VOLUME XVIII, NO. 10

TEXAS DAIRY REVIEW

OCTOBER 2009

 

Hwy. 377, Dublin, Texas

  "Special Sales" Coming Up

Wednesdays:  November 11th & December 16th

Make Plans to Attend.     See You There!

 

"Dairymen: In order for the Texas Dairy Review to have accurate information, please send a
Select Producers contract and/or any other information to tdeditor@texasdairy.com" Thank you.
 
 

Producers getting milked---right out of the barn

Select Producers moo-ve forward with plans to build dual purpose plant

Best use for $350 million is for buying cheese ……

CWT at it again with October herd retirement

TX Ag Expo honored by visit from Commissioner Staples

Fear Not: Dogs for hogs can get rid of your problem

Milk vending machine donated to Vet’s Outlet

Dairy Max helps to reinventing the dairy aisle with modern “facelift”

"Mmmmm,mmmmm It’s hard to beat good ‘ol milk and cookies!"

Dr. Al Harper with Dublin's "Veterinarian’s Outlet" staff.

 TDR Creative Marketing

Let us write your company, business, or product story and/or press releases. We provide a team of experienced and professional writers ready to write YOUR STORY. If you want to get the message out — Let Us Do The Writing!!!  Professional writers at comparable rates.   1-800-344-4901 254-965-2255

 

Producers getting milked---right out of the barn

 

By Sherry Webb

It is a sad day, indeed, to know the shallow pockets of this nation’s dairy producers are empty while the deep pockets of their counterparts are filled to the brim. It does not seem possible in this ongoing dairy crisis the producers of this nation’s most valuable commodity are getting milked right out of the barn by the fattest cat in the industry.

But, it is true.

While producers may think they know about their respective cooperatives, processors, and the way the industry works, it is what they do not know that is raising concerns.

The industry has been shrouded by a mystique apparently privy to only a select few. It is this “black hole” of the industry being questioned by producers in regions across the country and all the way to the folks on Capitol Hill.

For starters, how does Dean Foods manage to report a $76.2 million dollar profit for the first quarter of 2009---up a staggering 147.4% from the first quarter of last year---when the dairies are going broke? After merging with Suiza Foods in 2001, Dean’s CEO, Gregg Engles, has raked in a whopping $116.38 million over the past five years.

Like everyone else, three U.S. senators, Bernard Sanders (I), Russell Feingold (D), and Charles E. Schumer (D), are determined to get answers about Dean Foods and other entities linked to the high-dollar corporation.

The investigation into allegations about Dean Foods is nothing we haven’t heard before. But, the newly appointed head of the U.S. Department of Justice (DOJ) Antitrust Division, Christine A. Varney, is committed and aggressively focused on taking a “hard look at the dairy industry.” She intends to tackle competition and antitrust issues in the dairy industry, prompted by the request of the senators to re-investigate old cases while looking at more current allegations.

In a letter to Varney, the senators referred to the current dairy situation as a “disaster” while explaining what dairy farmers are paid remains the lowest in nearly four decades—about $1 per gallon, yet the cost that consumers pay in the store remains high---at about $3.01 a gallon for whole milk. They pointed out the price of milk paid to farmers had bottomed out, plummeting from $19.30 cwt to the present $11.30 cwt, a severe drop of 41%.

“The result has been the demise of dairies across the country that have gone out of business or will soon be shutting down,” the senators said.

The senators highest concerns are specifically aimed at Dean Foods, the largest processor in the US, controlling about 40% of the buying market. The senators are fairly convinced that without these concentrated markets, farmers would likely see higher prices on the farm and consumers would see more competitive prices in the store.

The senators urged the DOJ to re-examine and re-investigate certain cases. For instance, in Aug. 2006, an intense and thorough 26-month investigation was conducted by the DOJ into far-ranging, anti-competitive practices in the dairy industry. Although it was recommended to take action against Dean Foods, Dairy Farmers of America (DFA), and National Dairy Holdings (NDH), no action was taken by the DOJ under the Bush administration.

