2024 March Board Book
Animated publication
CALIFORNIA MILK ADVISORY BOARD
Board of Directors Meeting
March 6 – March 7, 2024
CALIFORNIA MILK ADVISORY BOARD 2156 W Grant Line Road, Suite 100 Tracy, California 95377 (209) 883-6455 RealCaliforniaMilk.com BOARD MEETING AGENDA Wednesday, March 6, 2024 at 7:30 am and Thursday, March 7, 2024 at 8:00 am
Wine & Roses 2505 W. Turner Road
Lodi, CA 95242 (209) 334-6988
All matters noticed on this agenda may be considered for action. Items listed on the agenda may be considered in any order at the discretion of the Board Chair. Any item not so noticed will not be considered or discussed. All meeting agendas and notices are available on the California Department of Food and Agricultural website at: https://www.cdfa.ca.gov/mkt/mkt/. (select meeting notices) Each of the agenda items below will include discussion and possible action by the Board. Time will be allowed for members of the public to make comments on each agenda item. Comment time may be limited based on the number of agenda items and/or number of commenters.
1. Call to Order – Chairman Tony Louters
2. Roll Call – Secretary John Vander Poel
3. Introduction of Guests
4. Election of Board Officers and Executive Committee – Dennis Manderfield
5. Recommendations to fill Board Alternate positions
6. Report from Chairman
7. Financial Report
8. Individual District Reports
9. Marketing Branch Report
10. Report from Chief Executive Officer – John Talbot
11. Program Review and Proposals a. Advertising b. Communications
c. Business Development d. Processor Partnerships e. CDIC f. Producer Relations g. CDRF
12. CDC letter
13. Guest Speaker - FFA
14. Committee/Industry Meetings Update
15. National Dairy Board Update
16. Minutes of Last Board and Executive Committee Meetings – Secretary John Vander Poel a. Public comments on agenda items 17. Other Business a. Previously discussed or tabled agenda item(s) for this meeting b. Items to be discussed at next board meeting
18. Public comment on non-agendized items
19. Adjournment
Americans With Disabilities Act Persons with disabilities needing special accommodation or modification in order to attend or participate in any Board or Committee meeting or other Board activity may request assistance by contacting John Talbot, C.E.O., California Milk Advisory Board at 209-883-6455.
B AGLEY -K EENE O PEN M EETING A CT S ECTIONS 11120 THROUGH 11132 OF THE C ALIFORNIA G OVERNMENT C ODE
Objective of the Act
When the Legislature enacted the Bagley-Keene Open Meeting Act (Act), it imposed a “ value judgment ” on the Governmental process. In effect, the Legislature said that when a State body sits down to develop its consensus, there needs to be a seat at the table reserved for the public. By reserving this place for the public, the Legislature provided the public with the ability to monitor and participate in the decision-making process. If the State body were permitted to meet in secret, the public’s role in the decision-making process would be negated. Therefore, absent a specific reason to keep the public out of the meeting the public should be allowed to monitor and participate in the decision-making process. If one accepts the philosophy behind the reservation of a seat at the table for the public, many of the particular rules that exist in the Act become much easier to accept and understand. Simply put, some efficiency is sacrificed for the benefit of greater public participation in government. A State body is every state board, council, commission or similar multimember body that is created by statute or by executive order including committees appointed by a State body (if the committee consists of three or more members). A meeting occurs when a majority of a body convenes, either serially (not permitted) or, together in one place, to address issues under the body’s jurisdiction. This includes meetings solely for the purpose of presenting information to a body. Even if no actions or decisions are contemplated, a gathering of a majority of a body to discuss issues under the body’s jurisdiction is considered a meeting under the Act. Serial Meetings occur when a member or staff of a State body communicates by telephone or email individually with a sufficient number of other members to constitute a quorum in order to discuss issues to come before the body. Such serial communications are prohibited by the Act. Social gatherings of a State body are not considered meetings covered by the Act so long as official business is not discussed. Teleconference meetings are permitted provided that information necessary to access the teleconference electronically and a primary physical location are included on the meeting notice, the location is accessible to the public and at least one member is present. Members planning to participate electronically must notify the Board office at least 24 hours in advance. The meeting minutes must reflect those members participating electronically. A Meeting Notice must be published at least ten (10) days prior to the date of the meeting. To avoid issues, issue notice 11 days before meeting at the latest. Meeting Notice must be mailed (or emailed) to anyone requesting a copy and must be posted on the Board’s website. The Meeting Notice must also be posted on CDFA’s website.
What is a State Body?
What Constitutes a Meeting?
What are Serial Meetings?
Social Gatherings
Teleconference Calls
Regular Meeting Notice Requirements
Required Posting
Special Meetings
In order to provide State bodies with a means of holding a meeting on short notice because of the occurrence of an unforeseen event, the Act allows for “Special Meetings” with a 48 -hour notice with copies to all national wire services. The purposes for which a body can call a special meeting are quite limited. Examples include pending litigation, legislation and certain personnel actions.
