SUSTAINABILITY
FRONT DESK
Meet the Board
Third Quarter 2020
SUSTAINABILITY
What’s in the Bag?
RESPONSE TO COVID
Purchasing by Race, Generation
BUSINESS
Addressing Mental Health
nedairyfoods.org
contents Third Quarter 2020 • Volume 3, No. 3
FEATURES
SUSTAINABILITY
21 FRONT DESK 03
PRESIDENT’S MESSAGE, NDFA Sustaining Through Extraordinary Times
BY RENE THILBAULT
23
People + Planet + Community
24
Phibro’s Dairy Values Program
BY MIKE SUEVER
04
PRESIDENT’S MESSAGE, NDSA The Dairy Industry Is Like Family BY BILL ELLIOTT
05 07
09
NDFA’s Walsh Promoted
10
LEGISLATIVE REPORT The 2020 Rollercoaster Continues BY ALEX WALSH
What’s in the Bag?
29
2021 Annual Convention
30
Chr. Hansen Leads with Solutions
18
NDFA Board Members
19
NDSA Board Members
34
Evergreen Offers Sustainable Packaging
36
Entrepreneurs Start Chocolate Milk Revolution
COVID-19 UPDATES 37
Understanding Generational Responses
40
Contact Tracing: What Does It Mean?
39
Wear a Mask: Slow the Spread
41
Should You Travel?
BEST PRACTICES 42
ECONOMIC REPORT Cheese Leads the Way BY GARY LATTA
“Best By” Labeling Contributes to Waste BY CAROLINE K. REFF
27
Twenty Questions With Ozzie Orsillo EXECUTIVE VP MESSAGE Joining the NDFA Team
32
BY CAROLINE K. REFF
BY OZZIE ORSILLO
14
Dairy Cows: The Ultimate Recyclers
Mental Health in the Workplace
46
BY PAUL BANUSKI
44
SEO Trends in Dairy
Digital Marketing What to Do? How to Begin? BY BRIAN BLUFF
50
OSHA Updates BY STEPHEN VALENTINE, CIH,
NED Magazine | Third Quarter 2020 • 1
contents Third Quarter 2020 • Volume 3, No. 3
NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT
James “Ozzie” Orsillo
PRESIDENT
TREASURER
VICE PRESIDENT
SECRETARY
Mike Suever HP Hood, LLC
Michael P. Young Guida’s Dairy
EXECUTIVE ASSISTANT
Leanne Ziemba
ASSOCIATE VICE PRESIDENT OF REGULATORY AFFAIRS
Alex Walsh
Daniel R. Lausch Lactalis America Groups, Inc.
Rick Sedotto Midland Farms
NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. MEMBER & INDUSTRY NEWS 52
MEMBER PROFILE Cayuga Milk Ingredients Aims for Zero Carbon Operations
PRESIDENT
Bill Elliott Northeast Great Dane VICE PRESIDENT
TREASURER
Ryan Osterhout KCO Resource Management
SECRETARY
Bruce Alling Double H Plastics, Inc.
Melissa Fryer Alfa Laval
BY COURTNEY KLESS
53
Land O’Lakes to Close Digital Divide
54
MEMBER PROFILE Great Lakes Cheese Prides Itself on AwardWinning Products
55 56
NORTHEAST DAIRY MAGAZINE TEAM EXECUTIVE EDITOR
SALES
PUBLISHER/DIRECTOR OF SALES
Anne DeSantis anned@nedairymedia.com
James “Ozzie” Orsillo oo@nedairyfoods.org
BY COURTNEY KLESS
Bill Brod billbrod@nedairymedia.com
Borden Sold After Bankruptcy
EDITOR
Member News and Announcements
Caroline K. Reff creff@nedairymedia.com CONTENT DIRECTOR
58
Welcome New Members
Steve Guglielmo steveg@nedairymedia.com
58
In Memory of Tom Imbordino
GRAPHIC DESIGNERS
59
USDA Announces Award for SNAP Incentive
STAY CONNECTED
www.nedairyfoods.org www.neastda.org 427 S. MAIN ST, NORTH SYRACUSE, N.Y. 13212 315-452-MILK (6455)
2 • Northeast Dairy Foods Association, Inc.
Paul Brunell Robin Barnes
Tim Hudson thudson@nedairymedia.com
CONTRIBUTORS
Paul Banuski, Brian Bluff, Courtney Kless, Rene Thilbault, Stephen Valentine PRODUCED BY
Northeast Dairy Media
Editorial correspondence should be directed to editor@nedairymedia.com. Advertising correspondence and materials should be sent to billbrod@nedairymedia.com. POSTMASTER: Send address changes to lz@nedairyfoods.org.
An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations. In all other respects, neither the association nor the producer of the publication, Northeast Dairy Media, is responsible for the contents thereof or the opinions of the contributors. The entire contents are © 2020 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. Visit Northeast Dairy Foods Association online at nedairyfoods.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at oo@nedairyfoods.org.
Front Desk
Dairy Industry Sustaining Through Extraordinary Times MIKE SUEVER President, Board Of Directors, NDFA
A
s this issue of Northeast Dairy focuses on sustainability, it is top of mind to think about how everyone in our industry has worked to sustain through what are certainly unprecedented times. The Northeast was hit hard by COVID-19, and while I don’t think any of us would say we’ve reached the other side, we empathize with other parts of the nation currently experiencing the full impact of this virus, particularly those in the dairy industry. Despite it all, our industry has done a remarkable job in responding to the seismic changes in the way consumers want to receive and consume our products in the wake of the pandemic. Even when you consider the “dairy harvest” of raw milk, all elements of our industry have pitched in to resolve supply chain issues quickly. We’ve seen restaurant and institutional demand pull back due to stay-at-home orders that closed schools and limited hospitalizations unrelated to COVID-19. This left us in a precarious position and forced us to quickly change our focus to the retail space. The net shift caused an overall
dairy demand decline with commodity prices falling. In response, the co-ops have stepped in with base/excess plans to control production, which, along with government product purchases, has brought milk back into alignment and prices back up. We will see if retail dairy sales remain elevated as more food services and institutional demand resumes. But, whatever the outcome, we, as an industry, will do whatever is needed to be done to sustain overall industry growth. I hope you will find some of the topics covered in this issue informative and helpful. Issues related to sustainability — particularly in regard to animal welfare, the environment and what goes into our food — simply will not be ignored by our consumers, and we will need to continue making progress in this area. In this vein, NMPF is putting the finishing touches on an environmental sustainability module that will hopefully become a part of the overall FARM Program. Along with the new workforce development module, the dairy industry will have a comprehensive overall program that can meet the expectations of consumers
when fully implemented. These efforts on the farm, when combined with the Dairy Innovations Center’s processing plant sustainability reporting tools, will provide uniform reporting and limit the amount of redundant work. I am excited to see what the future holds. Lastly, I’d like to formally welcome Ozzie Orsillo as executive vice president of our association. Just as the dairy industry is going through one of its most overarching change cycles, we, too, are making our way through a transition due to the passing of Bruce Krupke, who led our association so faithfully for many years. I am so pleased that we were able to bring Ozzie on board as a fresh set of eyes on the issues facing our industry, our members and the work of our association. Having already served in a leadership role for us through his work as president of the NDSA board, Ozzie will surely lead us through these changing times, while representing our best interests at every level. I look forward to working with him, and I know that you, too, will support him and his staff as they plan, advocate and further support our membership.
NED Magazine | Third Quarter 2020 • 3
Front Desk
The Dairy Industry Is Like One Big Family
BILL ELLIOTT President, Board Of Directors, NDSA
L
et me begin by expressing my sincere gratitude for your confidence in me as I take on my new role as president of the Northeast Dairy Suppliers Association. It was my dear friend, Bruce Krupke, who set me on this path about eight years ago when I made a career change and joined Northeast Great Dane selling refrigerated trucks to those in the dairy industry. At the start, I knew very little about dairy, so I did what most of us would do; I Googled. Up came the Northeast Dairy Association. So, I gave the number a call. Guess who answered? Bruce Krupke. He welcomed me with his usual warm demeanor, inviting me to stop by the office next time I was in town. That same week, my childhood best friend, someone I have kept in contact with over the years, called me after moving to the suburbs of Syracuse, New York. When I told him about my career change, he
4 • Northeast Dairy Foods Association, Inc.
said, “I’ll have to introduce you to one of my best friends: Bruce Krupke!” How’s that for a small world? It was no coincidence that Bruce and I soon became fast friends, and, before I knew it, he had asked me to take a place on the NDSA board. How could I say no? Now, just a few short years later, I’ve been called upon to lead the board at the same time my predecessor, Ozzie Orsillo, steps into the big shoes that Bruce left to fill. (As a side note, the NDFA board could not have made a better choice than Ozzie Orsillo to carry on Bruce’s legacy, and I’m so pleased that the stars aligned to make that happen.) I remember how I was quickly treated like family when I first stepped into that office building. Now, as I am getting adjusted to my new leadership role on the board, I look at our association as a big family, too, always looking out for the interests of those around us. That sense of family is something I hope to continue to extend
to everyone through the NDSA, its work and activities. On to business! This issue of Northeast Dairy focuses on sustainability. Living through this pandemic has made me truly take notice of how dependent we are on other parts of the world. While this has its benefits, it has also made us vulnerable. So much has changed, and no one has been spared from the impact. I think if we’ve learned any lessons here it’s that we need to bring a manufacturing base back to the U.S. We need to be able to build, make and process the things we need right here in our own factories and on our own land. It should give us all a lot to think about as we wait for the day that COVID-19 is a distant memory. I hope as you read through this magazine and the articles about sustainability, you will think about how we can make that happen in a way that is responsible and beneficial for our membership and our entire industry family.
Front Desk
Twenty Questions With Ozzie Orsillo
M
any of you have already met NDFA’s new executive vice president, James “Ozzie” Orsillo, but we decided to play ”20 Questions” in an effort to get to know him even better. Here’s what Ozzie had to say:
Q1: WHERE IS YOUR HOMETOWN? I’m a native of the Boston area, growing up in a suburb called Winchester and then moving to Woburn when I got married. Both are still very nice, small-town communities where everyone knows their neighbors. Q2: DO YOU HAVE A FAMILY? I married my high school sweetheart, and we have four adult children. Q3: WHY DO YOU GO BY “OZZIE”? The name Ozzie goes back a couple of generations in our family. The story goes that when my grandfather came to the United States from Italy, our last name at the time was difficult for locals to pronounce. To make things easier for other people, our last name was shortened — a move beyond his control. This nickname went through a couple of versions until it finally landed on “Ozzie.” Since then, my father, my uncles, my brothers, my male cousins and I have all been called “Ozzie” at some point in our lives. There are only two of us left in the family that still carry the name in our personal and professional lives. Q4: WHAT WAS YOUR FIRST JOB? I worked for a company that made “Space Blankets,” those shiny, metalized, plastic blankets like you see runners at the Boston Marathon wrap themselves in to keep the heat in their bodies after they run. The product is still used today for a variety of sports and humanitarian events. Q5: WHAT ATTRACTED YOU TO TAKE ON YOUR CURRENT ROLE AS EXECUTIVE VICE PRESIDENT OF NDFA? Throughout my sales career, I have worked with many wonderful people in the dairy industry under a supplier/
customer relationship, and I have been blessed that many of those relationships blossomed into lifelong friendships. This open role at the Northeast Dairy Foods Association and my availability aligned at what I would qualify as a divine point in time. Through this role, I have been given the opportunity to serve this industry and all who make their livelihood from it at a much deeper level than I could have imagined. And, it is my honor to carry on the work of my predecessor and dear friend, Bruce Krupke. Q6: WHAT’S YOUR FAVORITE SPORTS TEAM? The New England Patriots — the best football franchise in the history of the NFL and possibly forever! Q7: WHAT’S YOUR FAVORITE PASTIME? Socializing with family, friends and colleagues. Q8: COFFEE OR TEA? Coffee. If anyone comes by the office, I like decaf, no cream, no sugar! Q9: CATS OR DOGS? I’m a dog person, but cats are good, too. Growing up, my dad bred and trained English Setters for pheasant hunting. Hunting with a well-trained dog is a wonderful experience, and Mom’s pheasant cacciatore was wonderful, too! We don’t hunt anymore, but now we have a Golden Lab who is a great family pet with a delightfully kind spirit. (continued on page 6) NED Magazine | Third Quarter 2020 • 5
Front Desk many years before that, most who attended will remember what happened there by just these two words: “Mount Airy.” Q17: WHAT’S YOUR GO-TO KARAOKE SONG? Sorry, I’m keeping that to myself, but, as a hint, it is best sung with a group of men (for the man’s part) and women (for the woman’s part). Loads of fun! Q18: WHAT’S YOUR FAVORITE QUOTE? “One nation, under God, indivisible, with liberty and justice for all.”
Q10: FAVORITE DAIRY FOOD? Ricotta cheese, of course — lasagna, ravioli, on a spoon, straight from the container. Need I say more? Q11: FAVORITE ICE CREAM FLAVOR? Vanilla. Q12: FAVORITE MOVIE? The favorite movie from my day is still my favorite — the 1978 classic “Grease” with John Travolta and Olivia Newton John. Goofy, yes, but lightheartedly entertaining.
Q19: WHAT ARE THE MOST IMPORTANT ISSUES FACING THE DAIRY INDUSTRY RIGHT NOW? 1. Federal Milk Marketing Orders: Is it time for a change? 2. Consolidation of the fluid milk side: Where will this rebalance of raw milk take us, and what impact will it have on the independent farmer? 3. COVID-19: We will make it through this virus, but what long-lasting or possibly permanent changes will it have on school milk volume, food service channels or retail sales? 4. Politics: November is coming. What will the trade deals of the existing or new administration look like on a national, continental or global scale?
Q13: OCEAN OR LAKE? I love them both, but seasonally — tropical ocean in the winter months and a nice, clean lake in the summer months. Q14: DREAM VACATION DESTINATION? North Syracuse, New York, on the second Wednesday of July in any year other than 2020. Our annual clambake! Q15: FAVORITE FOOD AT THE NDSA CLAMBAKE? Clams — on the half-shell with a bit of tabasco or steamed. Q16: WHAT’S YOUR BEST CLAMBAKE OR ANNUAL CONVENTION MEMORY? Every clambake and convention carries its own moments to cherish. However, the most indelible memories from past clambakes and conventions both involve rain — lots and lots of rain. A few years back at a clambake, it rained so hard for so long that the entire venue flooded to the point where we were forced to evacuate. Everyone got their lobsters to-go, along with a story to tell for a lifetime. Also, at a conference 6 • Northeast Dairy Foods Association, Inc.
Q20: WHAT’S YOUR ADVICE FOR SOMEONE JUST STARTING OUT IN THE DAIRY INDUSTRY? Prepare yourself for hard work, the kind your mom and dad told you about. This is an industry where hard work, a desire to be the best and the ability to respectfully interact with your peers (in-person) will provide you with a sense of purpose and pride — and I might add, a nice family-sustainable lifestyle. This industry is filled with genuine, hard-working people who are looking for the best of the next generation to impart their wisdom on and carry the baton. Are YOU ready for the challenge?