In 2001, Dean Foods and Suiza Foods merged. At the time, the DOJ had required Suiza and Dean to divest 11 dairy processing plants. Complaints filed in private antitrust actions accused DFA of helping Dean “skirt around” the DOJs’ divestiture requirement. DFA financed a subsidiary, NDH, which purchased and operated the 11 plants. DFA then used its control to ensure NDH would not “vigorously compete” with Dean for the sale of processed milk. The senators want to know if a “not to compete” agreement was made, and if so, whether it constituted a violation of antitrust.

Another case questioned is a recent merger in April 2009 when Dean Foods acquired Foremost Farms. The merger seemingly eliminated all competition for school milk contracts in Eastern Wisconsin. The senators want to know how competition can be preserved in the Eastern Wisconsin market and school markets across the nation. Referring to the Hart Scott Rodino Antitrust Improvements Act, they said even small mergers need to be examined for anti-competitive impacts.

In 2007, two putative classes representing over 4,000 dairy farmers were filed in the Middle District of Tennessee alleging Dean Foods, DFA, and NDH conspired to monopolize and monopsonize (when one buyer faces many sellers) milk markets in the Southeastern US.

More recently, a class of consumers sued Dean Foods, DFA, NDH and others for conspiring to fix the price of milk in the store. The senators urge the DOJ to investigate these allegations and other private antitrust actions; allow access to discovery documents; and to investigate the possibility of similar activity in other regions of the US.

According to numerous complaints, Dean Foods and DFA have repeatedly conspired to refuse independent farmers and small cooperatives access to bottling plants in order to force these entities to join DFA or market through DFA affiliates. In January 2003, Dean informed its independent dairy farmers in the Southeast they would no longer permit direct access to its milk bottling plants, but would require all independent dairy farmers to market their Grade A milk through a DFA subsidiary in order to gain access. Such arrangements leave farmers with no ability to choose their own buyer and consequently limit their ability to find a competitive price for their milk.

The DOJ was asked to look into allegations on violation of antitrust laws when in early 2003, DFA focused on gaining market share in Florida controlled by its competitor, Southeast Milk cooperative. Supposedly, a senior vice president of DFA wrote a letter to the manager of Southeast Milk, threatening if Southeast Milk did not merge with DFA, DFA would contract with Florida processors to become their exclusive provider. This would have left Southeast Milk without a buyer.

The senators commented the Capper-Volstead Act provides an exemption to antitrust laws for agriculture cooperatives that act for the benefit of their members. It is intended for organizing together, set association policy, fix prices and otherwise carry on like a business corporation. It does not vest cooperatives with unrestricted power to restrain trade or to achieve monopoly by preying on independent producers, processors or dealers intent on carrying on their own business in their own legitimate way.
Given the limits to Capper-Volstead, they encouraged the DOJ to consider whether this exemption would cover any of the alleged anticompetitive practices by DFA or any other cooperative.

 

 

Select Producers moo-ve forward with plans to build dual purpose plant

 

By Sherry Webb

Select Milk Producers, a member of the Greater Southwest Agency (GSA), may be stepping up to take its producers to a much higher level for the long term, but apparently none of the members have immediate plans in the making to counteract today’s worst producer pay prices since the 1960s. GSA is comprised of Select, Dairy Farmers of America (DFA), Select Milk Producers, Lone Star Milk Producers and Zia.

Select is recognized throughout the dairy industry as an energetic and aggressive milk marketing cooperative made up of a relatively small group of top-notch producers from Texas and New Mexico who provide large volumes of milk. The organization is well-known for “more milk, less members.”

Sources report Select Milk Producers of Artesia, New Mexico, plan to build a fluid milk bottling plant in the Abilene-Sweetwater area of central Texas. The fluid plant would serve the dual purpose of handling both Grade A and organic milk, possibly to be completed in the next two years.