Notice Content
The Meeting Notice must include: ▪ Date, time and place meeting is to be held ▪ A specific agenda for the meeting ▪
If there will be a Closed Session, must be on the agenda and must cite Code Section and Subsection providing legal authority for Close Session. ▪ Notice that for every agenda item there will be discussion including public comment, and that board action may occur. ▪ Must list a contact person for questions concerning the agenda or for needed special accommodations. ▪ See example notice and agenda attached. The Agenda should allow opportunity for public comment on each agenda item . Members of the Public should also have opportunity to offer comments on subjects not listed on the agenda (reasonable time limits can be applied) A state body must record in the meeting minutes any action taken by the body and the vote or abstention of each member present for the action. In most cases, there are only two authorized reasons for Closed Sessions for our programs: ▪ Personnel Issues [Government Code Section 11126(a)(1)] ▪ Pending Litigation – Attorney should be present with memo prepared for the board of directors. [Government Code Section 11126(e)(1)] ▪ Chair must announce in open session that the Board is entering into closed session and state the (general) purpose of the closed session ▪ Only board members and people necessary to conduct the business of the closed session should be present ▪ When closed session adjourns, open session must be reconvened and the general nature of any actions taken in closed session must be reported ▪ Minutes of the closed session must be prepared and kept in confidential file
Comments from Public
Minutes Must Indicate Each Member’s Vote on Motions
Closed Sessions
Closed Session Process
Rights of the Public:
▪ To attend meetings free from conditions ▪ To tape, record or broadcast meetings ▪ To comment on any agenda item (may post a time limit) ▪ To make comments regarding non-agenda items (may impose time limit) ▪ To have access to documents provided to board members ▪ To receive notice to all meetings of the board or its committees including agenda ▪ Assurance that the meeting will not begin before the time stated on the notice
California Milk Advisory Board 2156 W Grant Line Road, Suite 100 Tracy, CA 95377 Telephone: 209-883-6455
I. Required Continuation Hearing – A public hearing must be held every five years to consider the CMAB’s continuation. The last continuation hearing was September 16, 2020. The next required continuation hearing will likely occur in the summer of 2025.
II. Fiscal Year – The CMAB’s fiscal year is January 1 to December 31.
III. Board Composition – The Board shall consist of 18 producer members and 18 producer alternates. There may also be a public member and public alternate who may not have a financial interest in the milk industry. There may not be more than 1 vote from any one production entity. Board seats are generally allocated in accordance with the number of milk producers within each district. The district allocation of Board seats is reviewed every three years.
IV. Role of Alternates – When a producer member is unable to attend a meeting, he or she may designate any alternate member from their district to serve in their place.
V. Interim Filling of Vacancies – When a producer member position becomes vacant, the Chairman may designate any alternate from the same district to serve as an interim member until the next round of district nominations and preference voting during which CDFA will seek a replacement. When an alternate producer position becomes vacant, the Board may recommend and the Department may consider appointment of a producer to fill the vacancy or the position may remain vacant until the next round of district nominations and preference voting during which CDFA will seek a replacement. VI. Term of Office – The term of office for all members and alternates is 3 years. Terms are staggered so that one-third of the Board positions are filled each year. Terms begin March 1 and run through February 28 three years later. VIII. Selection /Appointment Process – All members and alternates are appointed by CDFA. Recommendations for producer appointments for each district are generated through a two-step mail process conducted each fall consisting of a self-nomination procedure followed by preference voting. Recommendations for the public positions are generated by a vote of the producer Board members. IX. Executive Committee – Each March the Board shall select an Executive Committee consisting of a Chairman, Vice Chairman, Secretary, Treasurer and three additional Board members. The Chairman is limited to three consecutive terms. X. Board Quorum and Board Voting Procedures – A quorum of the Board shall consist of 10 members. Except as provided in the two exceptions below, actions of the Board shall be valid if approved by a majority of the members present, provided there is a quorum of the Board present. • Any action recommending a minor amendment to the CMAB Marketing Order must be approved by not less than 75% of the producer members of the full Board. • Board actions related to the selection or dismissal of the CEO shall not be valid unless approved by a ⅔ vote of the full board . VII. Term Limits – The CMAB has no term limits. Board members and alternates may serve as long as they continue to be rechosen via their district’s nomination and preference voting process.
Over
XI. Maximum Assessment – Either 10 cents per hundredweight or 1% of Gross Dollar Value
XII. Authorized Activities:
A. Research Authority – The CMAB may fund research relating to milk and dairy products. Such research may include research studies concerning the production, processing or distribution of milk, the health and nutrition of milk or dairy products or the development of new uses for milk or dairy products. B. Education Authority – The CMAB may fund programs designed to acquaint producers, handlers, consumers or other interested persons with educational information. Such programs may include information regarding quality improvement, sanitation practices, procedures, or methods as applied to market milk or dairy products. Education programs may be designed to also make available to producers, handlers and the public the findings of research programs. • Milk and Dairy Products Other than Cheese, Ice Cream and Butter - The Board may develop programs of advertising and trade promotion relating to market milk and dairy products, provided , that any such plans, with the exception of plans that make incidental references to brands of cheese, ice cream, or butter as described below, shall be directed toward increasing the sale of such milk and dairy products without reference to any private trade name used by any handler or milk or dairy products. • Cheese, Ice Cream and Butter - The Board may develop advertising and sales promotion plans to allocate funds for promotions of cheese, ice cream, or butter products made with California milk, including promotions in which brand or trade names are used ; provided , that the use is incidental to the promotion of the California milk product and not in direct promotion of the brand or trade name; and provided further , that the allocation of funds is made available on a nondiscriminatory basis to all retailers and manufacturers of butter, ice cream, or cheese utilizing milk produced in California. Permissible private brand or trade name marketing promotions may include advertising, performance allowances, sales promotions, couponing subject to Section 61375 and in-store promotion programs and materials and other marketing communication tools. • Official Board Brands, Trade Names, Labels and Other Distinctive Designations - The Board is authorized to establish and to regulate the permissive use of official Board brands, trade names and labels, and other distinctive designations of grade, quality or condition, except the grade or quality designations in effect pursuant to State or Federal grade standards, for any product in which market milk or other dairy products are used. Any official Board brand or trade name which is established pursuant to this section shall not be construed as a private brand or trade name with respect to Section 58889 of the Code. C. Advertising and Sales Promotion and Market Development Authority:
CMAB Glossary of Terms
ACV (All commodity volume) – Total grocery dollars attributed to individual retail groups in a defined geographic trade area .
