Northeast Dairy Magazine | Q3 2022 by NortheastDairyMag

The Business of Dairy

KUDOS

Magazine Wins Award

Third Quarter 2022

SOMETHING TO CONSIDER

Baby Formula Shortage

MEMBER PROFILE

Future Bright for Agri-Mark

EVENTS

Golf/Clambake Highlights

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Third Quarter 2022 • 1

contents Third Quarter 2022 • Volume 5, No. 3

FRONT DESK 04

FEATURES

PRESIDENT’S MESSAGE, NDFA

Business of Dairy, Sustainability, Consumer Perception BY DANIEL LAUSCH

PRESIDENT’S MESSAGE, NDSA

Ten Years of NDSA Connections BY BILL ELLIOTT

LEGISLATIVE REPORT hoto Finish for State P Legislatures BY PAUL HARVEY

ECONOMIC OUTLOOK Inflation Is Making an Impact, And Dairy Is Feeling the Pinch BY GARY LATTA

Midterms 2022: Where Are We Headed?

hat Is Regenerative W Agriculture?

BY ALAN MARTINEZ

BY PAUL HARVEY

onsumers Have Misguided C Beliefs About Dairy Product Sustainability

SOMETHING TO CONSIDER

BY CAROLINE K. REFF

SDA, Innovation Center U for U.S Dairy Work Towards 2050 Stewardship Goals

30 18

SOMETHING TO CONSIDER

SUBMITTED BY PAYLOCITY

What’s Behind the Baby Formula Shortage?

Choosing a Mentor

BY ART WASKEY

very Game Is an E Away Game

BY JOHN TAPLEY

BY GARY LATTA

hief Emoji Officer: C Leadership and Employee Engagement

ORTHEAST DAIRY MAGAZINE N TAKES TOP AWARD

2 • Northeast Dairy Foods Association, Inc.

hree Strategies for T Distributors to Weather the Supply Chain Crunch

BY MIKE MARKS

raft Macaroni and Cheese K Changes Name, Iconic Box

Modern Marketing on a Budget

BY THOMAS J. ARMITAGE

Thinking Outside of the Bottle

ontrol Your Brand’s C Messaging and Identity Online

BY STEVE GUGLIELMO

tewart’s Put on Historic S Business Registry

contents Third Quarter 2022 • Volume 5, No. 3

NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT

James “Ozzie” Orsillo PRESIDENT

Daniel Lausch Lactalis American Group

DIRECTOR OF REGULATORY AFFAIRS

Paul Harvey

VICE PRESIDENT

Kevin Ellis Cayuga Milk Ingredients

BUSINESS OPERATIONS MANAGER

Leanne Ziemba

TREASURER

Randi Muzumdar HP Hood LLC

SECRETARY

Ryan Elliott Byrne Dairy

NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. MEMBER NEWS 48

MEMBER PROFILE Agri-Mark Continues to Put Members’ Milk Into Superior Products

PRESIDENT

Bill Elliott Northeast Great Dane

VICE PRESIDENT

Melissa Fryer Alfa Laval

TREASURER

Ryan Osterhout KCO Resource Management

SECRETARY

Bruce Alling Double H Plastics, Inc.

NORTHEAST DAIRY MAGAZINE TEAM

BY COURTNEY KLESS

Welcome New Members

Member News

2022 Dairy Blender

022 Golf Tournament/ 2 Clambake

EDITOR

Leanne’s Kitchen

CONTENT DIRECTOR

Advertiser’s Index

EXECUTIVE EDITOR

SALES

PUBLISHER/DIRECTOR OF SALES

Lesli Mitchell lmitchell@nedairymedia.com

James “Ozzie” Orsillo oo@nedairyfoods.org Bill Brod billbrod@nedairymedia.com Caroline K. Reff creff@nedairymedia.com Steve Guglielmo steveg@nedairymedia.com GRAPHIC DESIGNER

Robin Barnes COVER DESIGN

Karley Harmon

Tim Hudson thudson@nedairymedia.com

Hannah Gray hannahg@nedairymedia.com CONTRIBUTORS

Thomas J. Armitage, Steve Guglielmo, Courtney Kless, Mike Marks, Alan Martinez, John Tapley and Art Waskey 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.

STAY CONNECTED

www.nedairyfoods.org www.neastda.org 427 S. MAIN ST, NORTH SYRACUSE, N.Y. 13212 315-452-MILK (6455)

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 © 2022 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.

NED Magazine | Third Quarter 2022 • 3

Front Desk

Business of Dairy, Sustainability, Consumer’s Perception BY DANIEL LAUSCH

PRESIDENT, NORTHEAST DAIRY FOODS ASSOCIATION, INC.

elcome! What a fun time to be in the dairy and food business, as we get to witness record breaking price increases and supply shortages all at the same time. Did I forget to mention labor cost increases and the Great Resignation, including people just deciding to leave the workforce? Plus, a war in Ukraine taking lives, disrupting families, destroying farms, disrupting resources, blockading shipping lanes and seaports creating shortages that are fueling record-setting price inflation not seen in two generations. While all this excitement is happening, we are monitoring and establishing benchmarks for sustainability, including carbon foot printing and methane gas emissions, including better management of our natural resources, care of the soil, water and animals on our farms. While all of these factors are, indeed, overwhelming, it does present a unique challenge, as both members and leaders in the dairy industry, to set the blueprint for future generations who may encounter similar circumstances. It is incredible to think that we could be writing history! 4 • Northeast Dairy Foods Association, Inc.

WHAT IS LOCAL?

Some folks perceive that to be within their same county, others see it as within the same state, area code or country. Each person you ask this question to gives you a different answer. It is important, however, to consider where your dollars go once they leave your pocket. Do they go towards a large, national or multi-national company based overseas? To a company in the United States? Or, around the corner? Regardless of what you consider “local” to be, it is important to remember that when you buy local, you support members of your community, whether across town or even your next door neighbor.

WHAT ABOUT MY CARBON FOOTPRINT?

First, you have to establish a baseline year and a measurement that is a calculation versus an actual measurement. Then, the theory is any future reductions can be logged against the baseline year. While considering my vacation car rental options, I was offered the chance to purchase some “extras,” including SiriusXM, GPS and CO2 offset. So, I clicked on that CO2 icon to see the following statement:

“CO2 Offset is an optional environmental service, chosen at the time of reservation that affords you the opportunity to offset the greenhouse gases emitted by the vehicle when it burns fossil fuel and releases carbon dioxide (CO2) into the atmosphere. This per-rental charge represents the estimated amount (as calculated by terrapass, inc. a CO2 Offset firm) necessary to offset the CO2 emissions produced by the average rental transaction and is not based upon your specific vehicle or miles driven. Funds collected from this charge are remitted to terrapass, inc. See www.terrapass.com for more information.” So, for a small fee, I can tell my family while driving in our rental car that we purchased “offsets,” so we can feel better about the fuel used on our road trip. We did not actually do anything to reduce our CO2 emissions; we just purchased offsets. I’m not sure that offsetting is the best route or a good solution, but it has created a whole new industry. Our message this issue is to give you the “spark” for creative ideas to adapt to an ever-changing environment, as we seek to establish a “new normal” — even though sometimes there seems to be nothing normal about it.

Front Desk

An Instant Connection to the Association Leads to 10 Years of NDSA Connections BY BILL ELLIOTT

PRESIDENT, NORTHEAST DAIRY FOOD SUPPLIERS ASSOCIATION, INC.

t is with a heavy heart that I write this letter, as I move on from the role as president of the board of directors of the Northeast Dairy Suppliers Association, Inc. It has been a pleasure and an incredible honor to work with the members of our awesome board, as well as all of you who have been a part of our organization. My connection with the association started pretty much at the same time I started working in the dairy industry. After leaving my previous career in my family’s furniture business, I was hired to run the Johnson Truck Bodies division for Northeast Great Dane in 2012. This, of course, is the division that is closely connected to the dairy industry, but, at the time, it was all very new to me. I knew I had to make some inroads into dairy quickly if I was going to be successful. So, I did what we all do – I Googled. Up popped the Northeast Dairy Foods Association, which at the time was run by our dear friend, Bruce Krupke. I dialed the number, and Bruce, himself, answered the phone with all the genuine enthusiasm that we remember him for. Before I knew it, I was on the road to Central New York to meet Bruce while I called on a customer in the area. Almost immediately, he had me signed up as a member of the Northeast Dairy Suppliers Association. We hit it off right away

with his genuine demeanor, unmatched knowledge and love of all things dairy. Anyone who knew him understood that he lived and breathed the association. I recognized right away what a special individual Bruce was. But, the story continues. Not a day later, I was talking to one of my best friends from my childhood, who happened to live in a suburb of Syracuse, New York. After telling him about my career change, my old friend immediately said, “You have to meet my friend Bruce who runs the dairy association.” I said “Who, Bruce Krupke?” Dead silence on the other end of the phone! My friend, Robert, astonishingly said, “How do you know Bruce?” I told Rob that I had met with Bruce the day before and that my company would be joining the association. He excitedly told me that “growing up, you were my best friend, and in Syracuse Bruce is my best friend. Our families vacation together, and we sail together every week.” What were the chance that one of my best friends growing up was best friends with Bruce!? I guess you could say it was meant to be. Long story short, I joined the association, and, not long after, Bruce asked me to join the board of directors, and shortly after I took on the role of secretary. But, the good news was that I didn’t have to actually take notes (Thankfully,

the wonderful Leanne Ziemba did that for us!). The only thing I had to do was read the minutes at each meeting. The first board president I served under was Kurt Platzbecker, who was a class act and an absolute gentleman. It was while I served on the board that I got to learn more and more about the industry, which absolutely helped me in my new line of work. I also met some terrific new people, including the person who would eventually become the current NDFA executive vice president, our own Ozzie Orsillo, who was also a past president and board member at the time. I can tell you that there is no better man than Ozzie and certainly no better replacement for our friend Bruce. Bruce would be proud! For the past three years, it has been my honor to serve as board president, but now it is time to pass the torch. I’m in a bit of a transition myself these days, having decided to leave the hard hit transportation industry. I’m still deciding on my next chapter (I do my best thinking on the golf course for the time being!). I will remain a member of the association as long as they will have me, so you won’t be getting rid of me entirely. But, with all sincerity, I thank you for your friendship and for your support while I served as president. My participation in NDSA has been a great asset to me both personally and NED Magazine | Third Quarter 2022 • 5

Front Desk professionally, and clearly it was something that was meant to be from the day I Googled “dairy industry” so many years ago.

GREAT TIMES AT OUR NDSA EVENTS

Before I step down, I just wanted to thank you for your support of our events so far this year. A few months ago, a number of you attended our Spring Blender in Schenectady, New York. We had some informative speakers, and it was an excellent opportunity to network and have a fun time together. This was such a great idea having four associations come together: the Northeast Dairy Suppliers Association, Inc.; the Northeast Dairy Foods Association, Inc.; the New York State Cheese Manufacturers and the Pennsylvania Association of Milk Dealers. Kudos to Ozzie and the team for making this such a successful event. We all need each other to succeed, and we should be proud of the way we are working together to support our industry and each other! Together, we are helping to feed the country, as dairy is a staple of almost everyone’s diet. Whether you’re producing dairy products, manufacturing the packaging these products come in, transporting them to the retail outlets that sell them or any other vital function along the way – you help make our industry better. And, for that, we are grateful! Thank you for supporting the 2022 Spring Blender. Now back to my favorite place – the golf course. I was so pleased to catch up with many of you on the links at this year’s NDSA Annual Bruce W. Krupke Memorial Golf Tournament and Clambake in July. Whether you had a great round or not, it was such a terrific way to reconnect and see so many familiar faces. And, of course, the food at the annual clambake was superb, as always. Who doesn’t enjoy a day of golfing, great 6 • Northeast Dairy Foods Association, Inc.

Billy Elliott, right, at his first convention in 2012 with Bruce Krupke, left.

Billy with association members at the 2021 convention at the Chautauqua Harbor Hotel in Celoron, New York.

food and friends – and what could be a better way to celebrate summer and the good people of the dairy industry? It was a hole-in-one for sure! We appreciate your support of these events, as they help fund our annual scholarships (more to come on that in the next issue of Northeast Dairy) and other activities. We had some excellent scholarship candidates this year, but please keep this annual opportunity in mind, as your family members start thinking about college or trade school. Our scholarship committee, led by Tristan Zuber-Hrobuchak, is extremely diligent at reviewing all applications and is eager to give out awards to deserving applicants. We’d like to get the word out and receive even more applications in the future. See our website for further details and eligibility, but, in brief, our scholarships are open to any association members’ immediate families (child, spouse or even the member him/herself). And, while the scholarships were created to support those entering the dairy

industry, there are funds available for almost all majors or trades. Every penny counts when paying for an education, so please spread the word for next year, and watch for applications in early 2023. I’ve truly been honored to be a part of the Northeast Dairy Suppliers Association over the years. I can honestly say that it’s been a big part of my success and has given me an incredible group of colleagues and friends for more than a decade. I wish all of you every success as we continue to persevere through the ups and downs of the industry. But, I assure you that you will all be in good hands with the incoming group of board members and new officers, and, of course, the leadership and hard work of Ozzie, Leanne (who is the backbone of the association), Paul Harvey and our own “Encyclopedia Britannica” Gary Latta. Thanks, and best wishes. P.S: Leanne, hopefully I’ll get a 48 oz. porterhouse with Bearnaise sauce in the afterlife!

