SUDIA 2014 Year in Review: Shaping Dairy's Future

Shaping Dairy’sFuture

2014 Year in review

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Southeast United D

airy Industry Association, Inc.

5340 West Fayetteville Road

Atlanta, GA

30349-5416

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w.southeastdairy.org

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Glen EasterSUDIA President

Sponsorship

FutureShaping Dairy’s

This past year your checkoff program worked hard to bring together processors, cooperatives and other key industry players to invest in the fluid milk business and stop declining sales.

We are taking an approach that I label as “strategically patient, but tactically urgent.” This strategy is designed to help address fundamental factors resulting from decades of category neglect, due to in part to changing fluid milk consumption patterns, financial constraints that limit innovation and brand marketing, as well as a mentality to compete amongst ourselves, versus other beverages.

I say strategically patient because turning around the business takes time. The U.S. export industry, through your partially checkoff-funded U.S. Dairy Export Council, has been able to grow dairy export sales through years of developing relationships with foreign countries, and helping the U.S. industry become a consistent supplier of products that foreign consumers want. Starbucks, which uses over 90 million gallons of milk a year, seemed to be an overnight success, although the development took 30 years. After over 25 years of recommendations to avoid dairy fat, we are turning the tide and promoting its goodness, with the help of the landmark Time magazine article earlier this year.

I say tactically urgent because we must focus on fluid milk every hour of every day, and we are. Your national checkoff organization Dairy Management, Inc. (DMI) has brought the industry together to reinvest in fluid milk. Partnerships with large companies, processors and cooperatives, are growing the milk and added-value milk business. These companies have pledged to work aggressively to pursue growth opportunities for fluid milk through infrastructure, capital, human resource and marketing investments.

As a dairy farmer and representing over 3,000 dairy farmers throughout the Southeast, I know how important fluid milk sales are to our marketplace. I can tell you that as a member of the Producer Fluid Milk Advisory Group overseeing this national project, I am hopeful, excited and positive about changes in our industry to turn around future milk sales.

In the meantime, we continue to do a wide variety of milk and dairy promotion projects throughout the Southeast. In this annual report, you’ll see just how many different kinds of programs we have to shape dairy’s future and grow sales.

Shaping Dairy’s Future: Turning Around fluid milk sales

President’s Update thank for your contribution and support of Southeastern

dairy farmersyoudairy cow ($2,500 - $3,500)

Heifer ($1,000 - $2,499)

calf ($300 - $999)

1 FutureShaping Dairy’s 26

Pardee Label Expect the BEST


Did you know that 30 percent of Millennials - the young moms and dads who are starting families and are the primary milk buyers - think you mistreat your cows? And that most people who say they are against GMOs don’t know what the term means?

Dairy farmers have a challenge ahead: not only to maintain the freedom to operate as effectively and efficiently as they can to feed a growing world, but to keep consumers’ trust along the way. We can help.

To support dairy farmers and their way of life, SUDIA has a top-notch issues and crisis management program. Supported by your national checkoff organization Dairy Management Inc.’s program, which coordinates with all major dairy organizations, we monitor both traditional and digital media every day. We correct misinformation. We are proactive in telling dairy farmers’ stories. We create opportunities for dairy farmers to speak to civic groups, schools and the media so these important audiences can hear first-hand how dairy farmers care about their cows, their milk and their land.

Most importantly, we are there for you. We are there for you if an undercover video is shot on your farm. We are there for you if you get a call

from People for the Ethical Treatment of Animals (PETA). We are there for you if you get a media call because of a neighbor’s complaint. We support you with statements, interviews and counsel, and other communications needs.

Maintaining consumers’ trust in dairy products and in dairy farmers has become a more and more important focus of all of our programs as our customers purchase milk based on how responsibly they believe it is

produced. And they want to hear from you. Contact me to join our programs or if a consumer issue arises on your farm: [email protected] or 1-800-343-4693. Let’s shape dairy’s future together.

Building the Public’s Confidence in Dairy to Shape our Future

General Manager’s Update

Cheryl HaynSUDIA General

Manager

domestic milk consumption

ADA of Va. board members Dan Myers (left), Maxie Aker and Bobby Combs, with Cheryl Hayn, promote dairy at the 2014 Virginia Dairy Expo.

According to the United States Department of Agriculture, per capital consumption of total milk has climbed to 611 pounds

(milkfat basis). Between 1951 and 1972, dairy lost 175 pounds per capita of consumption. Then, between 1972 and 1983, per capita sales were flat. Between 1983, the year dairy checkoff came into

existence, and 2013, sales have increased by nearly 90 pounds per capita, an increase of 17 percent. Today, per capita consumption is

growing at a healthy pace, outpacing population growth.