Advertising awareness – One diagnostic tool that companies use to gauge the success of a campaign, advertising awareness studies measure whether or not consumers have knowledge of the ad or recall seeing it.
Advertorial – An advertisement in a print publication designed to look like a news or feature article.
Aseptic: Aseptic packaging is a procedure consisting of sterilization of the packaging material or container, filling with a commercially sterile product in a sterile environment and producing containers that are tight enough to prevent recontamination (hermetically sealed). Aseptically packaged ultra-high temperature (UHT) milk is shelf-stable and does not require refrigeration.
Brand – A name or symbol that identifies a company’s product as distinct from those of its competitors . A well- developed brand communicates a promise to the consumer about a product’s unique benefits.
Broker – An agent who is authorized to buy or sell products for another organization. Brokers facilitate the movement of dairy products from processors to retail stores.
California Dairy Innovation Center (CDIC) – A collaboration of California processors, universities and check-off organizations focused on stimulating innovation in the dairy sector. Staffed and managed by CMAB. California Dairy Quality Assurance Program (CDQAP) – An educational program collaboratively offered by the California dairy industry, state and federal regulatory agencies, and the University of California. Its goal is to encourage, through education and voluntary certification, science-based dairying practices which promote the health of the consumer, the environment, and dairy livestock. California Dairy Research Foundation (CDRF) – The mission of the CDRF is to increase the utilization of milk through investments in research. The scope of this research includes dairy foods, dairy herd health and food safety, nutrition, and dairy quality assurance. California Department of Food & Agriculture (CDFA) – The CDFA promotes and fosters confidence in California agriculture by implementing and communicating public policy and programs. The CDFA interfaces with the dairy industry in a variety of areas including exports, promotion and research marketing orders, producer milk pricing, pooling and distribution of milk revenue, quality and sanitation, and animal health.
Cable TV – Television service purchased by consumers that is carried to homes by direct wires (cables).
Cause Marketing – An initiative in which CMAB partners with one or more other organizations to positively address a specific need with a social responsibility charge. This includes things like food donation programs and often carry positive public relations opportunities.
Centralized buying – Under a centralized buying system, the responsibility for product selection and purchase is consolidated in a central market office, rather than with the individual stores.
Club store – A members-only, large-scale, high-volume store that stocks a large number of products that sell at low prices. Examples include Costco and Sam’s Club.
Control label products – A brand developed by a small regional or local wholesaler, as distinguished from a brand bearing the name of a manufacturer or producer. Control label products are typically distributed to a limited number of retailers.
Cost-per-engagement (CPE) – A means of measuring digital and social media advertising effectiveness that shows the cost when a digital ad or piece of social media content is engaged with.
Cost-per-thousand (CPM) – A means of measuring advertising effectiveness that shows the cost, per 1,000 people reached, of buying advertising space or time in a given media outlet.
Cross-promotion – A sales promotion that uses one brand to promote another, non-competing brand.
Culinary Advisory Panel – A panel of multi-cultural food bloggers who help guide CMAB on appropriate messaging, thematic content, and recipe creation for all ethnic promotions to ensure relevancy and lend authenticity. Dairy Business Innovation Initiative (DBII) – Pacific Coast Coalition – Funded by USDA, Dairy Business Innovation (DBI) Initiatives support dairy businesses in the development, production, marketing, and distribution of dairy products. DBI Initiatives enhance academic capacity, provide direct technical assistance and grants to dairy businesses. The DBII Pacific Coast Coalition, hosted by Fresno State, in partnership with CMAB/CDIC is one of four in the United States. Dairy Management, Inc. (DMI) – A non-profit organization that conducts integrated programs in marketing communications, promotion, and research on behalf of America’s dairy farmers . It was formed in 1995 by the National Dairy Board and the United Dairy Industry Association. Designated Market Area (DMA) – Is a region or territory where people get the same television and radio options. They are often linked by major metropolitan cities, but in rural areas, can be combined. Nielsen divides the country into 210 DMAs. These areas represent 210 television media markets.
Direct-to-Consumer (DTC) – A business model of selling products directly to consumers through an ecommerce platform without the help of third-party wholesales or retailers.
Drop Shipping – is a form of retail business wherein the seller accepts customer orders without keeping stock on hand. Instead, in a form of supply chain management, the seller transfers the orders and their shipment details to either the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer. As such, the retailer is responsible for marketing and selling a product, but has little or no control over product quality, storage, inventory management, or shipping.