Legislative + Regulations Report

LEGISLATIVE UPATE

A Photo Finish for State Legislatures BY PAUL HARVEY

he end of New York’s regular legislative session came to a photo finish in the early morning hours of June 4. Among their most notable accomplishments, legislators passed several pieces of gun reform legislation in the wake of mass shooting events in Buffalo, New York, and Uvalde, Texas. These changes included raising the age to purchase semi-automatic rifles from 18 to 21, requiring “microstamping” on new weapons sold in the state, restricting the sale of body armor, bolstering background checks and expanding the field of eligible individuals who can file protection orders to prevent the purchasing of a firearm. The legislature also passed The John R. Lewis Voting Rights Act of New York, which was signed by Gov. Kathy Hochul on June 20, 2022. This legislation enacts provisions similar to the landmark 1965 Voting Rights Act that have been struck down by the United States Supreme Court. This includes requirements such as requiring pre-clearance, or approval, from state officials when changing voting practices in areas that have a history of voter suppression, expanding language assistance for voters whose first language is not English and prohibiting officials from enacting legislative districts that weaken the voting power of racial groups. In New Hampshire, Gov. Chris Sununu signed two measures relating to food safety. HB 314 raised the annual gross sale threshold for homestead food operators to be exempt from licensure and departmental inspection. The threshold increased from $20,000 in annual gross sales to $35,000 in annual gross

sales. Potentially hazardous foods, including dairy products, are not exempted from this rule, however. The governor also signed legislation expanding the list of raw milk products eligible for sale in the state to include ice cream and frozen yogurt. All products containing raw milk, however, now require the labeling of an expiration date and a warning relating to the dangers of consuming products made with raw milk. Many of the issues that we were watching at the beginning of the legislative session, such as extended producer responsibility and sweetened beverage taxes, did not receive any additional consideration during the legislative session. Vermont came very close to expanding its bottle bill laws, but concerns of loss of revenue by recyclers and opposition from Gov. Phil Scott stalled legislation at the last minute. As the legislative sessions come to a close across the states, it important to remember that many within the Northeast Dairy Foods Association will be choosing governors, lieutenant governors and members of the legislature. It is these elected leaders that provide most of the direction for everyday issues, even though they do not receive as much attention as federally elected officials. To find out who your candidates are in your area, you can reach out to your local or state board of elections, and they will have the information you need to determine who receives your vote in the primary or general election. You can also reach out to me through email at ph@nedairyfoods.org, and I can provide a list of candidates and their contact information. CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2022 • 7

Legislative + Regulations Report

COMBATING CLIMATE CHANGE

During the last legislative session, New York State’s Climate Action Council began an open comment period regarding the state’s future climate goals. This council was created as a result of the passage of the 2019 Climate Leadership and Community Protection Act and released what is known as the Draft Scoping Plan in December 2020. The Draft Scoping Plan is the initial roadmap for the New York State legislature and government agencies to direct climate-related legislation. While other states have passed individual initiatives to reduce their carbon impact, New York’s ambitious climate goals encompass all aspects of the state’s wide array of industries and bureaucracies. The Northeast Dairy Foods Association

submitted a letter to the Climate Action Council during the open comment period that ended July 1, 2022. Our letter encompassed several concerns, including ensuring small dairy agriculture farms have access to assistance in securing methane digesters and ensuring that low-emission vehicles are capable of efficiently transporting milk and milk products throughout the manufacturing process and ultimately to consumers. We also addressed power reliability issues that have already occurred as a result of the transition away from fossil-based and non-renewable fuels to alternative renewable and low-emission fuels. If you would like a copy of this letter, please email us at ph@nedairyfoods.org.

REFORM SIGNED!

The Ocean Shipping Reform Act of 2022 was signed by President Joe Biden on June 16, 2022, and was hailed as a significant step forward in helping address problems in the shipping industry. This legislation is particularly significant since 99.5% of shipping corporations in existence are foreign-owned. Even more significant is the fact that the top four largest shipping companies, Mediterranean Shipping Company, Maersk, CMA/

GIVE US SOMETHING TO CHEW ON. Are you introducing an interesting product? Have you instituted cutting-edge 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 editorial@nedairymedia.com.

8 • Northeast Dairy Foods Association, Inc.

Legislative + Regulations Report CGM and COSCO, control almost 60% of the global shipping market share. Through the passage of this legislation, the Federal Maritime Commission will be able to investigate unfair charges, stop intentional carriers from unreasonably declining U.S. cargo and establish an official consumer affairs division, called the Office of Consumer Affairs and Dispute Resolution Services, to improve the complaint and investigation process for American businesses seeking to address grievances.

HAPPY: THE UNHAPPY ELEPHANT

Back in 2018, the New York Non-Human Rights Project filed a writ of habeas corpus on behalf of Happy the Elephant, who has lived at the Bronx Zoo since 1977. For reference, habeas corpus is the constitutional right, as detailed in Article 1 Section 9, of all persons to challenge the reasons for their confinement, usually before or after a trial. The premise for the suit was based on the argument that Happy is an “intelligent being” and should not be illegally imprisoned in a confined zoo enclosure. The New York Non-Human Rights Project agreed that Happy should not be allowed to simply roam the streets of New York unrestricted but should be able to live

in a more “natural” habitat, like that of a wildlife sanctuary. Writing for the majority, Chief Justice Janet DiFiore stated that granting such a writ would “have an enormous destabilizing impact on modern society” and failed to see the difference between an enclosure at a zoo versus a more “natural habitat” like a wildlife sanctuary (that still has boundaries, only larger). She continued by stating that if followed to its logical conclusion, a granting of such a determination would call into question the use of service animals, pet ownership and the other roles that animals contribute to society, including dairy agriculture and transportation. If you have a question regarding legislative actions or issues that impact you or your place of business, please contact me at ph@nedairyfoods.org. Paul Harvey is the director of regulatory affairs for the Northeast Dairy Foods Association, Inc.

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NED Magazine | Third Quarter 2022 • 9

ECONOMIC OUTLOOK

Inflation Is Making an Impact Everywhere, and Dairy Is Also Feeling the Pinch BY GARY LATTA

ear the top of everyone’s mind around the world is inflation and its devastating effects on our daily lives. Families and businesses are challenged each day to deal with increasing costs. Agriculture and the food industry have been confronting escalating input costs and labor shortages for some time now, and the worst of it for business and consumers may be yet to come. Recently, a large group of bankers were surveyed regarding their expectations of a recession sometime in the next 12 months. Ninety-three percent responded that there is a 50% probability that a recession will take place. Transportation issues, supply chain headaches, lack of labor, energy costs and rising interest rates are just a few of the challenges facing agricultural businesses and consumers. The U.S. Bureau of Labor Statistics publishes two insightful reports that are very comprehensive and detailed. One is the Consumer Price Index, and the other is the Producer Price Index. The CPI measures the monthly 10 • Northeast Dairy Foods Association, Inc.

change in prices paid by consumers for goods and services, while the PPI measures the average monthly change in selling prices received by manufacturers and producers for their products. PPI prices are from the first commercial transaction for most products and services.

FOOD INFLATION RISING

The June CPI release showed overall food inflation for May rising 1.2% — the fifth consecutive month it had increased more than 1%. The index for food at home rose 1.4% in May. Over the past 12 months, the cost for food at home increased 11.9% and was the largest 12-month increase since 1979. May indexes for all six major retail grocery food groups increased. The index for all dairy products rose 2.9% in May and was the biggest monthly increase since July 2007. The latest BLS Producer Price Index shows raw milk costs have increased just over 47% from May 2021 to May 2022. The climbing cost of farm inputs like fuel, fertilizer, equipment, feed, interest rates and labor are a few

contributing factors. Strong domestic demand, robust exports and lower milk production are also serving to push U.S. prices higher. The latest CPI release shows dairy and related products climbing 11.8% over the last 12 months. The release shows milk increasing 2.8% from the previous month and 15.9% from May of last year. Cheese rose 2% from the previous month and 8.7% from May of last year. Ice cream jumped 4.3% from April to May this year and 9.6% from May of last year. The escalating cost of dairy products at retail has some analysts concerned that shoppers may start to buy less or substitute other products. There have been a few reports of consumers switching from fluid gallons to half-gallons and reaching for margarine instead of butter. However, that most consumers recognize dairy as a genuine food value, and, therefore, demand has remained quite strong despite higher retail prices. Interestingly, many consumers are opting for higher fat dairy products. They feel it is the best way to stretch their dollars and get more bang for their

Economic Outlook buck. The CPI numbers show the butter category to have risen only 0.6% from April to May 2022 and 15.9% over the last 12 months. Margarine, on the other hand, rose 3.2% from April to May and a remarkable 25% over the last 12 months due to the cost of vegetable oils. CoBank reports that the recent high price of butter has elevated Class IV and has put pressure on Class III cheese plants in attracting milk supplies. CoBank also points out that it is interesting to see butter supplies tighten amid the highest levels of butterfat production ever recorded in the U.S. Marvelous advances in cow genetics and farm management practices have raised butterfat yields in recent years. Anyone who thinks butter is priced high here in the U.S. should take a trip to Europe. Global butter has risen

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NED Magazine | Third Quarter 2022 • 11

Economic Outlook extremely high and is keeping U.S. butter attractive for export internationally. Milk production in traditional export regions like New Zealand and Europe are suffering due to poor weather, high input costs, escalating interest rates and rigorous sustainability initiatives aimed at reducing greenhouse gas emissions. In fact, most international dairy prices have been above U.S. prices for some time now. The attractiveness of U.S. prices continues to stimulate exports, particularly butter and cheese.

OCEAN SHIPPING HAS IMPACTED DAIRY COSTS

Robust U.S. dairy exports have taken place despite challenges at ocean shipping ports. The USDEC and dairy groups applaud passage of the Ocean Shipping Reform Act S.3580 that was signed by President Joseph Biden in mid-June. The act implements a string of new rules and regulations regarding ocean carrier practices that the Federal Maritime Commission must apply over the next year. According to the USDEC, the U.S. dairy industry incurred more than $1.5 billion in increased export costs and missed opportunities last year because of ocean shipping issues. According to the National Milk Producers Federation, the new act will give the FMC authority to enforce current resolutions and allow more products to be exported around the world. Passage of the act comes at an opportune time for the U.S., as many traditional exporting countries could fall short of being able to meet the needs for dairy products in the future.

CANADA NOT MEETING USMCA OBLIGATIONS

In May, the Office of the U.S. Trade Representative entered a second dispute regarding USMCA and Canada’s violations of its dairy commitments. Despite clear black and white language, Canadian 12 • Northeast Dairy Foods Association, Inc.

dairy tariff rate quotas are still being manipulated in a way that denies access of U.S. product to retailers, foodservice and other importers. The U.S. prevailed in its first dispute that was decided last December, yet Canada has moved even further away from meeting its obligation, according to the USTR. TRQs are a fixed quantity of dairy imports allowed to enter Canada without being assessed high tariffs. At issue is that most of the tariff rate quota is set aside for Canadian processors, denying U.S. dairy products access to Canadian retailers and foodservice. The Canadian processing community is running interference and in breach of its agreed-to USMCA obligations and commitments. Canadian officials have repeatedly announced they are, indeed, honoring the agreement. So far, Canada has chosen to ignore the first ruling of the arbitration panel. Canadian Minister of International Trade Mary Ng stated that her country has met its obligations and is TRQ compliant.

GUIDANCE ON LABELING OF PLANT-BASED “MILK”

Coming soon should be FDA’s draft guidance on the labeling of plant-based “milk.” The FDA has drafted a proposed rule, which is now being reviewed by the Office of Management and Budget. This typically take 90 days. Using the terms such as “soy milk” and “oat

milk” are now prohibited in many countries, including the EU, however widespread use of the word “milk” has been allowed to go on in the U.S. For example, Oatly is marketed in the EU as a “drink,” whereas here in the U.S. it still can be labeled “milk.” The FDA’s standards of identity are clear in the Code of Federal Regulations Title 21. Hopefully, the FDA will settle this long overdue debate soon.

FARM BILL HEARINGS AND FMMO REFORM ADDRESS DAIRY CONCERNS

Farm Bill hearings have started in Washington and around the country with the House and Senate agriculture committees addressing a number of issues, including dairy concerns, policy revisions, exports, falling fluid milk consumption, competition, milk marketing orders and other topics. Both agriculture committees have websites where they post a hearing calendar, latest news and upcoming events. The Farm Bill is a massive piece of federal legislation that is renewed once every five years or thereabouts. The last one was implemented in 2018, so the next target date is sometime in 2023. The present $428 billion bill comprises 76% nutrition (SNAP), 9% crop insurance, 7% conservation, 7% commodities and 1% other.

Economic Outlook Producer Price Index by Industry: Dairy Product Manufacturing 260

240

220

Index Dec 1984=100

200

180

160

140

120

100

80 1985

1990

1995

2000

2005

Source: U.S. Bureau of Labor Statistics

Discussions of Federal Milk Marketing Order revisions and reform have begun with a House Agriculture Committee hearing on June 22 that included USDA officials and industry representatives. The hearing discussed existing dairy provisions currently in place from the 2018 Farm Bill and potential policy revisions that might improve the system in the 2023 Farm Bill. These hearings will be ongoing, and a few industry groups have already unveiled their ideas and suggestions to start the debate. Some of the discussion to date includes margin protection programs, the Class I mover, formula make allowances, transparency, pooling, declining fluid milk sales and others. Looking at the Northeast Federal Milk Marketing Order statistical handbook, the Class I utilization percentage was 44% when the region was consolidated and reformed in year 2000. It dropped to 39.7% in 2012 and was 30.1% in 2021. In March of

2022, it fell to 29.2% and was 29.4% in April. USDA Secretary Vilsack said he wants industry players to be on the same page, or close to agreement, before proceeding with formal hearings. In late June, Edge Dairy farmer Cooperative from the Midwest announced its priorities for federal milk pricing reform. No doubt others are soon to follow.

MILK PRODUCTION DOWN

The war in Ukraine rages on, disrupting agricultural exports and impacting food prices around the globe. High fertilizer and energy prices, because of this war, are contributing to escalating global food costs. Dairy prices have been climbing because high input costs are restraining herd expansion and milk production. High milk prices usually stimulate expansion, but not so when we have such high input costs. Milk production is trending below year ago levels and has dropped every

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month so far this year compared to the same month in 2021. Milk production in the 24 major producing states was down 0.6% in May, according to USDA. The reduction is the result of fewer milk cows, not production per cow. The number of cows on farms in the top 24 states in May this year was 84,000 head fewer than May 2021. The average milk per cow was up 8 pounds in May over last year. Compared to last year, May milk production dropped in 18 of the 24 selected states. In and around the Northeast, we see New York milk production flat with no change compared to May of last year, so it outperformed the 24 selected states as a group, which again was down 0.6%. Vermont was down 0.9%, and Pennsylvania was down 1.1%. Nearby Ohio was down 1.8%. The big producing states of California and Wisconsin were down 1.7% and up 0.8% respectively. So far, milk prices have kept a reasonable pace with escalating costs. The just NED Magazine | Third Quarter 2022 • 13

Economic Outlook

14 • Northeast Dairy Foods Association, Inc.

