Dairy West briefs committee on marketing, sustainability and export efforts; outlines $19.3 million budget

Jenny Nelson, interim CEO of Dairy West, presented the Idaho Dairy Products Commission’s annual report to the Agricultural Committee, describing marketing, education and export efforts funded by the dairy assessment.

Nelson said Idaho producers are assessed 15 cents per 100 pounds of milk; 5 cents of that goes to the national board and 10 cents remains for regional work. Of the 10 cents, she said, 2.5 cents are forwarded to the United Dairy Industry Association and 7.5 cents remain for local marketing, promotion and research. An additional 1 cent is collected on behalf of the Idaho Dairymen’s Association for policy and lobbying work, Nelson said.

Nelson described programs that Dairy West operates across Idaho and Utah to promote dairy consumption, back local processing and workforce development, and provide school and youth outreach. She cited a virtual adopt-a-cow classroom program and school nutrition partnerships as examples that connect students to farming. "If they can't go out onto the farm, the virtual system is a beautiful thing where really we're just taking the farm into the classroom," Nelson said.

The presentation included marketing metrics: Nelson said an Instacart promotion produced a return on ad spend (ROAS) of about $10 for every $1 spent and drove incremental pounds of milk movement. She also highlighted sustainability messaging and a consumer video claim in the presentation that "Dairy farmers in The US have reduced their water usage by 30% in just 10 years. That's enough to fill 3,000,000 Olympic sized swimming pools." Nelson said Dairy West’s 2024 budget was roughly $19.3 million and that the organization would present audited financials at an upcoming board meeting.

Committee members asked about future consumption trends, exports and competition from plant-based beverages. Nelson said Dairy West is placing more emphasis on export markets and described an outbound trade mission to Singapore planned for October, focused on sustainability and bringing processors and producers to meet buyers. On plant-based beverages, Nelson said milk remains the dominant category in sales and that Dairy West's data show plant-based alternatives have not overtaken dairy in sales.

No committee action or vote was requested; Nelson said the commission’s board would review and ratify budgets and audits at its scheduled meetings.