Northeast Dairy Magazine | Q1 2024

THE OFFICIAL PUBLICATION OF THE NORTHEAST DAIRY FOODS & SUPPLIERS ASSOCIATIONS

Meet Your Board of Directors ASSOCIATION NEWS

Dairy Blender Preview HUMAN RESOURCES

Common Mistakes When Hiring New Employees SOMETHING TO CONSIDER

The Amazing U.S. Dairy Cow

2 0 2 4

Unify Your Sales & Marketing Teams

First Quarter 2024

industry forecast NDFA, NDSA members share their thoughts about the upcoming year

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contents First Quarter 2024 • Volume 7, No. 1

FRONT DESK 06 PRESIDENT’S MESSAGE, NDSA Uncertainty Continues When It Comes to Predicting the Outlook for 2024

BY MELISSA FRYER

07 PRESIDENT’S MESSAGE, NDFA Forecasting the Future

FEATURES

2 0 2 4

industry forecast 30 Members Share Their Thoughts on the Upcoming Year

BY DANIEL LAUSCH

08 E XECUTIVE DIRECTOR’S MESSAGE

BY COURTNEY KLESS

35 Cautiously Optimistic For 2024

2024 is Already Rockin’!

BY ALEX WALSH

BY ROB FULTON

09 DAIRY BLENDER PREVIEW 12 MEET YOUR BOARD OF DIRECTORS

MEMBER NEWS 36

20 LEGISLATIVE REPORT Gaveling In 2024

BY ALEX WALSH

21 ECONOMIC OUTLOOK

Inflation, Interest Rates Continue to Have an Impact in 2024

MEMBER PROFILE

Pactiv Evergreen: ‘Packaging a Better Future’ Through Innovation

BY COURTNEY KLESS

38

Member Announcements

TOOLS OF THE TRADE

BY GARY LATTA

26 SOMETHING TO CONSIDER The Amazing U.S. Dairy Cow

42

BY GARY LATTA

he Five Most T Common Mistakes Companies Make When Hiring or Acquiring New Employees

BY DR. GARY KUSTIS

44

The Customer Experience Continues to Change

BY ART WASKEY

4 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

46

nify Your Sales and U Marketing Teams to Close More Deals in 2024

BY DEVON E. HOFFMAN

50

each Engine Trends S for the Dairy Industry

52

Leanne’s Kitchen

53

OSHA Update

contents

First Quarter 2024 • Volume 7, No. 1

Northeast Dairy Foods Association, Inc.

Northeast Dairy Magazine Team PUBLISHER

SALES

EDITOR

Lesli Mitchell lmitchell@nedairymedia.com

CONTENT DIRECTOR

Hannah Gray hannahg@nedairymedia.com

Bill Brod billbrod@nedairymedia.com EXECUTIVE DIRECTOR

Alex Walsh BUSINESS OPERATIONS MANAGER

Leanne Ziemba PRESIDENT

Daniel Lausch Lactalis USA – Commonwealth VICE PRESIDENT

Jodi Smith Krzysiak Upstate Niagara Cooperative TREASURER

Randi Muzumdar Lactalis American Group SECRETARY

Ryan Elliott Byrne Dairy

Courtney Kless courtneyk@nedairymedia.com Steve Guglielmo steveg@nedairymedia.com RESEARCH & DEVELOPMENT COORDINATOR

Athena Cossette athena@nedairymedia.com COPYWRITER

Tim Hudson thudson@nedairymedia.com

CONTRIBUTORS Devon E. Hoffman, Dr. Gary Kustis, Art Waskey PRODUCED BY

Northeast Dairy Media

Nicole Smith

Editorial correspondence should be directed to courtneyk@nedairymedia.com.

GRAPHIC DESIGNER

Advertising correspondence and materials should be sent to lmitchell@nedairymedia.com.

Robin Barnes

Get

NOTICED in 2024 View our media kit to discover the opportunities to reach NDFA members.

VIEW NOW

Northeast Dairy Suppliers Association, Inc. PRESIDENT

Melissa Fryer Exergy, LLC VICE PRESIDENT

Paul Knoerl Pactiv Evergreen

An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations.

In all other respects, neither the association nor the producer of the publication, Northeast Dairy Media, is responsible for the contents thereof or the opinions of the contributors.

The entire contents are © 2024 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned.

Visit The Northeast Dairy Foods & Suppliers Associations online at ndfsa.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at lz@nedairyfoods.org.