E-commerce – Sales completed through the online channel.
ESL (Extended Shelf Life) – means that the milk is “longer lasting” and does not spoil as quickly as fresh milk. Yet, like fresh milk, ESL milk has to be stored in the fridge regardless of whether it is opened or unopened. ESL milk will last drinkable for 4-6 weeks (unopened).
Foodservice – The business of making or serving prepared foods, as in a restaurant.
Freight on Board (FOB) – Is a shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods being transported. Purchase orders between buyers and sellers specify the FOB terms and help determine ownership, risk, and transportation costs. Gallup – A market research company that tests television and radio commercials, print ads and Internet ads to measure their effectiveness. Gallup tracks ads after they run to measure how effective they are at reaching a targeted market segment.
Green House Gasses (GHG) – Includes water vapor, carbon dioxide, methane, nitrous oxide, and ozone. The balance of these gasses in our atmosphere control the temperature at the surface of the earth.
HDPE (High Density Polyethylene) – A thermoplastic polymer made from petroleum. As one of the most versatile plastic materials around, HDPE plastic is used in a wide variety of applications, including milk jugs. HDPE is recyclable. HPP (High Pressure Processing) – A non-thermal preservation method which uses pressure and that guarantees food safety and achieves an increased shelf life, while maintaining the organoleptic and nutritional attributes of fresh products and can help protect heat-sensitive compounds in milk and colostrum (such as immunoglobulin). It can be applied to milk and dairy products but is not approved in the US as an alternative to pasteurization.
Independents – Food retailers that are one-store operations. Independents are usually small businesses serving local communities.
In-store demos – Retail store promotions which involve handing out product samples directly to consumers staffed by a trained local product demonstrator.
Integrated campaign – A marketing campaign that employs a variety of promotional methods – advertising, public relations, direct marketing, in-store promotions -- and coordinates them so they work together to reach the greatest number of people.
IRC (instant redeemable coupon)/on-pack IRC – A coupon placed directly on a product that either gives a price off on that package or a related product in the store immediately at check-out.
IRI (Information Resources, Inc.) – A company that gathers data on food products sold in supermarkets and grocery stores nationwide and sells it to subscribers. The data is collected on a weekly basis from the stores’ scanners, and IRI analyzes it to provide information on pricing, speed of sales and geographic distribution. Mat mail – A publicity method in which a brief feature story on a product is formatted and typeset so that newspapers can run the story as-is. The mat mail typically includes a visual and is distributed to small suburban daily and weekly newspapers. Media Monitoring – A company that monitors traditional and online media as well as social media and captures articles for its customers. For example, through Ketchum, the CMAB contracts with Cision and Lexis-Nexis to capture news and feature stories on California dairy. This enables the CMAB to track its publicity efforts. (formerly Clipping Service)
Merchandising – Drawing attention to products inside a store by arranging them in creative, eye catching displays.
Network TV – A group of television stations that are linked for the simultaneous broadcast of the same programs. With the network system, advertisers can reach a larger audience at a lower cost-per-person than with a single station.
Nielsen – Nielsen is a company that collects sales data on products sold in supermarkets, like cheese and dairy products. These data allow manufacturers to track sales of their products.
PET (Polyethylene terephthalate) – Obtained from petroleum sources, PET is a clear, strong, and lightweight plastic that is widely used for packaging foods and beverages, especially convenience-sized soft drinks, milk, juices, and water. PET is fully recyclable. PHA (Polyhydroxyalkanoates) – An emerging class of bioplastics that are bio-based and biodegradable (some are compostable). PHAs are produced by bacterial fermentation using bio-derived feedstocks – including dairy waste (whey, permeate) – and thus are an alternative to fossil fuel-derived plastics in some applications.
Publicity – A form of public relations that takes the form of editorial exposure, such as a news or feature article about a product. Publicity differs from advertising in that the company doesn’t pay the newspaper or TV station to run the story. POS (Point of Sale)/POP (Point of Purchase) – The in-store promotion of a product to make the product stand out among its competitors. POS can range from a simple ad that is hung on a grocery store shelf to a large, elaborate display. Private label – A brand developed by a large retailer or wholesaler, as distinguished from a brand bearing the name of a manufacturer or producer. Since manufacturers’ brands have large advertising expenditures built into their cost, a private brand can buy the same goods at a lower cost and sell them at a lower price. Product Display Page – A webpage specific to a product, found on a retailer’s own website like HEB.com or other third-party e-commerce website like Instacart.com. This page can include an image gallery, a description of the product, nutrition information, video content, availability in-store, and more. An optimized product display page will increase the product’s relevancy to consumers and likelihood of it showing sooner in web search. Qualitative research – Advertising research that explores issues deeply to gain insight into how consumers feel about a product and why they buy it. Qualitative research relies on in-depth interviews with open- ended questions like “How do you decide which cheese to buy?”
Quantitative research – Research that gathers measurable information from a large number of consumers. The surveys use closed-ended questions that require a simple answer.
Rating points – The measurement of the actual viewing or listening audience for a program or commercial. If a program has a rating of 10 points, it means that 10 percent of all households in a particular area had their television sets tuned to that program. A program with a high rating will deliver a large audience to advertisers for their commercials.