Economic Outlook released May Agricultural Prices report showed the average price received for all milk in the U.S. was $27.30 per hundredweight, $8.20 more than May 2021. The USDA’s latest forecast shows cow numbers to hold steady but to expect a reduction in output per cow due to higher temperatures and dry conditions impacting cow comfort. In addition, grain crops and forage supplies are expected to show lower yields and reduced quality. Exports are projected to be higher than forecast last month on a skim-solids basis from greater whey and lactose shipments. Domestic demand is expected to stay firm. Projections of strong demand, sluggish supply growth and price trends, USDA’s 2022 per pound forecast raised cheese 2 cents, butter 11.5 cents and nonfat dry milk 4 cents. Dry whey was lowered 1.5 cents due to softer domestic and international demand. Higher cheese prices are expected to offset weaker whey prices, so the Class III estimate was raised 15 cents to $22.90 per cwt. Expected higher butter and nonfat dry milk prices elevate Class IV by 85 cents to $24.65 per cwt. The USDA’s all-milk price for 2022 has been raised 45 cents to $26.20 per cwt, $7.67 above the 2021 price. Another key survey is the Business Confidence Indicator. This business confidence indicator provides information on future developments, based upon opinion surveys on developments in production, orders and stocks of finished goods in the industry sector. It can be used to monitor output growth and to anticipate turning points in economic activity. Numbers above 100 suggest an increased confidence in near future business performance, and numbers below 100 indicate pessimism towards future performance. As of publication, this figure was 100.04 and trending down.

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.

NED Magazine | Third Quarter 2022 • 15

Something to Consider

MIDTERMS 2022

Where Are We Headed? BY PAUL HARVEY

t is difficult to believe that my first summer back in the Northeast is nearly coming to a close. I have thoroughly enjoyed every single minute being back, going to state parks and existing in the beautiful spaces and enjoying the local festivals that we have. Soon enough, it will be my favorite season, and I get to experience the full glory of fall through the colors of yellow, orange and, of course, red, white and blue. While talks of catching waves are on the minds of many vacation goers, there are some political “waves” that are brewing that will have significant implications on the next two years in both state and federal legislative sessions.

SPECIAL SESSION REQUIRED

After the Supreme Court struck down New York’s restrictive concealed carry permit requirements, Gov. Kathy Hochul issued a proclamation calling the legislature back into session on June 30 to consider new legislation related to firearms in the state. Several other states, including Massachusetts and New Jersey, are also expected to rewrite their laws since they also have similar requirements. Failing to rewrite these laws would leave the states exposed to litigation that would give judges strong legal precedent to overturn these laws outright. The Supreme Court’s ruling comes a month after mass shooting events in Buffalo, New York; Uvalde, Texas, and Chicago, that took the lives of dozens of Americans, including children. These events also led to the first major gun-reform legislation in 30 years, led by Sen. Chris Murphy (D-CT), who has fiercely led for changes since another mass shooting at Sandy Hook Elementary School in Newtown, Connecticut, in 2012, and Sen. John Cornyn (R-TX), a strong supporter of gun-ownership. Legislators have already announced what kind of changes they would like to see made during the special session, but nothing is considered final until there is an agreement made 16 • Northeast Dairy Foods Association, Inc.

between the Assembly speaker, Senate president and Hochul. Such ideas include excluding concealed carrying in so-called “sensitive areas,” such as mass transit, restaurants, schools, hospitals and public gatherings. Assemblyman Robert Smullen called the special session “political grandstanding” and said that they should only tailor laws to New York City.

READING THE TEA LEAVES

Primary season is quickly drawing to a close, but several hotly contested races have still yet to take place in early September. Massachusetts is of particular importance since the current governor is not running for reelection. Races in Rhode Island are also hotly contested by progressive challengers looking to unseat moderate incumbents in the races for governor, both houses of the state legislature and an open congressional seat. New Hampshire Gov. Chris Sununu (R) will face a nominal contest for his party’s renomination in the state governor’s race, but the marquee race in the state will be which Republican will get the opportunity to face Sen. Maggie Hassan (D) in the fall general election. Vermont Gov. Phil Scott (R) also faced a nominal opposition for his party’s nomination for a fourth term as the state’s governor. Vermont will also elect its first woman to represent the state in Congress later this year and will be the last state to send a woman to Congress. Former Gov. Paul LePaige also handily won the Republican nomination for a rematch against current Gov. Janet Mills (D) in Maine for the fall campaign. New York’s Hochul and Lt. Gov. Antonio Delgado surprised many political observers with their large margins of victory in New York’s June gubernatorial primary. Even in New York City, where both of the governor’s challengers hailed from, Hochul and Delgado still managed to claim a 37% percent average margin of victory in the five boroughs. The general election

Something to Consider race will feature three candidates: Hochul on the Democratic line, current Congressman Lee Zeldin on the Republican and Conservative lines and current New York City public advocate Jumaane Williams, who will appear on the Working Families line. This is not the first time three candidates have appeared on different party lines. In 2018, actress Cynthia Nixon and thenNew York City Council Member Jumaane Williams received the endorsement of the Working Families Party for governor and lieutenant governor, respectively, but dropped out of the race in October of that year. The Working Families Party then gave their designation to now former Gov. Andrew Cuomo for the office of governor and Hochul for the lieutenant governor nomination. History does not always repeat itself, but it does often rhyme, and only time will tell if it rings true. Voters are still concerned about the overall state of the economy with inflation fueling much of the concern. Even though states have taken measures to attempt to return some funds to taxpayers (see our last issue of Northeast Dairy), voters are

clearly concerned with the prolonged pains that inflation has continued to wreak on their wallets. Voters in states that have areas of especially high costs of living, like New York and California, will also be looking at how candidates plan to deal with rising rent and violent crime. However, recent decisions by the Supreme Court on civil issues related to climate change, reproductive issues, gun-related rights and civil liberties have boxed voters into a corner when it comes down to deciding what is more important: civil liberties or money. It will be up to each party and candidate to find a message that most resonates with their constituents in order to drive voter turnout in their favor on Election Day. Paul Harvey is the director of regulatory affairs for the Northeast Dairy Foods Association, Inc.

JOIN ME FOR LEGISLATIVE UPDATES ON ZOOM

ince starting at NDFA, I have hosted a monthly legislative meeting call on Zoom exclusively for our members on the first Tuesday of each month to keep you informed about the happenings taking place both inside and outside of state capitals, as well as within the association. The Zoom link, along with our easy-to-read bill tracker, is sent out one week prior to the call. During this time, questions are encouraged pertaining to specific topics or pieces of legislation. If I am unable to answer particular questions during the call, please email me at ph@nedairyfoods.org, and I can respond to you directly. If I receive multiple questions about the same topics, I will be sure to answer them in the next forum. Again, please note that these calls are for NDFA members only. If you are an NDSA member, please reach out to Executive Vice President Ozzie Orsillo at oo@nedairyfoods.org. Our next legislative call will be Tuesday, Sept. 6, 2022, at 11 a.m. via Zoom.

NED Magazine | Third Quarter 2022 • 17

Something to Consider

What’s Behind the Baby Formula Shortage? BY GARY LATTA

or months, the alarming U.S. baby formula shortage has had parents scrambling to find product on near empty shelves at stores. The meltdown of the infant formula industry has set in motion significant food industry, supply chain and political analysis explaining our dilemma to avoid future tragedies. Most industry observers agree as to the causes of the shortage. We will look at some of these issues and how dairy milk plays a part in the baby formula industry. Most baby food formula is made with cow’s milk that has been modified to simulate human breast milk. These formulas furnish the correct balance of nutrients and digestive properties for the infant. The American Academy of Pediatrics and the World Health Organization both recommend that mother’s milk is best for newborn babies. As the child gets older, or if the mother can’t breast feed, then fortified formula is the next best option. It is recommended that infants stay on formula for the first 12 months of life and then be weaned onto whole cow’s milk. According to pediatricians and parents, the top infant formula brands in the U.S. are Similac Pro-Advance, Enfamil NeuroPro and Earth’s Best Organic Dairy Infant Formula. All are milk-based. Infant formulas undergo significant processing and addition of nutrients before they can be consumed. Cow’s milk contains relatively high concentrations of protein and minerals that can stress a baby’s system. Cow’s milk also lacks 18 • Northeast Dairy Foods Association, Inc.

the necessary amounts of iron, Vitamin C and other nutrients needed by infants. So, formula manufacturers meticulously add in and remove components to create their finished product. Obviously, the baby formula manufacturing industry is highly regulated. During the recent shortage, some parents have attempted to create their own formula or switch to cow’s milk earlier than recommended. Homemade is not a good idea. Today’s infant formula is a careful blend of proteins, carbohydrates, fats, vitamins and minerals. These formulas are exceptionally regulated and in a constant state of development in search of a product that most closely resembles human milk. Dr. Hillary Bashaw, a pediatric scientist and professor at Emory University College of Medicine, points out that all formulas must be in the ranges allowed by federal law. There are minimum levels for 29 nutrients and maximum levels for nine others. The federal regulations were tightened because of the Infant Formula Act of 1980 and then updated in 1986. Numerous agencies and critics have come forward with their assessments of the U.S. baby formula industry. Nearly all acknowledge the causes of the problem and most agree on what needs to be done to fix it. Many regard the industry be an “oligopoly” with a few manufacturers creating very similar products in a marketplace that lacks vigorous competition. Investopedia describes an oligopoly as a market structure with a small number of firms, none of which can keep the others

Something to Consider from having significant influence that exerts significant control over a given market, including limiting new entrants. The U.S. has four major manufacturers: Abbot, Mead Johnson Nutrition, Nestle USA and Perrigo. Collectively, they comprise a 90% share of U.S. baby formula production. The largest of these is Abbot, responsible for around 43% of formula sales in the U.S. and the sole supplier to the Women, Infants, and Children (WIC) contracts in 49 states. After the Abbot plant in Michigan shut down in February due to contamination that was later linked to nine infant deaths and subsequent (and delayed) FDA inspections, the country lost 40% of its formula production overnight. WIC is a social safety net program administered by the USDA Food and Nutrition Service that provides federal grants to states for supplemental foods, including infant formula. WIC is the largest purchaser of infant formula in the U.S., and almost half of the babies born here qualify for participation in the program. Most critics of the formula industry point to WIC as a major cause of the current dilemma. The program is limited to only domestic manufacturers. WIC state agencies authorize just one brand of U.S. manufactured formula for use in their state. This one state-authorized manufacturer issues that state a rebate on all its WIC purchases. Many critics and members of Congress now point to this setup as essentially creating a monopoly on all the formula sold through the program in that state. Since Abbot is by far the manufacturer of choice among 49 states, the shutdown of their plant sent shockwaves through the system. Since the government purchases nearly half of all formula, it uses its buying power and elaborate rebate mechanisms to lower costs. Critics of the system claim these lower costs are far from being “free.” Formula manufacturers use massaged prices to state governments in return for an exclusive contract to do business in that state under WIC. For those that qualify for WIC benefits, formula is low-cost or free. If you are not receiving government assistance, infant formula is considerably more expensive. Critics claim that formula prices in Europe are half the cost of formula in the U.S. for those parents not receiving government assistance like WIC. Currently, Abbot, Nestle and Reckitt are the sole manufacturers authorized by the U.S. government to furnish formula through the WIC program. The WIC program reimburses formula manufacturers for 15% of its wholesale cost. The federal government issues grant money to each individual state, which in turn contracts with one of the three approved national manufacturers. The necessity of WIC is without question. However, the way the program is designed has the inadvertent consequences of forming a monopoly with the state. In testimony June 15 before the Senate NED Magazine | Third Quarter 2022 • 19

Something to Consider

Judiciary Committee’s Subcommittee on Competition Policy, Antitrust, and Consumer Rights on the topic of “Baby Formula and Beyond: The Impact of Consolidation on Families and Consumers,” Scott Lincicome of the CATO Institute stated that research shows WIC’s large exclusive contracts assist winning bidders to gain market share and raise prices in the non-WIC funded market, thus becoming the dominant supplier in the state. To help alleviate the supply shortage, President Joe Biden invoked the Defense Production Act on May 18 to ensure manufacturers obtain raw materials and consumables needed to further accelerate production of infant formula. The next day, Biden announced the first Operation Fly Formula Mission to use DOD-contracted commercial aircraft to pick up overseas infant formula that meets U.S. health and safety standards to get supply on store shelves. The U.S. is currently flying in formula from Europe, Australia and Mexico. Until now, about 98% of the infant formula consumed in the U.S. is domestically produced. Importing baby formula to the U.S. is allowed by law but is infrequent, partially by design. In a typical year, a mere 2% of formula is imported from other countries, such as Mexico, Ireland, the Netherlands, Chile and Austria. High import tariffs, complex policies and FDA labeling requirements serve to protect the U.S. formula industry from international competitors. While many of the forementioned countries make a quality product that meets FDA’s nutrition standards, the steep 17% tariffs and differences in labeling requirements impede imports. There is little incentive for other countries to export infant formula to the U.S. The infant formula industry is more regulated than other foods in the U.S. and more so than the formula industries of other countries. Some question whether such onerous regulations are necessary, and whether it serves to limit the number of industry participants. Is heavy oversight serving to discourage new entrants and investment into this market? Recently, there has been a new entrant in the U.S. infant formula market, the first in 15 years. It took the new company, named ByHeart, nearly $200 million and five years to begin production. 20 • Northeast Dairy Foods Association, Inc.

Shortages of essential formula stresses parents, especially moms who cannot breast feed for various reasons. Shortages also pose a risk to infants, particularly those who depend on special formula types due to unique medical conditions, complications or allergies. Unlike most foods that have substitutes, infant formula is unique with little to no alternative. In recent months, there has been an effort by many groups, including Congress, to examine the infant formula industry and possibly restructure the market to avoid nationwide collapse if one facility shuts down. Senate committees and other federal representatives are exploring ways the WIC program could be modified to improve how it sources formula. Committees are also looking to diversify the system’s supply chain and perhaps disassemble some of the oligopolistic nature of the domestic market. The Congressional Research Service recently published an insight report, Tariffs, and the Infant Formula Shortage. This indicated that few players, the WIC program’s sole-sourcing contracting structure and FDA’s strict labeling requirements likely make the U.S. an unattractive market for foreign manufacturers — especially for lower-cost formula. The CRS report concluded that non-tariff barriers are likely playing a bigger role than tariffs in foreign manufacturers’ decision to not enter the U.S. market. U.S. policies that tend to restrict domestic competition and limit imports from abroad have promoted the dominance of a few players. Now, the challenge for U.S policymakers is to reform, revise and restructure the system. Let us hope this can be accomplished without adding more layers of bureaucracy and regulations.