STAY CONNECTED

TREASURER

Ryan Osterhout KCO Resource Management SECRETARY

Bruce Alling Double H Plastics, Inc.

ndfsa.org

directory.ndfsa.org

5701 EAST CIRCLE DRIVE , SUITE 108 #277 CICERO, NY 13039 | 315-452-MILK (6455)

NED Magazine • First Quarter 2024 • 5

Front Desk

Uncertainty Continues When It Comes to Predicting the Outlook for 2024 MELISSA FRYER PRESIDENT, NORTHEAST DAIRY SUPPLIERS ASSOCIATION

H

appy New Year members!

The start of a new year brings continuing challenges in predicting the business climate and outlook in the dairy sector for 2024.

At the risk of sounding like a broken record, the lingering effects of COVID and inflation will continue to affect consumer trends this year. Similar to other business sectors across the globe, the use of Artificial Intelligence (AI) in the dairy industry will no doubt continue to grow. This technology has already gained traction as a data analytics tool in dairy production, from the farm through consumption. Labor market challenges and efficiency goals are two areas where AI has started to filter into the industry.

Uncertainty continues to be order of the day when it comes to predicting the outlook for 2024. As 2023 closed, milk exports and prices saw a decline throughout the world.

Forecasters are looking for a rebound in the second half of 2024, but here again, numerous factors feed the uncertainties. U.S. consumers continue to lament the high prices they see in the grocery store, and dairy products have not been immune to the inflationary pressures on shoppers’ pocketbooks. With the average household spending substantially more for groceries than only a few years ago, consumers have become more mindful of where and how their food budgets are spent. Heathy living and personal wellness continue to influence purchasing habits. The industry should continue to develop marketing campaigns highlighting the nutritional value and health benefits of dairy products. As the sale of plant-based “milk” products increases, our industry must continue to highlight the differences between the products.

In addition to nutritional differences, higher consumer product cost (economic value) and high production water usage (environmental impact) may help to improve the image of dairy consumption among some consumers.

Investment in dairy processing plants and equipment is expected to continue at a robust pace in 2024. Several manufacturers will see new facilities and expansions come online 6 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

throughout the year, which has, and will continue to provide opportunities for suppliers. Unfortunately, many in the industry continue to cite the availability and competition for workers as an obstacle. Throughout the supply chain, from production through product delivery to the consumer, the shortage of labor and an aging workforce is affecting how the industry conducts business. These shortages, coupled with the tight labor markets we have seen over the past several years, have led to increased labor costs to attract and retain talent. When coupled with increased capital equipment costs, maintaining and/or increasing profitability continues to be challenging.

Suppliers have continued to introduce new equipment and products as manufacturers and producers look to increase efficiencies and contain operating costs. Without a doubt, the push for and demand to provide economical, efficient, and sustainably sound solutions to manufacturers continues to drive fierce competition among suppliers.

Member dues statements for 2024 have been mailed to your company’s designated point of contact. On behalf of the NDSA and NDFA, I want to thank you for your continued support of our organizations. Please continue to encourage any of your industry partners who are not members to consider joining. We are continually looking to expand our membership ranks and presence in the dairy community.

Included with your dues statement is information regarding the 2024 NDSA and NDFA annual meetings, conferences, and social activities. Both association boards are working to secure industry, business, and civic leaders to present at these events and assist members as they navigate our unique industry challenges. We hope you will join us. If your company or organization is interested in providing sponsorship of any of our events, or you have questions, please feel free to reach out to any board member. We are continually looking for suggestions on how to improve these outings year-to-year to make them more beneficial to you, our members.

I look forward to seeing everyone throughout 2024.

Front Desk

Forecasting the Future DANIEL LAUSCH PRESIDENT, NORTHEAST DAIRY FOODS ASSOCIATION

W

elcome to another quarterly issue of Northeast Dairy Magazine, where the main theme is forecasting. Unlike the TV weather report, where 50% accuracy is okay, an accuracy of below 70% in our industry will likely get you reassigned to a different department.

The starting point for building your next forecast would likely be the prior period’s results, like the prior year or month, to establish your next forecast. The next step is to calculate the variance of your forecasted numbers compared to the completed and prior results. The end goal is to continue to get better at forecasting and improve the accuracy of your forecast each cycle. But as you are building a forecast for the next year, as an example, you are likely still living in the current year, so 12 months actual results are not final for the current year’s numbers. So, that has you building a forecast based on a Year to Go number, which is some months actual and other months projections.