2FutureShaping Dairy’s25

2014 ExpendituresSchool health and wellness

School Health and Wellness, 35.1%

Unified Marketing Plan National

Program, 19.4%

Industry Relations, 16.1%

Nutrition Affairs, 11.9%

Consumer Confidence, 10.4%

Administration, 4.7%Local Programs, 1.5% Strategic

Initatives, 0.9%

In 2014, SUDIA’s expenditures were $11,656,860. School programs, dairy farmer image efforts, nutrition affairs, feeding

programs, product and national partnerships, and building consumer confidence were the continued focus of SUDIA’s

2014 program plan and budget.

Dairy Everywhere in southeast schools

Children represent 100% of future dairy consumers, and the best way to reach them is through the school environment. Children receive a majority of their daily meal intake at school, and it has been shown that once a child has had a bad school milk experience and stops drinking milk, the dairy industry loses over 1,000 gallons of milk throughout that child’s lifetime. In addition, children who do not drink milk will not receive the nine essential nutrients, vitamins and minerals provided by milk’s nutritional boost, which are needed for health and growth.

SUDIA works in partnership with Southeast schools to provide a broad range of programs that highlight the benefits of dairy, and ultimately grow dairy sales. Through SUDIA’s “Dairy Everywhere” programs, 1,223 school districts, or 100 percent of school districts across all nine states,

are now exposing children to dairy products several times a day on school campuses.

SUDIA also participates in the summer foodservice program, Summer Feeding, which is headed by Secretary Vilsack at the United States Department of Agriculture. For many students, summer months are a time when food may not regularly be available at home. By working with school districts during summer months, more students have the opportunity to drink nutrient-rich milk.

Highlighting the important nutrients dairy products provide through educational pieces and promotional materials, SUDIA’s “Dairy

Everywhere” programs expose children to new ways to eat and drink dairy, such as yogurt parfaits and smoothies.Future

Shaping Dairy’s3 FutureShaping Dairy’s 24

SUDIA board of directors

Maxie Aker, Va.Max Anderson, Miss.

H.H. Barlow, Ky.Rabon Bayless, Tenn.

Jack Bentley, Ga.Celeste Blackburn, Associate

Director, Tenn.Eugene Blackwell, N.C.

Kirk Butcher, Ga.Mickey Childers, Ala.

Bobby Combs, Va.Heck Davis, Ga.

Randy Davis, Tenn.Jeff Deener, Ky.

Mike Ellis, Tenn.Michael Ferguson, Miss.

Kent Herman, N.C.Dan Holsinger, Va.

Steve Lee, Tenn.Joe Parsley, TexasRonnie Patton, Ky.Lloyd Phillips, Va.Nathan Roth, Mo.Terry Rowlett, Ky.Susie Sharkey, La.Allen Sisson, Va.

Emory Young, Ga.

officers

SCHOOL HEALTH AND WELLNESS

New Smooth and Smart and Yo to Go!

programs in 2014

145

Using SUDIA-funded blenders, schools are able to serve delicious

smoothies - each containing 4 ounces of yogurt and 8 ounces of milk - to

students across the Southeast

FutureShaping Dairy’s 4

Zach Myers, Vice President,North Carolina

Glen Easter,President,

South Carolina

Jerry Truelove,Secretary,Georgia

Ken Smith,Treasurer,Virginia

directors

FutureShaping Dairy’s23

2014 also meant connecting with consumers using new social

media platforms. In one year, SUDIA shared photos with 335

followers on Instagram and pinned its way onto idea boards, gaining over 1,000 followers on Pinterest.

new platforms: &followers

45,732

1,184impressions

School health and wellness

new coolers placed in 2014

200total coolers placed in Southeast

schools

SUDIA-sponsored coolers are making quite the splash across the Southeast. The

coolers, which are filled with cold chocolate milk, find homes in college and high

school athletic facilities and locker rooms. Chocolate milk is the perfect recovery

beverage after workouts and games.

The cooler is the first place they go after practice. Chocolate milk is a great nutritional

powerhouse and it’s good for all athletes.

- Dave Crist, Head Coach, Blacksburg High School,

Blacksburg, Va.

“Future

Shaping Dairy’s5

”

754

visits to the Dedicated to Dairy and Southeast United Dairy Industry

Association webpages

137,745

@sedairy@dedicated2dairyfollowers 2,3991,233

As consumers continue to become more interested in their food and where it comes from, connecting

with them through social media has become increasingly important. Providing consumers with information not only increases trust in dairy products, but also shapes public perception of the dairy industry.

