 2009 to 2011 shows the benefit-to-cost ratio (BCR) of $7.70 for every checkoff dollar invested. This compares to a BCR of 3.9 for the entire checkoff before such partnerships began. The conclusions came from a new evaluation model designed by Texas A&M University that reflects the broad range of checkoff activities that work to grow demand for dairy.

"This report verifies the checkoff’s business strategy of working with and through partners instead of traditional generic advertising and promotion," said Paul Rovey, Arizona dairy producer and chair of DMI, which manages the national dairy checkoff. "Working with partners such as Domino’s and others clearly extends our resources and our return."

In addition to the partnership return, dairy export promotion activities conducted by the dairy producer-created U.S. Dairy Export Council generated a 6.1 percent increase in dairy exports on a fat basis, and a 3.1 percent increase on a skim solids basis. The BCR for export promotion was 8.12 on a fat basis, and 15.9 on a skim solids basis.

You can read the full report here

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