Dairy Management Inc. (DMI) recently promoted Barb O’Brien to the newly created position of president. In this role, she will oversee the strategic planning and operations for DMI, which manages the national dairy checkoff. O’Brien, a 15-year DMI veteran, also remains as president of the Innovation Center for U.S. Dairy.

O’Brien’s promotion enables chief executive officer Tom Gallagher to concentrate on business-building opportunities.

U.S. dairy promotion leaders met Oct. 31 – Nov. 2, in Nashville, Tennessee, with the joint annual meeting of the National Milk Producers Federation, National Dairy Promotion and Research Board, and the United Dairy Industry Association. Leading up to that meeting, Progressive Dairyman Editor Dave Natzke asked O’Brien about her new role, her goals for the organization and the challenges the dairy industry faces ahead.Barb O'Brien

Q. You’ve been with DMI for 15 years. What project or program you’ve been involved in has given you the most pride?

A. O’BRIEN: It’s hard to choose just one. Our work in the Innovation Center for U.S. Dairy rises to the top. It puts dairy farmers at the table with other members of the dairy value chain to discuss key issues and opportunities. Our board, which includes farmers, understands the increasing complexity of the consumer marketplace.

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They understand the critical importance of dairy aligning around key social responsibility practices, a commitment to transparency and unified messaging about our good work. We’ve done a lot of things to positively impact the industry in areas such as food safety, traceability and sustainability.

Q. What has been your biggest ‘aha’ moment?

A. O’BRIEN: I have had the privilege to know dairy farmers over these last 15 years. They are forward thinking, true innovators, have an entrepreneurial spirit and mindset they apply to their farms and businesses, and are very committed to what they do.

What may be most impressive is their resiliency as they face enormous economic swings and growing regulatory pressures, yet they continue to do what they love every day. It’s very inspiring.

Q. How does your leadership style differ from that of Tom Gallagher?

A. O’BRIEN: There are many similarities between Tom and me, particularly in our vision for dairy farmers and our commitment to getting the strategy right. Core to our shared leadership qualities are vision, passion, advocacy for farmers, collaboration and a willingness to take bold, calculated risks.

In my new role, an important focus will be on empowering and planning for the next generation of leadership – our approach, outcomes and structures for best advancing farmers’ priorities.

Q. It looks like we may finally be coming off a stretch of low milk prices and tight farmer margins. From a dairy promotion and consumption perspective, what should give dairy producers hope things will get better at the farmgate?

A. O’BRIEN: I am keenly aware of and sensitive to farmers’ low milk prices.

Four years ago, we started on a path to help fundamentally transform the fluid milk category, focusing on immediate sales. We met with 50 dairy processors, and we selected eight partners committed to investment and innovation to work with long term.

These partners have spent more than $500 million to upgrade or build new facilities with enhanced capabilities to produce extended-shelf-life or shelf-stable products. For every $1 the checkoff invests in this work, partner companies are investing $10 or more.

We are seeing positive signs with domestic sales. Year-over-year fluid milk declines have been reduced by 50 percent. Although not related to milk revitalization, we also saw an unprecedented increase in incremental milk moved in the form of cheese – more than 5 billion pounds from May 2015 to May 2016.

Q. Between non-GMO, grass-fed, organic, A2 beta-casein and other marketing campaigns, we’re seeing a lot of niche marketing in dairy. Is it a case of a rising tide lifting all ships, or a street fight for market share?

A. O’BRIEN: It’s a little bit of both. What dairy needs most are strong, positive and compelling brands. The board is exploring a philosophy that brands should look for opportunities to build unique products with differentiation that can tell their story in a way that shines a positive light on the entire category versus tearing it down or causing fear – particularly when it comes to differentiation and disparagement based on farm practices.

What is unacceptable is irresponsible marketing by brands looking to grab short-term market share and resulting in undermining or eliminating scientifically sound production practices and technologies.

Q. What is the biggest challenge you face at DMI in the next year? Five years?

A. O’BRIEN: I think it’s managing the changing times and enormous shift in generations. As a mother of two millennials, I believe this shift has impacted the industry on multiple levels. This generation is further removed from the source of their food and the people who produce it, and they are often getting misinformation from sources driven by alternative agendas.

Our challenge (and opportunity) is to connect this next generation with dairy in a way that highlights their many shared values. Consumers want to see the food they purchase was produced by people who care for their animals and land, and we have this story to tell.

Within our industry, one of our emerging challenges includes leadership turnover – on the farm, in cooperatives and the manufacturing sector. We need to ensure the next generation sees dairy careers as attractive, progressive and stable.

Q. If you could have only one dairy product on tomorrow’s menu, what would it be?

A. O’BRIEN: That would be like asking a mother to choose her favorite child. I think dairy’s future is bright, and all dairy foods can fit on the menu. We’re working on innovation across all aspects of the category to assure relevance, access and appeal to consumers. The companies that invest in innovation to meet consumer needs and are willing to embrace trends will rise to the top.  end mark

Dave Natzke