A source close to the internal workings of Select said members are proud and excited their cooperative is taking the initiative to provide a future plan that will keep their members in business. Select members are confident the future bottling plant will succeed because of the cooperative’s sustainability in the industry to produce high quality milk under the guidance of an excellent management team.

Even though it appears it was necessary for Select to procure a 10-year contract from each of its members to provide part of the funding for the new plant, it is apparently agreeable to those members who signed the long-term contract. Select’s plan was to initially obtain as much funding as possible up front from its own producers and secure additional financing elsewhere, perhaps through investors. While it may take some creativeness to get the financing the cooperative needs, members are convinced “that will happen” and does not seem to be a concern.

One major criticism of the plant was said by a producer who owns two dairies in Kansas and two dairies in Texas and operates his own milk bottling plant in California. He said flatly, “it will not work,” although he did not expound on his reasons.

On the move to provide further long-term assurance for its members, it is reported Select will also build a butter/powder plant in Hereford, Texas. Information circulating that Lone Star Milk Producers and Maryland &Virginia Cooperative may be building a butter/powder plant in Hereford was shot down by a source who claimed, “that is not true.”

Described as a progressive organization, Select is a sister cooperative to Continental Dairy Products, headquartered in Fair Oaks, Indiana, with its main office in Artesia, New Mexico, along with Select.

Apparently as advanced as Select, Continental Dairy Products is also on the move. Earlier this year the cooperative negotiated with city and economic development officials at Coopersville, Michigan, to build a $103.2 million powdered milk processing facility in a building vacated by Delphi Corp., according to an article in the Grand Rapids Press. The Michigan Economic Growth Authority Board approved a state tax credit valued at $1.5 million over the next 10 years to help win the cooperative’s investment over competing sites in Indiana and Ohio.

President of Continental is Timothy den Dulk, a west Michigan livestock farmer and businessman. The Coopersville plant was purchased in 2008 for $4.4 million from Delphi Corp. by Arizona Maricopa Associates, L.L.C., owned by the family of den Dulk’s uncle, Arie de Jong. The de Jong family also owns Arizona Maricopa’s parent firm, Hollandia Dairy of Escondido, Calif.

Started in 1998, Continental Dairy has 28 members, averaging 3,000 cows per dairy that together produce 1.8 billion pounds of fluid milk annually. The cooperative has a customer base that includes Cincinnati-based retailer Kroger Co. and Dean Foods based in Horsham, Pennsylvania.

The information reported about den Dulk by the Grand Rapids Press was obtained from the Indiana Secretary of State records because it is Continental’s company policy to avoid the media. This generally holds true for Select Milk Producers, as well.

With Select’s aggressive approach to move forward with their fluid milk bottling plant, cooperative members outside Select are concerned this newest endeavor could create a wreck for central Texas and other producers. Some producers fear Select may use its abilities to negotiate a cheaply-priced milk contract with a large processor, such as Wal-Mart, that could ultimately drive central Texas producer prices down.

DFA management more or less “pooh-poohed” the idea in last month’s article in the Texas Dairy Review, that said dairymen were overreacting and Select’s milk plant, providing it even comes to fruition, would not cause a break-up of the GSA because Select would need to balance its milk. Also, DFA did not seem concerned of Select’s capabilities that could empower the cooperative to go head-to-head on two marketing fronts (both conventional milk and organic) against Dean Foods, Inc., the biggest processor in the US that currently has a full supply contract with DFA and also owns Horizon Organic milk supplied to it by Aurora Dairies.

In the Top 50 US cooperatives ranked by volumes of milk produced, DFA is No. 1; Select, No. 10; Lone Star Milk Producers, No. 16; Continental, No. 20; and Security Milk Producers, Assoc., in Ontario, Calif. owned by Amos De Groot, is No. 25.

 

 

Best use for $350 million is for buying cheese to increase milk price

and to feed hungry

 

 The National Milk Producers Federation (NMPF) is urging congressional leaders to direct $350 million dollars toward the purchase of cheese, to be donated through food banks and other charities to help feed the hungry.