Front Desk
Joining the NDFA Team, Defining Sustainability and Planning Ahead OZZIE ORSILLO Executive Vice President, NDFA
I
t has been just a few short months since my hire, and what became instantly noticeable to me about this position and the dairy industry your Northeast Dairy Foods Association serves is that nothing stays the same and something is always being challenged. Even with the disruption caused by coronavirus and an extended government recess this year, we have had our share of issues at local, state, regional and national levels. But that is why your Northeast Dairy Foods Association is here, constantly watching and monitoring issues that impact our industry. Whether an issue is positive or negative in nature, the Northeast Dairy Foods Association is your advocate at a moment’s notice and at every level. Our association is staffed with dedicated and talented professionals with years of experience. Starting with Gary Latta, who, over his extensive career in dairy has become our go-to resource for all hearings, bills and legislative matters. As our behind-the-scenes watchdog, Gary always finds something of interest, tirelessly searching for issues that could cause review or action by our association. Alex Walsh, who just celebrated his tender two-year anniversary with our association, has quickly become an integral part of our legislative activities and
representation. Alex has recently been appointed associate vice president of regulatory affairs, which is well deserved. His proficiency in navigating through the complexity of political bureaucracy stems from his duties early on as an intern for a U.S. senator and as a legislative aide for a New York State senator. We will be looking to Alex for guidance with all future legislative matters. Then, there is our executive assistant Leanne Ziemba. I cannot say enough about Leanne and how important she is to the foundation and day-to-day presence of our association. Serving the Northeast Dairy Foods Association for over 20 years, Leanne has been a part of the growth in membership, geographic expansion and industry involvement alongside the late Bruce Krupke. We are very fortunate to have her. I am proud to be an addition to this outstanding group, as we all work together in support of our boards of directors, our members and the entire dairy industry. As for the activities of the Northeast Dairy Foods Association, at the time of this writing, some of the issues we are watching include the recent consolidation on the fluid milk side and the impact this may have on multiple levels. We are also watching marketing programs. Over the years, through various organizations and marketing campaigns, many have tried to create a rebound for fluid milk. However, the continued decline in fluid
milk consumption suggests these campaigns had only limited success. There is a new movement underway focused on the power of protein in dairy milk. Milk is one of the purest, most nutritious foods anyone can consume, and the protein packed in dairy milk, to me, is far superior to plant-based alternatives. Somehow, we lost our consumer base, and we need to showcase dairy products in a way that reshapes thinking and gives consumers new reasons to buy this tried and true staple of the American diet. We are hopeful this new protein-focused campaign will do just that. In addition, nationally, there have been some rumblings over the Federal Milk Marketing Orders and its out-of-date structure, compared to the current makeup of the industry. We can expect this topic to gain interest and momentum, and the association is watching this issue carefully as it moves forward. Finally, regionally, throughout our eight-state geographic boundary, there have been sporadic flareups around farm labor, recycling, packaging fees and regional manufacturing advantages. If any of our readers would like to know more about these issues, please call our office. Or, if you have something you would like the Northeast Dairy Foods Association to monitor on your behalf, we would be happy to do so. The lines of communication are open, and we are here to serve you. (continued on page 8) NED Magazine | Third Quarter 2020 • 7
Front Desk Now, on to the key topic for this quarterly issue of Northeast Dairy. As you read on, you will note our theme for this publication revolves around sustainability. “Sustainability” — What does this mean to you? According to Merriam-Webster, sustainability is defined as “of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged.” That is also how I understand the word and concept of sustainability. Growing up in a household with parents from “the greatest generation,” nothing went to waste, everything was reused or repurposed and everything had a sustainable base (e.g., wood, paper, cotton, etc.) All of this was an effort of being mindful of the impact we have on our environment. Those values still carry on with me, and I’m proud to say my children, as well. Sometimes, of course, even through our best efforts, we will be forced to stray from using sustainable products, but that is unfortunately how society has evolved over time. Driven by cost, logistics, manufacturing efficiencies, convenience, and a host of other factors, unless you adopt a lifestyle of pure self-sustenance, you have no choice. However, we can all do our part — large or small. Sustainability may have different interpretations to other people. Possible interpretations may include: How does a dairy farmer sustain the family business in order to provide a living for future generations? How can a growing business sustain growth by hiring and retaining talented and dedicated people? What processes can be improved and made more cost effective in order to promote the use of recycled products domestically and eliminate our reliance on exporting recycled materials? What technologies are on the horizon that can help limit our carbon footprint from farm to table? Depending on your perspective, the word “sustainability” has its own meaning and relevance. In this publication, please enjoy reading about this topic from various points of view. If you read anything you want more information on, please call our office, and we will gather that for you. Lastly, please hold the following dates: Aug. 18, 19 and 20, 2021, for an informative get together at the beautiful Chautauqua Harbor Hotel in Celoron, New York. This is when we will hold our annual conference next year, and I’m sure we’re all looking forward to the days when we can gather together in person again! We know everyone will enjoy the venue and the agenda. You won’t want to miss this opportunity, and, better yet, it’s a vacation destination, so plan to bring your spouse, significant other, kids or other family and friends. More details are soon to follow! To all our Northeast Dairy Foods Association members and directors and to all our Northeast Dairy Suppliers Association members and directors, we sincerely thank you for your trust and support. 8 • Northeast Dairy Foods Association, Inc.
Front Desk
NDFA’s Walsh Promoted to Associate VP of Regulatory Affairs
C
ongratulations to Alex Walsh, who was recently promoted to associate vice president of regulatory affairs for the Northeast Dairy Foods Association. Walsh joined the association in April 2018 as the director of
communications and membership. Since then, his role has expanded. Today, he is responsible for representing members’ interests before elected officials, government agencies, industry partners and the business community, while continuing to manage all internal and external communications for the association. “We serve as an early warning system for members and ward off potential industry-wide problems,” said Walsh. “I am excited to build on my new role as an advocate on the front lines fighting for our members and supporting measures
that allow our membership and the dairy industry to grow and prosper.” Walsh is a 2010 graduate of SUNY Oswego. Prior to joining NDFA, he was a public relations account manager for Pinckney Hugo Group, legislative aide to New York State Sen. John A. DeFrancisco and a public information officer for Onondaga County (NY). He currently serves as chairman of the Onondaga County Traffic Safety Advisory Board and the Zoning Board of Appeals for the Town of Camillus (NY), as well as an ECAC Hockey on-ice official.
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Legislative+Regulations Report
The 2020 Rollercoaster Continues
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BY ALEX WALSH
sually by the end of June, most state legislatures have wrapped up their business and are in their home districts for the remainder of the year. After that, occasionally, they are called to return to the capital for a special session to pass legislation or convene for a hearing or specific, urgent reason. However, this year, state legislators were not working in the capitol or taking up legislative topics for the last half of March, all of April and May and into the first half of June due to COVID-19. Many priorities that were pointed out by leaders at the start of 2020 that were on the forefront to be discussed and tackled this legislative session, including agriculture, food processing, environmental, recycling and a list of other issues, were put on the backburner as COVID-19 and social justice topics took center stage when state capitals restarted after the hiatus. Legislators found themselves working beyond the end of June deadline and into the summer months. On one side of the coin, the industry has not been a focus or target to introduce any bills or regulations, particularly at the state level, to greatly impact companies in a negative way. On the other side of that same coin, no major changes have been made at the state level 10 • Northeast Dairy Foods Association, Inc.
to improve conditions or resolve priorities that the Northeast Dairy Foods Association has set out to remedy. As COVID-19 quieted down towards the end of June in the Northeast, much of the rest of the country was experiencing spikes in hospitalizations and deaths. This allowed New York, New Jersey and the New England states to ramp up legislative business. In June, on top of a global pandemic, the United States was also beginning to see social unrest. Marches and riots took place throughout the country over racial inequalities, and tensions increased between citizens and law enforcement. Despite these major issues, the Northeast Dairy Foods Association continued to work with partners at the local, state and federal levels to represent your interests and monitor agriculture and food-related issues, most of which occurred at the national level, as a few initiatives were put into place.
STARTING TO RE-OPEN, LEARNING IMPORTANT LESSONS In states throughout the Northeast, businesses have been able to re-open in various regions under different phases, depending on infection rates, localities and the healthcare
Legislative+Regulations Report
system’s ability to manage the virus. This has been good news, as retail, restaurants and other entities saw increases in people returning to work or working from home less, and consumer confidence started to rebound. Consumers began shopping and going out of their homes more as infection rates decreased and their willingness and desire to start returning to “normal” began to come back. Officials implemented many rules and regulations for businesses and the general public to follow that included limiting the number of customers in a specific place at one time, keeping socially distant and wearing masks. With that, the dairy industry rebounded fairly quickly after a rocky period early in the pandemic. At the start of COVID-19, the industry experienced panic buying in the form of increased milk and other food staple sales from consumers, as they feared they would be home-bound for a long period of time. In response, retailers placed limits as to how much milk and other popular items could be purchased at a time. The entire supply chain had great difficulty responding to this crisis in a short period of time. Producers and processors were forced to dump thousands of pounds of milk across the country, as processing plants were at capacity. Yet, dairy cases in grocery stores were empty, leaving many people baffled. In working with various elected officials and agriculture departments, the Northeast Dairy Foods Association was able to bring this issue to a heightened level of urgency and come to a solution to create purchasing programs where state agencies bought excess fluid milk and other dairy and food products, providing them to food banks throughout the states. In New York, the program was called Nourish New York, and a similar program at the federal level was put in
place by the USDA. This significantly eased the milk dumping issue that was taking place and provided much more stability to the industry. It also provided healthy and safe dairy and food items to those in need.
NYS TO CREATE A FOOD SUPPLY WORKING GROUP Through legislative action, New York State is looking to create a food supply working group. This is in reaction to the food supply issues experienced during the COVID-19 pandemic and will study how and why those issues arose, and provide advice, guidance and recommendations for New York’s food supply chain in a manner that benefits farms,
food businesses, workers and consumers. This working group would be appointed by the commissioner of agriculture and markets in coordination with the commissioner of economic development and would consist of representatives from farming, food processing, food retailing, food service, wholesalers, transporters, labor, emergency food providers, academia, federal and state government and any others the commissioner deems necessary. The bill is sponsored by Sen. Jen Metzger, chair of the Senate Agriculture Committee, and Assemblywoman Donna Lupardo, chair of the Assembly Agriculture Committee. The Northeast Dairy Foods Association has been monitoring this legislation and is
The Agri-Mark dairy co-operative has proudly adopted the U.S. Dairy Stewardship Commitment, affirming to our customers, our consumers and the global marketplace our pledge to responsible dairy production as we nourish the communities we serve. For more information about the U.S. Dairy Stewardship Commitment, go to:
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NED Magazine | Third Quarter 2020 • 11
Legislative+Regulations Report
advocating to ensure that proper representation of dairy foods processors, manufacturers, distributors and suppliers is included in this working group in order to speak in one, united voice.
RELIEF FOR DAIRY PRODUCERS AND PROCESSORS IN VERMONT In addition to New York, other states have earmarked funding specific to dairy producers and processors for relief. Vermont, for example, has allocated $25 million in the form of grants to producers and processors who have experienced income loss and additional expenses because of COVID-19. Pointing to declining milk prices, increased processing and cost of production, as well as the closures of schools, restaurants and other food services, Vermont has grants available for farmers, as well as producers of cheese, butter, yogurt, ice cream and other value-added dairy products.
USMCA MOVES FORWARD Despite the challenges that COVID-19 has brought, the United States-Mexico-Canada Agreement was implemented in July. USMCA strengthens and modernizes the North American Free Trade Agreement, which was an initiative under President Bill Clinton in the 1990s. This is important, as Mexico and 12 • Northeast Dairy Foods Association, Inc.
Canada purchase approximately 40% of the United States’ dairy exports annually, estimated to be about $2 billion. A majority of those dairy exports include milk powder and cheese. However, trading and exports have had major difficulties during the pandemic, and Canada has already been looking at ways to undermine the USMCA deal by limiting and controlling U.S. access into the Canadian dairy markets by releasing trade rate quotas. Trade officials and American dairy organizations, including the Northeast Dairy Foods Association, will be closely monitoring and enforcing trade commitments made under USMCA. This is extremely important, given the proximity to Canada and the impact of trade on some of the companies that are members of NDSA that conduct a significant amount of business with our neighbors to the north. Much of the legislative action at both the state and federal levels that continue to be brought up and implemented have been to provide funding to individuals and businesses impacted by COVID-19, some of which are applicable to dairy producers, processors, manufacturers and distributors. Our website (www. neastdairyfoods.org) continues to contain a consolidated list of important resources for you and your company regarding COVID-19.
Legislative+Regulations Report
GET OUT THE VOTE! Things could change dramatically in the make-up of legislative and executive branches based on their positions with handling of COVID-19 — if voters believe restrictions were too lenient or too strict, which presidential candidate they have aligned themselves with, etc. I encourage you to be informed and knowledgeable on the issues, the candidates and their positions, and engage in the process if possible. It is said each year that this is the most important election ever, and while that still rings true, every election is important. Election Day is Tuesday, Nov. 3, and this day will
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bring a change and an impact to you. Because of this, I implore you to exercise your right to have your voice heard. As always, the Northeast Dairy Foods Association will continue to monitor and engage on issues related to the dairy industry and your operations. Our staff is committed to serving you and the dairy industry at large in the Northeast. If, at any time, we can assist you on an issue or provide you with information on a topic, please feel free to contact us. Alex Walsh is the associate vice president of regulatory affairs for the Northeast Dairy Foods Association.
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The legislative schedule for the remainder of 2020 is uncertain. While state representatives have been convening, it has been done at a more random rather than structured schedule. Elected officials are also up for re-election this cycle in November at the state and federal levels, and it is a presidential election year. As we are now past Labor Day, political activities are sure to be increasing as we approach Election Day, and it will be done in a much different fashion this year as fundraisers, speeches, parades and pancake breakfasts have been cancelled. Those seeking office will be conducting a never-before-seen style of campaigning this year, as they are unable to meet faceto-face with voters like they have in the
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NED Magazine | Third Quarter 2020 • 13
Economic Outlook
Cheese Leads the Way While Milk Production Expects Slowdown BY GARY LATTA
A
s fast as cheese prices nosedived, they have rebounded with a fury. Retail sales of both fluid milk and cheese have been quite brisk since March. Now, with restaurants reopening, and the USDA Farmers to Families Food Box Program stimulating demand, cheese prices at the Chicago Mercantile Exchange have risen with unusual speed. The CME block cheese price fell to near $1 per pound in March, shortly after the coronavirus pandemic mandated state shutdowns across the country. In May, the cheese price began a rapid weekly climb until briefly hitting a historic high of $3 per pound for blocks on July 13 before backing down to $2.67, where U.S. $ PER POUND 3.00 2.90 2.80 2.70 2.60 2.50 2.40 2.30 2.20 2.10 2.00 1.90 1.80 1.70 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.70
CM
eekl
7/24/2020 GRAPH USDA, DMN; SOURCE CME GROUP USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website: www.ams.usda.gov/market-news/dairy 14 • Northeast Dairy Foods Association, Inc.
it remains at the time of this writing. Barrels have followed a similar trajectory upward and are currently trading at $2.43 per pound. With a slowdown in U.S. milk production and extending the Food Box Program at least through the end of August, some feel these high cheese prices could be around for a while.
USDA FOOD BOX PROGRAM ELEVATES DAIRY PRICES USDA’s Food Box Program has played a pivotal role in elevating dairy prices, especially cheese, by helping to move milk and various products through the marketplace for families in need. The USDA has accomplished this by partnering with national, regional and local distributors to purchase up
era e Cas C e ar l ck Prices
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Economic Outlook to $3 billion in fresh produce, dairy and meat products from producers. Distributors then package these products into family-sized boxes and transport them to food banks, community and faith-based organizations, and other non-profits serving Americans in need. The swift efforts of many local and regional groups have helped clear the marketplace of surplus milk contributing to the rapid rebound in prices. It is reported that nearly 40 million boxes of fresh, locally sourced produce, meat and dairy were delivered in mid-July. The USDA awarded $1.2 billion in contracts for food boxes distributed from May 15 to June 30. Due to its success, the Food Box Program was extended by another $1.47 billion from July 1 through Aug. 31. The impact of these recent cheese prices has taken Class III announced values from $12.14 per hundredweight in May to $21.04 for June, an increase of $8.90 per hundredweight in just one month. Estimates are that the July Class III price could rise another $3.50 to $4 per hundredweight over June. Since Class I fluid milk prices are forward announced, there is a lag between the time these high cheese prices get fully reflected in the fluid milk price. Also, since the Class I fluid milk price formula was revised in May 2019, the fluid milk driver is no longer the “higher of” either Class III or Class
IV advanced skim values. The revised formula is the simple arithmetic average of the monthly Class III and IV advanced skim pricing factors plus 74 cents per hundredweight. In effect, the new formula will somewhat temper the full impact of this swift-rising Class III price on Class I fluid prices. Also, since Class I fluid prices are forward announced, there is a temporary anomaly where Class III prices are higher than Class I. For June, the announced Class III price was $21.04, while the June Class I base price mover factor was $11.42. After factoring in distance differentials, June Class I in the Northeast Federal Milk Order ranges from $13.52 in Jamestown to $14.67 in Boston. Under normal circumstances, this inverted price situation rarely occurs. However, with cheese prices rising so high and fast, we see what is known as “negative producer price differentials.” Also, some Class III milk users will elect to temporarily opt out of participating in the Federal Milk Order pool. This is to be expected and is a business decision each purchaser of Class III milk, primarily cheese plants, will make.
