YOUR DAIRY PROMOTION AT WORK
Navigating COVID 19 with the Michigan and Indiana Dairy Checkoff Organizations BY AMERICAN DAIRY ASSOCIATION OF INDIANA AND UNITED DAIRY INDUSTRY OF MICHIGAN
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he coronavirus crisis is impacting every sector of life and is hitting the agriculture industry dramatically. During this crisis, consumers and others are asking why dairy and other commodities are being dumped or not utilized in places where there is need. The checkoff staff is laser-focused on priority areas that will divert and redistribute the milk supply to crucial areas: ensuring access to school meals, helping food banks meet growing need, convening partners within foodservice and focusing on the retail channel. Like you, our hearts sink as we watch the markets. While schools and restaurants are still feeding people, it’s a decrease from pre-crisis levels. Below you’ll learn more about action taken by local and national dairy promotion groups, and the rest of the dairy community, to keep dairy moving from farm to table. Please know, your dairy checkoff staff at United Dairy Industry of Michigan (UDIM) and American Dairy Association Indiana (ADAI) continue to work hard on your behalf and alongside you during this pandemic.
Retail Food consumption changed in early March as consumers began social distancing and spending more time at home. Total store retail sales patterns reflect this shift, with the retail dairy sales view continuing to be positive for 2020 year to date (YTD), due in part to increased cooking and baking along with the staple nature of dairy products in consumers’ diets. Products
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complementary to dairy or containing dairy ingredients also helped to fuel dairy sales, like cereal and frozen pizza due to their easy, family-pleasing and affordable options. While the retail picture is very positive, it is important to note that definite downturns are expected across every foodservice commercial segment and most noncommercial ones. The large sales lifts we are reporting for retail will not overcome losses in other sectors. Cheese and butter in particular rely on foodservice for at least half of their volume. Initially, there were some capacity issues as the industry shifted quickly from restaurants and schools where the majority of dairy is served, to retail sales. As plants get caught up from the initial influx of consumers hoarding milk and other essentials, please know the processors and stores are working together to fill orders and dairy cases and stores are being encouraged to remove any limitations on milk purchases. When we first learned of stores limiting milk, dairy promotion organizations in Michigan and Indiana connected with local processors to ensure the milk supply was secure and there were no disruptions.
Schools Our top priority is working with state and local partners to support programs that feed children during school closures. USDA rules for feeding school children are similar to the Summer Food Service Program and available to every child 18 and younger, which means milk must be provided. All schools are strongly encouraged to participate, and most districts are setting up hubs for meal pick up or using school buses to deliver meals to normal bus stops. Additionally, some schools are working to provide meals that will last multiple days, allowing families to stay home longer and make fewer trips. By providing shelf-stable milk or gallon and half-gallon options, schools ensure food safety remains top priority as meals are delivered. GENYOUth set up a national campaign, “For Schools’ Sake” to provide grants to schools. The grants help purchase supplies for meal distribution and delivery to serve local families better. The grants will provide resources and equipment to ensure youth continue to receive the nutritious meals they need, including milk.
We worked with local grocers associations who then alerted their members to remove limit signs in the dairy case, while fielding information from consumers to target contacts with stores who continued to post limits.
UDIM contributed funds to award grants to 12 Michigan schools.
Due to the combined efforts of local and national promotion organizations, Aldi, Target and WalMart headquarters made the decision to remove the signs from their stores on April 13.
In close communication with the Michigan Department of Education (MDE) and school districts around the state, the UDIM team provided over 12 crate milk coolers and 460 milk cooler
ADAI is working through over 200 applications for grant assistance to be awarded this spring.