In a letter on Sept. 9 sent to Senate and House appropriators, NMPF said a $350 million amendment offered last month by Sen. Bernie Sanders (I-VT) to an agricultural spending bill would be most effective if used to purchase consumer cheese products, such as American cheese and mozzarella.

According to an analysis by NMPF, appropriating that money to USDA for purchasing products commercially would enhance dairy farmer income by $1.3 billion over a period of several months.

“It is dramatically clear from our results the purchase of cheese for use in domestic feeding programs would provide the biggest benefit to the producer milk price at this time,” said Jerry Kozak, president and CEO of NMPF, in reference to NMPF’s analysis of how to maximize the value of any additional appropriations directed toward the dairy producer sector.

NMPF estimates the typical dairy producer would see an increase of $0.65/cwt. as a result of such an approach.

In contrast, using the $350 million to increase direct payments to farmers, or to supplement the Dairy Product Price Support Program, would only increase farmer income by $335 million and $185 million, respectively. The wording of the Sanders amendment does not specify how USDA must use the one-time appropriation, so NMPF sent the letter to members of the Senate-House conference committee that will finalize the Fiscal Year 2010 spending bill.

In addition to boosting dairy farmers’ income in a year when they are faced with a $12 billion loss in sales, the proposed cheese purchases “would provide a huge and targeted nutritional benefit to millions of food-insecure American families during this time of national economic hardship,” NMPF wrote.

Because government food stamps often run out prior to the end of each month, “food banks are another means for feeding these individuals. Unfortunately, commodities available for food bank distribution are limited by funds and availability. USDA purchasing of surplus cheese is an excellent opportunity to provide another source of a nutrient rich protein to the food banks,” NMPF wrote.

 

 

CWT at it again with October herd retirement

 

In an effort to provide relief for dairy farmers in the short term, Cooperatives Working Together (CWT) has implemented another herd retirement effective Oct. 1. All bids submitted must be postmarked no later than October 15, 2009.

The maximum bid CWT will consider is $5.25 per hundredweight of milk; the same bid ceiling as the previous round. Bids will be selected beginning with the lowest bid with consistent milk production. However, given budgetary considerations, there is no guarantee that every producer submitting a bid up to the maximum $5.25 bid level will be accepted, cautions National Milk Producer Federation (NMPF) officials.

This is the fourth herd retirement CWT has conducted in the past 12 months; the third one this year. The herd retirement in late 2008, plus the two herd retirements so far in 2009, has removed 226,000 cows from the nation’s dairy herds.

“Those previous efforts have helped adjust the supply of milk more in line with demand. This third herd retirement of 2009, along with a stabilizing global economy, should further accelerate the recovery in dairy farmers’ prices,” said Jerry Kozak, president and CEO of NMPF, which manages the CWT program.

“While NMPF continues to work on long-term solutions to make positive changes in the economic structure of the dairy industry, this latest in the series of herd retirements that CWT has implemented will, along with the other actions NMPF has taken, helps to provide relief to dairy farmers that need it now,” said Kozak said.

Producers who want to submit CWT bids must have been members of CWT, either through their membership in a CWT member cooperative or as an individual, effective January 2009. Producers whose bids were selected in previous herd retirements will not be eligible to bid again. This round will once again include a bred heifer option.

As before, producers whose bids are accepted will be paid in two installments: 90% of the amount bid times the producer’s 12 months of milk production (from September 1, 2008, through August 31, 2009) when it is verified that all cows have gone to processing plants. The remaining 10% plus interest will be paid at the end of 12 months if neither the producer nor the dairy facility – whether owned or leased – go back into the commercial production and marketing of milk during that period.

Once the bid selection process is completed, farm audits should begin the first week of November and be completed by early December.

 

 

TX Ag Expo honored by visit from Commissioner Staples

 

This year’s 19th Annual Texas Ag Expo will be honored by an appearance from Texas Agriculture Commissioner Todd Staples who plans to be present during the noon lunch hour. Texas Ag Expo is on Thurs., Oct. 22, 9 a.m., at Lone Star Arena, Stephenville, Texas.