In 2014, SUDIA soared in popularity in the social media sphere, connecting with over 5,640 consumers on Facebook and 3,550 on Twitter.

Communications

2,7772,871Southeast United Dairy

Industry Association Fans Dedicated to Dairy Fans

World school milk dayWorld School Milk Day (WSMD) is a global initiative backed by the Food and Agriculture Organization of the United Nations, which unites countries around the world to recognize the health benefits of school milk programs.

On Sept. 25, SUDIA joined in to celebrate the 14th anniversary of WSMD by partnering with more than 1,000 schools across the Southeast. The celebrations featured milk mustache photo shoots, milk chugging competitions, dairy product samplings and dairy art contests.

20

events hosted at SUDIA

district schools

1,365

WSMD kits distributed to schools

5 million

impressions through our social media contest

26 dairy farm

families visited schools

fuel up to play 60

grants awarded to Southeast schools through the Fuel Up to Play 60 program in 2014

196

Southeastern schools enrolled in Fuel Up to Play 60

students involved in the Fuel Up to Play 60 program

increase in the number of schools enrolled in Fuel Up to Play 60 with a Program

Advisor

donated by partners in 2014

12,535

34%

7,408,000

$162,000


invested by Quaker Oats in the “Make It With Milk” campaign. Efforts include new products, such as a breakfast shake featuring dairy, and a Warm and

Crunchy Oatmeal that can only be prepared with milk.

$14 million


The checkoff-funded Fuel Up to Play 60 program is the largest children’s health and wellness program in the country. It advances healthy eating (including dairy) and 60 minutes of physical activity

every day. With childhood obesity at an all-time high and being even more prevalent in the Southeast, the program encourages students to live an active lifestyle and eat a balanced diet full of dairy products.

SUDIA also received a $50,000 grant through the Atlanta Falcons Youth Foundation to promote Fuel Up to Play 60 in schools across Georgia.

In 2014, more than $162,000 was donated by partners such as Quaker, Leprino Foods, General Mills, Dean’s, and Atlanta Fixture to help build dairy’s presence in schools across the Southeast and extend dairy farmers’dollars.

partnerships

of new Taco Bell breakfast items contain cheese

90%

1.7additional pounds of milk have been sold through new

McDonald’s items. McDonald’s introduced 27 new dairy-friendly items in 2013. Additionally, milk is now the default

beverage served with Happy Meals.

billion


nutrition affairsWith more and more activist groups and loud influential voices speaking out online

against dairy, SUDIA has taken a proactive stance to get the truth out. One of our tactics is to partner with third-party experts, including physicians, child nutrition directors, dietitians in clinical and private practice, retail and supermarket nutritionists as well as school nurses, so that their credible voices are heard by the public.

SUDIA is committed to nutrition education and research-based communications on behalf of dairy products. By partnering with industry leaders and third-party experts, SUDIA team members encourage and protect dairy’s role in health and wellness.

Since 2009, SUDIA has trained 69 third-party experts about the nutritional benefits of dairy foods and how to incorporate milk, yogurt and cheese into a healthy diet. In 2014, SUDIA held five advocate trainings, for chefs, school nutrition professionals, sports dietitians, child nutrition directors, and health and wellness advisory board members.

Through SUDIA’s training and advocacy, health professionals across the Southeast participated in 92 media activations including guest blogs, media interviews, newsletter guest columns and attend events and give presentations on behalf of SUDIA.

FutureShaping Dairy’s9 7

seven new partners:

Revamping fluid milk


College Sports nutrition initiative

great american milk drive

Milk is one of the most requested items at food banks, and is also one of the least donated items. To heighten awareness and increase the amount of fluid milk donated to food banks, MilkPEP and Feeding America partnered to begin the Great American Milk Drive. Promoted through social media and at certain retailers, the Great American Milk Drive encourages consumers to donate, either online, through coupons at select retailers, such as Kroger’s “Pour It Forward” campaign, or at community events and festivals.

In 2014, SUDIA partnered with MilkPEP to host five events throughout the Southeast, promote the cause on social media and activate major food retailers Kroger, Harris Teeter and Food City. During Hunger Action Month in December, MilkPEP challenged each state to “pour” the most milk forward and donate the most milk, which led to $330,400 in donations, equating to 66,000 gallons of milk, being donated nationwide. In the Southeast, Georgia was the winner with 25,219 gallons donated.

