Jeff Williams
President and CEO
Glanbia Foods Inc.
The trend that could most greatly impact our business in 2008 is if cheese buyers follow fluid milk buyers’ lead in the elimination of rBST in cheese milk. If a large influential cheese buyer or cheese retailer/foodservice purveyor were to make a major PR splash about only accepting cheese from rBST-free milk, then I think it is only a short matter of time before consumers “cop on” and demand rBST-free cheese products. This could have a big impact on milk supply, especially during the transition period to rBST-free. American-style cheese is already in short supply and this would exacerbate the shortage.
The other trend – if you can call it a trend – is the advancement of cloning. I fear, if sanctioned by FDA, this could have a huge impact on dairy consumption as many consumers equate cloning of animals that eventually become our food supply as “Frankenfood.”
Miriam Erickson Brown
President and CEO
Anderson Erickson Dairy Co.
In 2008, more purchasing decisions in the dairy department will be made by the newest generation of moms. These women from Generations X and Y are committed to providing the best for their children and desire to be known as not just good moms, but great moms. They most certainly represent a powerful new trend in 2008.
If we could have a little fun with a name for this discerning group of consumers, we could call them “MRI Moms” – they’re not satisfied with a cursory look at product labels; they want to see everything below the surface. They want to know what’s inside. Some want to buy only local foods, some want to know their dairy does not contain rBST, milk from cloned cows or high fructose corn syrup. Some are motivated by value-added dairy, such as products containing omega-3. Food safety and purity are very important to these moms as well.
Paul Kruse
President and CEO
Blue Bell Creameries
The biggest impact on business will come from the continuing trend of volatile dairy pricing. It will be interesting to see what eventual level will be sought. Will U.S. prices mirror world pricing? The roller coaster is not good for the dairy industry. Stability in the price of dairy ingredients would sure be nice. Consumers have choices and we need to keep dairy products at the best possible value. Otherwise, producers, processors and consumers will all miss out on being able to provide and enjoy really nutritious and fun foods.
Marty Margherio
President and CEO
Farmland Dairies
The trend we feel will impact our business the most in 2008 is energy costs. All aspects of energy – from electricity to gas to diesel – will have a challenging impact on our business for 2008. This will raise our cost of goods in most areas and will force us to remain streamlined and monitor all our spending very closely. We’ll have to keep looking for better, more cost-effective ways to manage our business in all areas.
Executive Hot Seat appears quarterly in Dairy Field Reports.