Northeast Dairy Magazine Takes a Top Award at Press Club Event

ll Times Media/Northeast Dairy Media is proud to announce that Northeast Dairy magazine was selected as a winner in the Syracuse Press Club’s annual awards held in May. The magazine took home the top prize in the trade publication category this year. It was the first time in the magazine’s four-year existence that it has won first place. The award was based on critiques by judges from the Syracuse Press Club, who are members of various media outlets in the Central New York area. “We were so pleased to have been selected as top in our category by the Syracuse Press Club,” said Caroline K. Reff, editor, who accepted the award. “It’s an honor to be recognized by such an outstanding organization for the hours of work and the team effort that our writers, editors, graphic designers and sales team put into each issue of this magazine in order to bring the readers of Northeast Dairy magazine critical and timely information about the industry.” Judges look at overall content of the publication, as well as the quality of writing, design and overall presentation. The Q4 2021 issue was the edition submitted for consideration for this award. “Kudos to our editor, Caroline Reff for making all of the pieces of this publication come together each quarter; designer Robin Barnes for her outstanding work making our magazine look great, our content manager Steve Guglielmo for his editorial guidance, as well as Anne DeSantis, who oversees advertising sales for this magazine,” said Bill Brod, publisher. “We also couldn’t put this magazine together without the contributions of the Northeast Dairy Foods Association team and its members.” “Thanks to our editorial team for time after time putting together such a quality magazine for our membership,” added Ozzie Orsillo, executive vice president of the Northeast Dairy

Milestones Celebrating Longevity in the Dairy Industry

SOMETHING TO CONSIDER

Laws, Taxes, Regs. Matter

Fourth Quarter 2021

SCHOLARSHIPS

NDSA AWARDS $14,000

HUMAN RESOURCES

Cybersecurity Risks

DAIRY CONVENTION

Highlights of 2021

nedairyfoods.org

Foods Association, Inc. “Now in its fourth year, this magazine is a key communication tool in reaching our membership with valuable information on legislative issues, economic issues, what’s new and interesting throughout the industry and within our membership, and, of course, what’s going on within our association. Congratulations to our editor and all of those who help put this publication together!” All Times Publishing also received an honorable mention for one of its other publications, Family Times, which is written by Courtney Kless, a frequent contributor to Northeast Dairy magazine. NED Magazine | Third Quarter 2022 • 21

The Business of Dairy

22 • Northeast Dairy Foods Association, Inc.

THE BUSINESS OF DAIRY What Is Regenerative Agriculture? BY ALAN MARTINEZ

ver the last decade, regenerative agriculture has been gaining popularity in farming and sustainability circles. Some of the world’s largest consumer packaged goods companies have announced their commitment to regenerative agriculture as a key pillar of their sustainability goals. So, just what is regenerative agriculture? Depending on who you ask, you’re likely to get a different answer. Through the support of the Great Lakes Protection Fund, our team at the Cornell Atkinson Center for Sustainability has been working to better understand regenerative agriculture and its potential to support sustainability goals. This multi-year project focuses on the financial mechanisms that allow for the adoption of regenerative practices that support and maintain the water integrity of the Great Lakes. We have talked to over 300 farmers, funders, producers and advocates, and it quickly became evident that the term is applied differently across regions and agriculture sector. In our research, we discovered that regenerative agriculture encompasses on-farm practices and environmental outcomes that may look familiar to farmers and producers in the Northeast. General Mills’ definition of regenerative agriculture lays important groundwork for understanding the breadth of regenerative agriculture: It’s a holistic, principles-based approach to farming and ranching that delivers positive environmental, social and economic outcomes. Let’s take a closer look at the practices and benefits that are often associated with regenerative agriculture:

REGENERATIVE AGRICULTURE PRACTICES

• No-till farming: Tilling before planting can damage nutrient-rich topsoil, break down fungal networks and harm beneficial microorganisms essential to a thriving

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soil biome. Reducing or eliminating tilling improves the health of the soil, the resiliency of crops against pests and cuts down on erosion. Integrating Livestock: Grazing animals help manage weeds and pruning, add fertilizer to the soil and speed up nutrient cycling by crushing plant material. Cover Crops: Cover crops are plants grown during the off-season. They keep the soil covered, reduce runoff and keep a living root in the soil year-round. Crop Rotation: Planting a monocrop in the same field year-after-year can deplete the soil of necessary nutrients. Rotating fields with the proper set of crops will ensure that soil is healthier and that the plants get the nutrients they need. Reducing Chemical Inputs and Maximizing Organic Inputs: Simply put, this means using compost, biochar and other organic matter to feed the soil instead of using chemical fertilizers.

REGENERATIVE AGRICULTURE BENEFITS

• Soil Health: The most commonly agreed-upon outcome of regenerative agriculture practices is improved soil health. Healthy soil is teeming with microbes, beneficial bacteria and fungal networks. • Carbon Sequestration: Cover crops that provide a yearround living root mean plants have more opportunity to draw down CO2. During photosynthesis, plants turn CO2 into sugars. Plants exchange these sugars for micronutrients provided by beneficial bacteria and fungi living in the soil. This process stores carbon in the soil that, if left undisturbed, will remain stable for decades to come. CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2022 • 23

THE BUSINESS OF DAIRY • Biodiversity: Increased biodiversity happens both in the fields by increasing the number of crops rotated and in the broader ecosystem. In addition, reducing chemical inputs means less damage to the watershed and wildlife population in the local ecosystem. • Water Quality: Improved water quality is another critical benefit of regenerative agriculture. Healthy soil is porous and allows water to filtrate through it rather than just runoff into nearby lakes and streams. This reduces the prevalence of algae blooms and pollution in drinking water and helps replenish groundwater. The above practices and benefits are not exhaustive. They highlight that, indeed, regenerative agriculture allows for flexibility and an entry point for most any farmer. A more expansive approach to defining regenerative agriculture provides the flexibility that varying geography, climate and cropping systems require. Rather than a prescriptive and immediate solution, regenerative agriculture begins with farmers and considers the transition needed to incorporate these practices. Proponents of regenerative agriculture aim to build a healthier and more resilient ecosystem, one step at a time.

The overarching aim of our project is not to establish a final definition for regenerative agriculture or any other label that holds promise for sustainability. Our aim is to deliver on that promise with farmers by designing financial solutions that accelerate the adoption of regenerative agriculture practices, and, ultimately, contribute to carbon, water quality and biodiversity goals. To learn more about our project and how working with us can support farmers and producers in your supply chain, please visit us at https://www.atkinson.cornell.edu/projects/ transition-finance-for-regenerative-agriculture-systems/. Alan Martinez is a senior manager at the Cornell Atkinson Center for Sustainability, where he leads projects and partnerships to create scale and impact. He has extensive international experience in finance, strategy and entrepreneurship.

Did you celebrate a milestone anniversary in 2022? We’re looking for members reaching 10, 20, 25, 50 and 50+ years to highlight in our next issue. Contact creff@nedairymedia.com.

24 • Northeast Dairy Foods Association, Inc.

THE BUSINESS OF DAIRY Consumers Often Have Misguided Beliefs About Dairy Industry’s Product Sustainability BY CAROLINE K. REFF

“I

t’s not what you look at that matters, it’s what you see.” – Henry David Thoreau What consumers think about sustainability in the dairy industry and its products – from farm to table – may not be completely accurate, but it doesn’t matter. Unfortunately, what does matter is what people believe to be true, as that is what drives them towards – or away—from dairy. The challenge is making sure that what consumers “see” is, in fact, the truth about the dairy industry’s commitment to sustainability. MilkPEP recently presented Sustainability in the Beverage Category: What Milk Processors Need to Know About the Latest Consumer Research, a webinar to give those in the dairy industry a closer look at why the perception of sustainability is critical to telling consumers the true story of dairy. Webinar panelists included Mike Stammer, senior manager, insights and analytics, MilkPEP; James Kulp, representing the California Milk Processors Board; and Dana Colbert, vice president of Radius Global Market Research. The information presented was based on data from a recent qualitative survey of consumers who were asked about their product preferences based on how sustainable they considered them to be.

In the overall beverage space, sustainable practices are certainly important to consumers, but possibly not quite as much as some may like to believe. Yes, many consumers are concerned that products and processes do not deplete or compromise natural resources. They look not only at the product itself but also consider how the product came to be. They want to know that the producers and processors making these products are leaving a minimal impact on the environment through every step of the supply

chain. This involves the consumers’ perception of everything from animal care, sustainable processing practices, eco-friendly packaging, transportation methods and what ingredients go into the product itself. Data from a recent survey sponsored by MilkPEP, showed that consumers have different levels of commitment when it comes to sustainability. Some have a staunch commitment, only choosing products they perceive to positively (or at least not negatively) impact the NED Magazine | Third Quarter 2022 • 25

THE BUSINESS OF DAIRY

environment. Others are committed but need some personal benefit from the product, as well. According to Colbert, “Consumers are most receptive to sustainability when it’s a ‘win-win’ scenario. It’s a ‘better for me, better for the planet,’ attitude that is actually impacting choices in the beverage space.” As an example, one survey respondent noted, “I feel like we all benefit but most important for me is my own personal health and wellness because I feel like if I am good and healthy, then I can do my part and make sure everyone else is great, as well.”

IT’S ALL ABOUT THE BRANDS

In general, consumers, particularly Millennials and Generation Z, are drawn to brands that are seen as having a strong commitment to sustainability. Clothing brand Patagonia, for example, is known for using organic, recycled materials in its inventory. Cosmetics company LUSH offers minimal packaging and refills original containers to reduce waste, and Tesla is the first name consumers think of when it comes to leveraging 26 • Northeast Dairy Foods Association, Inc.

Positioning dairy milk as a sustainable choice requires a joint effort between the farmers, individual brands and retailers working together to increase use of natural energy sources, minimize water waste, increase electric vehicles for transporting products and more. alternative fuel courses for automobiles. These companies are extremely popular with those committed to sustainability not only for being environmentally responsible but also because they have shaped their narrative and told their story through marketing, packaging, advertising and various forms of social media.

Labels matter to consumers, and they are reading them carefully. Putting “organic” or “made from recycled materials” definitely draws consumers in. However, it seems only some are really putting their money where their mouth is. Research shows that while many like to say their purchasing is based on these details, the data often shows otherwise. Survey respondents had different perspectives: “I like the brands that detail it on their label about how they are sustainable” but also, “It’s not a deal breaker for me.”

BEVERAGE-SPECIFIC SUSTAINABILITY

While thus far this data has reflected overall consumer consumption, how does it apply to the beverage category, specifically dairy? According to MilkPEP, there is a tension between consumers saying that sustainable practices are important in the beverage space and their actual buying habits. While consumers do like to talk about the importance of sustainable practices, many are still choosing first based on taste, routine, price and health benefits.

THE BUSINESS OF DAIRY According to the webinar, “To have sustainable impact choices in the beverage category, they need to be positioned as a win-win for the consumer and the environment.” The data from MIlkPEP’s survey shows that today’s consumers want their beverages to have plentiful, natural and/or organic ingredients that are minimally processed and packaged ideally in glass bottles or recycled (or recyclable) containers. Their beverage preferences tend first toward tap water, coffees and tea that are easily replenishable and also organic juices. Next comes plant-based beverages that tend to carry the reputation with consumers that they are highly sustainable, even though the numerous resources it takes to turn oats or almonds into beverages is often overlooked. While it may be hard to swallow, traditional dairy milk just doesn’t get the credit it should for being a sustainable beverage, according to this data. On a scale of most sustainable to least, oat “milk” was a clear winner with consumers, with almond and soy close behind. Organic milk came next, followed by yogurt, ultra-filtered milk, lactose-free milk and even water. Traditional milk was almost at the bottom of the consumer sustainability perception scale, beating out only one product: soda.

According to MilkPEP, positioning dairy milk as a sustainable choice requires a joint effort between the farmers, individual brands and retailers working together to increase use of natural energy sources, minimize water waste, increase electric vehicles for transporting products and more. The good news is that these “weaker perceptions” of dairy milk’s sustainability don’t necessarily impact purchasing decisions, according to the webinar. “The biggest factor to me is price,” said one survey participant. “I do try to purchase sustainable items if the cost isn’t a huge impact on my family. However, I am not able to make all shopping decisions solely based on sustainability.” Another said, “Sustainability plays a role in my life, but it is not a complete determining factor for me purchasing something.”

THE OPPORTUNITIES

So, how does the dairy industry improve sustainability perceptions or, better yet, engrain the truth into the minds of consumers? “The industry is already doing a lot, but it’s not really talked about, and we’re not getting a lot of credit for it,” said Grubb, adding that “the real power lies with the brands” in telling their own sustainability stories. “Be loud and proud! Now is not the time to be humble. Be proactive and connect with consumers on a deeper level. You can prove to your consumers that your products align with their values. Consumers just want to know that you are doing something to better the planet.” Caroline K. Reff is the editor of Northeast Dairy magazine.

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WHY THE MISPERCEPTIONS?

Traditional milk is just not getting the credit it deserves, according to the MilkPEP webinar. Why? Because many people base their opinions and personal assumptions on online searches, wordof-mouth from family and friends, recent anti-dairy documentaries; health, wellness or environmental blogs; YouTube and even traditional news channels. This is unlikely to change, so it is up to the dairy industry to provide the facts through some of these same outlets.

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THE BUSINESS OF DAIRY

USDA, Innovation Center for U.S. Dairy Continue to Work Towards Industry’s 2050 Environmental Stewardship Goals

he USDA and the Innovation Center for U.S. Dairy have signed a Memorandum of Understanding to continue working toward the dairy industry’s 2050 environmental stewardship goals while addressing growing consumer demand for food that is produced in a way that’s good for the planet. The MOU, which extends and builds upon a pact originally signed in 2009, will leverage USDA programs to encourage the adoption of economically viable technologies and practices that improve sustainability and assist in addressing environmental needs of U.S. dairy farmers. Efforts will accelerate and streamline programs focused on resource recovery, sustainability improvement, soil health management and greenhouse gas reduction. “In renewing this agreement with the Innovation Center for U.S Dairy, USDA is recommitting to our vital work with dairy farmers to reduce methane emissions and improve the sustainability of their operations,” said Jewel Bronaugh, who serves as deputy secretary of agriculture. “We’ve seen tremendous interest in the production of climate-smart commodities and the dairy industry is on the leading edge of that effort. Today’s MOU will help build on and advance the industry’s important leadership in this arena.” 28 • Northeast Dairy Foods Association, Inc.