SUDIA team members encourage Kennessaw State University students to donate milk.

From my perspective, it has been wonderful to have the blenders and cooler. It has really made our

operation work at the next level and

allows us to deliver top notch nutrition.

- Jen Ketterly, Director of Sports

Nutrition, University of Georgia

“”

The College Sports Nutrition Initiative, big brother to SUDIA’s Coolers for Coaches program, has spread to colleges and universities across the Southeast. Currently, 26 glass-front dairy coolers and five milk dispensers have been placed in university athletic training facilities and dining halls to provide nutritious post-exercise dairy products to college athletes.


partnershipsThe dairy checkoff’s strategy of working with partners grew category-wide, sustainable dairy

sales in 2014. In 2013, annual U.S. per capita consumption of total milk is an estimated 604 pounds per capita of all dairy, compared to 541 in 1981, which was before the national checkoff program was created. Dairy checkoff programs continue to work with food service partners who are committed to introducing new dairy-based menu items and promoting the consumption of milk and dairy products in their restaurants and stores.

In October, Dairy Management, Inc. announced new partnerships with seven different companies to pursue growth opportunities for fluid milk and milk-based beverage sales. The new partners include Maryland & Virginia Milk Producers Cooperative Association, Inc., Southeast Milk, Inc., The Coca-Cola Company, Dairy Farmers of America, Darigold/Northwest Dairy Association, The Kroger Company, and Shamrock Farms. These partners plan on investing nearly half a billion dollars in capital, infrastructure, research and human capital to put milk back at the center of the health and wellness market and invest in new product lines and processing facilities.

Domino’s stores will be converted into fast-casual “Pizza Theaters,” which will highlight the dairy industry on its walls.

5,000


nutrition affairs

The nutrition affairs team has taken to YouTube to reach consumers and inform them of delicious recipes that help lactose intolerant individuals enjoy dairy once again.

The recipes, which can be found on SUDIA’s YouTube channel, focus on using dairy ingredients that are naturally low in lactose, such as hard cheeses and lactose-free milk. In addition to featuring low-lactose recipes, SUDIA has also been working on innovative programs, including faith-based marketing, which focus on ways to keep real dairy a part of a low-lactose diet.

million consumer impressions

23.5in advertising value

We are giving consumers what they want, which is more recipes and more cooking

demonstrations.- Mary Martin Nordness, Director of Nutrition

Affairs“ ”

68,000total video views on the SUDIA YouTube

channel


“

4-h student ambassadors fuel up

chain leader advisory council

In July, SUDIA partnered with the University of Tennessee Extension Service, bringing high school 4-H members into local middle and high schools as Fuel Up to Play 60 Student Ambassadors. Student Ambassadors work with local Program Advisors, assisting them with activities and working with students, or assist in recruiting new Program Advisors and convincing more schools to participate in the program.

In June, SUDIA and partner organization the United Dairymen of Idaho brought together 35 professionals from the food industry, including restaurant menu developers and cheese processors, to discuss adding more cheese and dairy products to their menus. Among the restaurant chains represented were Shoney’s, Arby’s and Krystal, all of which have remained in discussion with SUDIA to incorporate more dairy into their menus.

Student Ambassadors are able to participate in new leadership opportunities and really make an

impact in their schools and community. At 4-H, we are grounded in agriculture and this is one more opportunity to partner with a fellow agricultural organization and promote the industry to future

consumers.- Justin Crowe, 4-H Youth Development, University

of Tennessee ”Future

Shaping Dairy’s 16

“

$700,000

779

nutrition affairs

media interviews including topics such as Great American Milk

Drive, Healthy Tailgate Party Ideas, Benefits of Breakfast and Back-to-School Breakfast and Lunch ideas

225dairy image

SUDIA’s state-of-the-art issues monitoring system combs the internet for dairy content – negative or positive – alerting staff to respond and activate spokespersons for media inquiries.

In 2014, SUDIA staff responded to animal abuse videos, monitored PETA stories and billboards, as well as other dairy industry threats to set the record straight about dairy farm families.

monitoring the issues

SUDIA’s promotional partnership with Southern Living garnered

3.1 million impressions.

farm families filmed for Dedicated to Dairy videos

families have been filmed to date

FutureShaping Dairy’s15 Future


dairy farmers in the Dairy Farmer Spokesperson

Network

90

dairy farmer media interviews in 2014

51

new Dairy Farm Spokesperson

Network farmers in 2014

8

dairy imageSUDIA’s Dedicated to Dairy: Our Cows, Our Milk, Our Land image program addresses questions consumers may have about where their dairy foods come from and how they are produced.The image program highlights to the public how Southeastern farm families are committed to producing a naturally nutritious product, protecting their land and caring for their animals. Thirty percent of Millenials, who make purchasing decisions based on how responsible they perceive products are made, believe farmers mistreat their animals, making them an important target audience for the dairy industry.

