Exports, Retail Sales, Pizza Partners & More

Dairy Retail Sales Increase During COVID-19

Retail dairy sales saw an initial spike during peak-COVID shopping, and sales across all categories (cheese, butter, yogurt, ice cream and milk) remain above-average compared to a year ago.

Dairy products that were on a downturn prior to the pandemic have reversed to a growth scenario and products previously trending upward, received a growth boost. Products that are carriers of dairy such as frozen pizza, cereal, coffee and bread are also seeing strong growth, helping to fuel additional dairy sales. Frozen pizza in particular experienced a sales boom as consumers sought convenient, affordable meal solutions.

Consumers have shown that they won’t sacrifice the basics during this time, and your dairy checkoff is working to maintain this increase in dairy sales following the pandemic. DMI, in partnership with MilkPEP, developed and shared a milk revitalization toolkit with brands and partners featuring tips on how to win with customers and retailers via insights and fundamentals. This toolkit offers brands marketing tools on how to promote milk usage at home in baking, breakfast (pancakes, protein bowls) and smoothies as examples.

While retail sales are positive, it is important to note that the foodservice sector is suffering significant loss with restaurant closures and more people eating at home. Your dairy checkoff staff are engaging with foodservice partners to identify opportunistic ways to drive immediate dairy sales.

Pizza Partners Moving More Cheese

DMI is working with national foodservice partners to find ways to drive immediate dairy sales and move more cheese.

Checkoff partners Pizza Hut and Domino’s are working on promotions that encourage consumers to buy more pizzas per purchase or to feature items like stuffed crust pizzas that double the amount of cheese on each pizza. A new partnership with Papa John’s will also help move incremental cheese through activations running April-August.

Export Volume Up Despite COVID-19

The U.S. Dairy Export Council, funded by the dairy checkoff program, reports U.S. dairy export volume increases for the seventh straight month, despite the pandemic. In March, U.S. suppliers shipped 190,456 tons of milk powders, cheese, whey products, lactose and butterfat, 2% more than the same period the year prior. This is the highest figure since May 2018. On a solids basis, exports were up 3%. Meanwhile, the value of all exports was the most since August 2014 – $592 million, 10% more than a year ago. For additional details, refer to the US Dairy Exporter Blog.

Kroger's Dairy Rescue Program

Kroger and its dairy cooperative suppliers are donating 200,000 gallons of milk to foodbanks across the country through the end of August as part of its Dairy Rescue Program. Through the program, dairy cooperatives will donate surplus milk normally sold to restaurants, schools and hotels, and Kroger will donate the processing and packaging of the milk. In Ohio, Tamarack Farms Dairy, a Kroger processing plant, and DFA-Mideast Area will work together to donate milk to several Feeding America foodbanks and community organizations to serve those in need.

The Dairy Rescue Program is an expansion of an existing initiative piloted last summer in Ohio that ADA Mideast was instrumental in coordinating. ADA Mideast partnered with the leadership of Kroger, DFA-Mideast Area and the Ohio Association of Foodbanks to develop a milk donation program with the Mid-Ohio Foodbank, which serves over 500,000 Ohioans a year.

H2Ohio Program Update

You may have already received the following information from the Ohio Dairy Producers Association if you are a member. ADA Mideast would like to make all Ohio farmers aware of this update.

The Ohio Department of Agriculture issued a statement last week announcing potential cuts to the H2Ohio program. The funding reductions are called for in response to an order from Ohio Governor Mike DeWine for state agencies to make up to 20% in budget cuts due to costs of the COVID-19 pandemic response. Click here to read a message to Ohio farmers from the Ohio Agriculture Conservation Initiative and Ohio Dairy Producers Association regarding the H2Ohio program.