The Innovation Center was founded by dairy farmers through their dairy checkoff in 2008 as a forum that convenes stakeholders across the value chain to align on shared social responsibility priorities including the environment, nutrition and health, animal care, food safety and community contributions. The Innovation Center announced make these two words 2050 environmental stewardship goals, which include: • Achieving GHG neutrality. • Optimizing water use while maximizing recycling. • Improving water quality by optimizing utilization of manure and nutrients. The Innovation Center will work with USDA to enhance communications and outreach to farmers regarding participation in its programs. The organizations will offer support for practices, projects and programs that seek to further reduce GHG emissions. “This collective work will move us closer to realizing our goals and our vision of dairy as an environmental solution,” said Barbara O’Brien, who serves as president and CEO of the Innovation Center and Dairy Management Inc., which manages the national dairy checkoff. “Most important, we’ll be able to provide farmers with more support and tools so they can continue building on their generations-long commitment to being good stewards of their natural resources.”

THE BUSINESS OF DAIRY

The MOU will leverage USDA’s expertise in science and conservation to collaborate with the Innovation Center in working with farmers to create sources of income tied to climatesmart practices and emerging market opportunities. Specific USDA programs include Natural Resources Conservation Service and Rural Development (RD) programs for resource recovery technologies and/or feed management practices. The USDA also will consider increased research through its research agencies and across the department to identify cost-effective enteric methane mitigation practices that reduce emissions and facilitate the adoption of technologies that integrate manure and livestock waste management into soil health management systems. The Innovation Center will look to develop partnerships that bring additional financial investment to enhance dairies’ participation in USDA conservation programs. Efforts could include participating in USDA initiatives to share U.S. dairy’s sustainability story to broader audiences, including the Global Research Alliance on Agricultural Greenhouse Gases and America’s Conservation Ag Movement. Other possibilities include co-hosting a nationwide workshop for researchers to disseminate information and coordinate research efforts that foster dairy sustainability.

Previous and current USDA and Innovation Center collaborations have resulted in research, resources and a variety of programs that have advanced dairy sustainability, including on-farm anaerobic digesters, food waste reduction and the development of nutrient recovery technologies through NRCS and the checkoff-created Newtrient company. Additionally, the Farm Smart Project led to the Farmers Assuring Responsible Management Environmental Stewardship module, a voluntary tool that empowers farmers to identify opportunities for sustainability improvements on their farm. About 78% of the U.S. milk supply participates in FARM. “The renewal of our MOU again clearly demonstrates how the commitment to a sustainable dairy industry doesn’t fall on the shoulders of farmers alone,” said Pennsylvania dairy farmer Marilyn Hershey, who serves as chair of DMI. “Having USDA’s expertise and resources at our side is an invaluable benefit to dairy farmers across the country.” To learn more about U.S. dairy’s environmental commitment, visit www.usdairy.com/sustainability. Infographic source: Innovation Center for U.S. Dairy

NED Magazine | Third Quarter 2022 • 29

THE BUSINESS OF DAIRY Chief Emoji Officer: Leadership and Employee Engagement SUBMITTED BY PAYLOCITY

hen it comes to employee engagement, a simple emoji (or comment) from senior leadership can make a big difference. Though a record of more than 47 million American workers voluntarily quit their jobs last year, the “Great Resignation” was actually consistent with a growing trend pre-dating the pandemic. Employee engagement was already growing in priority among organizations, but studies show that currently just 36% of employees are engaged at work in the U.S., proving there’s still a lot of work to be done. Especially because two-thirds of actively disengaged workers are or are planning to look for new jobs. That’s in line with research saying that a toxic corporate culture is 10.4 times more powerful than compensation in predicting attrition rate. In the midst of what’s now being called the “Great Return,” it’s critical for organizations to consider innovative ways to attract and hold on to employees amidst this “quitter’s market.” Flexible schedules, remote work and wellness programs aren’t quite enough to provide 30 • Northeast Dairy Foods Association, Inc.

the sense of belonging that people want. With all the disruptions in work and home life these past few years, “40% of people say they feel isolated at work, and the result has been lower organizational commitment and engagement.” At Paylocity, we wanted to test a hypothesis that a key difference-maker could be hidden in a somewhat unexpected place. Our clients told us that employees were more engaged when executives actively participated in “Community,” our social collaboration hub, and we found this to be true internally, as well. During the first few months of the pandemic, our CEO Steve Beauchamp began posting video messages that sparked massive amounts of views, reactions and comments. So, we dove into the data to put this theory to the test.

THE DATA TELLS THE STORY: LEADERSHIP’S ROLE IN EMPLOYEE ENGAGEMENT

Because Community is built right into our platform, where employees can do everything from reviewing paychecks and clocking in and out for shifts to taking training courses and pulse surveys, the data we needed was readily available.

THE BUSINESS OF DAIRY Our data science team reviewed client utilization data on Community over a five-month period in late 2021, specifically use of announcements, posts, impressions (peer recognition), comments, reactions and groups. During that period, we recorded more than 800,000 interactions, ranging from quick reactions (nearly 350,000 smiley faces, hearts, thumbs ups and more) to company-wide announcements (more than 30,000 opportunities to centralize critical and timely information). The team then compared executive utilization data against engagement scores, measured by our patent-pending Modern Workforce Index, which provides an overall score of an organization’s health, performance benchmarks to peers and prescriptive recommendations to improve efficiency and employee engagement. The story was consistent: when executive leaders are active, their respective company engagement scores are higher. In fact, companies whose executives completed at least one activity (post, reaction, comment, etc.) saw MWI scores 12% higher than those companies whose executives didn’t participate at all. And, the difference between the companies’ executives that were least and most active on Community was even higher at 18%. The significance of a higher MWI score is far more than a badge of honor. Companies with top-tier MWI scores saw results like 15% to 25% lower voluntary turnover, 24% higher headcount and 70% more ROI from their HCM tools. Our conclusion: With just a few minutes (dare we say, a few emojis) per day, executive leaders could make a meaningful and significant impact on employee engagement which, in turn, reduces turnover. CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2022 • 31

THE BUSINESS OF DAIRY EMPLOYEE ENGAGEMENT MUST STAY TOP OF MIND

The rules of employee engagement are fluid and unique to each company, but one thing is clear — leaders in every organization must keep engagement high on their priority list. In the last year, overall employee engagement efforts within Community using employer announcements, employee visits and posts, reactions and comments have increased by more than 56% overall, with employee comments up by more than 150%. Companies that used Community also saw 23% higher employee sentiment scores as measured by MWI. Recognition is another key way employee experience tools can enhance engagement, considering the lack of recognition is a top reason for voluntary turnover. Among the clients with the highest utilization rates, the number of employees receiving public recognition from their peers increased on average by more than 500% in the first six months.

LEADERSHIP BEST PRACTICES TO IMPROVE EMPLOYEE ENGAGEMENT

A key takeaway is that impactful executive engagement pays off. Quick and easy activities create noticeable upticks in engagement. Executives can maximize their influence through approachable and accessible efforts such as: 1. S h o w c a s i n g e m p l o y e e -centered culture during recruiting and onboarding. Sharing a video message from your executives during these critical early days have lasting impact and reinforce communication and connection. “Our CEO loves the ability to 32 • Northeast Dairy Foods Association, Inc.

Leaders who are willing to roll up their sleeves to work (and communicate) with those in the trenches stand to position their organization for success through increased engagement and loyalty. get instant feedback from employees when he puts his own messages out. That’s been a big deal for him. He wants to be heavily involved so giving him that with Community has been really impactful,” said Becky Miratsky, chief people officer for integrated life choices. 2. Activities that count in making executives approachable and accessible. Even a simple thumbs up can make a big difference in the day of one of your frontliners, helping him or her feel seen and heard. Employees who feel heard are 4.6 times more likely to feel empowered to perform to the best of their abilities. 3. Broadcasting critical information to employee devices for a consumer-like experience. Announcements ensure all employees get the same information at the same time from the same source, and, better yet, video ensures better overall information retention. In a world where today’s employees want to be in the know, executive participation through announcements can help create the transparency and trust required for better engagement.

4. Groups that offer personal and professional connections across levels. Executive leadership has the chance to reinforce collaboration, approachability and accessibility by interacting with employees at all levels and across teams based on common interests, locations or employee resource groups, for example. These opportunities can be rare even when workforces are primarily in person, particularly for new hires.

STRENGTHEN EMPLOYEE ENGAGEMENT WITH EXECUTIVE ENGAGEMENT

Leaders who are willing to roll up their sleeves to work (and communicate) with those in the trenches stand to position their organization for success through increased engagement and loyalty. When executives take the time to engage via social collaboration tools, recognize the wins of their employees and encourage professional growth, it makes a huge difference in the overall employee experience – and employees’ willingness to stick around. The business impact of employee engagement initiatives is invaluable now — with in-person and remote workers — and together with other tactics like video communication and learning, executive participation is another opportunity for companies to attract and retain. A member of the Northeast Dairy Suppliers Association, Inc., Paylocity is a provider of cloud-based HR and payroll software solutions. Paylocity accompanies its clients on the journey to create great workplaces and help all employees achieve their best. For more information, visit www.paylocity.com.

THE BUSINESS OF DAIRY

Choosing

a Mentor BY ART WASKEY

have had the honor of mentoring several highly talented executives, all of whom share certain characteristics. They tend to be open to teaching, have a passion for learning and ask a lot of good questions. Their other attributes include humility and a willingness to make sacrifices in order to succeed. Those characteristics enable a good coach to do his job. Likewise, the mentee must also look for characteristics in an advisor that fits his or her personality and outlook. When choosing your mentor, be sure to seek someone that suits your needs.

WHAT TO LOOK FOR

Here are some qualities I suggest you look for in a mentor. Chemistry The first consideration when looking for a mentor is personality fit. Do you have shared interests with this person? Is he or she suited to your approach to learning? Are your values and passions in alignment? Do you look forward to being in the presence of this person? What attributes does he or she have that will help you meet your goals? A person with a very dominant attitude recently sought my help as

a mentor. I almost had to get hostile, something I do not like to do, in order for my point heard. I realized a mentor relationship with this individual would be too emotionally draining for me. I kindly suggested that he find someone who was more of a polemist and could engage with him in a manner more suited to his personality. You want a mentor who has the kind of chemistry that encourages and challenges you to make changes in areas that often are difficult to navigate. Competency Choose mentors who are the most competent people you can find, and invite them to pour their knowledge into you. Don’t worry about finding everything you need in one person. Successful people tend to have multiple mentors who offer different competencies. Currently, I have mentors for four areas of my life — professional, educational, spiritual and physical. For example, my professional guide is a senior statesman in our common industry. We meet weekly to discuss the strategic changes the business, where we have both enjoyed long careers. My spiritual mentor is a doctor of divinity. He guided me through a Master of Ministry degree in my 60s. An excellent counselor

and teacher, this advisor stimulates my passion for religious study, which has propelled growth in my spiritual life. Humility Choose a coach who is humble and willing to share his or her failures. Vulnerabilities provide valuable lessons and illustrate how new paths can be forged. The right mentor will want you to learn from his or her failures. A good mentor can help you avoid mistakes you may not be aware you are making. For example, I recently learned that a former colleague was hurt by prejudice I did not know I harbored. I was put in touch with this individual through my outreach efforts on LinkedIn. He is a successful executive today but expressed surprise that I would contact him. He related that I never offered him an opportunity to succeed when we worked together 20 years ago and that I had acted with prejudice towards him as a minority. I had no idea that I had offended this gentleman. I apologized and asked him to forgive me. A humble advisor is consistently learning from his failures and will care enough to share his life stories. Discernment Look for specific characteristics when choosing a mentor. In the book NED Magazine | Third Quarter 2022 • 33

THE BUSINESS OF DAIRY A good advisor understands that confidentiality is paramount in his or her role as a teacher and coach.

Multipliers: How the Best Leaders Make Everyone Smarter), author Liz Wiseman offers several insights on the makings of a discerning leader. “The right counselor is considered to possess wisdom and be of good judgement; especially so with regard to subject matter often overlooked by others,” she said. “The right coach will extend a clear and concrete challenge. He will ask the hard questions that need to be answered to achieve the challenge and require the pupil to give the answers.” Asking the right questions is important. When a young engineer approached me with his career doubts despite his rapid advancement in a major aerospace company, I listened carefully. He said he felt the promotions were taking him further away from the type of work he really enjoyed. From our discussion, it was obvious that he had a congenial personality and needed a career that put him more in touch with people. His excitement was palpable when I suggested he pursue technical sales. In fact, he knew right away the product that he wanted to sell. A discerning mentor will help you make difficult decisions that set you on the right path. 34 • Northeast Dairy Foods Association, Inc.

Trust The right mentor will be a confidant, willing to listen and able to be trusted with what they hear. A good advisor understands that confidentiality is paramount in his or her role as a teacher and coach. You will want to share both your ups and downs with your mentor. You should have confidence that in sharing your deepest emotions with this person, the information will stay between the two of you. Mutual Benefit Seeing someone prosper from my life’s experiences has been incredibly rewarding like helping others brings unexpected mutual benefits, like joy and motivation. The late author and motivator Zig Ziglar said it well, “You can get anything out of life if you just help enough others get what they want out of life.” Mentoring requires putting someone else’s well-being, growth and happiness on par with your own. Both the mentor and mentee should grow and benefit from their relationship. Through my mentoring, I have enjoyed many unexpected, pleasant surprises. For example, when I was advising the director of group strategy for one of the best hotel

and resort companies in the world, I told him I was going to be staying in one of his company’s properties. He contacted the property manager and upgraded my lodging — a welcome surprise. Availability Be flexible with your time. Work within your mentor’s schedule, not yours. Be clear on what you would like to see as the final outcome from the mentor experience. Know the direction you hope to take, including your goals for the next 12 months. When you meet, be prepared with your questions. When someone asks me if I would be willing to be their mentor, the first thing I do is suggest that he or she contact me with a time to meet. If they follow through with a request, I ask for five questions he or she would like to ask. The most successful people are always looking for someone who can make them even better. When considering a mentor look for someone who is enthusiastic, a good personality fit, considerate of others and a respected expert in their field. Follow my tips above and find a good mentor. It’s a relationship that can make the arduous task of finding the right career and path for you much easier. Art Waskey travels across the country consulting and giving seminars on business skills and has published three books of sales skills stories. He holds a bachelor’s degree in mechanical engineering, a Master of Ministry in leadership development and is currently pursuing a Doctor of Ministry. For services, contact Waskey at 720-341-9405.