Retail authorizations – Approval by retail chains for their local and regional buyers to purchase merchandise for their organization.
Rotation – The pattern of how television and radio commercials are aired during the broad time period purchased by the advertiser. If an ad runs in the same time period on different days each week, it is called a horizontal rotation. If the ad runs throughout a particular day, it is a vertical rotation. Satellite media tour – A publicity method that allows a celebrity or company spokesperson to participate in up to 25 interviews per day with TV reporters. The person being interviewed sits in a television studio and is connected to remote locations via satellite hook-up, increasing the reach of the publicity program at a relatively low cost. SEO (Search Engine Optimization, as it related to food commerce) – The process of improving the appearance and positioning of your product on a website page. This can be done by optimizing content and boosting relevancy, or through paid means where an individual product is boosted into a top position so more consumers see it, engage with it, and ultimately drive more sales. SKU (Stock Keeping Unit) – A number associated with a retail product for inventory purposes. Retailers use SKUs to identify and track individual products. Each product must have a SKU, and each SKU must be unique; for example, a pint bottle and a quart bottle of the same product have separate SKUs. According to recent research, the average number of SKUs carried in a typical supermarket is 30,580. Shopper Marketing – A retailers own communication vehicles within their physical store and digital touchpoints. Because it is executed by the retailer, loyal shoppers are more likely to engage with shopper marketing tactics such as their weekly email blasts, festival-type promotions, etc.
Short-Lived Climate Pollutants (SLCP) – Short-Lived Climate Pollutants include black carbon, methane, tropospheric ozone, and hydrofluorocarbons (HFCs). They have relatively short atmospheric lifetimes but are believed to have significant warming impacts on climate.
Slotting fees – Fees that supermarkets charge suppliers and manufacturers to place their products on the shelf.
Spot TV – Commercial time on local television stations, as distinguished from commercial time on a network.
Talent Fees/Residuals – Fee paid to actors used in a broadcast commercial.
Third Party Logistics (3PL) – An organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.
UF/MF (Ultra- and microfiltration) – Membrane-based processes applied to milk to separate its components based on molecular weight/size. During UF all the proteins are retained, whereas MF selectively retains casein and permeates whey proteins. UF is primarily used to produce dairy ingredients that have an increased protein content and reduced lactose contents, such as milk protein concentrate (MPC) and whey protein concentrate (WPC) UHT – Ultra-high temperature processing sterilizes milk by heating it above 135 °C (275 °F) for a short time. UHT milk packaged in a sterile container has a typical unrefrigerated shelf life of six to nine months. Unique Visitors Monthly (UVM) – Refers to the number of distinct individuals requesting pages from the website during a given period, regardless of how often they visit. Visits refers to the number of times a site is visited, no matter how many visitors make up those visits. United Dairy Industry Association (UDIA) – UDIA coordinates with its members, 18 state and regional dairy promotion organizations, to develop and implement programs and services to support the dairy industry. Universal product code (UPC) – Grocers use the UPC to identify products and prices, and to track their sale. UPCs are translated into barcodes (a series of vertical parallel bars printed on a product’s package) that are read or “scanned” by electronic cash registers.
Velocity – The rate of retail sales that a brand or SKU achieves through a store, group of stores or market area over a defined period of time.
Video news release (VNR) – Information about a product produced in a video newscast format and distributed to the news departments of television statements. If, after the news director reviews the VNR and he/she decides to use it, the video is typically edited and aired as a news item during a newscast. Warehouse store (superstore ) – A large-scale, high-volume store that stocks a large number of products that sell at low prices such as Wal-Mart. Can be called a “warehouse club” if the store sells only to members such as Costco or Sam’s Club.
Wire service (Associated Press) – A newsgathering organization that that collects stories for newspapers and distributes them electronically to subscribers.
Cheeses
Artisan Cheese – Refers to cheeses that are handmade in small quantities with respect for the tradition of the cheese. Artisan cheeses can be, but are not necessarily, made from milk obtained from animals located on the farm where the cheese is made.
Commodity Cheese – Describes popular varieties of cheese typically produced in large quantities with a flavor profile that appeals to the majority of consumers. These cheeses are sold in supermarkets, either as branded products or under private labels, or distributed for foodservice use. In California, Cheddar, Jack, and Mozzarella (low-moisture form) are popular commodity cheeses.
Farmstead Cheese – Refers to cheeses made from milk obtained from animals located on the farm where the cheese is made.
Specialty Cheese – A broad term that describes non-commodity cheeses. Specialty cheeses are cheese varieties with distinctive flavor profiles catering to a special niche in the market. Specialty cheeses can be unique varieties of cheese (i.e., Camembert, St. George, Teleme) or specialized versions of popular cheeses such as Cheddar, Jack, or Mozzarella (i.e., raw milk Cheddar, Dry Jack, high-moisture Mozzarella). This category also includes handmade artisan and farmstead cheeses. Specialty cheeses are typically sold as branded products in specialty food stores and in supermarket gourmet cases.