The Dedicated to Dairy online portal is a interactive resource where consumers can learn about on-farm dairy practices and watch videos that feature Southeastern dairy farmers talking about their passion for dairy.

impressions during SUDIA’s retail promotion

for Dedicated to Dairy, which reached

consumers visiting over 870 retailers including Food City, Kroger and

Publix, with dairy farm families featured on the grocery cart and in the

dairy case.

6.5 million dairy farmers attended events to

promote the dairy industry

137

local events hosted in

SUDIA’s nine-state region

131

Shaping Dairy’s 14Future

Dairy farmer Marilyn Easter and South Carolina Commissioner of Agriculture Hugh Weathers promote dairy farming at the Taste of South Carolina event held in Columbia, South Carolina.

dairy farmers in the Dairy Farmer Spokesperson

Network

90

dairy farmer media interviews in 2014

51

new Dairy Farm Spokesperson

Network farmers in 2014

8

dairy imageSUDIA’s Dedicated to Dairy: Our Cows, Our Milk, Our Land image program addresses questions consumers may have about where their dairy foods come from and how they are produced.The image program highlights to the public how Southeastern farm families are committed to producing a naturally nutritious product, protecting their land and caring for their animals. Thirty percent of Millenials, who make purchasing decisions based on how responsible they perceive products are made, believe farmers mistreat their animals, making them an important target audience for the dairy industry.

The Dedicated to Dairy online portal is a interactive resource where consumers can learn about on-farm dairy practices and watch videos that feature Southeastern dairy farmers talking about their passion for dairy.

impressions during SUDIA’s retail promotion

for Dedicated to Dairy, which reached

consumers visiting over 870 retailers including Food City, Kroger and

Publix, with dairy farm families featured on the grocery cart and in the

dairy case.

6.5 million dairy farmers attended events to

promote the dairy industry

137

local events hosted in

SUDIA’s nine-state region

131

Shaping Dairy’s 14Future

Dairy farmer Marilyn Easter and South Carolina Commissioner of Agriculture Hugh Weathers promote dairy farming at the Taste of South Carolina event held in Columbia, South Carolina.

779

nutrition affairs

media interviews including topics such as Great American Milk

Drive, Healthy Tailgate Party Ideas, Benefits of Breakfast and Back-to-School Breakfast and Lunch ideas

225dairy image

SUDIA’s state-of-the-art issues monitoring system combs the internet for dairy content – negative or positive – alerting staff to respond and activate spokespersons for media inquiries.

In 2014, SUDIA staff responded to animal abuse videos, monitored PETA stories and billboards, as well as other dairy industry threats to set the record straight about dairy farm families.

monitoring the issues

SUDIA’s promotional partnership with Southern Living garnered

3.1 million impressions.

farm families filmed for Dedicated to Dairy videos

families have been filmed to date

FutureShaping Dairy’s15 Future


nutrition affairs

The nutrition affairs team has taken to YouTube to reach consumers and inform them of delicious recipes that help lactose intolerant individuals enjoy dairy once again.

The recipes, which can be found on SUDIA’s YouTube channel, focus on using dairy ingredients that are naturally low in lactose, such as hard cheeses and lactose-free milk. In addition to featuring low-lactose recipes, SUDIA has also been working on innovative programs, including faith-based marketing, which focus on ways to keep real dairy a part of a low-lactose diet.

million consumer impressions

23.5in advertising value

We are giving consumers what they want, which is more recipes and more cooking

demonstrations.- Mary Martin Nordness, Director of Nutrition

Affairs“ ”

68,000total video views on the SUDIA YouTube

channel


“

4-h student ambassadors fuel up

chain leader advisory council

In July, SUDIA partnered with the University of Tennessee Extension Service, bringing high school 4-H members into local middle and high schools as Fuel Up to Play 60 Student Ambassadors. Student Ambassadors work with local Program Advisors, assisting them with activities and working with students, or assist in recruiting new Program Advisors and convincing more schools to participate in the program.

In June, SUDIA and partner organization the United Dairymen of Idaho brought together 35 professionals from the food industry, including restaurant menu developers and cheese processors, to discuss adding more cheese and dairy products to their menus. Among the restaurant chains represented were Shoney’s, Arby’s and Krystal, all of which have remained in discussion with SUDIA to incorporate more dairy into their menus.