U.S. PRODUCTS COMPETITIVE INTERNATONALLY Recent market price movements of butter, nonfat dry milk and dry whey have been less dramatic than cheese. Nevertheless,
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Economic Outlook there are signs of these markets firming up, as well. The lower prices in April and May, along with a weaker dollar, helped make U.S. dairy products competitive in the international market, thus invigorating exports. A weaker dollar makes U.S. agricultural exports more competitive in the international sales arena. In recent weeks, the U.S. Dairy Export Council announced that dairy exports reached a two-year high, driven by record ingredient sales of nonfat dry milk and skim milk powder for the month of May. May shipment volumes of 210,000 tons were up 18%, while the value was up more than $585 million over the same month last year. At present, Southeast Asia is the biggest importer of U.S. dairy products. May nonfat dry milk and skim milk powder exports were up 24% over the same month last year. Whey exports in May were up 17%, with much of the increase coming from Chinese demand. Shipments of lactose were up 18% and cheese exports were 7% higher. Current high U.S. cheese prices will make it more difficult to remain competitive in international cheese markets.
USMCA GOES INTO EFFECT The long-anticipated and highly touted United StatesMexico-Canada Agreement became effective July 1. The new
16 • Northeast Dairy Foods Association, Inc.
trade agreement has generated considerable optimism among the political class and agriculture community. However, some dairy groups and U.S. Trade Representative Robert Lighthizer have expressed concern that Canada is taking steps to circumvent some of the agreed upon policies. Relaxing some protective barriers to allow the import of more U.S. dairy product and eliminating Canada’s 6 and 7 provisions were hotly contested by the well-organized, politically connected Canadian dairy lobby. USMCA agreed upon provisions were that Canada opens 3.59% of its domestic market to U.S. dairy products. Some critics feel there is an attempt to manipulate quota shares that could impede the export of U.S. products into Canada by issuing the quota permits to Canadian processors only.
USDA MILK PRODUCTION FORECAST USDA’s milk production report was released July 21 and shows June production up +0.5% among the 24 top producing states versus June of last year. It is interesting to note that May milk production among the top 24 was down -1.0%. June production per cow was unchanged, and the number of milk cows in the 24 major states was 8.83 million head — 43,000 more than June 2019, but 9,000 less than May 2020. It will be interesting to see if the recent heat waves afflicting the country will have any impact on milk production in the coming months. Total U.S. milk production for all states in the first quarter of this year was up +3.1% but then dropped to just +0.4% in the second quarter April through June. Second quarter milk production for Northeast states compared to last year shows Maine down -6.2%, Vermont down -4.5%, New Hampshire down -3.2%, Connecticut up +0.9%, Massachusetts up +2.0%, Rhode Island down -3.7%, New Jersey down -3.8%, Pennsylvania up +0.5% and New York down -0.2%. The USDA’s Economic Research Service released its latest dairy forecast on July 16. With the growth in milk production showing modest signs of slowing, the 2020 annual milk production estimate has been reduced by one billion pounds from last month’s projection. The estimated number of milk cows in the national herd for 2020 was also reduced by 5,000 head, and production per cow was lowered by 105 pounds to 23,635 pounds. The dairy export forecast was raised with expectations of higher international sales of dry skim, butterfat products, lactose and cheese. Cheese exports will likely be hampered by their current high prices, which impacts U.S. competitiveness internationally. Domestic dairy use is expected to improve in the second half of the year due to increased demand and additional government purchases via the Food Box Program.
Economic Outlook Class III Milk Price at 3.5%Test
PER CWT $20.50 $19.50 $18.50 $17.50 $16.50 $15.50 $14.50 $13.50 $12.50 $11.50
Jan
Feb
Mar
Apr
May
7/1/2020 - SOURCE, USDA, AMS, MIB; GRAPH, USDA, AMS, DMN USDA/AMS/Dairy Market News, Madison, Wisconsin, (608) 422-8587 Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Considering all the variables and recent activity, the USDA has increased the 2020 cheese price forecast by $0.245 per pound to $1.905 per pound over last month. The 2020 butter price forecast was also raised by $0.05 per pound to $1.685 per pound. The USDA expects higher nonfat dry milk exports and raised its 2020 forecast by $0.040 per pound to $1.040 per pound from last month. The 2020 dry whey price forecast was lowered $0.050 per pound to $0.355 per pound. Apparently, USDA does not see dry whey exports to China to be significant enough to elevate U.S. prices currently. High cheese prices have inspired USDA economists to raise the Class III forecast for 2020 to $18.00 per hundredweight, up $2.35 from last month’s estimate. Expectations of higher nonfat dry milk and butter prices results in a 2020 Class IV price revision of $13.95 per hundredweight, up 40 cents from last month’s estimate. The all-milk price for 2020 has been raised to $18.25 per hundredweight, an increase of $1.60 over the previous month’s June forecast of $16.65. Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.
Jun
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NDFA Board Members MIKE SUEVER
DANIEL LAUSCH
MICHAEL YOUNG
Vice President Lactalis American Group
Treasurer Guida’s Dairy, Div. of FDA
RICK SEDOTTO
MELISSA ALTIF
JAMES BUELOW
Readington Farms
Worcester Creamery/ Mountainside Farms
KIMBERLY BUKOWSKI
TIM CRONIN
RYAN ELLIOTT
Cornell University
Belgioioso Cheese, Inc.
Byrne Dairy Inc.
KEVIN ELLIS
TOM HERBICK
JODI SMITH KRZYSIAK
Cayuga Milk Ingredients
McCadam/Cabot Cheese/Agri-Mark Cooperative
Upstate Niagara Cooperative
BUTCH MILLER
JAMES NORTON
Queensboro Farms
Stewart’s Processing Corp.
President HP Hood LLC
Secretary Midland Farms
18 • Northeast Dairy Foods Association, Inc.
NDSA Board Members BILL ELLIOTT
MELISSA FRYER
RYAN OSTERHOUT
BRUCE ALLING
JOHN BUCKLIN
GLENN EMORY
West Rock
Weidenhammer New Packaging, LLC
GLORIA LITTLE
WENDY MARTIN
DAN SEITZER
Agri-Mark
Energy Partner
Ecolab
President Northeast Great Dane
Secretary Double H Plastics Inc.
Vice President Alfa Laval
Treasurer KCO Resources
Consultants
RICK WADHAMS Wadhams Enterprises
TRISTAN ZUBERHROBUCHAK Chr. Hansen
NED Magazine | Third Quarter 2020 • 19
SUSTAINABILITY
SUSTAINABILITY
20 • Northeast Dairy Foods Association, Inc.
SUSTAINABILITY
Dairy Cows:
The Ultimate Recyclers
Y
BY RENE THILBAULT
ou can’t talk about sustainability in the dairy industry without starting with the ultimate recycler: the cow! There are about 1,200 dairy farms throughout New England. With those farms home to hundreds and thousands of cows, there are a lot of mouths to feed! From brewer’s grains to citrus pulp to bakery leftovers, dairy cows use many byproducts to fuel their milk production. Melissa Carabeau is a nutritionist for Paulin Gain. A 2013 animal science graduate from the University of Vermont, it’s her job to create a balanced diet for thousands of dairy cows in Vermont. She visits local farms weekly to check up on the herds. Carabeau said healthy cows produce delicious milk, and, for some dairy cows across the nation, 10% to 25% of their diet comes from human food byproducts. Nationwide, more than 24 million tons of food leftovers are fed to farm animals and kept out of landfills, a practice beneficial to our food system and the environment.
Nutrition is an important part of the dairy industry. Farmers and nutritionists like Carabeau work to find the perfect balance of energy, fat, protein and carbohydrates. And that balance can differ from cow to cow. It’s a science based on the cow’s breed, age and even how long it has been since the animal had a calf.
SO WHAT ELSE DO DAIRY COWS EAT? A milking cow eats about 100 pounds of feed each day. Mixing in other materials like spent brewers’ and distillers’ grains or citrus pulp can help provide some vitamins and minerals. Nutrition experts can take those byproducts and identify the nutritional content found within. The byproducts are added to farm-grown feeds to make up for deficiencies or to boost nutrient levels. Carabeau explained that if cows are short on protein, she knows to add soybean meal or distillers’ grains to offset the imbalance. The ingredients for a typical dairy cow diet includes a mixture of more than 50% silage. Haylage (grass and alfalfa) (continued on page 22) NED Magazine | Third Quarter 2020 • 21
SUSTAINABILITY makes up another 17% of a Vermont dairy cow’s diet and is a wonderful source of fiber and protein. Corn silage and haylage grow readily in New England, which is why dairy farmers and nutritionists look to these local ingredients first when building a cow’s diet. Human leftovers, like brewer’s grains and citrus pulp, make up the next largest portion of the cow’s diet at 13%. Grains make up another 12%, including soybean meal or corn meal, which boost the energy and protein in a cow’s diet. Vitamins, minerals and probiotics round-out a cow’s diet — all helping to keep those ladies healthy!
PROBIOTICS REDUCE THE NEED FOR ANTIBIOTICS Probiotics are becoming a more popular tool in the creation of healthy diets for dairy cows. Nutritionists and dairy farmers have identified the importance of introducing “good” bacteria into cows’ stomachs. Probiotics are live bacteria and yeasts that are good for our own health, especially the digestive system. The same concepts apply to dairy cows. The “good” bacteria boost the immune system. Antibiotics are used sparingly on dairy farms — a cow will only receive antibiotics if she gets sick, and her milk will be thrown away until the antibiotics
YOUR CHEESE IS ONE OF A KIND... KIND
clear her system. That has always been the case, but probiotics keep cows even healthier, reducing the need to use antibiotics.
TIP A GLASS TO YOUR LOCAL DAIRY COW For Carabeau, the weekly visits to the farm making sure the cow’s nutrition is top-notch are her way of helping the dairy industry to survive and thrive. She joked that she sometimes thinks dairy cows eat better than we do! Carabeau explained the goals for every dairy industry expert are to help make farms financially, socially and environmentally sustainable. Cows are the ultimate recyclers. They’re able to use the products we throw away, and they give us back products we can’t produce but enjoy every day. So, the next time you crack open a cold one or pour yourself a glass of orange juice, give a nod to your local dairy cows! (This article was used with permission from New England Dairy, a nonprofit education organization serving as the voice of local dairy farmers. The article was used with permission and first appeared on newenglanddairy.com. It has been edited for space.)
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P E OPL E + PL A NE T + C O M M U NI TY Dairy farmers are innovative upcyclers: they upcycle parts of plants like almond hulls and citrus pulp from other local farms to feed their cows, helping to keep
food waste out of landfills.
nature’s protein drink as it naturally contains 8 grams of high-quality protein in every
Milk is
8-ounce serving.
Dairy farmers are
Milk contains a
committed to further
unique nutrient package,
reducing their carbon footprint.
including calcium, vitamin D and potassium, that can fill nutritional gaps in your diet.
Dairy cow manure is a
natural fertilizer that returns nutrients to the soil for
future crops.
The carbon footprint of a glass of milk is
two-thirds less than it was 70 years ago, yet it provides all the
same great nutrients.
(Used with permission of the National Dairy Council)
The U.S. Dairy community partners with Feeding America to feed hungry people by increasing
the availability of nutritious dairy foods in food banks.
NED Magazine | Third Quarter 2020 • 23
SUSTAINABILITY
Phibro’s Our Dairy Values Program Helps Promote Farm, Family, Community BY CAROLINE K. REFF
N
ortheast Dairy Suppliers Association member Phibro Animal Health Corporation knows that healthy farm organizations mean healthy cows, better products and happier consumers. A global manufacturer of animal health, essential minerals and nutritional specialty products, the company’s purpose is to “optimize animal health and nutrition for better lives and a more sustainable world.” The company, which was founded in 1974 and changed its name to Phibro Animal Health Corporation in 2003, recently began an initiative called Our Dairy Values: A Component of Core Insight for Dairy. The idea around it is “pursuing clarity that comes from defining purpose and values essential to farm leadership decision making in today’s environment,” said John Frey, director of dairy development strategies. According to Frey, farms — as well as processors, manufacturers and retailers — have a lot of pressure from today’s consumers who are very interested in where the products they eat and drink come from. Phibro’s initiative helps dairy farms understand their role in the value chain and see themselves as the “supplier” for the cow. The value chain begins with suppliers like Phibro and then extends to the cow, processing and manufacturing, transportation of product, the retailer and finally the consumer. The company works with dairies to help them through a strategic planning process that clarifies the purpose, values and stewardship priorities on the farm. While most farms, particularly multi-generational ones, have great values and purpose in mind, many never take the time to actually sit down and put pen to paper. Phibro has developed its Our Dairy Values program to do just that through a series of questions, planning and other activities that help dairy operations focus on what really matters to them. “We believe few things are more powerful when communicating to consumers than clear statements answering why we exist, how we behave and what our stewardship priorities are
24 • Northeast Dairy Foods Association, Inc.
on this dairy. Clarifying this information requires thoughtful roundtable conversations, and we’ve simply provided an approach to doing that. We write everything down for them. It gives us a chance to help them put meaningful statements behind their thoughts,” said Frey. “Often times, words like ‘sustainability’ and ‘stewardship’ come up, and to many that’s not just about protecting the environment, but it’s about passing the farm to the next generation and leaving it in a better position when that time comes. It’s about economic viability, ethics, how animals are treated and the welfare of their employees. All of it comes into our conversation. Farmers will say they don’t take the time to truly discuss these issues and values, but we help them see that if farmers don’t speak for themselves, somebody else will do it for you.” “Our role is to really listen and understand why they do what they do. Then, we leave the farm, go to a conference room and present a draft back to the dairies with all their ideas put into words and statements that truly express what they want to say,” said Dr. Leah Dorman, director of communications and consumer engagement, who is also a veterinarian. “We want to give them materials to help communicate their purpose and values to all types of audiences,” she added. “We help them with the assets — framed photographs, banners in English and Spanish, social media posts — so these important ideas can be communicated with their employees, as well as the local community and the industry as a whole.” Phibro originally set out to offer Our Dairy Values to 10 to 12 dairies but, to date, has helped 30 “from New York to Texas,” according to Frey. “Our goal at Phibro has been to become their trusted partner, strengthen relationships and understand the unique challenges they have.”
COLTRANE DAIRY, LLC Coltrane Dairy of Pleasant Garden, North Carolina, recently went through the One Dairy Values process with great success that concluded with the development of dairy values that
SUSTAINABILITY
included: integrity, respect, stewardship and acceptance, as well as a succinct purpose “to establish a culture of compassion for people, animals and land for generations to come.” Coltrane Dairy is owned by David and Amy Coltrane and was founded in 1956 by David’s father and grandfather with only five cows. Today, after purchasing surrounding land, it has 560 cows and is still a family affair. David’s dad does tractor work, and his mom takes care of the books, while also cooking lunch for everyone each day. And, David and Amy’s boys, ages 18, and twins 15, do their fair share to keep the farm going, as well. “I didn’t know what to think at first,” said David, after being approached by Phibro about the Our Dairy Values program. “But I did my homework and then invited John (Frey) and his team out to the farm for a tour. We ended up doing a workshop with Phibro on sustainability of the farm, and everyone got into the process of writing down our thoughts. My wife and I, along with mom and dad, and my oldest son, all participated in the process, so there were three generations represented.”