Organizations
CARB – California Air Resource Board CARES – Dairy CARES CCOA – California Creamery Operators Association CDC – California Dairy Campaign CDI – California Dairies, Inc. CDIC – California Dairy Innovation Center CDFA – California Department of Food and Agriculture CDQAP – California Dairy Quality Assurance Program CDRF – California Dairy Research Foundation CEPA – California Environmental Protection Agency CFMPB – California Fluid Milk Processor Board CMAB – California Milk Advisory Board
DCC – Dairy Council of California DFA – Dairy Farmers of America DIC – Dairy Institute of California DMI – Dairy Management, Inc. DWR – Department of Water Resources
IDFA – International Dairy Foods Association IFIC – International Food Information Council IMGC – International Milk Genomics Consortium LOL – Land O’ Lakes MilkPEP – Milk Processor Education Program MPC – Milk Producers Council NMPF – National Milk Producers Federation USDA – United States Department of Agriculture
USDEC – U.S. Dairy Export Council WUD – Western United Dairymen
ADMINISTRATION
Presentation to Board of Directors
March 2024
Statement of Income & Expenses
Milk Production Comparison
California Milk Advisory Board Statement of Income and Expenses As of November 30, 2023
Month Ending CY % to Month Ending PY % to Year Ending 11/30/2023 Budget 11/30/2022 Budget 12/31/2023 Actual PY Budget
Revenue Assessment Income *
$ 37,276,270
90% $ 38,165,422
92% $ 41,530,000
Non-Assessment Income **
91,639
85,201
95,000 245,000
96%
81%
Other Income
1,077,835 440%
289,532 827%
-
-
Outside Income - Grant Reim
132,189
Total Revenue
38,577,932
38,540,155
41,870,000
92%
92%
Expenses
Advertising
15,460,623 3,537,961 4,455,262 1,772,373 5,164,591 1,441,187
16,120,531 3,766,003 4,831,375 1,478,862 4,446,422 1,272,585
17,834,000 4,039,000 6,350,000 2,175,000 6,438,388 1,459,000
87% 88% 70% 81% 80% 99% 74% 75% 70% 41% 93%
88% 84% 71% 68% 69% 88% 78% 66% 71% 32% 59% 99% 80% 62% 93% 56% 33% 76% 86% 78% 80% 64% 87% 94% 71% 96% 97% 67% 0%
Communications Domestic Retail
Foodservice
International Initiative
Tradeshows
Processor Relations Industry Intelligence Producer Relations
722,841 567,229 484,214 19,866 755,642
843,814 543,985 507,856 15,214 588,646
981,600 753,658 695,750 48,000 816,000
Education and Community Relations
CDIC
Dairy Research Foundation
1,732,966 100%
1,732,624 36,147,915
1,732,966 43,323,362
36,114,754
83%
Office Operational
308,580 6,056 19,126 17,627 142,411 43,756 106,951 46,196 62,128 633,962 39,054 42,839 10,225 94,348 47,750 19,984 79
297,108 81,224 23,411 27,045 141,512
476,000 87,600 40,000 62,000 174,838 48,000 10,000 58,000 72,000 800,000 50,000 91,000 14,000 125,000 47,000 21,200 -
65%
Rent
7%
Travel & Automobile
48% 28% 81% 91%
Legal
Insurance - Employee Freight & Postage Employee Education Depr, Amort & Interest Liability Insurance Money Investment Plan Admin Salary & Wages Board Travel Expenses Board Meeting Expenses
45,487 123%
11,475
1% 0%
115%
-
46,343 63,752 725,164 35,149 78,823 13,225 88,569 46,000 18,233
80% 86% 79% 78% 47% 73% 75%
Board Per Diem Marketing Branch
Fiscal & Compliance Audit Assessment Collection Fee
102%
94% 75%
1,641,072
1,742,521
2,176,638
Total Expenses
$ 37,755,826
83% $ 37,890,436
79% $ 45,500,000
Year to Date Payroll: $3,386,515 * Estimated November Assessment at $3,227,499 ** Estimated October and November Non-Assessment at $15,000
Comparative Statement of Income and ExpensesNovember 30, 2023
12/13/2023
CMAB Milk Production Comparison
2018 to 2019 2019 to 2020 2020 to 2021 2021 to 2022 2022 to 2023 % Change % Change % Change % Change % Change
2020
2021
2022
2023
January February
3,497,591,436 3,591,881,356 3,348,120,007 3,315,540,632 3,662,406,250 3,711,091,837 3,475,821,700 3,629,592,418 3,538,575,590 3,709,808,492
3,523,704,645 3,516,877,642 3,294,415,818 3,255,648,146 3,704,999,229 3,623,879,592 3,597,030,053 3,524,284,916 3,655,797,733 3,627,458,745
-3.46% -1.16% -0.91%
4.07% 2.70% -1.90% -0.19% 4.86% -0.97% -0.64% -1.18% 2.98% 1.33% -0.16% -2.19%
March
April May June
0.86% -0.12% 4.42% -0.90% -2.02% 0.35% -0.07% 4.84% -1.46% -0.78%
3,325,976,064 3,443,968,122 3,457,426,027 3,404,671,543 3,444,001,804 3,422,363,281 3,508,881,474 3,309,799,621
-1.15% 2.48% 0.24% -0.78% 0.38% -1.13% 2.57%
1.85% 3.55% 0.39% -1.53% 2.14% -0.63% 2.53% -5.67% 1.28% 0.52% 2.27% -4.50% 2.15% -0.06% 0.08% -1.99% 1.13% 1.84% -1.05% -2.80% 2.66% 0.28% -0.84% -2.01% 0.20% 1.62% -0.30% -1.13%
July
August
3,352,677,803 3,370,209,607
3,446,864,031 3,291,637,904
September
3,261,414,984 3,259,551,116 3,262,119,753 3,197,210,620 3,366,497,491 3,428,295,882 3,392,424,997 3,297,301,642 3,329,290,479 3,338,449,997 3,310,255,775 3,243,630,168 3,422,732,261 3,478,072,463 3,467,696,688 3,428,650,576
October
November December
Total
-0.15%
41,025,105,869
1.90%
41,025,105,869 41,698,825,203
1.64%
41,698,825,203 41,621,616,223
-0.19%
41,621,616,223 40,721,051,115
-2.16%
1/25/20244:57 PM
Milk Assessments
Production Comparisons
ADVERTISING & COMMUNICATIONS
Presentation to the Board of Directors
March 202 4
CMAB Advertising Update CMAB Social Media Update CMAB Communications Services Program Coverage Dashboard s Press Releases
CMAB Advertising Update