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THE BUSINESS OF DAIRY

Great Mentoring Relationships B ehind some of the most successful people in history, there’s a mentor who has helped along the way. From Top 25 Mentoring Relationships in History by Jennifer Merrill, here are few great examples: • Facebook CEO Mark Zuckerberg: Steve Jobs often met with Zuckerberg to discuss the best business and management practices for Facebook. When Jobs passed away in 2011, Zuckerberg posted on his Facebook page, “Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you.” • Microsoft Co-founder Bill Gates: Gates first met American business magnate Warren Buffett at a dinner organized by Gates’ mother. There he began a discussion with Buffett about business and philanthropy that has lasted for years. Gates has said he has

turned to Buffett for advice on various subjects and often refers to him as “one of a kind.” • Pepsi CEO Indra Nooyi: “If I hadn’t had mentors, I wouldn’t be here today. I’m a product of great mentoring, great coaching. Coaches or mentors are very important,” Nooyi said. Actor and director Clint Eastwood: Now in his 90s and still directing, Eastwood was mentored by many, including his grandmother who encouraged the Dirty Harry star to always work hard and pursue his dreams. “I’ve had many mentors in my life… my grandmother was always encouraging. She always thought I was going to be something when nobody else, including myself, thought I was going to amount to anything,” Eastwood said.

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THE BUSINESS OF DAIRY Every Game is an Away Game Lessons on understanding resistance to change BY JOHN TAPLEY

ave you ever found yourself isolated as a leader of a cross-functional team and sensing that many of the gatekeepers around you have different perspectives and are not onboard with your ideas? Ever developed and led a new business idea that involves cultural change and an entirely new business model against the grain of the existing business? And, what about the daunting task of unseating the incumbent in a large, multi-site account who has been with your competitor for years? For me, I can count all the above and the many lessons on navigating though the barriers and inertia of change to drive a new business model, idea or win a large account. It can be overwhelming, but anything worth doing is never easy. This all came to me while in a prior role and in a moment after a big update presentation didn’t go so well. One of my co-workers, who had been through the same experience, made the comment, “It feels like every game is an away game.” We connected on that point instantly. There are a number of reasons why it may seem that many around you are running contrary to your point of view: 36 • Northeast Dairy Foods Association, Inc.

• Different motives around resistance to change and legacy business investments are hard to breakup. • They, in fact, do understand the business model better than you, and you haven’t figured that out yet. • Internal competition within a cross-functional organization • Not really a disagreement with your position but just a misread on your part. • You’ve yet to establish yourself as a credible influencer. For whatever the reason, it’s on you to move the chains. And, quite frankly, the experience builds character (don’t you love that) and elevates you into a more complete team player. If you approach it the right way, with eyes and mind wide open, the lessons are invaluable. And there should be checks and balances beyond what you’ve considered in your limited perspective. So, going forward, here are a few key lessons I’ve gained over the years that have helped me understand what it takes to bring the visitors crowd over to your side:

CHALLENGE THE STATUS QUO, BUT KNOW YOUR BOUNDARIES.

• Understand the degree of assertiveness to apply based on who is impacted and strength of your reputation. • Have solutions that support opinions contrary to the status quo, don’t just challenge without offering ideas to improve.

FULLY UNDERSTAND YOUR CHALLENGE

• Don’t try to be an expert at all functions, but do try to understand how it all fits together. • When systems and processes are a roadblock, study and find ways you could navigate around or through it. But again, be careful not to infringe on someone else’s responsibility, be respectful.

MAKE FRIENDS AND NETWORK CONSTANTLY

• Spread out beyond your organizational boundaries. If this past year has taught us anything, we can connect much easier and work together virtually in order to

THE BUSINESS OF DAIRY understand all perspectives. • Of course, expand your LinkedIn connections with co-workers.

Milestones

GET OUT OF YOUR ZONE AND STAY CURIOUS

• Show interest in what others do, it all fits together at some point. • Build relationships and explore all functions of an organization. • Consider a trading places exercise, sit in on a work session with a co-worker to observe and have them do the same with you.

BE A CONTINUOUS LEARNER

• Do you understand pivot tables? • Are you proficient on the current version of PowerPoint and Word? • Do you know how to build a business plan? Hint, there’s an excellent resource by Palo Alto, Business Plan Pro and the same for Sales and Marketing Plans. • Learn or become familiar with a new language, easy as Duolingo. • Be genuine, be respectful and be kind! I need not remind you that after the past two years we’ve been through, there could be more dynamics of organizational change that haven’t surfaced yet. But thank goodness we are starting to see some “normal” again. In summary, take action, be resourceful, welcome change and embrace the challenge. John Tapley is a business development manager at Chart Industries with expertise in new business startup, innovative business growth and marketing strategies and digital/social media marketing. He can be reached at john.tapley@chartindustries.com.

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THE BUSINESS OF DAIRY Strategies for Distributors to Weather the Supply Chain Crunch BY MIKE MARKS

s we’re all aware: The supply chain is no longer as dependable as it used to be. It’s now the equivalent of a wild pendulum with sporadic oscillations. Demand is also fuzzy and seems to be ever-changing. Think about the start of the pandemic when there was a massive shortage of masks and gloves. People were doing some really interesting things to find and stockpile these supplies. Now, companies give away masks and gloves because they have so much backstock. It’s the same scenario that is going to play out in the automotive industry. Right now, there’s a shortage of chips. Manufacturers are still making cars while they wait, so once they have the chips, there’s going to be overstock of vehicles and companies offering major deals and incentives to buy a new car. The current challenge is inflation. There are steep increases across the board. Because of inflation and an uncertain supply chain, manufacturers are hearing the same refrain from their distributors: “You have to stop passing the price increases because I can’t pass them on to my customers!” Or, “When are you going to deliver product to me?” It’s obvious that the exaggerated pendulum of a supply chain will be with us throughout this year and potentially into 38 • Northeast Dairy Foods Association, Inc.

2023. So how do distributors deal with the consequences and resulting inflation? In an inflationary environment, you have to watch closely for changes and, when you recognize a change, react quickly. You must be ready and able to make changes within the day or hours – not weeks. Being agile determines whether you succeed (and survive) an inflationary period.

HOW DISTRIBUTORS CAN RESPOND

Distributors need to be closer to their supply chain partners. Share more data and look for the best price. The companies that are more aligned with their suppliers are the most successful during unpredictable times. Get customers to behave differently. You have to figure out what the customer really needs and provide that, which might go against what they “want.” For example, although the cleaning industry is a recession-proof industry, it’s still supply-chain-dependent. Distributors can tell their customers not to schedule orders for rush delivery. You could say, “I’ll deliver 80% of your A items monthly and cover the cost of the freight, and you can add to that order any time you want, but you can’t change the order without a 30-day notice.” Here’s another example from the healthcare industry: A hospital called their distributor and requested 80 respirators,

THE BUSINESS OF DAIRY

In an inflationary environment, you have to watch closely for changes and, when you recognize a change, react quickly. but the distributor could only provide 20. Although the hospital was insistent, the distributor remained strong and said, “I can only provide 20, but I’ll give you 20 every month, and you can start to backfill the rest.” Use the features and parameter settings in your ERP system. Most distributors have dynamic scheduling and safety stock; however, many of them don’t actually use these features. If a distributor is using their inventory management system to its fullest potential, over 75% of the line items they order from suppliers should be computer generated. That means no human touches on those orders; they’re automatically being sent. (While these examples are not from the dairy industry, it’s really quite similar.) Most distributors have about 30% of their orders being computer-generated because it’s hard for some employees to

let go and let the technology run that part of the show. Surprisingly, you don’t have to buy more or new software to be successful: You just need to utilize what you paid for more effectively. If you don’t know how to use your systems, make sure your staff gets the proper training. If distributors follow these steps, roughly half of the supply chain crunch and resulting problems would disappear. You can weather wild swings in the supply chain pendulum. You just have to be agile and ready with the right tools and strategy to respond. Mike Marks is the co-founder of the Indian River Consulting Group, which works with distributors and manufacturers to provide data driven results in B2B markets.

NED Magazine | Third Quarter 2022 • 39

THE BUSINESS OF DAIRY Kraft Macaroni and Cheese Is Changing Its Name and Iconic Blue Box

or 85 years, Kraft Macaroni and Cheese has been America’s original and favorite comfort food. With over a million boxes sold every day, the cheesy bowls of deliciousness haven’t just filled America’s bellies; they’ve played an iconic role in every stage of people’s lives. Kraft Heinz is unveiling a new brand identity that includes an updated logo, noodle smile and even a new name that redefines this classic comfort food as feelgood food for everyone: Kraft mac & cheese. The new look updates all aspects of the brand identity: the name, the logo, brand colors, typography, photography, iconography and packaging. The change from “macaroni and cheese” to “mac & cheese” is meant to reflect the way fans organically talk about the brand. The iconic blue box now features just a single-color of blue and amplifies the brand's most recognizable asset — the noodle smile, now even more delicious and dripping with creamy, cheesy goodness. The new look and feel evolves the brand and product to distinctively embody what positive comfort looks like: noodlefuls of delight that lift you up and make you happy inside and out. The changes were inspired by comfort

40 • Northeast Dairy Foods Association, Inc.

cravers — the people who believe that comfort is crucial to feeling good and who love a helping of simple nourishment to warm their bellies. “We know that people aren’t turning to comfort food as a guilty pleasure. They are positively embracing comfort, saying yes to feeling good, saying yes to caring for themselves,” said Victoria Lee, Kraft mac & cheese brand manager. “There is a familiar, craveable, positive comfort

to Kraft mac & cheese that makes it so special and iconic to millions of people across the world, and our new look is a reflection of what our brand means to our consumers.” The new look will appear across social channels and on the website this summer and packaging will start to hit shelves in August 2022.

THE BUSINESS OF DAIRY 2022 C ALENDAR OF

DA I RY EV E NTS SEPTEMBER

SEPT. 3: National Food Bank Day SEPT. 5: National Cheese Pizza Day SEPT. 6: National Coffee Ice Cream Day SEPT. 12: National Chocolate Milkshake Day SEPT. 15: National Cheese Toast Day SEPT. 16: Queso Day SEPT. 18: National Cheeseburger Day SEPT. 20: National String Cheese Day SEPT. 22: National Ice Cream Cone Day SEPT. 27: National Chocolate Milk Day SEPT. 29: World School Milk Day

OCTOBER

OCT. 7: National Frappe Day OCT. 9: Moldy Cheese Day OCT. 15: National Cheese Curd Day

NOVEMBER

NOV. 9: National Greek Yogurt Day NOV. 11: National Sundae Day

DECEMBER

DEC. 13: Ice Cream Day DEC. 13: National Hot Cocoa Day DEC. 24: National Eggnog Day NED Magazine | Third Quarter 2022 • 41

THE BUSINESS OF DAIRY Modern Marketing on a Budget BY THOMAS J. ARMITAGE

any small to medium-sized companies deal with the same problem, day after day, year after year. They’ve long understood the value of marketing and its role in helping gain exposure for their brands, drive traffic to their websites and generate leads for their sales teams. But, they often lack the financial backing to do it right. This is, of course, true for the dairy industry, as well. Any good marketing program requires an investment on three primary fronts: labor, technology, and advertising. Let’s review how small to medium businesses can get the biggest impact from lean marketing budgets.

VISION VERSUS REALITY

What should your marketing budget be? That’s an age-old question but important, nonetheless. The rule of thumb varies by industry. Dairy have a bit of both B2B and B2C, so you can apply the information here that seems to be the most helpful to your particular area of business. B2C companies tend to spend between 5 to 10% of projected revenue. B2B companies usually are a bit more conservative — typically spending between 3 to 5%. Startups or emerging companies are more aggressive, sometimes eclipsing 20%. You always need to start with a plan at the beginning of your fiscal year, whatever the number. In doing so, you establish goals and expectations, set and control cost, confirm your software and technology, understand the work to be done and who will do it, and review how you will measure success. Always make sure your goal and objectives meet the SMART criteria (Specific, Measurable, Attainable, Realistic, Time-Bound), which improves the likelihood of them being met. 42 • Northeast Dairy Foods Association, Inc.

LABOR

Labor is the part of your budget devoted to getting your marketing work done. This can come in the form of in-house internal staff members, an agency partner, specialty freelancers or a combination of all three.

IN-HOUSE TALENT

By hiring full-time staff, you’ll have more time and resources available to get work done. The downside is that it’s usually impossible to find full-time professionals - within budget - that span the many skillsets in today’s complex digital world. Consider someone who can strategize, produce videos, code, write long-form content, build workflows that connect marketing and sales activity, analyze data, and manage social media channels with a personality and brand-relevant voice. Many companies find talent that can support many of these duties and then outsource the rest.

FREELANCERS

The marketplace is flooded with freelancers today. Many freelancers focus on very specific niches. When measuring cost, don’t just consider the out-of-pocket hourly or project-based rates of the freelancer but also the time it takes your internal team to find, vet and manage those relationships.

AGENCY PARTNERS

With an agency, you don’t just get one expert, you get a whole team. Agencies tend to have rich tech stacks that you can and should take advantage of, too. Plus, when combining all the team members and all their clients, there’s a ton of experience that can be leaned upon to help your business solve complex marketing challenges.

THE BUSINESS OF DAIRY A COMBINATION

Unfortunately, it’s impossible for anyone to recommend the best labor option since it depends on your needs, industry, current in-house abilities and budget. Companies most mindful of their dollars tend to use a combination of all three options. It’s often advantageous to hire an in-house marketing lead, an agency partner for strategy and to help take on a portion of the output, and a freelancer or two for highly niche job functions, like video production, web development, or graphic design. Consider how you’ll cover non-traditional marketing functions, as well. This could include CRM or database administration, customer service and sales support.

an extremely easy-to-learn and easy-to-use tool that’s constantly adding new features. You can quickly create graphics by leaning on pre-made templates, quickly adjust dimensions based on various social media formats, and now there’s even the ability to create animations and videos. If you’re looking to create social media content, it’s your new best friend for less than $200 per year.