“We had thought about doing something like this for a while, but we just never had the time,” he added. “It was nice to see that everyone in the family had pretty similar ideas about what they thought was important, and the Phibro process helped us put that all together.” Since then, the Coltranes have posted signage from Phibro indicating their values around the farm as a daily reminder to the family and their 11 employees, as well as anyone who visits. According to David, with the help of Phibro, they are also making strides to be more active on social media with similar messaging in an effort to create a community platform for other dairy farmers.
COOL LAWN FARMS Ken Smith runs Cool Lawn Farms in Remington, Virginia, and just recently went through the Dairy Values Program with Phibro. Established in 1948 by his father, Charles, with just 70 cows and 287 acres, Cool Lawn Farms relocated to Virginia in 1970 and has now grown to 900 cows on 1,000
NED Magazine | Third Quarter 2020 • 25
SUSTAINABILITY acres. The family has a long time legacy in farming, as Ken’s great grandfather, Ross, started the original family farm near Baltimore in 1910, and Ross’s father was a tractor salesman around 1900. Ken took over the operations of Cool Lawn in 1980 and bought the farm from his dad in 1992. Ken’s wife, Pam, is also a vital part of the operation. Their son, Ben, who studied agriculture at Virginia Tech and has already bought two of his own farms, plans to take over the farm in a few years. Having served on the Maryland Virginia Milk Producers Board, Ken has pursued his career in a way that allows him to serve the needs of the farm, the community and the larger industry. This has led him to give a lot of thought as to how to sustain promotion of the dairy industry and its products, particularly in the Southeast, where demand has been dwindling. “We’ve lost half of the dairy farms in the state of Virginia in the past five years,” he said. “There are no more dairies popping up; there are townhouses instead.” The Smiths have done their part to keep things local, opening up Moo Thru, a drive-through retail shop just two miles from the farm that sells milk and features “real ice cream from real farmers.” The location’s logo, designed by Ken’s daughter, Taylor, has become iconic in the area, with people stopping to take photographs of it. After completing college, his daughter
26 • Northeast Dairy Foods Association, Inc.
returned to create the recipes and make the ice cream. “She took up the business and ran with it,” he said. Ken said the Our Dairy Values program came to them at a time when the farm was in transition and needed help finding its direction. The family worked closely with the Phibro team to continue to develop their stewardship priorities, including implementing best animal care practices, a commitment to innovation, learning and improving; preservation of land and open space; and cultivating its people-first culture. While Smith acknowledges that the dairy is taking small, deliberate steps in the process and still has work to do, he complimented Phibro for partnering with Cool Lawns Farm focus on moving in the right direction. He said, “Dairymen are starting to recognize that we need to promote all of our dairy products, and we have to find ways to lure the next generation into farming and keep our products local, so we can continue to serve our communities.” To learn more about Phibro Animal Health or the Core Insight initiative, Our Dairy Values, contact John Frey at john.frey@ pahc.com or Dr. Leah Dorman at Leah.Dorman@pahc.com. Caroline K. Reff is the editor of Northeast Dairy magazine.
SUSTAINABILITY
What’s in the Bag?
Are Consumers Ready to Opt Out of Both Paper and Plastic?
I
n an effort to reduce plastic in the waste stream, many cities and eight states have passed legislation to either reduce or eliminate single-use plastic bags in the retail space. At first glance, it seems straight-forward. After all, no one likes to see plastic bags strewn along beaches or littering the side of the highways. Yet, the issue remains controversial with no clear-cut answer. Is a ban on single-use plastic bags simply replacing one problem with another? Are plastic bags really more harmful to the environment than paper bags when the overall impact is examined? And, are consumers ready and willing to make a cultural shift away from both plastic and paper bags?
BANNING PLASTIC In 2016, California was the first state to institute a plastic ban bag, and while it was very successful, it drove consumers to use paper bags instead. In the Northeast, Connecticut tackled the issue in August 2019 by imposing a 10 cent fee per plastic bag on consumers that is set to remain through June
20, 2021, at which time single-use plastic bags will be banned completely. New York State put its Bag Waste Reduction Law into effect in March 2020, banning the use of most types of plastic carryout bags by businesses that collect sales tax. The law, however, lets individual cities and counties decide whether or not to charge a 5 cent fee on paper bags as a replacement, leaving a frustrating patchwork effect across the state. (Note: Enforcement in New York has not been strict, as the law went into effect just as COVID-19 hit the state hard. Connecticut also temporarily suspended its plastic bag fee in March 2020 due to the pandemic.) Maine and Vermont, along with Oregon, Delaware and Hawaii, also have enacted legislation related to eliminating plastic bag use, as have individual cities like Boston, Chicago, Los Angeles, San Francisco and Seattle. The reasons are many, but most are rooted in protecting the environment. The majority of plastic bags are made from polyethylene, which is derived from non-renewable fossil fuel-based resources. According to greentumble.com, up to 12 million barrels of oil are used each year in the U.S. just NED Magazine | Third Quarter 2020 • 27
SUSTAINABILITY to produce plastic bags. In addition, American consumers see plastic bags as easily disposable, and they are not often recycled. Instead, plastic bags are tossed into the garbage, where they never really decompose. Instead, they break down over decades, while harming wildlife, clogging waterways, leeching chemicals into the soil and even microscopically working their way into the food supply.
ARE PAPER BAGS REALLY THE ANSWER? While the prevailing thought is that plastic bags are bad for the environment, there is evidence to show that paper bags aren’t a friend to the environment either. Many consumers choose paper bags because they like the idea that they are recyclable. And, that’s true. Not only can paper bags be recycled, but they can also be made from recycled materials, counteracting some of the environmental impact of the manufacturing process. However, the recycling process isn’t necessarily an eco-friendly guarantee. In fact, it takes multiple steps — which means the use of water and other forms of energy — to take a bag from a consumer’s recycling bin and make it into a brand new bag suitable to carry groceries home again. According to “The Truth About Paper Bags” by Douglas Lober, it takes up to four times as much energy to manufacture a standard paper grocery bag as compared to a plastic one. And, because paper comes from trees, production of paper bags puts an enormous strain on natural resources. Making paper bags generates 70 times more air pollution and 50 times more water pollutants than manufacturing plastic bags. A paper bag “doesn’t meet the sustainability goals of most environmental groups,” according to Kristina Wieneke, vice president of government affairs for the Food 28 • Northeast Dairy Foods Association, Inc.
Industry Alliance of New York — a group that advocates for the grocery industry. In fact, according to Wieneke, it takes seven times the number of trucks to transport the same amount of paper bags as plastic. To be clear, the FIA has made it known to state government that a ban on plastic bags is not a long-term solution either and instead supports practices that move consumers away from both plastic and paper in favor of re-useable bags that make more economic sense for retailers.
WILL CONSUMERS MAKE A CULTURAL SHIFT? There is another alternative for consumers picking up some milk, cheese and other staples at the grocery store — re-useable bags. These are not exactly new, as consumers have been carrying various forms of re-useable bags for years, regardless of whether a bag ban was in place. From handcrafted mesh bags made from organic materials to laminated heavy-weight paper bags emblazoned with bright designs and retail logos, re-useable bags are part of a cultural shift by consumers. Some may be staunch environmentalists; others may simply want to make some kind of gesture to help reduce waste. Either way, it’s a move that seems to be becoming less of a trend and more of a habit in the way consumers behave. “You can liken it to a time when it was first proposed that people not be allowed to smoke indoors in public places,” said Wieneke. “Some thought the sky would fall in if this was allowed to happen, but eventually people figured it out. The same might be said for re-useable bags. Our stores want to be environmental stewards, but a move to paper is a huge lift for them. Getting rid of both paper and single-use plastic in favor of a more sustainable approach might be the answer. And, people will learn to adapt.”
photos courtesy of the Chautauqua Harbor Hotel
Look for a recap from our first ever virtual convention, Dairy Con 2020, in the next issue of Northeast Dairy magazine!
We hope to see you in person in 2021! MARK YOUR CALENDARS NOW:
2021 NORTHEAST DAIRY ANNUAL CONVENTION August 18 - 20, 2021 HELD AT THE BEAUTIFUL The Chautauqua Harbor Hotel is 9 acres with a beautiful 1,100 feet of lake frontage where you can relax and enjoy the perfect get away. Bring the family and enjoy the outdoor recreation and water sports, as well as the proximity to wineries and venues like the National Comedy Center. The convention will once again offer a variety of speakers, vendors, networking and social events. It’s not to be missed.
Chautauqua Harbor Hotel Celoron, New York www.thechautauquaharborhotel.com
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Watch for more information coming in early 2021. NED Magazine | Third Quarter 2020 • 29
SUSTAINABILITY
Chr. Hansen Leads the Way With Solutions, Partnerships Fostering Sustainable Practices Worldwide
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acteria generally gets a bad rap from the public, but at Chr. Hansen, it’s doing a lot of good towards sustainability efforts that will not only benefit the company but people and processes around the world. Based in Copenhagen, Denmark, with locations around the world, including the U.S., NDSA member Chr. Hansen is a global bioscience company that creates solutions for the food, nutritional, pharm and agricultural industries. It develops and produces cultures, enzymes, probiotics and natural colors for use in many foods (including dairy products), as well as confectionary beverages, dietary supplements, animal feed and plant protection — all thanks to approximately 40,000 microbial strains or “good bacteria.” According to Julien Biolley, director, marketing & business development, food cultures and enzymes, for more than 145 years, Chr. Hansen has embraced social responsibility as an integral part of the company’s vision to “improve food and health for current and future generations.” The company holds a deep respect for the environment and is committed to addressing global challenges by adopting practices that prevent sickness, innovate for the future and fight against food waste.
30 • Northeast Dairy Foods Association, Inc.
Chr. Hansen’s efforts have not gone unnoticed. The company has received many awards and recognitions, including being named The World’s Most Sustainable Company in 2019 on the Global 100 Most Sustainable Corporations Index by the Corporate Knights, a Canadian magazine ranking global sustainability practices (The company took 2nd place in 2020). In 2019, the company was also included on Fortune’s fifth annual Change the World list of more than 50 companies that are “doing well by doing good,” and received the Golden Peacock Global Award for Sustainability, a designation given by the Institute of Directors in India and regarded as a benchmark of excellence worldwide. While the awards are very exciting, Biolley takes them all in stride. “At Chr. Hansen, we believe that sustainability is not an achievement; it’s a journey that leaves us in a position to sustain us into the future,” he explained. “We have the right assets to have a positive impact. Our awards are pretty exciting, but they also make us determined to do better. Can we produce our natural solutions in a different way? Can we ship better? How can we reduce waste around our packing materials? We never stop trying to improve.” Some of the innovations Chr. Hansen is working on now include ways to reduce agricultural workers’ exposure from
SUSTAINABILITY pesticides through the use of good bacteria; creating new coagulants that help produce more cheese from the same amount of milk; reducing food waste by using bacteria to inhibit the growth of yeasts and molds to reduce the use of preservatives and extend shelf life in food; and procesing yogurts with better flavors that are made from natural ingredients, milk and cultures — not chemicals and preservatives. Above all, Chr. Hansen wants to share its knowledge. Part of its sustainability mission is a commitment to “engage with other partners and join forces on this,” according to Biolley. “We want to inspire other dairy companies and food companies that could benefit a lot from our research and work. The success that we have transfers through others’ successes. We’re open and willing to have other companies follow our lead for the good of everyone and the good of our planet.”
use, so it is currently in talks with various renewable U.S. energy suppliers to see if it can come up with agreements similar to what the company has developed with Better Energy.
CONSUMERS APPLAUD LONGER SHELF LIFE IN TASTE TEST Chr. Hansen is using its “good bacteria” to help improve the high turnover, fragile supply chain and relatively short shelf life of dairy products, as it works to reduce food waste globally. Perishable dairy products are often unnecessarily wasted, including up to 17% of yogurt every year in the European Union. That’s the equivalent of 1.5 million tons of yogurt! The company is working to change that, however, with food cultures that delay spoilage in fermented products like yogurt, according to Erika
Gayhart, project manager, food cultures & enzymes. The company hopes to reduce yogurt waste by up to 440,000 tons in the EU alone, which is an economic benefit throughout the value chain, benefitting dairy manufacturers, retailers and consumers. A consumer study done by Chr. Hansen proved that consumers would generally accept a product with a longer shelf life. Blind taste tests showed that consumers did not notice a significant difference in taste between yogurt with a standard shelf life and another with a shelf life that was seven days longer. The research also suggested that consumers were positively influenced by — and even preferred — yogurt with a longer shelf life once they understood that it was reducing food waste. The company hopes to contribute to reducing yogurt waste by 1.2 million tons by 2022!
Here are just two examples of the work Chr. Hansen is doing to promote a culture of sustainability.
IT’S A SUNNY DAY FOR GREEN POWER! In May 2020, Chr. Hansen signed a 10-year agreement with a Danish company called Better Energy that secures Chr. Hansen Denmark’s green electricity by accessing two newly built solar parks. Twothirds of the annual energy production Chr. Hansen now uses in Denmark is produced at the solar parks, which amounts to 40% of the company’s energy consumption worldwide. While this is good news for Denmark, a country that has committed to reducing its CO2 emissions by 70% by 2030, it is also good news for the U.S., as the company says the process is scalable and plans to expand these technologies to its locations worldwide. As Chr. Hansen increases its production in the states, it knows it will also increase its energy
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NED Magazine | Third Quarter 2020 • 31
SUSTAINABILITY
Conservative “Best By” Labeling Contributes to Fluid Milk Waste BY CAROLINE K. REFF
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romoting sustainability in the dairy industry means eliminating waste. But approximately one-third of fluid milk that goes from farm to consumer is wasted, and much of that occurs on the consumer and retail side. Why? Often, the unnecessary discarding of fluid milk and other dairy products is caused by confusion or misinformation related to “best by” or “sell by” dates, which are typically only guidelines. Retailers use them because they don’t want to risk their customers having a bad experience with a product, and consumers, who are often fearful of food borne illness from so called “expired” products, are often misinformed. Researchers like Nicole Martin, Ph.D., associate director of the Milk Quality Improvement Program at Cornell University, are working to change that by finding more accurate ways for farms and processors to predict when fluid milk really goes bad and to inform consumers of fact versus fiction when it comes to spoiled milk. The are no set regulatory requirements for “best by” labeling on fluid milk; some processors do it and others don’t. According to Martin, fluid milk is usually safe and consumable well after the date stamped on the carton. Processors typically stamp a “best by” date that is about 14-17 days after the milk is pasteurized. What that really represents is how long the fluid milk will be at its best in terms of freshness, taste and
32 • Northeast Dairy Foods Association, Inc.
appearance. Retailers use the same method in determining when to take a product off the shelf. “The tricky thing is that most fluid milk is perfectly fine past the ‘best by’ date,” said Martin. “It’s one of the reasons that the Milk Quality Improvement Program is very interested in this area from the perspective of reducing food waste. There has to be a better way than putting a static date on a product in order to convey that it is still safe to consume. A lot of that has to do with a fundamental lack of information about the difference between safety risk and quality risk.” Despite what consumers may think, the chances of getting sick from fluid milk that is past its “best by” date is very low. “Fluid milk is pasteurized, so it’s a very safe product,” said Martin. “The date on the carton doesn’t really have any implications on milk’s safety, but the common reaction from consumers is to say, ‘Why would I risk it?’ and throw the milk away.” “Once fluid milk goes beyond its ‘best by’ date, it might taste a little less fresh or have an ‘off’ odor,” she explained. “Generally, however, if it tastes good and doesn’t smell funky, there’s no risk. That might turn people off, but it can still be used.” Martin noted that most food borne illnesses — salmonella, E. coli, listeria — derive from organisms that don’t originate in the food itself but are often introduced through unsanitary processing procedures, improper hygiene practices or exposure to substances in the fields. The widely publicized Romaine lettuce E. coli outbreak in 2019, for example, infected at least 188 people and was thought to be caused, in part, by pathogens in the soil. The tricky thing is that most foods that carry these diseases can’t be identified by appearance or smell. They might technically be considered fresh, but they can still be contaminated. Spoilage organisms, like those found in fluid milk that is past its prime, cause quality degradation, an odd smell or a change in appearance, but they aren’t likely to make people sick, according to Martin. How fluid milk is handled from farm to table can make a “best by” date irrelevant, however. The date stamped on a milk carton assumes proper refrigeration and limited exposure to light throughout the entire supply chain. Fluid milk that is
SUSTAINABILITY transported under less than ideal temperatures, exposed to too much light in a retail store or left in the trunk of a hot car for hours can absolutely exhibit quicker spoilage no matter what the label says. “One of the things our program has been working on with processors and retailers is how to handle and display milk without exposing it to too much light, which, in turn, affects the taste,” Martin explained. “And, a lot of the work we’ve been doing recently with farms and processors focuses on how to better predict when milk really is spoiled, and how we, as an industry, can provide consumers with better guidance as to when that really happens. If milk lasts longer and can be labeled as such, then there is less food waste and less of a chance that a consumer will have a negative experience with a product. It also will allow processors more flexibility in getting milk into the consumers’ hands, which is particularly important in food deserts, where an item like fresh fluid milk is not always readily available.” “One of the things we’re really excited about is dynamic labeling for fluid milk,” she added. “Using data and building mathematical tools to determine a more accurate shelf life
labeling for fluid milk at the farms and processing centers will allow the dairy industry to better predict how long fluid milk actually lasts. This could be a big step in reducing food waste, as well as educating consumers and giving them the best product experience possible.” According to Martin, some of the research in the area happening at Cornell is actually funded through farmer contributions to Dairy Checkoff. She is optimistic that the goals of this research can be achieved within the next five years. In summary, fluid milk kept under the proper conditions is safe to consume even if it’s slightly past its “best by” date. Much of the waste that occurs originates in consumers’ comfort level, which may be a part of a contemporary American culture that demands food that looks and tastes perfect. Of course, Martin suggests that retailers and consumers use facts and common sense when deciding whether fluid milk is still fresh and stresses that no one is advocating that anyone drink spoiled milk. According to Martin, “The bottom line is that we have a very safe food supply here in the U.S., and that includes fluid milk.” Caroline K. Reff is the editor of Northeast Dairy magazine.
