U.S. Department of Agriculture
Report to Congress
on the
National Dairy Promotion and Research Program
and the
National Fluid Milk
Processor Promotion Program
2012 Program Activities
Contact Information
To obtain additional copies of this Report to Congress on the National Dairy Promotion and Research Program and the National Fluid Milk Processor Promotion Program and the complete independent analysis of the programs, please contact: Promotion, Research, and Planning Division Dairy Programs, Agricultural Marketing Service, USDA Stop 0233, Room 2958-South 1400 Independence Avenue, SW Washington, DC 20250-0233 (202) 720-6909 http://www.ams.usda.gov/dairy To obtain copies of the complete independent analysis report or for questions on Chapter 3, please contact: Dr. Oral Capps, Jr. Executive Professor, Regents Professor and Co-Director of Agribusiness, Food, and Consumer Economics Research Center Texas A&M University Department of Agricultural Economics 2124 TAMU College Station, TX 77843 (979) 845-5911 Email: [email protected] http://AFCERC.tamu.edu For additional information about the National Dairy Promotion and Research Board and Dairy Management Inc., please contact: National Dairy Promotion and Research Board Dairy Management Inc. 10255 West Higgins Road, Suite 900 Rosemont, IL 60018-5616 (847) 803-2000 http://www.dairyinfo.com For additional information about the National Fluid Milk Processor Promotion Board, please contact: National Fluid Milk Processor Promotion Board 1250 H Street, NW, Suite 950 Washington, DC 20005 (202) 737-0153 http://milkpep.org
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http://www.ams.usda.gov/dairymailto:[email protected]://afcerc.tamu.edu/http://www.dairyinfo.com/http://milkpep.org/
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDAs TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer.
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Contents Contact Information ............................................................................................................. ii Executive Summary ...............................................................................................................1 Chapter 1: The Dairy and Fluid Milk Promotion Programs ............................................4 National Dairy Promotion and Research Board .......................................................................4 National Dairy Council ..........................................................................................................5 Fuel Up to Play 60 ...................................................................................................................6 GenYOUth Foundation ............................................................................................................7 Export and Dry Ingredients ......................................................................................................7 Innovation Center for U.S. Dairy ...........................................................................................10 Sustainability..........................................................................................................................11 Future of Food: Food Security in the 21st Century ..............................................................12 Food Safety....12 Dairy Research Institute .........................................................................................................13 Industry and Image Relations ................................................................................................14 Qualified Dairy Product Promotion, Research or Nutrition Education Programs .................15 National Fluid Milk Processor Promotion Board ..................................................................15 Medical Advisory Board ........................................................................................................17 National Fluid Milk Programs ...............................................................................................17 Breakfast at Home General Market and Hispanic ..............................................................17 Refuel with Chocolate Milk ...................................................................................................18 Breakfast at Home - Hispanic ................................................................................................18 Business Development and Research ....................................................................................19 Chapter 2: USDA Activities ...............................................................................................20 National Dairy Promotion and Research Board Oversight ....................................................20 Nominations and Appointments ............................................................................................20 Organic Exemption ................................................................................................................20 Amendment to the Dairy Act .................................................................................................21 Foreign Agricultural Service..................................................................................................21 Contracts ................................................................................................................................22 Contractor Audits ...................................................................................................................22 Collections .............................................................................................................................22 Compliance ............................................................................................................................22 Qualified Programs ................................................................................................................22 National Fluid Milk Processor Promotion Board Oversight ..................................................23 Nominations and Appointments ............................................................................................23 Program Development ...........................................................................................................23 Contractor Audits ...................................................................................................................23 Compliance ............................................................................................................................23
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Contents, continued Chapter 3: Quantitative Evaluation of the Effectiveness of Marketing and Promotion Activities by the Milk Processor Education Program, Dairy Management, Inc., and Qualified Programs ..............................................................................................................24 Introduction ............................................................................................................................24 Summary of Findings .............................................................................................................25 Objectives of the Evaluation Study........................................................................................25 Checkoff Expenditures Made by DMI, MilkPEP, and QPs...................................................26 Trends in Consumption ..........................................................................................................33 Findings on Impacts of Demand-Enhancing Expenditures for Dairy Products .......................................................................................37 Estimation of Supply Changes Attributed to Checkoff Expenditures......................................................................................................38 Benefit Cost Ratios ...............................................................................................................41 Partner Evaluation ..................................................................................................................41 Sensitivity of Consumption at QSRs Related to Dairy Partnership Expenditures ........................................................................................41 Connecting Incremental Servings to Cheese and Milk ..........................................................42 Concluding Remarks ..............................................................................................................43
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Executive Summary
The enabling legislation of the dairy producer and fluid milk processor promotion programs requires the U.S. Department of Agriculture (USDA) to submit an annual report to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. The dairy promotion programs are conducted under the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.) (Dairy Act); the Dairy Promotion and Research Order (7 CFR 1150