Commissioner Staples is a successful businessman and rancher. His career started at the local level when elected as a city council member and progressed to state representative, state senator and now a statewide official.

Staples promotes economic opportunities, youth development, healthy lifestyles and consumer protection. As a strong Texas advocate, he is focused on bringing job creation to rural Texas, furthering promotion of Texas products around the world, and helping farmers and ranchers prepare for tomorrow’s challenges. TCAA hopes everyone will join them in welcoming Texas’ 11th agriculture commissioner to Ag Expo.

Sponsored by TriCounty Agribusiness Association (TCAA), members expect this year’s one-day event will display a dynamic effort toward promoting the importance of agriculture both exhibitors and visitors will enjoy.

"This is going to be a great show," said Heidi Westbrook, executive director of TCAA. She is especially enlivened by Staples’ appearance along with the full lineup of the show’s many exhibits and activities. Exhibitors will be on hand to discuss their products or services and seminars and demonstrations are arranged to offer both education and enlightenment of the agriculture industry and Texas wildlife.

The show will kick off at 8 a.m. with a hearty breakfast sponsored by Erath County Farm Bureau Insurance followed by exhibits opening at 8:30.

Two seminars offering 2 DOPA credits for dairymen are scheduled from 9 to 11 a.m. The seminars are “Manure and Mortality Management” by Dr. Saqib Mukhtar and “Soil and Water Quality Impacts of Compost Applications” by Dr. Daren Harmel, USDA ARS. Two CEU credits can be earned at an afternoon seminar form 2 to 4 p.m. for TDA general, commercial and non-commercial applicators.

Farm Safety 4 Kids will be from 10 a.m. until noon. A demonstration by Midwest Cattle Dogs is scheduled both in the morning at 10 a.m. and afternoon at 2 p.m. The Noon Ag Appreciation BBQ Lunch is sponsored by area financial institutions. Milk distributed throughout the show is provided by Dairy MAX and Southwest Dairy Farmers.

Last but certainly not least, the Annual Ag Expo Golf Tournament is the following morning on Fri., Oct. 23, at Legends Golf Course in Stephenville. The foursome scramble is $50 per person and includes green fees, cart and lunch. This is a great opportunity for people to show off their golf skills and get to know one another for a very affordable price. For more information on Texas Ag Expo or the golf scramble, call 254-965-2406, or email:  info@tricountyag.comwww.texasagexpo.com.

 

 

Fear Not: Dogs for hogs can get rid of your problem

 

By Rob Robinson

In the past few years, wild hogs or boars have become a nuisance to Texas farmers and ranchers. Trying to catch a hog can be a dangerous job if you are not sure of what you’re doing.

If you have a hog problem, Shawn Bolton, 29, of Glen Rose, Texas, can handle your problem. Bolton has been hunting hogs since he was 18 years old. He was first taught the procedure from a friend who showed him “the ropes” to become an expert and professional hog hunter. So far in 2009, he has caught 63 hogs.
   

Adrenaline Rush---Shawn Bolton and hunting partner, Wes Calhoon, show off their "catch" after successful hunting excursion.

Although Bolton manages a large ranch, he has made another career out of hunting and catching hogs. “Some people call me up and I’ll go and take a look to see what I can do,” Bolton said. Mostly farmers and ranchers call me because they want to get rid of their hog problem. The hogs damage their costal and wheat fields so bad it means less food for their cattle. Sometimes the hogs destroy the fences where livestock can escape.

“If a hog can fit his nose through a fence, he’s going to muscle his way through it,” Bolton said.

Bolton pointed out some people want the challenge of hog hunting and the thrill it brings. “They want to go on guided hunts. On these hunts, I take them to a ranch that I’m familiar with and it can cost anywhere from $150 to $300 per hunt. The ranches Bolton is most familiar with are in Gordon, Tolar, Diamond S Ranch in Weatherford, and Triple Creek Ranch where he currently resides.