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SUSTAINABILITY
Evergreen Packaging Offers Sustainable Cartons That Meets Millennial Expectations
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DSA member Evergreen Packaging has been a leader in carton solutions for over 50 years and is the largest fully-integrated plant-based, fresh liquified packaging producer in North America, including options for gable-top cartons, spout closures and filling equipment. The company is on the cutting-edge when it comes to knowing what its customers and consumers want. And, it understands that today’s consumers, particularly Millennials, are more educated than ever about what they eat and drink and, just as importantly, what kind of packaging these items come in.
WHAT MILLENNIALS WANT Millennials are out to change the world, whether it be in terms
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of technology, health, politics or leaving a smaller carbon footprint for the next generation. According to the “2019 EcoFocus Worldwide Trends Survey,” Millennials give much greater priority to issues related to sustainability than their parents did and will remain loyal to those companies and products that share their concerns. Some statistics from the EcoFocus survey show that: • 80% agree that living eco-friendly boosts quality of life • 69% are influenced to purchase based on a company’s decision to use plant-based packaging • 76% feel more positive towards companies that only use recyclable packaging • 67% say their choices are influenced by a company’s commitment to packaging made with renewable resources, such as paper and other plant fibers
SUSTAINABILITY
• 64% say environmental sustainability plays a key role in what they purchase, and they are willing to pay more for eco-friendly products. “Millennials see value in doing business with companies that share their priorities and are helping them to have choices that align with those priorities,” said Linda Gilbert, CEO of EcoFocus Worldwide, of the survey results. “Manufacturers, brands and retailers will be challenged to offer sustainable and economically viable solutions that offer real value to customers.” Of course, Millennials don’t have a monopoly on sustainable practices. The survey noted that, in general, 46% of all consumers look for packaging that is made from paper. No matter the demographic, most consumers agree that reducing waste, using less plastic, minimizing pollution and reducing their overall carbon footprint is simply the better choice. According to EcoFocus, the majority of shoppers say they are “trying to save energy and water as part of their everyday lives.”
EVERGREEN OFFERS OPTIONS FOR A SUSTAINABLE FUTURE Evergreen Packaging “has been working towards a sustainable future long before it became a trend,” according to Katie Simmons, marketing director at Evergreen Packaging. Any of Evergreen’s PlantCarton packages, including the recent innovation RenewablePlus packaging, are “excellent choices for dairy products.” According to Simmons, over 75% of Evergreen’s PlantCarton packaging is made from a renewable resource — paper made from trees grown using responsible forestry practices. Approximately 55% of the energy used to make the paper in PlantCarton packaging comes from biomass. This packaging is already earth friendly from the start, but, as it continues through its lifecycle, PlantCarton products can also be recycled. Evergreen Packaging customers can choose from 40 sizes in order to best fit their needs. For those customers looking for the ultimate “sustainable edge,” Evergreen Packaging also offers its RenewablePlus line of packaging — “one of the best
packaging choices for maximizing renewability, which provides a carton with 95% to 99% renewable content.” This product incorporates all of the benefits of the PlantCarton packaging, while incorporating a renewable coating made from polyethylene plastic that is created from sugarcane. No matter how sustainable the cartons are, however, they still must ensure that the fluid milk inside tastes good and remains nutritious. According to Simmons, both PlantCarton and RenewablePlus packaging maintain the taste, aroma and nutrients of fluid milk; reduce milk degradation from light exposure and help protect skim milk enriched with light sensitive Vitamin A. And, switching to one of these options can also lower total operations costs for customers, depending on what product they are currently using. All in all, consumers will continue to challenge the dairy industry — with their choices and their wallets — to ensure that sustainable packaging is a critical part of a brand’s product. Shoppers, particularly Millennials, are paying close attention as they work to advocate for better options for the health of the planet.
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SUSTAINABILITY
Entrepreneurs Start a “Chocolate Milk Revolution” in Aluminum Can
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BY CAROLINE K. REFF
rowing up, Manny Lubin and Josh Belinsky were typical kids who enjoyed sports and were self-proclaimed “milk guys,” always reaching for a cold glass of chocolate milk after a workout. After college, these 20-somethings started thinking about a way they could combine their love of chocolate milk with a growing consumer demand for better tasting protein sources. They wanted to get in on the forefront and started exploring the concept in 2017. Lubin and Belinsky even appeared on the popular television show “Shark Tank,” and, although no sharks invested, the budding entrepreneurs did get great feedback. After only 18 months, Slate Milk launched a unique trio of chocolate milk — classic chocolate, dark chocolate and espresso chocolate — packaged in aluminum cans. “We called ourselves Slate Milk because we decided to create a “clean slate” for our favorite beverage with less sugar, more protein and great taste,” explained Lubin. The three flavors are real milk but contain 75% less sugar and 50% more protein than traditional chocolate milk, as well as electrolytes. Slate Milk uses only natural ingredients, and the milk is sourced from 30 family-owned dairy farms that are fully compliant under the Animal Welfare Act, something that was important to the co-founders. The ultra-pasteurized product is also kosher, as well as lactose-free and gluten-free. “We had a variety of flavors in mind, but we wanted to launch a business that did one thing really well,” Lubin said. “So we created something for the traditional milk drinker, another for the consumer who doesn’t want something too sweet and a third for the coffee drinker. We knew it was risky, but we are glad we stuck to just chocolate milk.” The company’s classic chocolate milk has the true rich flavor that the duo remembers from childhood. The dark chocolate milk is “a true game changer,” described as “a midnight chocolate taste upfront with a slight bitter kick on the back end.” And, for those who need an extra jolt but still love their chocolate milk, the espresso chocolate milk has a creamy milk chocolate base combined with real Columbian coffee that has the equivalent caffeine of two shots of espresso.
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Slate Milk’s packaging is purposely made from aluminum because it can be recycled. “Seventy-five percent of all aluminum ever produced is still in use today, so it was a way to cut down on the use of plastics, which was important to us,” said Lubin, who hopes everyone will “recycle the can after chugging.” The aluminum packaging does not impact the taste and also makes the product shelf stable — although consumers are still encouraged to refrigerate the beverage for the maximum chocolate milk experience. Since the product’s introduction last year, Boston-based Slate Milk has made great strides with online sales and is also selling in 400 stores, including Whole Foods, Roche Bros., Harris Teeter and Central Market. Plans are in the works to launch the brand into retailers on the West Coast and in parts of the New York Tri-state area soon. Lubin, who has a background in digital marketing, and Belinsky, who worked in the start-up tech space, are thrilled with the response that Slate Milk has received in such a short time. They understand that some people are not used to consuming shelf stable milk out of an aluminum can, so they are working hard through social media and various promotions to market the product as real, delicious chocolate milk with great nutritional value. “Together, we want to help write milk’s next chapter,” said Lubin. “We’re hoping to help lead a chocolate milk revolution!” Caroline K. Reff is the editor of Northeast Dairy magazine.
COVID-19 Updates
Understanding Generational, Racial Responses to COVID-19
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ne day (and we hope it is soon), the COVID-19 pandemic will be behind us and life will return to a sense of normalcy. While some areas of the country are still being heavily impacted by COVID-19, the Northeast has hopefully seen the worst of it. Any way you look at it, the pandemic has left its mark on U.S. consumers. From spending habits to social media use, the many differences and similarities along generational and racial lines are something that the dairy industry needs to pay attention to as it continues to remain relevant and market its products to consumers. The experts at MilkPEP recently held a webinar called Understanding a Multicultural and Generational Response to COVID-19, presented by David Evans, chief product officer, The Collage Group. Here are some of the key take-aways from statistics collected through a series of surveys that involved approximately 3,000 consumers, each in an effort to help businesses effectively strategize now and into the postCOVID future.
FOCUS ON HEALTHY EATING HABITS While almost all consumers admit to being exhausted by the constant barrage of news about COVID-19, self-care and the desire to eat healthy have increased. More and more people have been focusing on self-care and have adopted healthier eating habits across generational and racial lines. This is an opportunity for the dairy industry to validate consumers’
intentions to take care of themselves and promote products and brands that can increase mental and physical health.
EMPLOYMENT IMPACT Not surprisingly, only 12% of those surveyed said they had a positive employment impact in the form of increased hours or shifts, a new job or a pay raise. Gen Zers tended to fare the best, reporting a 24% positive impact. Twenty-seven percent reported no change in employment, but 44% of respondents experienced a negative employment impact in the form of furloughs, temporary or permanent job loss, reduced hours or pay cuts.
REDUCING NON-ESSENTIAL SPENDING When asked what changes people were planning to make in personal finances in response to the coronavirus crisis, most consumers stated that they plan to reduce non-essential spending. What “non-essential” means may vary from consumer to consumer, but, in general, the data shows that: • 54% will reduce non-essential spending, particularly Boomers at 60% • 38% will hold off on major expenses like purchasing a car or starting a home renovation • 25% intend to use cash savings that they already have • 21% will need to support friends and family, while 13% will need financial support from friends and family • 8% intend to reallocate existing investments, while 6% intend to apply for a loan (continued on page 38) NED Magazine | Third Quarter 2020 • 37
COVID-19 Updates While these statistics don’t directly predict an impact on the dairy industry, they do paint a picture that shows that people will be stretching a dollar for the foreseeable future — and competing for that dollar will take some strategic thinking.
FOOD AND BEVERAGE SPENDING Data that does directly impact the dairy industry has to do with food and beverage spending. Fifty nine percent of respondents stated they intend to spend less on restaurants, including take-out and delivery, and 23% will spend less at the grocery store. Overall, 48% — almost half — are spending less money on food and beverages. Gen Zers make up the largest portion of this group at 62%, while Boomers make up only 36%. Still, everyone needs to buy food, including dairy products, but how and why will they make these choices? The vast majority of those surveyed indicated that when buying food they were very brand loyal, choosing a brand they know and like, while also intent on buying high-quality items. Many consumers are still stocking up on dry, canned and frozen foods, but 31% said they were buying more non-alcoholic beverages, and 42% said they were buying more fresh foods. Half of the consumers surveyed said they were more likely to purchase low-cost items to make ends meet, with a majority including milk and cheese in that mix. Only 18% said they would purchase low-cost options in the milk alternative categories (e.g., almond, oat or soy beverages). According to the webinar, understanding which segments of consumers are changing their behaviors is vital, and who to target right now is as important as overall marketing strategies. For example, across racial segments, Black consumers said they are more likely to stock up on food and beverages. Asian consumers are looking for high quality options. Hispanics are seeking out low cost options, and White consumers are more likely to continue to buy brands they are already familiar with.
PATRONIZING RESTAURANTS, TAKE-OUT AND DELIVERY While 48% of those surveyed said they use restaurants, particularly those with pick up or delivery services, most consumers are still spending less on restaurant food than before the pandemic. As restaurants begin to open back up, consumers have strong health concerns when it comes to the restaurants they choose. • 76% said all employees must wear a mask • 66% wanted to see employees also wearing gloves • 63% felt it was important for employees to practicing social 38 • Northeast Dairy Foods Association, Inc.
distancing and stay 6 feet away from customers • 47% preferred home delivery services require no personal contact. Restaurant and food delivery services are going to have to regain consumer trust by showing that food sourcing, preparation and management are “gold standard” when it comes to COVID prevention.
WHO’S USING SOCIAL MEDIA? Well, pretty much everyone is using social media, but what platforms are popular and why? Consumers are spending a great deal of time online, and, according to the survey, social media and news sites are the most accessed with a 68% increase in social media use and a 66% increase in scrolling through news websites. Interestingly, only 29% of respondents say they follow influencers. The big question in targeting customers and consumers is knowing where specific audiences are spending their time. Some of the data indicates that: • 87% of overall respondents are using Facebook more. Of these, 90% are White, 83% are Black, 82% are Hispanic and 77% are Asian. • YouTube has seen a 66% increase overall, with Hispanics showing an 80% increase, Blacks an 82% increase, Asians a 72% increase and Whites a 58%. • Instagram has seen a 52% increase overall • Twitter has only seen a 32% increase in use It is not surprising that Gen Zers have increased their social media time the most, regardless of race. They prefer Instagram (87%), followed by Snapchat (75%), YouTube (72%) and the relatively new but extremely popular TikTok (53%). According to the webinar, everyone is spending more time on social media and streaming platforms, amplifying the differences in the information people receive. More than ever, brands need to show up in the places where their target audiences spend the most media time. According to the webinar, understanding the consumer culture is critical to overcoming the challenges of COVID-19, and the information outlined in MilkPEP’s webinar can help capture the multicultural segments that will carry the dairy industry through this economic storm. The bottom line is that, overall, 65% of those surveyed said they will change their buying habits in some way, and 86% said they will change how they spend their time. All industries, including dairy, “must prepare for changes in consumer behavior in order to outlast the pandemic.” (Source:MilkPEP)
COVID-19 Updates
Wear a Mask: Slow the Spread
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t’s hot and uncomfortable. It’s difficult to breathe with it on. It makes my glasses fog up. It’s infringing on my rights. I don’t want to wear one!
for reporting for work (or staying home) if they exhibit any symptoms of the disease.