Student Ambassadors are able to participate in new leadership opportunities and really make an

impact in their schools and community. At 4-H, we are grounded in agriculture and this is one more opportunity to partner with a fellow agricultural organization and promote the industry to future

consumers.- Justin Crowe, 4-H Youth Development, University

of Tennessee ”Future


“

$700,000

College Sports nutrition initiative

great american milk drive

Milk is one of the most requested items at food banks, and is also one of the least donated items. To heighten awareness and increase the amount of fluid milk donated to food banks, MilkPEP and Feeding America partnered to begin the Great American Milk Drive. Promoted through social media and at certain retailers, the Great American Milk Drive encourages consumers to donate, either online, through coupons at select retailers, such as Kroger’s “Pour It Forward” campaign, or at community events and festivals.

In 2014, SUDIA partnered with MilkPEP to host five events throughout the Southeast, promote the cause on social media and activate major food retailers Kroger, Harris Teeter and Food City. During Hunger Action Month in December, MilkPEP challenged each state to “pour” the most milk forward and donate the most milk, which led to $330,400 in donations, equating to 66,000 gallons of milk, being donated nationwide. In the Southeast, Georgia was the winner with 25,219 gallons donated.

SUDIA team members encourage Kennessaw State University students to donate milk.

From my perspective, it has been wonderful to have the blenders and cooler. It has really made our

operation work at the next level and

allows us to deliver top notch nutrition.

- Jen Ketterly, Director of Sports

Nutrition, University of Georgia

“”

The College Sports Nutrition Initiative, big brother to SUDIA’s Coolers for Coaches program, has spread to colleges and universities across the Southeast. Currently, 26 glass-front dairy coolers and five milk dispensers have been placed in university athletic training facilities and dining halls to provide nutritious post-exercise dairy products to college athletes.


partnershipsThe dairy checkoff’s strategy of working with partners grew category-wide, sustainable dairy

sales in 2014. In 2013, annual U.S. per capita consumption of total milk is an estimated 604 pounds per capita of all dairy, compared to 541 in 1981, which was before the national checkoff program was created. Dairy checkoff programs continue to work with food service partners who are committed to introducing new dairy-based menu items and promoting the consumption of milk and dairy products in their restaurants and stores.

In October, Dairy Management, Inc. announced new partnerships with seven different companies to pursue growth opportunities for fluid milk and milk-based beverage sales. The new partners include Maryland & Virginia Milk Producers Cooperative Association, Inc., Southeast Milk, Inc., The Coca-Cola Company, Dairy Farmers of America, Darigold/Northwest Dairy Association, The Kroger Company, and Shamrock Farms. These partners plan on investing nearly half a billion dollars in capital, infrastructure, research and human capital to put milk back at the center of the health and wellness market and invest in new product lines and processing facilities.

Domino’s stores will be converted into fast-casual “Pizza Theaters,” which will highlight the dairy industry on its walls.

5,000


nutrition affairsWith more and more activist groups and loud influential voices speaking out online

against dairy, SUDIA has taken a proactive stance to get the truth out. One of our tactics is to partner with third-party experts, including physicians, child nutrition directors, dietitians in clinical and private practice, retail and supermarket nutritionists as well as school nurses, so that their credible voices are heard by the public.

SUDIA is committed to nutrition education and research-based communications on behalf of dairy products. By partnering with industry leaders and third-party experts, SUDIA team members encourage and protect dairy’s role in health and wellness.

Since 2009, SUDIA has trained 69 third-party experts about the nutritional benefits of dairy foods and how to incorporate milk, yogurt and cheese into a healthy diet. In 2014, SUDIA held five advocate trainings, for chefs, school nutrition professionals, sports dietitians, child nutrition directors, and health and wellness advisory board members.

Through SUDIA’s training and advocacy, health professionals across the Southeast participated in 92 media activations including guest blogs, media interviews, newsletter guest columns and attend events and give presentations on behalf of SUDIA.

FutureShaping Dairy’s9 7

seven new partners:

Revamping fluid milk


The checkoff-funded Fuel Up to Play 60 program is the largest children’s health and wellness program in the country. It advances healthy eating (including dairy) and 60 minutes of physical activity

every day. With childhood obesity at an all-time high and being even more prevalent in the Southeast, the program encourages students to live an active lifestyle and eat a balanced diet full of dairy products.