“In hog hunting, dogs are essential and this guarantees the hunt will be a success from start to finish.” Bolton prefers hunting with a total of five dogs of which four are bay dogs and one is a catch dog.

Bolton’s bay dogs are Catahoula and black-mouthed cur dogs named Ladie, Cooter, Ti To, Black Jack, and Yellow Jacket. His catch dog is an American Pit Bull named Cain.

Bolton prefers American Pits because they carry more weight which is good for when they anchor the catch. “You don’t want any bark in your catch dog at all,” Bolton said.

He refers to his catch dog as his “insurance dog.”

“When I go with people who have never been hog hunting before, my catch dog seals the deal, assuring people to have no fear and that it will hold the hog tight and won’t let go.”

Bolton is well-equipped for the hunt. He prefers rig hunting, performed while driving a pickup truck with the dog boxes mounted on the bed. He uses a four-to-six-mile Quick Trick tracking device, a 7” bayonet, hog ties or hobbles, and picking strings. The dogs are outfitted in Cavalier vests made of quarter-inch-thick flexible cavalier shields; neck protectors about 4” wide; and, separate tracking device collars.

Bolton explains how a hunt works. “I load up the people and dogs. I drive slow---about five mph through the ranch. The bay dogs ride loose on top of the dog box (rig) and the catch dog is caged until the other dogs bay the hog.”

Bolton said the bay dogs can usually pick-up a scent about 50 to 250 yards off of the truck. “When the bay dogs pick up the scent of a hog, they are trained to spin until you take notice. Sometimes, if you’re not paying close attention and the dogs begin spinning around (trying to tell you where there’s a hog), they will actually slide down the windshield of the truck and bale off the hood, ” Bolton laughs.

“But, when the bay dogs bale, the chase is on. If one dog spots a hog, it will usually go for the biggest one. It will begin to bark until the other dogs follow suit; then, they surround the hog and hold it at bay. An older hog will turn and fight and start pitching the dogs. But, if the hog breaks away, it’s called ‘breaking bay’ and the race is on. They will run him ‘til they can rebay him or he’ll plum outrun ‘em.”

Bolton said once the dogs bay the pig, “You might not even be able to see the hog, but you can tell by the bark that they’ve got something. You bring the catch dog out and walk with him toward the barking. The bay dogs are in position to hold the hog in place.

“It’s an adrenaline rush like no other,” Bolton said. “Once you go in--- you don’t know what to expect on the other end.”

Bolton said while the other dogs hold the hog in place, he releases the American Pit. The Pit goes straight for the hog’s ear, to anchor him down. Meanwhile, the hunters, who have been tracking the sound, go in, grab the hog by its hind legs, and “wheelbarrow” the hog by flipping it over and tying its legs with hobbles or picking strings. Once you do that, you tie the dogs off and the hog is yours where either the bayonet comes into play or you keep the animal alive and sell it.

“Going in is a very critical moment for the hog hunter,” Bolton said. “You’ve got to grab the hind legs as soon as the catch dog has it.” For additional safety and security purposes, Bolton carries a firearm.

“Nine times outta’ ten, if you encounter a hog in the wild, it will run from you. Hogs can’t see very good, but they are very fast.”

Hogs are dangerous animals, Bolton warned.”If a hog gets hold of you, they may bite,” he said, “but usually it will get you with its tusks and that can cut clear to the bone. They also carry many diseases,” he said.

Bolton prefers to work in teams and usually works with his partner, Wes Calhoon. He said sometimes they don’t catch anything and in that case, they don’t charge the landowner or rancher. “Some ranchers pay $50 per head---no matter what size hog,” But, if they catch a hog, they take a picture of it, weigh it and date it, and send the photo off to the landowner who in return sends a check.

“Hog hunting is a year-round sport with no official regulations. It is a challenge and a thrill but also a danger,” Bolton said. If you have a hog problem call Shawn Bolton at 817-578-4122.