We’ve all heard the complaints, but as the U.S. continues to battle COVID-19, wearing a mask has not only become commonplace but necessary in the effort to slow the spread of the disease. This is particularly important as people return to the workplace and employers deal with a greater density of employees in confined spaces. While requirements about wearing masks in public vary from state-to-state, the majority of employers require that masks be worn in the workplace. Your business’ rules should be thoroughly communicated to employees in various forms (e.g., signage, emails, social media, etc.), and consequences for non-compliance should be clearly stated and explained. By now, most understand that wearing a mask is important, but it is essential to keep this momentum going through continuous reminders to your employees. Always emphasize that a mask is a preventative measure not intended to protect the wearer but instead to offer a physical layer of protection to co-workers in the event that the wearer is a pre-symptomatic or asymptomatic spreader, according to information from Cornell University’s Institute for Food Safety. Also remind employees that wearing a mask does not eliminate the need to: • Social distance whenever possible (6 feet or more), • Thoroughly wash their hands for 20 seconds (or more) with soap and hot water on a regular basis throughout the day • Use hand sanitizer with at least 60% alcohol content if soap and water is unavailable • Avoid touching their own faces Most importantly, employees need to remember that wearing a mask is never a free pass to venture out in public or into the workplace if they feel ill or knowingly have symptoms of COVID-19. Make sure your employees are clear on all policies
Just because an employee is wearing a mask does not mean that he or she is wearing it effectively. The Center for Disease Control recommends that cloth face coverings: • fit snugly but comfortably against the side of the face • be secured with either ties or ear loops • include multiple layers of fabric • allow for unrestricted breathing • be able to be machine laundered and dried without damaging or changing its shape.
THE RIGHT FIT
MORE THINGS TO CONSIDER Employers should also address the following: • Are employees required to supply their own masks (or other appropriate equipment) or will the employer provide them? • How frequently will new masks be required or supplied? • Are employees handling the masks properly (e.g., not touching the outside of the mask while in use, not placing them on potentially unsanitary surfaces when they take them off)? • Do employees know never to touch their eyes, nose or mouth when removing face masks? They should thoroughly wash their hands before and after using a mask. • Are masks being disposed of properly after use? Think about setting up proper disposal containers near employee exits. • How will non-compliant employees be handled? Will they get a warning or be sent home immediately? Make sure these policies are fully disclosed to employees. • Do employees fully understand that not wearing a mask puts their co-workers and the entire company at risk of a COVID-19 outbreak and the ramifications that may occur? For more information about proper use of face masks, go to the CDC webpage at https://www.cdc.gov. NED Magazine | Third Quarter 2020 • 39
COVID-19 Updates
Contact Tracing: What Does It Mean?
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ccording to the Center for Disease Control, contact tracing is key to slowing the spread of COVID-19 and keeping individuals, family members, co-workers and communities safe. Contact tracing is used by health departments to prevent the spread of infectious disease. In general, contact tracing involves identifying people who have an infectious disease, like COVID-19, and the people who they recently came in contact with, in order to interrupt the disease spread. This includes asking people with COVID-19 to isolate and their contacts to self-quarantine. A workplace notified by the health department of an employee who is identified as a contact should have criteria in place to prevent further spread of the disease. Contact tracing for COVID-19 typically involves: • Interviewing someone diagnosed with COVID-19 to identify everyone he or she has had close contact with during the time he or she may have been infectious. • Notifying contacts of their potential exposure (Note: The health department will not reveal the name of the person
40 • Northeast Dairy Foods Association, Inc.
who is known to have COVID-19, even if someone asks.) • Referring contacts for testing and monitoring them for signs and symptoms, as well as connecting them with services they might need during self-quarantine. Remember: Just because a person has been identified as a “contact” does not guarantee that that person will contract COVID-19, but it does increase the chances and warrant certain actions to reduce the possibility of spread at home, in the workplace and in the community. People who have had contact with someone with COVID-19 are encouraged to stay home and maintain social distance from others until 14 days after their last exposure. While the health department will get in touch with contacts, individuals should also notify those people they have been in close contact as soon as possible. Contacts should monitor themselves by checking their temperature twice daily and watching for symptoms of COVID-19. The health department will provide further instructions, as can an individual’s physician.
COVID-19 Updates
Should You Travel? Don’t Let the Virus Hitch a Ride
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hile many people have elected to stay closer to home since the pandemic struck, sometimes it is still necessary to travel. The Center for Disease Control defines travel as “different from your everyday activities, away from your local community” and offers various guidelines to help in your decision. If travel is non-work related, it is also wise to check with your employer to see if company-wide restrictions (e.g., quarantine upon return) have been put into place. COVID-19 cases and deaths have been reported in all 50 states and around the world, and the situation is constantly changing. Because travel increases your chances of getting infected and/or spreading COVID-19, staying home is the best way to protect yourself and others from getting sick, according to the CDC. If you believe that travel is essential to your business or a personal situation, consider the following: • Is COVID-19 spreading where you’re going? • Is COVID-19 spreading in your community? Keep in mind that even if you don’t have symptoms, you can spread COVID to others. • Will you or those you are traveling with be within 6 feet of others during or after your trip? • Are you or those you are traveling with at high risk? Older adults and people of any age with serious underlying medical conditions are at a greater risk for severe illness from COVID-19. • Do you live with someone who is medically at risk? If you get infected while traveling, you can spread COVID-19 within your household or workplace upon your return, even if you are asymptomatic. • Do state or local governments – either at your destination or where you live — have specific restrictions or require you to self-isolate after traveling? • If you contract COVID-19, you will have to miss work, as those with the disease need to stay at home until they are no longer considered infectious by their doctor and/or their area health departments. In addition, the CDC urges those who are sick or those who have been around someone with COVID-19 in the past
14 days to avoid travel and also advises no travel with someone who is sick. If you are healthy and decide that you must travel, the CDC offers the following advice to protect yourself and others during your trip: • Wash your hands with soap and water for at least 20 seconds, especially after you’ve been in a public place, after touching surfaces frequently touched by others, after blowing your nose, sneezing or coughing; and before touching your face or eating. • Bring hand sanitizer that contains at least 60% alcohol with you when traveling in case soap and water is not available. • Bring disinfecting wipes with you to clean seats, railings and other surfaces you come in contact with during travel. • Avoid close contact with others whenever possible • Wear a cloth face covering Learn more about how to protect yourself from COVID-19 on different types of transportation on the CDC’s website at https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/ using-transportation.html. The CDC also has an updated list of travel restrictions. NED Magazine | Third Quarter 2020 • 41
Human Resources
Mental Health and the Workplace: How to Assist Struggling Employees
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BY PAUL BANUSKI
hat is the responsibility of a manager when he/she suspects an employee may be struggling with depression, anxiety or other mental health challenges? It’s not an unreasonable question, and it is one that every supervisor should be prepared to answer, considering that 1 in 5 Americans will be diagnosed with a mental or behavioral health issue this year, according to the Center for Disease Control. Whether it’s an anxiety disorder, PTSD, post-partum depression, bipolar or any other number of conditions, mental health issues can be a disruptive part of an employee’s life that can lead to struggles that will inevitably intrude on the workplace. If an organization doesn’t take
42 • Northeast Dairy Foods Association, Inc.
employee mental well-being seriously, it could prove to be a drag on entire teams, departments and organizations. How much of a drag does mental health pose to the bottom line? According to the Center for Workplace Mental Health, part of the American Psychiatric Association Foundation, depression is the leading cause of disability in the United States, resulting in over $210 billion per year in absenteeism, reduced productivity and medical expenses.
CALCULATING THE COST OF ABSENTEEISM The Center for Workplace Mental Health has a calculator (http://www.workplacementalhealth.org/depressioncalculator/) to help organizations see what the cost to their business could
Human Resources be based on the number of employees, industry, region and more. The calculator will default to average demographics and wage information, but you can specify your own data. Using the averages for an agricultural employer in the Northeast with 50 employees, it is estimated that depression could cost a single business 63 days in absenteeism and 53 days of reduced productivity, totaling more than $27,000 in a given year. On the one hand, it seems impossible that any organization would put up with that type of loss, yet thousands do because they aren’t paying attention to their employees’ mental well-being.
PANDEMIC ADDS MORE STRESSORS As if this weren’t enough of a challenge, being in the midst of a global health pandemic has placed all new stressors on workplaces and employees. From businesses that have been ordered to shut down or were left with no other option than to reduce operations, the economic uncertainty we’re facing can exacerbate mental health conditions. If mental health issues weren’t a concern for some organizations in a pre-COVID world, they have moved quickly to the foreground. One of the primary roadblocks for businesses that want to help is that mental health issues can still carry significant social stigma relative to other health concerns, and those who are affected may not seek treatment or care. In recent years, more attention is being paid to mental health, and public awareness of the importance of seeking treatment has gone up, but it seems there are still barriers in the workplace. Studies have found that being open regarding a mental health challenge may result in lowered expectations, lack of respect, isolation from co-workers, a decrease in job responsibility, being passed over for a promotion or increased likelihood of termination. Unless employers want to be saddled with the costs outlined above for not addressing these issues, then they must take a proactive approach to mental health in the workplace.
REDUCE STIGMA IN THE WORKPLACE The first thing to do is work towards reducing the stigma of mental illness. The Center for Workplace Mental Health has a campaign called Right Direction that offers guidance for employers who want to address mental health struggles in the workplace. It’s important to note that your organization may already have resources that can be helpful to employees. Check to see what mental health services may be covered by your health insurance plans. Is a referral from a primary care physician required? Under the Affordable Care Act, health insurance plans must cover mental and behavioral health care
treatments with that cannot be more restrictive than other medical care treatments. Just knowing that care is available can begin to break down the barriers to seeking it.
EAP PLANS ALLOW EMPLOYERS TO STAY CONNECTED Employers should also consider investing in an Employee Assistance Plan, a voluntary program employees opt into that can offer short term counseling, arrange referrals for additional treatment, particularly for issues surrounding mental health or substance abuse, as well as grief counseling, domestic abuse and other family difficulties. EAP services are paid for by the employer, typically either on a per capita basis or based on utilization. Having an employee go through an EAP can allow the employer to stay connected to the process of treatment (without disclosing the employee’s protected health or personal information) because the goal of the EAP is to provide assistance to the employee with the goal of helping him/her return to function at work while coping with a particular situation.
SPOT THE SIGNS OF STRUGGLE Among the resources that Right Direction offers, one of the most helpful is a guide to spotting the signs that employees may be struggling, and then starting a conversation with them. Having great employee benefits and a strong EAP won’t make a difference if supervisors cannot connect the employee to help in the first place. If a supervisor notices a drop in employee productivity, if he/she seems disengaged or disinterested in work that he/she was once enthusiastic about, it can be a sign that an employee is struggling with a mental health concern. A supervisor should recognize these signs and take a private moment to ask if the employee is ok, and, most importantly, to listen to what the employee has to say. Expressing a willingness to help can reassure employees that they don’t need to be afraid for their jobs and that seeking help is the priority for both them and the organization. Reducing the stigma of mental illness and having resources in place to help employees who are struggling will not only create a more comfortable and open workplace for the workers, but it will help the organization’s bottom line. Paul Banuski is a human resource consultant for HR One, a full-service payroll and human resource consulting firm. For more information, call the company’s Helpline at 1-800-457-8829.
NED Magazine | Third Quarter 2020 • 43
Digital Marketing
Search Engine Trends for the Dairy Industry
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art of developing a comprehensive digital marketing campaign, as detailed on page 46, is understanding how customers and potential customers are using the internet to find your products and your website. Google provides some wonderful tools online to gain insight into how customers are using search engines to find your products. One free tool is called Google Trends, which analyzes the popularity of search queries in Google Search across various regions and languages. The graphs scale “Interest Over Time,” which represents search interest relative to the highest point in the
chart for the given region and time period. So, a value of 100 is the peak popularity for the term given. In today’s digital environment, we strongly encourage members to capitalize on this growing trend and ensure that your operation is visible in the place where people search the most. We plan to bring you similar key words and trends related to each of the upcoming issues of our magazine. The following terms related this the theme of this issue of Northeast Dairy — sustainability. The information below shows the search popularity of each of the given terms over a one year period, in this case from August 2019 through August 2020.
SUSTAINABILITY Average monthly search volume has increased by 13% year-over-year.
44 • Northeast Dairy Foods Association, Inc.
Digital Marketing
PLASTIC CONTAINER USE Average monthly search volume has increased by 113% year-over-year
BIODEGRADABLE PACKAGING Average monthly search volume has increased by 30% year-over-year
FOOD WASTE Average monthly search volume has increased by 9% year-over-year NED Magazine | Third Quarter 2020 • 45
Digital Marketing
Digital Marketing: What to Do? How to Begin?
BY BRIAN BLUFF
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hile digital marketing was once new and revolutionary, it’s now mature with less opportunity to stumble into success. That means you need to have a plan if you hope to succeed. But how does a company know where to start or know if what it already has is working? Furthermore, what work can be performed in-house and what should be outsourced? At the highest level, to be successful in digital marketing, you need to develop a plan to address the following: • Your website • Search engines (Google) • Social media • Video • Email marketing • Measure for success (Google Analytics)
YOUR WEBSITE The cost of a website project can be broken into the selection of a content management system (software) and labor. Picking an open source content management system has many advantages. One of the key advantages is the fact that these platforms are free. The availability of many free or inexpensive plugins (discrete software bundles that add functionality to a website), the abundance of affordable developers and the ease with which the site can be changed are also important to note. WordPress is the most popular open-source content management system with approximately a 60% market share. In my opinion, unless you have a unique need, you should build your website on WordPress. An advanced e-commerce website would be an example of a unique need. 46 • Northeast Dairy Foods Association, Inc.
The true cost of a new website includes the labor to design or brand the site, code or assemble the site and create and add content. Once your site is built, your job is not over. You should continually add fresh content and check your site’s analytics to identify opportunities for increased visitor engagement and conversion.
Perform In-House During the initial build of the website, your internal team should be working on content creation. This is especially true if your products or services are technical or complex. After launch, your staff should make routine updates, including adding or deleting product or service information, maintaining your events calendar, writing and posting blogs and case studies and adding news.
Consider Outsourcing Website design and development should be outsourced. Adding functionality to the site typically requires the involvement of a developer, even in cases where a plugin is available. Websites require maintenance to keep things running smoothly. This includes installing platform and security updates. Outsource this work.
SEARCH ENGINES Search engines connect people that have a need to a source of information. Today, users of search engines can either satisfy their information right on the search engine without navigating to a website, or they can leave Google in favor of a website as one might traditionally expect.
Digital Marketing Local Listings Your Google My Business page or local listing can appear (under the map) when Google believes that the query can best be addressed by a local provider. Google My business provides searchers with your address and ability to retrieve driving directions, phone number (click to call on a mobile phone), a description of your business, a star rating and reviews, and, of course, a link to your website.
Organic Search/SEO At a high level, SEO is about creating high-quality mobile-friendly content on a fast loading website and sending consistent signals to Google about the content’s meaning. Taking the time to fully describe a topic with unique content is a sign of quality. To do this, think about the questions people might ask about that product or service and include answers to those questions within your content. Beyond visible content, there is information or signals that are important from an SEO perspective. These include the page title (title tag), description tag (describes the content on that page), schema mark-up (code that slows the search engines to understand what your content represents, e.g., a product, event, review, etc.), and mentions or links to your website from other websites.
should solicit and respond to customer reviews from happy customers as a way to increase your exposure in the local search results and reach out to all customers to show you care.
Consider Outsourcing Developing a sitewide SEO plan is a task that takes experience and therefore I’d suggest leaving it to a pro. Likewise, troubleshooting technical SEO issues and securing off page citations and links are best outsourced.
Local Search It’s not a bad idea, although not imperative, to outsource the creation of your Google My Business page. There are a few tricks and the need for high quality images. In a pinch, you can take this in-house.
Paid Search Although I’ve seen countless companies try to manage their paid search program internally, they almost always waste more money than the cost to have a trained and certified manager look after the program. For that reason, you should outsource management of your paid search program.
SOCIAL MEDIA
Paid Search On Google, paid listings appear above organic listings and so they attract more eyeballs. While many Google users still prefer to click on an organic listing that mindset is changing in part because paid results dominate mobile screens and because Google rewards ad programs that deliver the best content. Google Ads, which is Google’s advertising program, is made up of ads on Google, YouTube and Google’s display network (ads appearing on other websites, including retargeting ads). With paid search, you pay when a searcher clicks on your ad. The amount you pay can be controlled by adjusting your bid and adjusting your daily budget. Another factor is a quality score assigned to your program by Google. Quality Score is determined by an assessment of the relevance of your ad and landing page to the search term. Google is protective of its users, and if you run a sloppy Google Ads program, you are going to have to pay more. If your program is a real mess, Google will stop showing your ads altogether.