SUDIA also received a $50,000 grant through the Atlanta Falcons Youth Foundation to promote Fuel Up to Play 60 in schools across Georgia.

In 2014, more than $162,000 was donated by partners such as Quaker, Leprino Foods, General Mills, Dean’s, and Atlanta Fixture to help build dairy’s presence in schools across the Southeast and extend dairy farmers’dollars.

partnerships

of new Taco Bell breakfast items contain cheese

90%

1.7additional pounds of milk have been sold through new

McDonald’s items. McDonald’s introduced 27 new dairy-friendly items in 2013. Additionally, milk is now the default

beverage served with Happy Meals.

billion


fuel up to play 60

grants awarded to Southeast schools through the Fuel Up to Play 60 program in 2014

196

Southeastern schools enrolled in Fuel Up to Play 60

students involved in the Fuel Up to Play 60 program

increase in the number of schools enrolled in Fuel Up to Play 60 with a Program

Advisor

donated by partners in 2014

12,535

34%

7,408,000

$162,000


invested by Quaker Oats in the “Make It With Milk” campaign. Efforts include new products, such as a breakfast shake featuring dairy, and a Warm and

Crunchy Oatmeal that can only be prepared with milk.

$14 million


@sedairy@dedicated2dairyfollowers 2,3991,233

As consumers continue to become more interested in their food and where it comes from, connecting

with them through social media has become increasingly important. Providing consumers with information not only increases trust in dairy products, but also shapes public perception of the dairy industry.

In 2014, SUDIA soared in popularity in the social media sphere, connecting with over 5,640 consumers on Facebook and 3,550 on Twitter.

Communications

2,7772,871Southeast United Dairy

Industry Association Fans Dedicated to Dairy Fans

World school milk dayWorld School Milk Day (WSMD) is a global initiative backed by the Food and Agriculture Organization of the United Nations, which unites countries around the world to recognize the health benefits of school milk programs.

On Sept. 25, SUDIA joined in to celebrate the 14th anniversary of WSMD by partnering with more than 1,000 schools across the Southeast. The celebrations featured milk mustache photo shoots, milk chugging competitions, dairy product samplings and dairy art contests.

20

events hosted at SUDIA

district schools

1,365

WSMD kits distributed to schools

5 million

impressions through our social media contest

26 dairy farm

families visited schools

2014 also meant connecting with consumers using new social

media platforms. In one year, SUDIA shared photos with 335

followers on Instagram and pinned its way onto idea boards, gaining over 1,000 followers on Pinterest.

new platforms: &followers

45,732

1,184impressions

School health and wellness

new coolers placed in 2014

200total coolers placed in Southeast

schools

SUDIA-sponsored coolers are making quite the splash across the Southeast. The

coolers, which are filled with cold chocolate milk, find homes in college and high

school athletic facilities and locker rooms. Chocolate milk is the perfect recovery

beverage after workouts and games.

The cooler is the first place they go after practice. Chocolate milk is a great nutritional

powerhouse and it’s good for all athletes.

- Dave Crist, Head Coach, Blacksburg High School,

Blacksburg, Va.

“Future

Shaping Dairy’s5

”

754

visits to the Dedicated to Dairy and Southeast United Dairy Industry

Association webpages

137,745

SUDIA board of directors

Maxie Aker, Va.Max Anderson, Miss.

H.H. Barlow, Ky.Rabon Bayless, Tenn.

Jack Bentley, Ga.Celeste Blackburn, Associate

Director, Tenn.Eugene Blackwell, N.C.

Kirk Butcher, Ga.Mickey Childers, Ala.

Bobby Combs, Va.Heck Davis, Ga.

Randy Davis, Tenn.Jeff Deener, Ky.

Mike Ellis, Tenn.Michael Ferguson, Miss.

Kent Herman, N.C.Dan Holsinger, Va.

Steve Lee, Tenn.Joe Parsley, TexasRonnie Patton, Ky.Lloyd Phillips, Va.Nathan Roth, Mo.Terry Rowlett, Ky.Susie Sharkey, La.Allen Sisson, Va.

Emory Young, Ga.

officers

SCHOOL HEALTH AND WELLNESS

New Smooth and Smart and Yo to Go!

programs in 2014

145

Using SUDIA-funded blenders, schools are able to serve delicious

smoothies - each containing 4 ounces of yogurt and 8 ounces of milk - to

students across the Southeast


Zach Myers, Vice President,North Carolina

Glen Easter,President,

South Carolina

Jerry Truelove,Secretary,Georgia

Ken Smith,Treasurer,Virginia

directors



Did you know that 30 percent of Millennials - the young moms and dads who are starting families and are the primary milk buyers - think you mistreat your cows? And that most people who say they are against GMOs don’t know what the term means?

