2024 September Board Book

DIRECTOR’S NOTE

DENISE MULLINAX EXECUTIVE DIRECTOR

CDRF continues to evolve and manage multiple complex projects to support the continued sustainability of our California dairy industry. Our efforts aim to address the industry’s unique challenges and leverage opportunities through innovative research and collaboration. Our industry is a unique powerhouse of a commodity contributing not only to the state’s economy but also to the U.S. dairy sector, accounting for approximately 18% of the nation’s total milk production. Our Golden State producers create a wide range of healthy and delicious dairy products including (but certainly not limited to) milk, cheese, butter, yogurt, and ice cream. Though this success is not without its struggles. The industry faces challenges such as fluctuating milk prices, regulatory pressures, labor shortages, and competition from plant-based dairy alternatives. Additionally, climate change and weather events pose risks to water availability and feed production. To address these challenges, the industry is increasingly adopting technology to improve efficiency and sustainability. This includes robotic milking systems, precision feeding, advanced manure management and data analytics to monitor cow health and productivity. The California dairy industry continues to progress, balancing economic contributions with environmental stewardship and adapting to changing market conditions. CDRF has been supporting the innovative efforts of the California dairy industry for more than 35 years. We are proud to continue our commitment to adaptability in response to both real-time trials and the long-term vision of a thriving industry and healthy communities. In 2023, CDRF expended significant effort to refresh and revise our Strategic Business and Research Plan (see Page 4), incorporating up-to-date intelligence obtained through surveys, direct interviews, and thorough research. The updated plan prioritizes projects that address issues unique to the California dairy business and favors shorter-term studies with outcomes that can be directly applied by the industry or producers. Key strategy updates for the period of 2024-2028 include: • Prioritizing projects that address issues unique to the California dairy business. • Co-investing in and collaborating on projects with other key dairy industry partners to leverage check-off dollars. • Including the impacts of costs, pricing, and profitability, as available, in project deliverables. • Selecting projects that address multiple focus areas (see Page 4). These strategies ensure that our research and initiatives are both relevant and actionable, thereby maximizing the benefits to our producers and other stakeholders.

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