Perform In-House The person in your organization responsible for posting new content should learn enough about SEO to optimize blog posts and other forms of new content. In addition, your team
Social media allows businesses to get the attention of potential customers, increase awareness of their brands and ultimately boost leads or sales. While Google is a better platform to attract prospects with an immediate need, Facebook, Instagram, Pinterest and Twitter play a role, too. Facebook, of course, is the social media king. Facebook is a great platform to push information about a training event, display your commitment to the community, promote a special or attract new talent. Like Google, traffic on social platforms requires ad dollars. On Facebook, this means boosted posts or ads. Here’s a link to more information about advertising on Facebook (shorturl.at/qxE59) for those that are interested.
Perform In-House Managing your Facebook program in-house is certainly an option. However, like paid search, you can expect better results by having a trained person manage your page. Managing your page includes establishing a social media calendar (planning NED Magazine | Third Quarter 2020 • 47
Digital Marketing what you’ll be posting over the next month) and responding to feedback and fan engagement. A middle ground between outsourcing and in-housing all social media would be to outsource posting and advertising and in-house customer engagement (responding to reviews, likes, etc.).
(editing, voice over and adding music). Outsource your most important video projects.
EMAIL MARKETING
Consider Outsourcing There are certain aspects of social media that, if you choose to engage them, should be outsourced. These include significant advertising efforts and developing and managing campaigns and contents.
VIDEO
No discussion of digital marketing is complete without mentioning video. Video is massively popular, and the increasing use of mobile devices to consume this content is at the heart of video’s popularity. As the world’s second largest search engine, YouTube is both a destination for users looking for content and a platform from which you can easily embed video into your website. Like every other platform, traffic can be organic or paid. Companies should create a YouTube channel and populate that channel with fresh and interesting content. Your best professionally created content should be reserved for your “about” video or videos demonstrating a core capability. Good video, potentially even video shot on a mobile phone, can be used to document an event (training session) or demonstrate use of a product.
Email marketing is, in my opinion, the most misunderstood and underutilized form of digital marketing. From a complexity standpoint, email marketing can include blasting the same message to your entire list to segmenting your list by vertical or area of interest and sending unique content to those lists. And, there’s a higher level of sophistication — marketing automation. Marketing automation involves the creation of logical workflows (a series of five to eight email about a particular subject) triggered by the recipient’s engagement with your content (visit to your website, clicking on a link in your email or filling out a form). Regardless of your approach, email marketing is both affordable and effective.
Perform In-House If you are only publishing a monthly newsletter and have a capable internal staff, then, by all means, do this in house.
Consider Outsourcing If you have the bandwidth to take on a more complex and potentially highly rewarding email marketing effort like a segmented campaign or building out a marketing automation program, you’ll need help. As you increase the complexity of your program, you will be advised to outsource this work.
Perform In-House Buy a decent camera, and train a staff member to use it. iMovie or other base level video editing software can be used to polish these videos.
ANALYTICS
Outsource Professionally shot and edited video is an important company asset. This effort includes pre-production (storyboarding and scripting), production (shooting) and post-production
48 • Northeast Dairy Foods Association, Inc.
Measurement is at the heart of digital marketing, and it’s the ability to test, measure and adjust that separates
Digital Marketing the winners from the losers. Every platform — Google, Facebook, YouTube, etc. — has a measurement tool, and as you embrace any of these platforms, you should learn the tool. That said, Google Analytics will be your most important measurement tool by far. Google Analytics provides you data about the performances of your website. More important than any specific individual metric is the ability to slice and dice the data. For example, let’s say that you have a handful of locations across the Northeast, it would be important to know which traffic source from that region sent the most and highest converting traffic to your website. Here’s a link to Google’s “Get Started With Analytics” page (shorturl. at/oxH68).
leadership should review high level reports at least monthly and receive a deep dive analysis quarterly.
Consider Outsourcing If you choose to participate in digital marketing, then you’ll need to protect your investment — and that means collecting and analyzing important data. After 16 years in this business, I’ve never seen an internal team capable of doing this effectively. Therefore, while I know this is a big pill to swallow, I’d suggest outsourcing your analytics efforts. Brian Bluff is the president and co-founder of Site-Seeker, Inc., an internet marketing firm specializing in SEO, SEM, social media and web development with a strong focus on the B2B manufacturing and distribution arena.
Perform In-House The person in your organization overseeing digital marketing should be familiar with the various measurement tools associated with the platforms involved in your program. Company
GIVE US SOMETHING TO CHEW ON. Are you introducing an interesting product? Have you instituted cuttingedge processes? Are you welcoming a new hire? Is your business expanding, moving or changing? Do you have other news to share? Northeast Dairy magazine is always looking for Member and Industry News. Email your information, news releases and/or captioned photographs to us at editor@nedairymedia.com.
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OSHA UPDATES OSHA Update for the Dairy Processing Industry BY STEPHEN VALENTINE, CIH
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ll businesses in the dairy processing industry are held to a vast list of Occupational Safety and Health Administration regulations and standards. This starts with the basics of injury and illness tracking and recordkeeping to written safety programs and training to other industry specific standards such as Process Safety Management for ammonia. In this article, we will focus on the COVID-19 pandemic, industry specific/standard updates and the OSHA Top 10 Violations. COVID-19 is obviously still the top agenda item for OSHA. The COVID-19 regulations are ever changing by OSHA, the CDC and federal, state and local governments, but the dairy industry applicability and COVID-19 safety practices are pretty-well defined at this point. Here is a quick summary: • Documents are available from OSHA regarding regulations and guidance for the development and implementation of a COVID-19 Safety Plan. This includes documents such as Guidance on Preparing Workplaces for COVID-19, Guidance on Returning to Work and an OSHA Alert on COVID-19 Guidance for the Manufacturing Industry Workforce. • OSHA has issued several guidance documents regarding enforcement strategies for COVID-19 in the workplace, including interpretations for PPE, respiratory protection, audiometric testing, etc. OSHA has provided inspectors with enforcement discretion (see the OSHA web page, www.osha.gov), which still appears to be based on employers doing the right thing and making good faith efforts to remain in compliance. • The stance on OSHA illness (COVID-19) recordkeeping has 50 • Northeast Dairy Foods Association, Inc.
not changed and is still based on the following premise: a “confirmed” COVID-19 case, determined to be “work related” and meeting at least one of the OSHA recordability criteria (e.g., days away, restricted or transfer, medical treatment beyond first aid, etc.). This includes the requirement to report any COVID-19 fatalities to OSHA within eight hours. The OSHA Top 10 Violations (from 2019) should always be of interest to employers. The list does not typically vary much over the years, and this most current list is no different. Five of the Top 10 violations apply to manufacturing, and all are applicable to the dairy processing industry. • #2. Hazard Communication (Written HAZCOM Program, chemical inventory, SDSs, container labeling and training). • #4. /Tagout (Written Lockout/Tagout Program, equipment specific LOTO procedures, appropriate LOTO equipment and training). • #5. Respiratory Protection (Written Respiratory Protection Program, medical surveillance, fit testing and training). • #7. Powered Industrial Trucks (Operator training, proper operation and daily/pre-use inspections). • #9. Machine Guarding (Proper guarding of equipment and machinery point of operation). Note: Top construction violations are not included in this list with #1 & #8 (fall protection), #3 (scaffolding), #6 (ladders) and #10 (PPE). OSHA Penalties, since 2016, are now part of an annual increase. As of January 15, 2020, OSHA penalties have increased to:
OSHA Updates • • • •
•
• • • • •
Serious Violation: $13,494/violation (maximum) Failure to Abate Violation: $13,494/day (maximum) Willful/Repeat Violation: $134,937/violation (maximum) OSHA has ongoing special emphasis programs in place that focus typically on high hazard industries or activities. Currently in place are the following National Emphasis Programs that could apply to the dairy industry: Process Safety Management for operations with over 10,000 lbs. of anhydrous ammonia typically used for refrigeration. This also includes the EPA counterpart standard for Risk Management Planning. Combustible Dust relating to preventing workplace explosions from combustible dusts. Hazardous Machinery relating to preventing amputation in industry from machinery. Crystalline Silica relating to employee exposure to crystalline silica in the workplace. Based on your region, there may also be local emphasis programs specific to your region. OSHA’s update on Injury and Illness Reporting is no longer new with the changes now several years old. In summary:
• OSHA 300 forms must be maintained up to date (within 7 days) throughout the year for all OSHA recordables. • Completed OSHA 300A forms must be posted for the prior year from February 1 through April 30. • Information from the previous year’s OSHA 300A forms must be submitted to OSHA electronically/on-line by March 1. Note: This applies to most dairy processing facilities with more than 10 employees. In addition, OSHA’s Severe Injury Reporting Program is fully in place and requires employers to notify OSHA of any work-related fatality, hospitalization, amputation or loss of an eye. Fatalities must be reported within eight hours, and any in-patient hospitalization, amputation or eye loss must be reported within 24 hours. Stephen Valentine, CIH, is the Director of Environmental, Health and Safety with Partners Environmental Consulting in the Syracuse, New York. He is a consultant to Northeast Dairy Foods Assoc., Inc. members and can be contacted at svalentine@ partnersenv.com or 315-263-3183
Coronavirus Disease 2019 Outbreak STAY UP-TO-DATE ON THE LATEST COVID-19 INFORMATION IN YOUR STATE
Visit our website for a comprehensive list of dairy industry COVID-19 resource links For more COVID-19 topics related to the dairy industry, go to our website at www.nedairyfoods.org/covid-19-resources/ NED Magazine | Third Quarter 2020 • 51
Member Profile
Cayuga Milk Ingredients Looks Towards Growth, Zero Carbon Operations BY COURTNEY KLESS
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ayuga Milk Ingredients is a relatively new company — its manufacturing plant began processing ingredients six years ago — but the company is hitting its stride in 2020, processing more milk and undergoing a $25 million expansion. The company’s roots can be traced back to 2008. “At the time, there were 28 members of Cayuga Marketing,” said Kevin Ellis, the CEO of Cayuga Milk Ingredients. “They were spending a lot on milk transportation, and milk was going down to the New York City metro market. Back in 2007-2008, gas prices were astronomically high. We embarked on a mission to try to find a way to process milk locally, so we could reduce our fuel and transportation costs.” Ellis was hired by that group of farmers to examine other milk processing companies. “We were traveling around Europe and got some good ideas,” he said. “At the time, milk protein was in high demand, so we decided we would build a milk protein/skim milk powder operation to go into the world market where protein prices 52 • Northeast Dairy Foods Association, Inc.
would command good premiums.” Cayuga Milk Ingredients was formed in 2012, and by June of 2014 it began manufacturing liquid products. Powder products followed in September of that year. Today, Ellis estimates that the company’s Auburn, New York, facility receives 2 to 2.3 million pounds of milk per day, processing it into high-quality dairy ingredients such as butterfat cream, protein powders, evaporated milk, blends, and low heat and medium heat skim milk powder and non-fat dry milk. With its milk coming from dairy farms in the Finger Lakes Region of New York State, Ellis said sustainability is a big part of the company’s mantra. “When we were building the plant here, we determined that the transportation savings alone would cover two-thirds of the debt to build the new factory,” he said. “That has helped us reduce our carbon footprint in that we don’t have as many food miles.” Another part is reflected in its culture, which is not only innovative but takes a multigenerational approach and encourages its employees to follow the “Golden Rule.” (continued on page 53)
Member Profile “We try to treat people with respect, so they can execute on their jobs,” Ellis said. “I have a firm belief that the only difference between a good company and an average company is the people who operate it. Anyone can buy equipment, put the equipment together and make a product. What makes companies excel are the people who work in them every day.” Ellis said it has been “business as usual” at Cayuga Milk Ingredients during the COVID-19 pandemic. “We’re processing more milk than we were a year ago,” he added. The company has also offered assistance to the community, donating its milk powder to a local food bank. So, what’s next for Cayuga Milk Ingredients? For one, the company is
currently undergoing an expansion, which will add a second evaporator and increase the plant’s capacity by 25%. “As our farmers grow, we need more processing capacity to grow with them, so this has been five years coming,” Ellis said. “Our farmers have grown well beyond our ability to process their milk, so we’re adding capacity to be able to do that.” Though the company has already reduced its carbon footprint by adding an anaerobic digestor to its facility — an action that reduced its waste from six loads of tanker waste per day to two per month — it also hopes to reach zero carbon in the near future. But, that isn’t all Cayuga Milk Ingredients has planned.
“If I look five, 10 years down the road, I see us more getting into cheese and specialized ingredients and those types of things, but that’s going to depend on market need, when we can find the capital and where we see opportunities at the time,” Ellis said. “Opportunities seem to change at an ever-increasing rate. Back when we built our plant, people asked why we weren’t getting into yogurt because there was a yogurt boom in New York. That has now become saturated, so the opportunities that were in yogurt are no longer there. That doesn’t mean it won’t change, but we need to keep our eye on consumer trends.” Courtney Kless is a writer/editor for Northeast Dairy Media.
Land O’Lakes Leads Coalition to Close America’s Digital Divide
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n July, 49 organizations announced a new coalition dedicated to helping close America’s digital divide. Convened by farmer-owned cooperative Land O’Lakes, Inc., the newly formed American Connection Project Broadband Coalition will advocate for public and private sector investment to bring high-speed internet infrastructure to rural areas, in addition to advocating for policies and contributing their own resources to facilitate remote education, health and mental health services, job opportunities and more, with the goal of connecting and lifting up all American communities through access to modern digital technology. “All too often, farmers, business owners and even school children are disadvantaged by being on the wrong side of our country’s digital divide, a problem that has become more acute as we deal with the challenges of COVID-19,” said Beth Ford, president and CEO of Land O’Lakes, Inc. “But this isn’t just a rural issue. The American Connection Project Broadband Coalition represents a mix of companies from health care, agriculture and more who understand the ramifications of our country’s broken internet infrastructure and who have the willingness and expertise to help address this need. We are so grateful to our partners who recognize that connecting all Americans is possible and who are willing to
work with us to close our country’s digital divide and invest in our collective future.” Currently, the coalition is made up of 49 businesses, trade associations, nonprofits, municipalities and academic institutions. In addition, the coalition works with organizations like The Business Roundtable and individual political leaders to advance efforts. The Federal Communications Commission estimated in 2017 that it would cost $80 billion to bring high-speed internet to remaining parts of the country that do not have access, while a more recent U.S. Department of Agriculture report estimated that it would require “between $130 and $150 billion over the next five to seven years to adequately support rural coverage and 5G wireless densification.” However, a study from the U.S. Chamber of Commerce’s Technology Engagement Center found that “better adoption of online tools and digital services by businesses outside metropolitan areas could create 360,000 new full-time jobs in rural areas and add more than $140 billion to the U.S. economy over the next three years.” Some of the companies included in the coalition include Microsoft, the National Farmers Union, National Milk Producers Federation, Hershey, National Grain and Feed Association, Nestle PURINA, National 4-H and the Cleveland Clinic. NED Magazine | Third Quarter 2020 • 53
Member Profile
Great Lakes Cheese Prides Itself on AwardWinning Products, Employee Ownership BY COURTNEY KLESS
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ixty-two years ago, Great Lakes Cheese was founded in Cleveland, Ohio, primarily distributing Swiss cheese to that region. As demand grew, the company moved to a larger facility in Hiram, Ohio, and began packaging cheese. Today, Great Lakes Cheese has eight manufacturing facilities and more than 3,300 employees. In that time, the company has won more than 180 awards for its cheeses, including a Best in Class Award for its sharp cheddar at the 2020 World Championship Cheese Contest in Wisconsin. (Great Lakes also received medals for its aged provolone, partskim mozzarella, smoked provolone and whey permeate cheeses.) According to Nathan Pistner, the plant manager in Adams, New York, where cheddar cheese is manufactured, that success can be attributed to two things: the people who work in the plant and the quality of milk it receives from local farmers. “The majority of our milk comes from within 30 miles of the plant,” he said. “I know the farmers up here and down in
54 • Northeast Dairy Foods Association, Inc.