Dairy farmers have a challenge ahead: not only to maintain the freedom to operate as effectively and efficiently as they can to feed a growing world, but to keep consumers’ trust along the way. We can help.

To support dairy farmers and their way of life, SUDIA has a top-notch issues and crisis management program. Supported by your national checkoff organization Dairy Management Inc.’s program, which coordinates with all major dairy organizations, we monitor both traditional and digital media every day. We correct misinformation. We are proactive in telling dairy farmers’ stories. We create opportunities for dairy farmers to speak to civic groups, schools and the media so these important audiences can hear first-hand how dairy farmers care about their cows, their milk and their land.

Most importantly, we are there for you. We are there for you if an undercover video is shot on your farm. We are there for you if you get a call

from People for the Ethical Treatment of Animals (PETA). We are there for you if you get a media call because of a neighbor’s complaint. We support you with statements, interviews and counsel, and other communications needs.

Maintaining consumers’ trust in dairy products and in dairy farmers has become a more and more important focus of all of our programs as our customers purchase milk based on how responsibly they believe it is

produced. And they want to hear from you. Contact me to join our programs or if a consumer issue arises on your farm: [email protected] or 1-800-343-4693. Let’s shape dairy’s future together.

Building the Public’s Confidence in Dairy to Shape our Future

General Manager’s Update

Cheryl HaynSUDIA General

Manager

domestic milk consumption

ADA of Va. board members Dan Myers (left), Maxie Aker and Bobby Combs, with Cheryl Hayn, promote dairy at the 2014 Virginia Dairy Expo.

According to the United States Department of Agriculture, per capital consumption of total milk has climbed to 611 pounds

(milkfat basis). Between 1951 and 1972, dairy lost 175 pounds per capita of consumption. Then, between 1972 and 1983, per capita sales were flat. Between 1983, the year dairy checkoff came into

existence, and 2013, sales have increased by nearly 90 pounds per capita, an increase of 17 percent. Today, per capita consumption is

growing at a healthy pace, outpacing population growth.

2FutureShaping Dairy’s25

Glen EasterSUDIA President

Sponsorship


This past year your checkoff program worked hard to bring together processors, cooperatives and other key industry players to invest in the fluid milk business and stop declining sales.

We are taking an approach that I label as “strategically patient, but tactically urgent.” This strategy is designed to help address fundamental factors resulting from decades of category neglect, due to in part to changing fluid milk consumption patterns, financial constraints that limit innovation and brand marketing, as well as a mentality to compete amongst ourselves, versus other beverages.

I say strategically patient because turning around the business takes time. The U.S. export industry, through your partially checkoff-funded U.S. Dairy Export Council, has been able to grow dairy export sales through years of developing relationships with foreign countries, and helping the U.S. industry become a consistent supplier of products that foreign consumers want. Starbucks, which uses over 90 million gallons of milk a year, seemed to be an overnight success, although the development took 30 years. After over 25 years of recommendations to avoid dairy fat, we are turning the tide and promoting its goodness, with the help of the landmark Time magazine article earlier this year.

I say tactically urgent because we must focus on fluid milk every hour of every day, and we are. Your national checkoff organization Dairy Management, Inc. (DMI) has brought the industry together to reinvest in fluid milk. Partnerships with large companies, processors and cooperatives, are growing the milk and added-value milk business. These companies have pledged to work aggressively to pursue growth opportunities for fluid milk through infrastructure, capital, human resource and marketing investments.

As a dairy farmer and representing over 3,000 dairy farmers throughout the Southeast, I know how important fluid milk sales are to our marketplace. I can tell you that as a member of the Producer Fluid Milk Advisory Group overseeing this national project, I am hopeful, excited and positive about changes in our industry to turn around future milk sales.

In the meantime, we continue to do a wide variety of milk and dairy promotion projects throughout the Southeast. In this annual report, you’ll see just how many different kinds of programs we have to shape dairy’s future and grow sales.

Shaping Dairy’s Future: Turning Around fluid milk sales

President’s Update thank for your contribution and support of Southeastern

dairy farmersyoudairy cow ($2,500 - $3,500)

Heifer ($1,000 - $2,499)

calf ($300 - $999)

1 FutureShaping Dairy’s 26

Pardee Label Expect the BEST

Documents

SUDIA 2014 Year in Review: Shaping Dairy's Future