Utah Dairy Industry Receives Marketing
“Shot in the Arm”

To help these dairies remain profitable and competitive with “imported” milk, Meadow Gold and the Utah’s Own program have joined forces to promote their Utah produced milk. The Utah‘s Own program is a marketing program sponsored by the Utah Department of Agriculture and Food (UDAF) and has been promoting the concept of buying Utah produced products for several years. Meadow Gold is a marketing outlet for Utah milk.

“We haven’t had the same opportunity to promote Utah milk as we have value added food products prior to our agreement with Meadow Gold”, said Jed Christensen, Director of the Marketing and Development Division of UDAF. “Now with Meadow Gold on board with the Utah’s Own program, we can better promote Utah milk to Utah consumers. We anticipate it will be a real shot in the arm for Utah dairies.”

“We have always been concerned with the success of Utah dairies,” said Gary Summers, Marketing Director for Meadow Gold. “Their success is our success so we are pleased to become part of the Utah’s Own program, a program that is beginning to make a positive impact on the Utah consumer and the Utah economy,” he added.

To associate Utah milk through the Utah’s Own program to consumers, Meadow Gold promotions will now include the Utah’s Own program in their TV and radio spots, on billboards, and local promotions such as the Days of 47 Rodeo and the Farm Country display at Thanksgiving Point. To enhance Utah’s Own promotions, the agreement will allow the always popular Miss Utah to appear in Utah’s Own activities as well. In addition, Meadow Gold is committed to partnering with other Utah’s Own companies to promote their product since most foods use some form of dairy product in their manufacturing process or compliment milk consumption. In order for the Utah consumer to continue to recognize Meadow Gold milk and milk products as being locally produced, Meadow Gold products and other Utah’s Own products are identified by distinctive Utah’s Own shelf talkers in many grocery stores.

While it seems to be a simple matter for Meadow Gold to be part of the Utah’s Own program, they didn’t quite fit the original criteria for becoming a Utah’s Own company according to Richard Sparks, Deputy Director of the Marketing and Development Division of UDAF, “We are excited to have developed criteria that allows them to be designated as a Utah’s Own company. The bottom line is that 90% of the milk that Meadow Gold processes originates from Utah dairies so Meadow Gold’s extensive marketing efforts directly contributes to the profitability of those Utah dairies.” “A healthy dairy industry contributes to a healthy Utah economy,” he added.

The Utah’s Own program estimates that every dollar spent on Utah-produced milk has the effect of returning an additional $6.00 to the Utah economy, while purchases of imported milk have the effect of exporting a portion of the Utah economy to other states. Known as the multiplier effect, every dollar spent on Utah-produced milk is shared by Utah farmers who provide grain to the dairy, Utah jobs for those who process the milk, those who market the milk and those who provide the marketing outlet to Utah consumers.

The Utah Dairy industry has struggled in recent years with federal marketing orders, rising costs of feed, and milk from other states being shipped into Utah in competition with Utah milk. While there are few Utah owned milk processing plants in Utah, there are a considerable number of Utah dairies. While milk prices appear to be healthy for dairymen this year, the increase in the cost of feed and fuel expenses has matched the increase in revenues keeping profits for dairymen thin.

Posted July 5, 2007