2023 + 1H 2024 California Freestyle Campaign We wrapped up 2023 with our California Freestyle 2.0 campaign across TV, streaming, and YouTube as well as our campaign extension “Pass the Remix,” a social video content series showcasing how ingredients and influences can build upon each other to remix a dish and make it even better than the original. We also brought back the Cheese Wreath activation just in time for the holidays. Similar to 2022, we partnered with Lady & Larder, a Los Angeles–based cheese shop, to create a new cheese wreath board featuring CA cheeses and other CA grown items, available for purchase. For each purchase, CMAB committed to donating funds to Feeding America for fluid milk purchases up to $10,000. This activation featured social posts, including video content and images. Looking ahead to 2024, we’ll be extending the 2023 California Freestyle 2.0 video campaign through June, before launching the newest iteration of California Freestyle in July 2024 during the Olympics! The new work will air across TV, streaming, YouTube, and social platforms. Fall Brand Action: Farm to Fuel At the end of 2023, the Farm to Fuel initiative, which educated Californians on the use of methane digesters on dairy farms to create clean fuel, officially wrapped and we have strong results to share. From the CMAB brand tracking study, we learned that the strong branding, compelling visuals, and entertaining nature of the bus wraps, bus shelters, and campaign video were effective at improving sustainability perceptions for Real California dairy. Looking specifically at reactions to the video, almost all who saw the video say it gave them a more positive impression of CA dairy. Our survey also revealed that the social video improved sustainability perceptions for CA dairy across all four sustainability metrics (sustainable farming, proper/ethical treatment of animals, are invested in a more sustainable future, and climate consciousness). Coming out of this campaign, we view the results are a strong indicator of the potential sustainability content has to captivate viewers and improve perceptions of Real California Dairy as long as it’s entertaining and unexpected. The team is currently exploring new content opportunities using the same format for 2024.
FY 2023 Media Highlights
TV
2023 (4/10/23–12/17/23) ● California Freestyle 2.0 :30 (Latin Pop, Country, Reggaeton), :15 (Latin Pop, Country, Reggaeton) ● 398MM Impressions
Paid Social
2023 (1/1/23–9/30/23)
● 418.5MM Impressions ● 25.8M Video Views ● 395.5K Engagements
Paid Search
2023 (1/1/23–12/31/23)
● 3.5MM Impressions ● 331K Clicks
YouTube
2023 (4/10/23–12/31/23)
● 16.5MM Impressions ● 7.9MM Views
Digital Media
2023 (4/10/23–12/17/23)
● 121.4MM Impressions ● 56MM Video Views ● 645K Clicks
Website
2023 (1/1/23–12/31/23) ● Continued to curate new recipes pertaining to the latest food trends and local promotions to drive awareness of Real California Milk. ● Enhanced Sustainability landing page to highlight Farm to Fuel social video. ● Launched Spanish-translated web pages of Cheese and More content.
Local Promotions In 2023, we launched four local digital promotions that highlight dairy by spreading awareness and driving sales of featured dairy products, while leveraging influencer partnerships and running digital banners and social content. Each local promotion featured English-and Spanish language content targeting our General and Hispanic target markets. ● Hispanic Lent ● Tacos, Tequila, y Más ● Summer Snacking ● Holiday Mornings Mean More
In 2024, we will launch three key local promotions: ● Tacos y Más ● Summer Snacking ● Back-to-School Breakfast
Social Our social content strategy continues to focus on the key messaging pillars of Our Food & Health (highlighting the nutritional value of dairy), Sustainability, and Brand through paid Facebook, Instagram, and Pinterest content in English and Spanish. As of January, we added TikTok into our owned channel mix for 2024 due to the growth of the platform, usage by our target audience, and the prominence and effectiveness of food and recipe content on the app. We launched with organically posted video content and repurposed influencer content around Our Food from January through April. Once our organic presence is established, we plan to run a test from May to June to decipher our paid efforts on the app. Investing in a Sustainable Future: Latest CDRF Sustainability Research Our sustainability research is still in motion. In this current phase of research, Deutsch LA is continuing to review the initial findings and will share a final summary of key learnings that will inform the next phase of research. And as a reminder, this project officially launched in July and was designed to help us understand what sustainability topics and messaging resonate best with consumers to inform future marketing efforts and product messaging. The research consisted of multiple inputs — in-depth consumer interviews followed by a survey inclusive of message testing and a pricing conjoint study, and it was conducted with the help of an outside research agency called Hall & Partners as well as our creative agency, Deutsch LA, and our PR agency, Ketchum.