ACTIVECAMPAIGN

Technology is the part of your budget devoted to the tools and software you need to help get your marketing work done. Here are some essential tools that you can purchase for free or inexpensively.

If you want to go crazy cheap for email marketing, you can select Constant Contact or MailChimp. The problem is that these tools are severely limiting. Most businesses today need something more advanced with website integration and automation capabilities. That’s when you start getting into the HubSpot and Pardots of the world — with higher price tags. ActiveCampaign strikes a happy medium. With “if/then” automation controls, smart list generation with custom fields and custom tags, and both email and SMS marketing, ActiveCampaign has great features at a great price. Best of all, it’s typically less than $200 per month.

GOOGLE SUITE

LEADFEEDER

TECHNOLOGY

There are lots of analytics and measurement tools out there, from Raven Tools to Adobe Web Analytics and many in between. Google Analytics (data collection) and Google Data Studio (data reporting) are free, work hand-in-hand and are absolutely essential to the measurement of your marketing efforts, specifically related to your website, traffic and conversions. It’s important you first establish your goals and create and label them properly in Google Analytics. From there, sync your Google Analytics account with Google Data Studio, decide on what needs to be measured and build out your dashboards (you can lean on pre-made templates). Arrange for the dashboards to be emailed to you regularly so you’re always kept in the loop on your marketing results.

BUFFER

Buffer is a slick and easy-to-use social media scheduling tool. It’s great at what it’s meant for — scheduling out your posts in advance and across platforms to help be more efficient with your social media time. Plus, it’s inexpensive. Most companies spend $100 per month, and some even can get away with the free version, which allows up to three connected profiles.

CANVA

As an alternative to Adobe Photoshop, use the free or paid version of Canva for your design work and image editing. It’s

Lead intelligence is the next frontier for effective B2B selling. Tools like Leadfeeder use reverse IP lookup to identify businesses coming to your website. Knowing which companies are qualified versus not and being able to see their source/ medium, time on site, which pages they explored and what conversions/actions they took helps provide a much more sophisticated layer of intelligence when preparing outreach messages to buyers. There are a number of tools on the market today. Though Leadfeeder offers bare minimum features with no real bells or whistles, it’s inexpensive and can still provide a ton of value to many marketing and sales teams — especially at only $80 per month.

ADVERTISING

Advertising is the part of your marketing budget devoted to actual touchpoints with customers — typically in the form of content and advertising. Here are the tactics that make the most sense for businesses with lean budgets.

DEMAND GENERATION

It’s important for businesses to be thought-leaders in their space and use content as a means to drive inbound interest and leads. Today, Demand Generation in B2B is often associated with podcasts, LinkedIn activity, article writing, guest speaking and videos. CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2022 • 43

THE BUSINESS OF DAIRY

Although, on the surface, Demand Generation might appear to be free — it’s not. Consider the cost of audio or video production. Or, the time it takes to consistently create content on LinkedIn every day. Or, travel fees for speaking at conferences. All-in-all, savvy marketers can keep costs down by batching work and cleverly repurposing content. Remember, consistent, high-quality content development can help lead to high-quality, inbound lead generation.

WEBSITES

Even if you’re not ready for other forms of digital or social media, your company – large or small – has to have a website. Like most marketing functions, websites and website marketing can be costly if you’re not careful. Through custom development, high-cost hosting fees or premium integrations or plugins, costs can rack up quickly. Instead, map out a low-cost strategy when building or rebuilding your site. Work with an agency or freelance developer that’s mindful of the overall budget — both for initial build and ongoing website management. Lean on an inexpensive (though trusted) WordPress theme, free plugins and a shared hosting environment. Be mindful of your spend for ongoing management, too, and weigh the costs against the effort.

EMAIL MARKETING

Email marketing continues to offer the greatest ROI of any marketing activity, and can be especially effective for those in the dairy industry that are just starting to up their digital marketing game. That’s because it’s so cheap to send out emails 44 • Northeast Dairy Foods Association, Inc.

to current or potential customers. Make sure you have a plan in place to constantly be adding new and relevant contacts to your database, and also plan to continually communicate with them through relevant emails. Consider how often you are sending emails and what’s included in those messages. Are you helping educate your audience? Are you offering incentives or offers? Or are you just bragging about how great your company is? Make sure there’s a “What in it For Me?” angle for the reader in every email or else you’ll run the risk of high unsubscribe rates and dwindling list sizes. The beauty of email marketing is that, when done right, current and potential customers will look forward to read and learn from what lands in their inbox, specifically from your company. And, over time, turn into customers when the buying need is there.

GOOGLE DISPLAY ADVERTISING

For most businesses, advertising is a must. And today, you have lots of options: Facebook, TikTok, YouTube, Spotify, Hulu, Google Search, CTV and more. Of all the advertising options available, Google Display Ads are easily the cheapest. You can typically get them at rates five time, 10 times or sometimes even 20 times cheaper than some of the others listed. And since it’s run through the Google Ad Network, you still have great targeted capabilities. Take into consideration targeting parameters such as location, homeowner status, age, gender, education level and interest to ensure you’re reaching the best audience for your content.

THE BUSINESS OF DAIRY LOCAL OPTIMIZATION

Search engine optimization is a long-term investment. It is all the support given to a website to help it rank higher in the search engines. This comes from a combination of ongoing efforts including keyword research, metadata writing, content creation, coding improvements, external and internal linking, and more. It takes a lot of time and effort to be successful with SEO, so it’s certainly not a cheap option. However, local SEO often contains low-hanging fruit and can help businesses be found more often for local search terms. Start with keyword research, build out a local page on your website and ensure that name, address, and phone are accurate and consistent on your website, as well as across all local listing sites (like Facebook, Apple Maps, Yelp and more). Create and optimize your free Google My Business profile and make sure there are high-quality photos, details, and descriptions included.

SUM IT UP!

The old adage is true. You need to spend money to make money. But that doesn’t mean that, as a business leader, you should spend your money frivolously without attempting to make the greatest impact possible. Every marketing dollar is valuable. You’ll want to make sure every budgeted line item is helping your organization be more efficient or helping generate more leads. Though it would be impossible to operate a zero-budget marketing program, there are ways to maximize time and cut costs. Follow these tips and continuously shift your focus towards the most rewarding activities. A sales executive at Site-Seeker, Inc., Thomas J. Armitage has over a decade of digital marketing experience. He speaks on the national stage, contributes to dozens of industries, has been featured in podcasts and regularly discusses marketing and advertising on LinkedIn.

The Business of Dairy Means Thinking Outside of the Box (or the Bottle)

elveeta, a Kraft Heinz Company brand, recently unveiled a new dairy product, but it’s not the edible kind! The brand announced the launch of its first-ever nail polish collection in partnership with Nails, Inc., the Velveeta Pinkies Out Polish, which includes a nail polish duo and nail stickers. Yes, you heard that right – a cheese product you really do want to get stuck to your hands. The collaboration furthers the brand’s latest creative platform, “La Dolce Velveeta,” which is all about stepping out in a confident, unapologetic way to show the world that you’re living a life filled with outrageous pleasure. Created for pleasure seekers who love to live their best lives, this new, limited-edition nail polish is even cheese scented and comes in two colors: red and yellow

– representative of the classic Velveeta packaging. “Velveeta is known for it rich, creamy texture and cheesy, melty goodness, so what better way to bring this to life for our fans than with something equally as rich and creamy – nail polish,” said Kelsey Rice, senior brand communications

manager at The Kraft Heinz Company. “Our Velveeta Pinkies Out Polish gives pleasure seekers everywhere an irresistible new way to show the world they are living “La Dolce Velveeta.” The new product is available exclusively on Amazon.com and at NailsInc. com while supplies last.

NED Magazine | Third Quarter 2022 • 45

THE BUSINESS OF DAIRY

Control Your Brand’s Messaging and Identity Online How listings management can benefit your company BY STEVE GUGLIELMO

y now, we are all aware of just how important having a strong internet presence is for our businesses. Even if you don’t have an e-commerce platform, it is important that your company be visible online. Think about it, as a consumer, what is the very first thing you do when you need to buy virtually any new product? You search for it online. But what if you can’t find the information you need when you search? Or, worse yet, you find some information, but it’s inaccurate? Chances are, you’ll find a different company to buy that item from. You don’t get a second chance to make a first impression. Research has proven time and time again that the best way to attract new customers today is by getting your business listed and visible wherever customers are looking for it. This holds true whether you’re selling dairy products or supplies that support that industry, like packaging or machine parts. A good way to make sure that your company is putting its best foot forward on search is by utilizing Listings Management software. If you think about your website as your company’s digital storefront, then directory listings are like the phonebook, or billboards, that can help drive traffic to your site. And you 46 • Northeast Dairy Foods Association, Inc.

want to make sure that your customers and potential customers can find the directions to your “storefront” however they’re searching for it online. A good listings management program can help customers boost their online presence, grow their local visibility, get discovered more easily, more effectively use word of mouth through their review management, increase brand awareness and business reputation and boost your Search Engine Optimization.

BE VISIBLE

The program allows companies to manage their online reputations all from one central dashboard location that then broadcasts any updates or new information you wish to convey to all of the online directories at once. Has your address changed? New website? Closed for a holiday? There is no need to update each directory individually, or worse, keep the wrong information up for all to see. Simply make the changes in your dashboard and your information will update around the web. This creates a clean, streamlined, uniform and up-to-date online presence for your business. And, in turn, it helps boost your SEO across all of these platforms,

THE BUSINESS OF DAIRY as big search engines like Google favor content that is consistent. Search engines believe that consistent information and messaging help build consumer trust. Most directory listings allow your business to post photos, in addition to your hours of operation, phone number, website and other important data to provide potential customers with more information about your business. Companies will also be able to include keywords or keyword topics that can help direct customers to your site. Most of the time, customers don’t search for a specific business name. They search for a service or product they need. A good digital strategy can help ensure that when a potential customer searches for a product or service that you provide, your business shows up in that search. And, the dashboard also provides important, relevant reporting metrics that companies can access whenever they want to. It allows your company to see how customers are finding you online, what keywords drove them to your site and how many phone calls were made from that search? All of this is valuable information for your marketing department to determine where to spend online ad dollars.

BE RESPONSIVE

In addition to metrics that show how visible your company is online, Directory Listings Management also allows you to manage your reviews from the dashboard. If a customer has a question about your business or a product, you will be able to respond to that question in real time. You can track your total number of reviews and overall SEO rankings, viewing an evolution of that ranking over time. Listings Management is not a “set it and forget it” process. Stay engaged with your online brand to ensure that you’re being found. Inaccurate listings lead to missed opportunities and loss of trust. Are you willing to lose business from someone who is looking for a product you offer today? Make sure you’re visible where customers are looking. Get found and make a great impression using the most up-to-date digital strategy today. Steve Guglielmo is the content director for Northeast Dairy Media.

Stewart’s Receives Place on Historic Business Preservation Registry

ongratulations to Stewart’s Shops, which has been put on the New York State Historic Business Preservation Registry. Both New York State Sen. Jim Tedisco and New York State Assemblywoman Mary Beth Walsh nominated Stewart’s for this honor. The company’s president, Gary Dake, accepted an official citation commemorating Stewart’s spot on the registry, which was presented by both Tedisco and Walsh. The ceremony was held at the site of the very first Stewart’s Shop in Ballston Spa, New York, to commemorate the occasion. “Stewart’s Shops are more than just stores. They are community centers and truly deserving of

statewide recognition and induction into the New York State Historic Business Preservation Registry,” said Tedisco. Walsh added, I’m very excited to have had the opportunity to nominate and now recognize Stewart’s Shops for their incredible presence in the Capital Regional and beyond.” The New York State Office of Parks, Recreation & Historic Preservation created the registry in 2020, at a time when many businesses were facing new and unique challenges. The goal is to highlight businesses that have stood the test of time and have contributed to their communities’ history. Elected officials, like the governor, lieutenant

governor of members of the state Senate and Assembly can submit nominations. Stewart’s has been in business for 77 years and has supported and served the communities where its shops are located in significant ways. In 2022, the company has a goal of donating over $8 million to nonprofit organizations in its market area. In addition, its Holiday Match program has contributed over $34 million to thousands or organizations since its inception. NED Magazine | Third Quarter 2022 • 47

Member Profile

After More Than a Century, Agri-Mark Continues to Put Members’ Milk Into Superior Products BY COURTNEY KLESS

he Agri-Mark Cooperative has been around for more than 100 years – but working toward shared goals has remained a central part of its culture. “Our employees take great pride in knowing they are putting together a product for the farmers and knowing it’s this partnership between the farmers providing the milk and the employees working hard to make a great product,” said Amber Sheridan, director of corporate communications for Agri-Mark. “I think that culture is really important.” The cooperative’s roots can be traced back to 1913, when the New 48 • Northeast Dairy Foods Association, Inc.

