Dairy West briefs committee on marketing, school outreach and export plans; reports $19.3 million regional budget

Jenny Nelson, interim CEO of Dairy West, told the Senate Agricultural Affairs Committee about the Idaho Dairy Products Commission's marketing, nutrition and export work and presented preliminary 2024 financial figures showing roughly a $19.3 million regional budget.

Nelson said the Idaho Dairy Products Commission and the Utah Dairy Commission jointly operate as Dairy West; the commissions are funded by an assessment on milk production. "Our dairy men are assessed a 15-cent assessment for every hundred pounds of milk produced," Nelson said. She said of that 15 cents, 5 cents goes to the National Dairy Board and 10 cents remains for regional use; of that regional portion, 2.5 cents is remitted to the United Dairy Industry Association and 7.5 cents is retained locally. Nelson also noted a one-cent collection that supports the Idaho Dairymen's Association's policy work.

Nelson described core Dairy West programs that use commission funds: school education (including a virtual "adopt a cow" program used by elementary schools), athlete and collegiate nutrition outreach, retail pilot programs to place dairy items near store checkouts, digital advertising (including an Instacart promotion Nelson said produced a $10 return on ad spend), influencer campaigns, and sustainability outreach that highlights on-farm water and manure practices. She said Dairy West employs 21 staff across the region and that the organization is undergoing an audit cycle; finalized audited financials were to be presented to the Dairy West board at a meeting later in the week.

Committee members asked how Dairy West addresses global market differences and competition from plant-based beverages. Nelson said processors in Idaho are producing aseptic and ultrafiltered products designed for export markets where shelf-stable formats are common and cited new regional processing capacity as part of that strategy. On plant-based alternatives, Nelson said sales data show conventional milk remains resilient and that Dairy West's consumer messaging emphasizes milk's nutritional profile.

Nelson also said Dairy West is planning an export-focused trade mission to Singapore in October with Idaho and Utah processors and two dairymen to promote sustainability practices and seek buyers. She said the commission will track in-market buyer contacts and export outcomes to report results to producer stakeholders.

Committee members thanked Dairy West for the presentation and for providing promotional product samples to the committee.