CMAB Social Media Update
Search Engine Marketing In 2023, we focused on optimizing toward the most cost-efficient keywords, maintaining 80%– 90% Branded SOV (Share of Voice), updating the campaign based on Google’s latest changes, supporting dairy holidays & Dairy Mythbusters with relevant keywords/copy, and incorporating Spanish-language keywords and search ads. Non-brand campaigns were geo-targeted to California only, while brand campaigns ran nationally.
Lastly, to ensure we did not duplicate efforts across brands, we met with MilkPEP, DMI, and CA Milk Processor search teams several times throughout the year.
We’ll continue building on the success of the past year as our 2024 search campaign kicked off on 1/1/2024.
2023 Paid Search:
Impressions
Clicks
CTR
3,529,613
311,220
8.82%
Appendix Paid Social Performance: The chart below shows social metrics for evergreen content across FB/IG and Pinterest through CMAB and influencer channels, from January through June 2023.
January–December 31, 2023: Content
Impressions
Engagements
Video Plays
Always On (Brand)
263,808,278
197,092
13,058,785
California Freestyle
83,814,401
70,164
8,415,101
Cheese Wreath
5,048,253
2,103
396,664
Farm to Fuel (Long Form)
3,938,824
2,553
1,272,850
Farm to Fuel (Short Form)
5,240,257
851
401,184
Holiday MMM
15,354,454
41,200
0
Influencer Amplification
12,883,904
39,211
1,888,190
Influencer Amplification (Book Sign Event)
900,597
609
51,205
Lent
3,199,791
585
0
Social Trends
3,964,644
2,602
320,756
Sustainability A/B Test 1 (July)
6,971,504
362
0
Summer Snacking
7,882,576
37,200
0
Tacos, Tequila, y Mas
5,507,822
942
2
CMAB Communications Services Program
COMMUNICATION SERVICES Public relations activities in Q4 focused on supporting CMAB functional business priorities and delivering key messages to differentiate California dairy among consumers and retail/foodservice audiences. Key Communications Strategies: • Strengthen awareness, affinity, and preference for CA based dairy in CA markets • Highlight milk, cheese, butter, yogurt, cottage cheese and ice cream in creative/messaging • Nurture re-discovered habits and usage occasions that drive dairy sales (breakfast, snacking) • Reach consumers where they are, share farm to table, sustainability, and culinary stories • Continue to maintain role of dairy in fitness/health for consumer, health professional audiences • Spotlight value of dairy: monetary, nutritional, flavor in PR and social media messaging • Promote CA progress in achieving climate neutrality • Continue to provide relevant information/tools for foodservice operators Regional (California)/National Consumer
Cheese Wreath Holiday Content Partnership Results : Press Release: 413 Stories/262M Impressions
Trendhunter Earned Media Pick Up: 2 Stories/1.6M Impressions The CMAB partnered with cheese shop, Lady & Larder and cheese expert, Jessica Lawrenz (@mongermoldandmilk) for the second time during the holiday season in Q4 to create a series of cheese wreath posts, an instructional video, and a Cheese Wreath Kit for purchase in support Results: 1 Story/1.1M Impressions in CA and 103K National In Q4 a sponsored lifestyle article highlighting cottage cheese as a versatile, valuable addition to meals and snacks was distributed through Bustle online and Facebook. This content performed 7x above average. of Feeding America food banks. Cottage Cheese Bustle Article
Holiday Mornings Mean More Retail Campaign Results: Stella n Spice TikTok: 1 Post/1.4M Impressions Stella n Spice Paid Amplification: 1 Post/3.5M Impressions (California geotargeted) Brandpoint Release: 55 Stories/49M Impressions (California geotargeted) The Holiday Mornings Mean More Retail Campaign was supported through PR media and social media influencer content. The CMAB partnered with influencer Stella Navarro-Kim (@stellanspice) to create sponsored social content which included a one-pan Breakfast Enchiladas recipe for entertaining or feeding a large family on holiday mornings featuring Real California dairy.
A sponsored lifestyle article, “Unlock the Value of Memorable Holiday Morning Meals With these 7 Tips” highlighted value tips for holiday morning meals and was geotargeted to California. Online media placements included The Los Angeles Times, SFGATE, The Sacramento Bee, The Fresno Bee and The Modesto Bee.
Health & Wellness Results: IDEA Article and Newsletter: 92K Impressions Jessica the Sports RD IG: 4 Posts/100K Impressions IG Paid Amplification: 3 Posts/2.1M Impressions Jessica the Sports RD TikTok: 2 Posts/21K Impressions TikTok Paid Amplification: 2 Posts/1.7M Impressions Jordan Mazur IG: 2 Posts/8.6K Impressions IG Paid Amplification: 2 Posts/1.8M Impressions The CMAB amplified health and wellness messaging tied to trending recipes for fitness professionals through sponsored content in the IDEA e-newsletter (“These Viral Recipes Have Serious Fitness and Wellness Benefits”). We continued to partner with nutrition professionals Jordan Mazur, MS, RD and Jessica Isaacs, RD to share content on their social channels tied to milk and dairy for optimal nutrition and performance.
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