Cuba, New York, take a lot of pride in their animals and the quality they provide. Both plants won multiple medals at the World Cheese Championships. That news gets back to the farmers, and they are really proud to know that their milk played a significant role.” Now under the leadership of the second and third generation of the Epprecht family, Great Lakes Cheese offers several different varieties of natural, processed and specialty cheeses, including muenster, pepper jack, feta, cheese spread and blueveined cheeses, as well as its Adams Reserve Cheddar Cheese. The company also has a food service presence, distributing its products to restaurants, schools and sporting events. But what Pistner said makes the company truly unique is its family ownership culture. Great Lakes Cheese has an Employee Stock Ownership Program, which gives its workers stock in the company – a combined 20% to be exact. “Our founder, Hans Epprecht, decided it was an important piece, so that employees felt ownership,” Pistner said. “It
Member Profile really opened the door for employees to be part of the family business. That program is the soul of the company.” Great Lakes Cheese hasn’t slowed down during the pandemic. During the second weekend in July, it hosted a cheese drive-thru event after the annual Adams Cheese Festival was cancelled. Pistner said the event was a “great success.” And, the Adams plant has also distributed nearly 1,000 pounds of cheese to local food banks and schools. “We try to give back as much as we can,” Pistner said, noting that Great Lakes Cheese, as a whole, has donated more than 10,000 pounds to support pandemic relief efforts. As for the future, Great Lakes Cheese hopes to continue its growth. As customer needs have changed over the years, Great Lakes Cheese has adapted. “We have a research and development group, which is working on some innovative products, such as a vegan cheese,” Pistner said. “A lot of our customers have also asked for innovation in packaging, whether that’s more sustainable or ease-of-use. The engineering department is dedicated to exploring and implementing innovative solutions for our customers.” “Our company continues to grow and expand,” Pistner added. “We opened up a new state-of-the-art snack facility last year in Wisconsin. Later this year, the expansion on our Hiram, Ohio, facility will be operational, doubling the capacity. It is an exciting time to be part of the GLC Family.” Courtney Kless is a writer/editor for Northeast Dairy Media.
Borden Sold After Bankruptcy
I
n July, Borden dairy was sold to two private equity firms after filing for bankruptcy protection in January 2020. According to Borden, the company was sold for approximately $340 million to Capitol Peak Partners, the majority owner, and Kohlberg Kravis Roberts & Co. Inc., the minority investor. Capitol Peak Partners was founded by Gregg Engles. He is the former chairman and CEO of Dean Foods and WhiteWave Foods. KKR is a previous owner of Borden, having purchased it in 1995 after 68 years as
a public company. It later sold off its brands and divisions. Borden has 12 plants in the U.S., all of which will remain open and retain its 3,300 employees. The plants produce 500 million gallons of milk per year. Borden CEO Tony Sarsam announced that he will step down and the private equity firms will appoint a new board of directors. At the time of its bankruptcy, Borden was the second largest fluid milk processor in the country. Borden is another milk company that has struggled against falling fluid
milk consumption, the popularity of alternative milk products and discounted private label offerings. In November 2019, Dean Foods filed for Chapter 11 with the majority of its assets going to Dairy Farmers of America for a reported $433 million. Official word awaits on the fate of Elsie the Cow, Borden’s cartoon mascot since 1936. Elsie was named one of the Top 10 advertising Icons of the 20th century, and has been among the “most recognizable product logos” in the U.S. and Canada. NED Magazine | Third Quarter 2020 • 55
Member News
Member News and Announcements
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n June, during National Dairy Month, Chobani and Cornell University announced its first group of Chobani Scholars to enroll in classes at the Ivy League university. Caroline Lafferty, Emily Starceski, Blake Wadsworth and Cassandra Wilbur attended Cornell’s College of Agricultural and Life Sciences during the last academic year, aided by scholarship support from Chobani. All are pursuing a variety of careers as the next generation of New York dairy professionals — from animal science and dairy management, genetics and herd management. The Chobani Scholars program was established at Cornell in 2019 and funds four $20,000 scholarships ($5,000 per year, per student) and are given to selected students with family connections to dairy farming who intend to pursue a career in the industry. In addition to the scholarships, the Chobani Scholars will have the opportunity to intern with the company, which makes America’s No. 1-selling Greek yogurt brand. “We believe one of the best ways to help farmers today is to equip tomorrow’s dairy leaders with the tools they need to succeed in an incredibly complex and challenging environment,” said Peter McGuinness, president of Chobani. “The Chobani Scholars program is one way we’re investing in the future of diary in our home state of New York.” In other Chobani news, the company announced in July that 56 • Northeast Dairy Foods Association, Inc.
it will donate all profits from a limited edition charity flavor, PB&J, to Feeding America. The initiative will last through the end of September. Since the pandemic began, Chobani has donated nearly 6.5 million of its products to U.S. food banks, homeless shelters, frontline medical workers and more. In June, after a five year wait, the U.S. Patent and Trademark Office granted Syed Rizvi, professor of food process engineering at Cornell University, and Michael E. Wagner, Ph.D., director of operations for the Martin Bauer Group, a patent for their instant ice cream process. The process uses pressurized carbon dioxide to instantly turn the liquid mixture into ice cream. According to the inventors, this speedy process could eliminate the need for the cold supply chain, which is used to transport ice cream to retailers worldwide but uses an enormous amount of energy to do so. In response to school closings and community meal service suspensions amid the COVID-19 crisis, Dairy Farmers of America family farmer-owners have donated the equivalent of over 625,000 gallons of milk to families faced with hunger. Additionally, through the DFA Cares Farmers Feeding Families Fund, DFA and its farmer-owners are raising money to help provide essential support and deliver much-needed dairy products to community food banks across the country.
Member News DFA has raised more than $500,000 for the cause. On June 1, World Milk Day, the DFA began encouraging others to join its Gallons of Good Initiative. For every social media post shared using #GallonsofGood in the month of June that highlighted what someone was grateful for, DFA donated $1 to help local food banks purchase milk through the Farmers Feeding Families Fund. Additionally, DFA family farmers across the U.S. have delivered more than 10,000 gallons of milk to local communities through milk giveaways, food drives and donations to area foodbanks. New to the market is fairlife Light Ice Cream, thanks to a partnership with the company and Boardwalk Frozen Treats. Seven flavors, including traditional vanilla and chocolate, as well as chocolate peanut butter, double fudge brownie, cookies & cream, java chip and mint chip, are available in select supermarkets in 14-oz. containers. The ice cream is made with the same ultra-filtered milk that fairlife is known for in the dairy case and contains up to 9 grams of protein, half the fat, 40% less sugar and 40% fewer calories than traditional ice cream. According to fairlife CEO Tim Doelman, the new product “delivers the fairlife fundamentals of high quality milk” in a frozen treat. The International Dairy Foods Association is urging the 2020 Dietary Guidelines Advisory Committee to include the full body of scientific literature from recent years showing that dairy foods, regardless of fat level, appear to have either neutral or beneficial effects on health outcomes. In a letter to the secretaries of Agriculture and of Health and Human Services, as well as Dr. Barbara Schneeman, chairwoman of the committee, IDFA commends the committee for undertaking an enormous amount of analysis in a compressed time period and encourages the committee and federal agencies to include all relevant scientific studies in the final Dietary Guidelines for Americans report to be published in late 2020. Lactalis Ingredients recently launched a skimmed milk powder with a high heat, heat-stable quality to be used for the production of evaporated and sweetened condensed milk, which is stable at in-can sterilization temperature. Both evaporated milk and sweetened condensed milk continues to be a popular item in areas like Latin America, the Middle East and Asia, and is expected to see an average annual growth of 2% by 2024. According to the company, the new ingredient has “good solubility, low thermophilic spores and preserves the dairy taste.” Lactalis Ingredients is a subsidiary of the Lactalis Group.
The dairy industry has set its sights on becoming carbon-neutral by 2050 through its Net-Zero Initiative, a partnership among farmers and the entire supply chain, according to information put out by the National Milk Producers Federation. This goal includes policies that encourage dairy farmers to put emissions-reduction technologies in place, spur private investments and alleviate market uncertainties, according to Mike McCloskey, an Indiana dairy farmer and chairman of the NMPF’s Environmental Issues Committee. McCloskey testified in July at a hearing of the House Committee on Agriculture’s Subcommittee on Commodity Exchanges, Energy and Credit. Launching its new website is PTI — Packaging Technologies & Inspection — a leading equipment manufacturer of non-destructive package inspection technologies for the pharmaceutical, medical device and food industries. The new website (www.ptiusa.com) contains a video gallery and knowledge and resource center packed with information about package quality testing solutions and container closure integrity testing. Stewart’s Shops has a long-standing history of giving back to nonprofits in the communities that it serves. Since the pandemic hit, many nonprofits are experiencing strains on budget, staffing and resources. Stewart’s provided over $1 million in monetary and product relief to hundreds of impacted organizations. The Stewart’s Shops COVID-19 relief grants helped hundreds of organizations with sustainability as fundraising events were cancelled but demand for items and services increased. For example: Bread, milk and egg gift certificates were distributed to school districts to keep backpack programs going to feed families in need; aid was given to homeless shelters; organizations like the United Way and Home Independent Care were able to purchase necessary PPE equipment; the Children’s Museum of Saratoga provided virtual educational programs and enhanced their hands-on exhibits to prepare for reopening; and C.R.E.A.T.E. Community Studios was able to purchase and provide art supplies to community members. These are just a few of the many examples of how Stewart’s was able to help these organizations get through these uncertain times while staying true to their mission. According to Amy Potter, Stewart’s corporate contributions director, “With so much need, we felt compelled to help where we could above and beyond our annual giving. With a long-standing history of helping nonprofits, we knew we could offer these organizations guidance, product donations and (continued on page 58) NED Magazine | Third Quarter 2020 • 57
Member News monetary assistance to get them through these unprecedented and uncertain times.” Stewart’s supports nonprofits in the arts, education, recreation, health, social services and civic groups. The company is committed to giving back to the communities in which they are located, donating approximately $2.5 million a year to local nonprofits with The Dake Family Foundation contributing an additional $5 million. This spring, Twin Birch Dairy of Skaneateles, New York, earned the U.S. Dairy Sustainability Award, a national recognition for practices that “improve the well-being of people, animals and the planet.” According to a Spectrum News report, the farm has been using innovation for the past two decades, starting with the installation of a manure storage site, which helped reduce manure smell in the surrounding community. This led to installation of an anaerobic digester, which not only reduces odor but also pathogens, and provides approximately 90% of the electricity required to run the dairy, according to owner Dirk Young. The farm also participated in a clean study related with the nearby Skaneateles Lake Watershed Agricultural Program. The award is sponsored by DeLaval, Phibro, Syngenta, the World Wildlife Fund and the U.S.D.A.
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58 • Northeast Dairy Foods Association, Inc.
Tom Imbordino, the publisher of Dairy Foods magazine for 18 years, died in June at the age of 59. Imbordino was responsible for expanding Dairy Foods beyond the traditional magazine format to include an eNewsletter, social media, events and webinars. In addition, he founded the publication’s LinkedIn group, which now has over 30,000 members. Imbordino was active with the Food Processing Supplier’s Association, the Greater Chicago Food Bank’s Defeat Hunger initiative and DairyFoodsGives.
Member News
USDA Announces Award for New Milk Incentive Program
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he U.S. Department of Agriculture today announced the award of nearly $1 million for an innovative pilot program designed to encourage Supplemental Nutrition Assistance Program participants to purchase and consume milk as part of a healthy, balanced diet. This pilot project builds on the success of previous incentive programs, which have shown positive impacts on the healthfulness of a persons’ diet. Through a cooperative agreement with the Baylor University Collaborative on Hunger and Poverty, SNAP participants shopping at select grocery stores in Texas will receive incentives for purchasing qualifying milk. The Healthy Fluid Milk Incentive pilot was established by the 2018 Farm Bill to encourage consumption of milk, which is part of a well-rounded, nutritious diet as described in the Dietary Guidelines for Americans. The program is expected to be fully operational by May 2021, and incentives will be tested for one year. The pilot is part of Food and Nutrition Service’s commitment to employing innovative techniques to help make
nutritious foods more accessible for low-income Americans. Baylor University Collaborative on Hunger and Poverty received this $930,000 award through a competitive process and will be partnering with South Plains Hunger Solutions Coalition and Lowe’s Supermarkets to develop and test incentives at local Food King grocery stores in Littlefield, Lubbock, and San Angelo, Texas. Once the HFMI pilot is operational, shoppers using SNAP benefits at these locations to purchase qualifying fluid milk (pasteurized, unflavored and unsweetened cow’s milk - skim or 1%) will receive a coupon for additional free milk. FNS will conduct an evaluation of the pilot results. USDA’s Food and Nutrition Service administers 15 nutrition assistance programs that leverage American’s agricultural abundance to ensure children and low-income individuals and families have nutritious food to eat. FNS also co-develops the Dietary Guidelines for Americans, which provide science-based nutrition recommendations and serve as the cornerstone of federal nutrition policy. Follow us on Twitter at @USDANutrition.
NED Magazine | Third Quarter 2020 • 59
ADVERTISERS INDEX Ace Sanitary .......................................................................8
Gelpac..............................................................................16
Afgritech ..........................................................................13
H.S. Crocker Co., Inc ........................................................28
Agri-Mark Cooperative.....................................................11
Krohne, Inc ........................................................................9
Agri Service Agency .........................................................58
Nelson-Jameson, Inc. ......................................................35
Atlas Automation .............................................................51
Schenck Process ..............................................................15
Brown & Brown Insurance ...............................................33
Spinnacker Custom Products..........................................IFC
Comairco Compressed Air Specialists..............................49
The Probst Group .............................................................22
Dairy Farmers of America.................................................33
Tremcar USA Inc. .............................................................17
Farm Credit East ..............................................................31
Tri Tank Corp. ...................................................................22
Food Specialties...............................................................59
Westrock ........................................................................BC
NORTHEAST DAIRY SUPPLIERS ASSOCIATION BUYERS GUIDE IS NOW LIVE!
buyersguide.neastda.org
Showcasing all NDSA member companies by category, description and SEO-friendly search terms. This guide assists and encourages members doing business with members. Find new products and services, industry events, deals and more! Check it out today and share it with specifiers and purchasing agents at your company. For more information about the NDSA Buyers Guide, contact Northeast Dairy Media 315-445-2347.
60 • Northeast Dairy Foods Association, Inc.
BENEFITS OF ASSOCIATION MEMBERSHIP EXECUTIVE DIRECTOR AND INDUSTRY CONSULTANT SUPPORT
NDFA
NDSA
Legislative Representation Through Executive Lobbying and Networking Safety and Environmental Information Economic Analysis and Forecasting Continuing Education and Certification Opportunities Industry Spokesperson Emergency Preparedness
PROFESSIONAL COST-SAVING PROGRAMS Dedicated Industry-Specialized Insurance Programs Employee Benefits, Including 401(k) Retirement Program Energy Supply and Consulting Services
NETWORKING AND MEETING EVENTS Annual Northeast Dairy Convention Contact Booth at the Annual Convention Annual Dairy Industry Clambake Hospitality and Sponsorship Opportunities Industry Plant Tours Annual Charity Golf Outing Fundraiser
COMMUNICATIONS AND PUBLIC RELATIONS Quarterly copy of Northeast Dairy Magazine Direct Customer Advertising Opportunities Industry Scholarship Program Membership Directory with Key Contacts in the Dairy Industry Digital Buyers Guide (launching in 2019)
ADVOCACY An association represents your interests before your government leaders, industry and business community. If your business/industry faces major threats or needs support, our association is right there on the front line fighting for you.
NETWORKING Association events, meetings and member directories make networking a reality for you and your peers. Thisis the one advantage many view as the most important reason to join!
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