The company where I have enjoyed working for the past 12 years is always forecasting and making monthly adjustments to their many forecasts, and then each month we work

to understand the reasons for the gap between forecast numbers and the final numbers. There is always some sort of gap.

That forecast could be based on sales volume, sales dollars, or any number of KPIs (Key Performance Indicators). Tracking a forecast vs. actual can be easier with the help of an Excel spreadsheet with a couple of handy tabs.

Now let’s discuss things much harder to forecast, like the effects of a snowstorm, windstorm, or flooding. You must consider questions such as: When will it hit? How much snow or rain will fall? Will there be a driving ban (and when will it go into effect)? And what about the utility services?

Then, when you are living in the middle of this crisis, like a snowstorm, the same questions change to a different angle.

Now those questions are: Where will the roads be cleared?

When will the driving band be lifted? When will the utilities be restored? When will employees be able to drive to work?

When will the plant be able to restart? And what about the farm milk that is waiting to be returned to your dairy plant?

So, the more you can forecast and practice on paper, the more likely your team will do better and make the right decisions under the pressure of the moment in the middle of an unscheduled event.

Catch up on previous issues of Northeast Dairy Magazine. issuu.com⁄nedmagazine

READ NOW

NED Magazine • First Quarter 2024 • 7

Front Desk

2024 is Already Rockin’!

BY ALEX WALSH, EXECUTIVE DIRECTOR

W

hat a year 2024 is already shaping up to be. While there is much work to be done, the year ahead looks promising, optimistic, and exciting for so many reasons. I look forward to making progress on legislative issues impacting the membership, the growth of the associations’ events, and other enhancements between the NDFSA staff, directors, and industry partners we are making to ensure your membership is valuable to you.

Let’s start off by highlighting this year’s events, which are sure to bring you opportunities for learning more about other members, updates in the industry, and networking.

The youngest event, the annual Dairy Blender, is being held March 26 at the DoubleTree Hotel in East Syracuse, New York. This year, we have a powerhouse lineup of presentations from Byrne Dairy, Chobani, Dairy Farmers of America, and Great Lakes Cheese. Each company will give an in-depth presentation about their company, from the products they manufacture to the company history, the introduction of key personnel, upcoming plans, their needs, and what they seek when qualifying a supplier vendor. Following the presentations, there will be a networking time with light food and beverages, allowing you to mix and mingle with presenters, other processors and manufacturers, and supplier members.

Be sure to check out sponsorship opportunities to promote your company!

Who doesn’t love free samples of dairy products?! On May 29, we will celebrate Dairy Day at the New York State Capitol! This longstanding tradition recognizes the impact and importance of the dairy industry on New York, which can also be seen throughout the northeast. It is a great time to honor the hardworking people in the industry as well, from the producers, processors and manufacturers, retailers, and suppliers, all of which play an integral role in making the 8 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

"I look forward to making progress on legislative issues impacting the membership, the growth of the association’s events, and other enhancements between the NDFSA staff, directors, and industry partners we are making to ensure your membership is valuable to you." dairy industry the economic generator it is and also providing fresh and nutritious products for everyone. Come out to hand out samples of your products and meet with state legislators, agency representatives, and many others that filter through the well of the Legislative Office Building throughout the day!

The flagship event, the annual golf tournament and clambake, will be July 10 (it is always the second Wednesday in July, so mark your calendar in perpetuity). Last year, we sold more than 900 tickets, and more than 800 people came through the gate at The Spinning Wheel. Pre-Covid, ticket sales and attendance have historically been over 1,000, and as we continue to climb, we expect ticket sales and attendance to be higher than last year. This is a fantastic event – a day of golf and eating, relaxing, seeing old industry friends, and making new connections. This is one event you don’t want to miss!

Concluding our events for the year will be the Northeast Dairy Convention. In conjunction with Pennsylvania Association of Milk Dealers and the New York State Cheese Manufacturers’ Association, this year we’ve made some major changes that are promising to make this a valuable event. The

Front Desk convention has been in August the last few years, and after receiving feedback from members and attendees, this year we have moved the event to Sept. 25-27, so there should be no excuses that you are on family vacation or moving your kid back into school. With the efforts of the staff and Convention Committee, this year’s site has been selected to be at the Holiday Inn in Saratoga Springs, New York! This is a beautiful town just north of Albany, with plenty to do and see.

As always, there will be a golf outing and a non-golf activity scheduled, as well as a great lineup of speakers and topics to provide a variety of information to benefit your company.