England Milk Producers Association was formed (it would eventually become Agri-Mark in 1980). Around the same time, in 1919, 94 farmers in Cabot, Vermont, officially created the Cabot Creamery Cooperative. The two merged in 1992. Eleven years later, the cooperative expanded again, acquiring McCadam Cheese, one of the oldest cheese businesses in the country. “I think it’s unique in that we have a couple different histories to think about,” said Sheridan. “Both of those organizations have separate timelines but have the shared mission of cooperatives and dairy farmers working together to serve the marketplace, to produce great

products and to supply high-quality fluid milk to the region.” Today, Agri-Mark produces a variety of products under the Cabot and McCadam labels – branded cheese, butter, yogurt, cottage cheese, sour cream, cream cheese, whipped cream and dips, as well as whey powders and milk powders. All in all, the cooperative markets the milk of 650 farms in Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. “Our Cabot brand has done an excellent job of marketing our farmers, their messages and their unique stories as a way to differentiate our brand,” said

Member Profile

Sheridan. “Cabot was one of the first to really have their farmers promote the brand, and our farmers are still a key part of our brand culture and identity today. Our farmers work hard to supply the milk that goes into their award-winning products, and they have a lot of pride in that process and passion.” And that pride is well earned. AgriMark had a strong showing at the World Championship Cheese Contest earlier this year with Cabot Creamery earning “Best of Class” honors for its mild cheddar, pepper jack, Pepper Jack Cracker Cuts and Chocolate Mousse Triple Cream Yogurt. In total, the cooperative won 16 awards. “We strive for high-quality cheese, cultured products and butter products,” said Sheridan. “We have won many awards because our cheese is so good due to the efforts our farmers put into making that cheese, and what our team members at all our facilities put into just making a high-quality product. A product that consumers love and that we’re really proud to produce.” The cooperative also takes considerable pride in its B Corp. Certification – in fact, it became the first dairy cooperative to earn the certification in 2012 (Editor’s note: A B Corp. Certification looks at a company’s impact in five NED Magazine | Third Quarter 2022 • 49

Member Profile

areas: governance, workers, community, environment and customers). Agri-Mark and its farms are committed to sustainability and the community, taking steps to reduce greenhouse gas emissions from its trucks, using water that has been upcycled from milk at its Cabot plant and launching the Farmer Pen Pal Program to introduce children to life on a farm. The cooperative was recognized this spring with the Casella Sustainability Leadership Award and last year with an Efficiency Vermont Leadership Award, an EPA Environmental Merit Award and a U.S. Dairy Sustainability Award for Outstanding Dairy Farm Sustainability. “This year, we are going to be celebrating 10 years of B Corp Certification,” said Sheridan. “We saw and recognized that, as a business today, we need to make sure that we are paying close attention to environmental and social 50 • Northeast Dairy Foods Association, Inc.

impacts for our customers, employees and farm families. That is one of those tenants that we’re very proud of and I think is important to us as a business.” Another important piece of AgriMark’s success is the Young Cooperators. The program is intended for Agri-Mark’s younger members, ages 18 to 40 and holds a conference each summer, elects its own leaders and attends board of directors’ meetings to learn how the cooperative operates. Young Cooperators also has the chance to lobby on the Hill in Washington, D.C. “The Young Cooperator Program is a great program,” said Sheridan. “I think of it as way to identify future leaders for the industry, for our cooperative and for our brand. The YC Program helps us cultivate members who are curious about their cooperative business and eager to understand how that business works. A

number of our current board members are YC program alumni.” As for the future, Agri-Mark hopes to continue building on a century of success. “We have a tremendous brand and brand following, and I think our opportunities are to build on that brand, to build on that Cabot goodness and to continue to produce high-quality products that really hit the mark and serve the needs of our consumers and our customers,” said Sheridan. “That’s the direction that we’re headed in.” Courtney Kless is a staff writer for Northeast Dairy Media.

Member Profile

NEW MEMBERS The following new member recently joined Northeast Dairy Foods Association, Inc., or the

The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and

services available from both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Leanne Ziemba at 315-452-MILK (6455) or lz@nedairyfoods.org.

CROPD-ORGANIC VALLEY

MILK MOOVEMENT INC.

RUBBER FAB

La Farge, WI

Halifax, Nova Scotia B3J 3K5 Canada

Sparta, NJ 07871

One Organic Way 608-625-3574

EXCEL

100 Camelot Dr.

Fond du Lac, WI 54935 920-926-9800

www.excelengineer.com Jeff Kamin

Business Development

Jeff.kamin@excelengineer.com

100-0505 Barrington St.

709-697-9928

www.milkmoovement.com Robert Forsythe,

Co-founder and CEO

robert@milkmoovement.com

OCS PROCESS SYSTEMS 24142 Detroit Rd.

Westlake, OH 44145 440-871-6009

www.ocsprocess.com

FARWEST DISTRIBUTORS, INC. 1113 Nooning Tree Dr. Chesterfield, MO 314-406-1700

Tom Jacoby, Sales

TJacoby@FarWestDistributors.com

Beth Kloos, President

Bkloos@OCSprocess.com

26 Brookfield Dr. 774-487-9352

www.rubberfab.com

George Soares, Regional Sales Manager

gsoares@RubberFab.com

SYNGENTA-ENOGEN 785-204-2328 Dwane Roth

dwane.roth@syngenta.com

VALCOUR PROCESS TECHNOLOGIES 3692 State Rt. 9 Peru, NY 12972 518-561-3578

www.valcourprocesstech.com Norman LaVigne, Founder

nlavigne@valcourprocesstch.com NED Magazine | Third Quarter 2022 • 51

Member News

Member and Industry News

he American Dairy Association Northeast announced a month-long partnership with SavorRecipes.com during National Dairy Month in June. According to CEO John Chrisman, New York dairy farmers and SavorRecipes.com launched the #DoItWithDairy promotional campaign to introduce consumers to quick and easy recipes on TikTok, which are designed to increase dairy sales to Generation Z college students and Millennial parents. Every week in June, culinary experts, registered dietitians and even dairy farmer influencers taught consumers to make delicious dairy-centric recipes while learning more about the benefits of dairy consumption. Anderson-Negele announced that it has entered into a definitive agreement to acquire the component business of the Metering Blending and Calibration Division of GEA Diessel, GmbH, a leading provider of magnetic flow meters for hygienic applications. GEA Diessel’s components business has been providing high-precision magnetic-inductive flow meters for more than 35 years for us in food, beverage, pharmaceutical and biotechnology manufacturing processes. “Anderson-Negele already has a reputation for delivering high-quality hygienic instrumentation and process controls,” said Cathy Clausen, president. ‘Integrating GEA Diessel’s magnetic flow meter development and manufacturing expertise allows us to offer more complete and cost-effective instrumentation and flow solutions to our channel partners and end customers across 52 • Northeast Dairy Foods Association, Inc.

their entire process. Additionally, it allows us to continue to innovate to help manufacturers in dairy, food, beverage and brewing industries achieve the highest quality standards while minimizing costs through process efficiency improvement and waste reduction.” Building on its recent philanthropic, funding and advocacy efforts, Chobani launched a month-long fundraiser at its Soho Café to benefit Razom for Ukraine. Chobani founder and CEO Hamdi Ulukaya – an immigrant himself and long-time supporter of refugees – recently visited the border of Ukraine and Poland with the organization he founded, Ten Partnership for Refugees, seeing first-hand the devastation and desperation as millions flee their homes. For its latest efforts in supporting the humanitarian crisis, Chobani partnered with Razom, the nonprofit that means “together” in Ukrainian. When the war began, Razom quickly mobilized to deliver critical humanitarian aid, including tactical medical supplies, hospital supplies and tech-enabled emergency response supplies that facilitate the delivery of this aid. Razom also focused its relief efforts on children in and fleeing from Ukraine. Land O’Lakes, Inc., has put a new spin on butter with the launch of Land O’Lakes Butter Balls, half-tablespoon balls of butter for everyday cooking. Inspired by consumers who picked up cooking during the pandemic, this first-of-its kind product for retail shelves offers the company’s signature

Member News butter in a convenient, pre-portioned size that makes cooking easier, according to the company. “Innovation is core to Land O’Lakes, and we see this product as the answer to the convenience consumers crave while staying true to the great product they rely on – sweet cream butter,” says Heather Afang, U.S. vice president of Land O’Lakes Dairy Foods. “While the pandemic created unprecedented challenges across all industries, our commitment to innovation never wavered – and instead we chose to lean in and are excited to bring this unique product to customers.” Perry’s Ice Cream was recently recognized by ConnectLife as its Promotional Blood Drive Partner of the Year. ConnectLife is Western New York state’s only community blood center and federally designated organ, eye and tissue procurement agency. Perry’s Pint for Pint program has made a significant impact on blood donations in the Western New York community over the past two years. In March, everyone who donated blood at a ConnectLife blood drive received a coupon for a free pint of Perry’s ice cream. All the blood donations stay local to support area healthcare organizations.

North America are manufactured. Potential employees are also part of the plan, getting the chance to visit the workplace before even applying. This effort is part of Tremcar’s intention to demonstrate the added value of buying one of its products instead of one of the competition’s. The company decided that virtual reality was a must in getting customers to see its sites and its products, particularly while the impact of the pandemic is still being felt. Other digital projects are being developed for training purposes and other marketing efforts. According to Tremcar President Daniel Tremblay, continuous improvement and innovation are at the heart of the entrepreneurial values of Tremcar. Kevin Ellis has been named the new CEO of Upstate Niagara Cooperative, replacing retiring CEO Larry Webster, effective in September. Ellis comes to the cooperative from Cayuga Milk Ingredients in Auburn, New York, where he was CEO, and Cayuga Marketing. “Kevin is a visionary leader who will be communicative and approachable at all levels of the organization,” said John Gould, president and chairman of Upstate Niagara’s board of directors.

On Father’s Day, June 19, Stewart’s Shops helped honor dad with a single scoop cone for just 99 cents – and anyone in the family was invited to join in on the celebration (and the 99 cent deal, too)! In other news, Stewart’s announced its summer seasonal flavors, including Campfire S’Moreo, Peanut Butter Jelly Time, Salted Caramel Cheesecake, Chocolate Caramel Tornado, Fresh Toast Roast and Blueberry Crumble.

Upstate Niagara Cooperative, Inc., and Belgioioso Cheese, Inc., signed transactional agreements to sell and purchase, respectively, the Upstate Farms Cheese, LLC, facility located in Campbell, New York. Closing of the deal is expected to be completed by the end of the summer, according to Upstate Niagara Cooperative said, pending final due diligence.

Syracuse Label & Surround Printing, Marcaran Printed Products and W.N. Van Alstine announced recently that their respective boards of directors have approved a merger agreement. The new organization will provide enhanced development and manufacturing capabilities, incorporating state-of-the-art label technologies along with improved economies of scale. The new business will be run by co-CEOs Nick Van Alstine and Kathy Alaimo with Tom Sargent as president.

WestRock Company, a leading provider of sustainable paper and packaging solutions, has been named one of the 2022 Forbes Best Employers for New Graduates, ranking seventh within the engineering and manufacturing category. An independent survey by Forbes and Statista analyzed the responses of more than 20,000 young professionals employed by organizations of 1,000 or more to identify the companies most liked by new workforce entrants. “We’re focused on recruiting the best talent for our business and ensuring our teammates are engaged, feel valued and can do their very best work while providing ongoing opportunities for growth and continued learning,” said Vicki Lostetter, chief human resources officer at Westrock. “Being recognized for these efforts is especially rewarding as we continue to build and empower future leaders, taking the required steps to be a company where people choose to work.”

Marking its 60th anniversary year in 2022, Tremcar has announced its plans to set up a digital project to get noticed. As a custom-built manufacturing company, Tremcar has decided to innovate its marketing in order to better stand out. Working with Nervus, a startup in the digital field, Tremcar is inviting people to visit the company’s facilities in Saint-Jean-sur-Richelieu and Saint Cesaire in Canada to see how the tanks sold throughout

NED Magazine | Third Quarter 2022 • 53

Member News

2022 Dairy Blender May 12, 2022 | Schenectady, New York

54 • Northeast Dairy Foods Association, Inc.

Member News

NED Magazine | Third Quarter 2022 • 55

Member News

Bruce W. Krupke Memorial Golf Tournament/Clambake July 13, 2022 | No. Syracuse, New York

56 • Northeast Dairy Foods Association, Inc.

Member News

NED Magazine | Third Quarter 2022 • 57

Member News

58 • Northeast Dairy Foods Association, Inc.

Leanne’s Kitchen Comfort Food Made with Delicious Dairy

Ricotta & Strawberry Crostini INGREDIENTS:

• 1 sliced and toasted baguette • 16 oz. whole milk ricotta cheese • 16 oz. fresh sliced strawberries • Chopped fresh basil • Balsamic glaze • 1 tsp. Kosher salt

INSTRUCTIONS: Mix sugar with strawberries, and let sit for 30 minutes to create syrup. Whip ricotta cheese with salt. Toast baguette slices, cover with ricotta cheese, strawberries and basil. Drizzle with balsamic glaze. This also tastes good with lightly grilled peaches.

• 1 tsp. sugar

Many of our members may know Leanne Ziemba as the business operations manager for the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Food Suppliers, Inc., in our N. Syracuse, New York, office. But we’ve discovered she also is queen of the kitchen, as she has some delicious recipes that include fresh, wholesome dairy products.

NED Magazine | Third Quarter 2022 • 59

Advertisers’ Index Agri-Mark �� 31 Agri-Services ��

Atlas Automation ��

Byrne Dairy �� 1 Evergreen Packaging ��11 Farm Credit East ��37 Klockner Pentaplast ��BC Nelson Jameson �� 27 RELCO �� 35 The Probst Group ��

Tremcar �� 35 Westrock �� IFC

Join the Dairy Industry Associations A full service trade association representing dairy processors, manufacturers and distributors since 1928.

nedairyfoods.org

WINTER

A supplier and vendor member association dedicated to the growth and Magazi ne of No rtheast Dair y Pr oc essors, Manufac advancement of The the dairy food industry in the northeast. Established in 1932.

neastda.org 60 • Northeast Dairy Foods Association, Inc.

E D I T I O N 20 16

turers and Distribu to rs Since 1928

The NED Supplier Catalog Library

issuu.com/ndsacatalogs If you’d like to feature your company catalog in

the next Weekly Dairy Newsroom contact

Lesli Mitchell lmitchell@nedairymedia.com.

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Sustainable PET solution for hot filling Introducing our top of the range, sustainable PET rigid base film for thermoforming and form, fill and seal hot filling applications. kp Hotfill® is a fully transparent mono PET film perfect for foods like jams, compotes, flan puddings, cream cheese dips, condiment sauces, liquid stocks, soups and other ready to eat foods.

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Northeast Dairy Magazine | Q3 2022

Articles inside

Member News

Welcome New Members

MEMBER PROFILE

Control Your Brand’s Messaging and Identity Online

Stewart’s Put on Historic Business Registry

Thinking Outside of the Bottle

Modern Marketing on a Budget

Kraft Macaroni and Cheese Changes Name, Iconic Box

Three Strategies for Distributors to Weather the Supply Chain Crunch

Every Game Is an Away Game

Chief Emoji Officer Leadership and Employee Engagement

USDA, Innovation Center for U.S Dairy Work Towards 2050 Stewardship Goals

Consumers Have Misguided Beliefs About Dairy Product Sustainability

SOMETHING TO CONSIDER

What Is Regenerative Agriculture?

Choosing a Mentor

NORTHEAST DAIRY MAGAZINE TAKES TOP AWARD

SOMETHING TO CONSIDER