1 / 22

Robert Shore, General Manager Maryland & Virginia Milk Producers Cooperative, Inc.

Southern Dairy Conference. New Marketing Coalitions. February 6, 2001. Robert Shore, General Manager Maryland & Virginia Milk Producers Cooperative, Inc. New Marketing Coalitions Between Dairy Farmers. Industry Consolidation. New Marketing Coalitions Between Dairy Farmers.

orien
Download Presentation

Robert Shore, General Manager Maryland & Virginia Milk Producers Cooperative, Inc.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Southern Dairy Conference New Marketing Coalitions February 6, 2001 Robert Shore, General Manager Maryland & Virginia Milk Producers Cooperative, Inc.

  2. New Marketing Coalitions Between Dairy Farmers

  3. Industry Consolidation • New Marketing Coalitions Between Dairy Farmers

  4. Industry Consolidation • New Marketing Coalitions Between Dairy Farmers • Federal Order Consolidation

  5. Industry Consolidation • New Marketing Coalitions Between Dairy Farmers • Federal Order Consolidation • More Marketing Coalitions Between Dairy Farmers

  6. Dairy Industry Consolidation

  7. Customer Estimates Sales (billions) % of U.S. Grocery 1. Kroger/Fred Meyer 43.1 9.7 2. Albertson’s 35.7 8.1 3. Wal-Mart 32.0 7.2 4. Safeway 25.0 5.6 5. Ahold 23.5 5.3 6. Winn-Dixie 13.9 3.1 7. Publix 12.1 2.8 8. A&P 10.5 2.4 9. Food Lion 10.2 2.3 10. Meifer 8.6 1.9 Total $214.6 48.4%

  8. Share of $23 Billion Fluid Milk Market Dean Supermarket Dairies 13% Suiza 19% 34% 34% All Other

  9. Top 10 Co-ops in 1990 Associated Milk Producers, Inc. 17.30 Mid-America Dairymen, Inc. 8.18 Dairymen, Inc. 4.94 Farmers Union Milk Marketing Co-op 4.90 Land O’Lakes, Inc. 4.30 California Milk Producers Association 4.13 Milk Marketing, Inc. 3.71 Northwest Dairymen’s Association 3.66 Dairymen’s Cooperative Creamery 3.30 Atlantic Dairy Cooperative 3.25 Volume member milk (bil. Lbs.) Dairy Cooperative

  10. Top 10 Co-ops in 2000 Dairy Farmers of America 34.896 California Dairies, Inc. 13.200 Land O’Lakes, Inc. 11.656 Northwest Dairy Association 5.700 Dairylea Cooperative, Inc. 5.382 Foremost Farms USA 5.359 Associated Milk Producers, Inc. 5.100 Family Dairies USA 5.059 Manitowoc Milk Producers Cooperative 3.660 Maryland & Virginia Milk Producers 3.141 Volume member milk (bil. Lbs.) Dairy Cooperative

  11. Producers vs. Milk

  12. Industry Consolidation • New Marketing Coalitions Between Dairy Farmers

  13. New Marketing Coalitions Between Dairy Farmers • Advantage Dairy Group

  14. Southeast Milk, Inc. 230 2.8 billion Maryland & Virginia 1,600 3.3 billion Land O’Lakes 2,600 3.6 billion SEMMA 260 840 million Total 4,690 10.5 billion

  15. New Marketing Coalitions Between Dairy Farmers • Advantage Dairy Group (ADG) • Dairy Marketing Services (DMS)

  16. Dairy Marketing Services - DMS • DFA/Dairylea Joint Venture • One Northeast Milk Marketing Program • 10 Billion Pounds Annually

  17. Industry Consolidation • New Marketing Coalitions Between Dairy Farmers • Federal Order Consolidation

  18. 11 Federal Orders 16% 26% 40% 42% 20% 27% 69% 29% 66% 42% 88%

  19. Federal Order Consolidation • Fewer, Larger • Geographically Closer • Liberalized Pooling Rules • New Economic Incentives to move milk • (Class I Utilizations, Class III vs Class IV)

  20. Industry Consolidation • New Marketing Coalitions Between Dairy Farmers • Federal Order Consolidation • More Marketing Coalitions Between Dairy Farmers

  21. Regional Agencies Between Cooperatives • Maximize Supply Efficiencies • Maximize Net $’s to Farmers- • Federal Order and Over Order

  22. Summary

More Related