 

 

Milk vending machine donated to Vet’s Outlet

 

Dairy Max recently donated a milk vending machine to Veterinarian’s Outlet in Dublin, Texas. Owner and veterinarian, Dr. Al Harper, came up with the idea to locate the machine outside of his office to show support for the dairy industry.

“I am supporting the dairy industry rather than the soft drink industry,” Harper said. “I thought it would be a good idea so people can stop by anytime, grab a bottle of milk and keep our inventory fresh.”

The cooler box vending machine contains the popular milk chugs that come in whole milk, low-fat, and chocolate milk at $1.25 per 16 oz. container. The machine also offers cookies and cheese.

 

 

Dairy Max helps to reinventing the dairy aisle with modern “facelift”

 

 We’ve all been there…off to the dairy aisle to pick up milk, cheese, or other dairy products. But, if the dairy aisle is not attractive or inviting, no one wants to linger. In an effort to provide a more appealing, pleasing and eye-catching dairy aisle, Dairy Max is taking full advantage of marketing opportunities by presenting a new concept that reinvents the dairy aisle.

Carl Johnson, director of retail programs for Dairy Max said this new design concept for the dairy aisle focuses on four major principles that brings the aisles up to date with a more contemporary look; provides modern product displays that answer lifestyle and usage needs so shoppers will take more time to shop; better organizes products for easier viewing, access and communication for the customer; and provides valuable product information.

“We are giving the aisles a new facelift by using brighter, attention-getting colors and have updated the aisle to encourage shoppers to take a longer look at dairy products,” Johnson said. He said he works closely with retailers to provide unique and innovative displays, signs, and information to promote dairy.

Johnson said when a shopper enters a dairy aisle, a more contemporary concept changes the shopper’s perception from “old fashioned” to modern, presenting a fresh, relevant and new look. “This new and inviting look encourages shoppers to shop the entire aisle while looking at products it has to offer,” Johnson said.

Dairy Max has determined in order to increase aisle traffic and slow shoppers down, the aisle must be transformed into a three-dimensional space with cross-merchandising materials that focuses on lifestyle and a shopper’s needs.

“This might include any kind of freestanding three-dimensional display to encourage shoppers to stop and read the message on the display,” Johnson said. The message may promote a special dairy item, give suggestions for quick and easy meals, or point out nutritional facts. When shoppers stop and read signs or displays, they end up spending more time on the dairy aisle and may end up buying additional dairy products.

Johnson said Dairy Max’s new concept engages shoppers by bringing clarity and organization to different segments on the dairy aisle. “A neat and tidy aisle is more appealing and helpful to shoppers when items are arranged in segments so they may easily find the items they are looking for,” he said. A well organized dairy aisle is a critical marketing technique that focuses on displaying main items, such as milk or cheese, in an orderly fashion and arranges new products or promotions to attract the shopper’s attention.

Dairy Max’s new concept also communicates the value, benefits and uses of dairy products to fit ordinary or special occasions. Whether it is milk for breakfast and dinner or cheese trays for the holiday season or Super Bowl Sunday, the nutritional value of dairy is displayed so that today’s modern shoppers can realize its benefits.

“One of Dairy Max’s objectives is to make shopping the dairy aisle an enjoyable experience,” Johnson said. “With modernization and improvements, a functional yet pleasant atmosphere is created that leads to increased shopper traffic and sales.”

Another way Dairy Max is focused on meeting consumer demand is by providing consumers with the dairy products they want, where they want them.

In today’s busy and hectic world, some shoppers enter a grocery market with the idea to quickly “get in and get out.” For this particular reason, Dairy Max has expanded dairy availability by promoting the concept of easily accessible secondary coolers. These coolers vary, sometimes holding pints and half pints of fluid milk or cheese and yogurt cups. Secondary coolers are placed strategically in-store like near checkout counters where they can capture sales from the “grab and go” shoppers.

You can e-mail Carl Johnson at  johnsonc@dairymax.org or call 972- 603-4707(cell 972-849-9410).

 

 

   
 


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