As a new way to entice additional personnel from your company to attend, we are offering savings on registration fees if you bring multiple people, as well as tiered registration for early birds who know they are going to attend. So, register early! As always, there will be a variety of sponsorship opportunities, networking options, vendor tables, and more.

Details for all of the events, including registration, pricing, and sponsorships, is available on our website at ndfsa.org/ events.

Membership continues to grow with new processor and supplier members continually joining the best regional dairy trade organization in the country!

I am extremely excited about our events alone this year.

The staff and directors are working hard and diligently to provide our members with the best possible services – from government relations, communicating important industry information, cost-savings programs, learning and educational opportunities, and networking events, so that your membership with Northeast Dairy Foods & Suppliers Associations is of value and helping you and your business. Since I rejoined the association, it has been refreshing to have had higher engagement from so many of you, making the work we do more efficient and of higher quality. It is my promise that we will continue to work as a team, between the staff, directors, and members, to make sure the association is serving you with the best possible services.

On behalf of the staff and directors for NDFSA, thank you for your continued support and membership. We are always here, working with and for you.

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Association News

2024 Dairy Blender March 26 from 3-7 p.m.

The DoubleTree Hotel | East Syracuse, New York REGISTER NOW

The Northeast Dairy Foods & Suppliers Associations and New York State Cheese Manufacturers’ Associations annual Dairy Blender is a great opportunity to learn and hear directly from management teams at dairy processors and manufacturers about their company, their products, and what they look for from a supplier as partners to their business. Registration is open to Northeast Dairy Foods, Northeast Dairy Suppliers, and New York State Cheese Manufacturers’ Association members.

From 3-5 p.m., we will learn about operations with presentations from Byrne Dairy, Chobani, Dairy Farmers of America, and Great Lakes Cheese. Today, being com-

10 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

petitive takes more than a good price. Manufacturers look for much more, and understanding your prospect’s needs is critical information as you prepare to present your offer, and more importantly, prepare yourself to successfully service your prospect’s business for the long term with a strong relationship.

Following the presentations, from 5-7 p.m., the event will flow into the networking part of our Dairy Blender, where our presenters will mingle with all attendees in a casual atmosphere, allowing you an opportunity to make new connections or build on those you already have.

We look forward to seeing you there!

Association News SAVE THE DATE FOR THESE OTHER UPCOMING EVENTS DAIRY DAY

Let’s celebrate dairy with members of the New York State Legislature.

When: May 29. 10:30 a.m. – 1:30 p.m.

Where: The well of the Legislative Office Building, Albany, New York.

BRUCE W. KRUPKE GOLF TOURNAMENT & CLAMBAKE

A day of golf and food attended by more than 900 dairy representatives – and lobster is back!

When: July 10. Golf tournament: 8 a.m. – 1 p.m.

Clambake: 1-7 p.m.

Where: Rogues Roost Golf Course, Bridgeport, New York (golf tournament). Spinning Wheel Event Center, North Syracuse, New York (clambake).

NORTHEAST DAIRY CONVENTION

Three days filled with business, networking, and fun.

When: Sept. 25-27.

Where: Holiday Inn, Saratoga Springs, New York.

For more information, and to register, visit ndfsa.org/events.

NED Magazine • First Quarter 2024 • 11

Meet Your Board of Directors

T

MEET YOUR BOARD he Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association are fortunate to have such a well-rounded, experienced group of people from every aspect of the dairy industry who give their time to guide our associations and help make decisions that assist and protect the interests of our members.

Here are the current members of the boards of directors.

Editor’s note: These interviews were edited for clarity.

NORTHEAST DAIRY FOODS ASSOCIATION BOARD MEMBERS

PRESIDENT Daniel Lausch, Director, Milk Procurement, Lactalis USA Inc. 1. How long have you been in the industry? 12 years as a Northeast Dairy Foods board member representing Lactalis, 43 years in the milk business in total.

2. What are you most excited about for NDFSA in 2024 and why? I am most looking forward to meeting dairy industry people in person at our yearly events like the Dairy Blender in Syracuse, New York in March, naturally the Clambake in July, and the Annual Convention in September. I think the spacing in 2024 for these three events is great and allows enough weeks in between events.

12 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

SECRETARY Ryan T. Elliott, Esq., Management, Byrne Dairy, Inc. 1. How long have you been in the industry? 11 years 2. What are you most excited about for NDFSA in 2024 and why? I’m energized by the new leadership and direction of the NDFSA. I’ve observed a renewed energy and focus around delivering the best possible value and experience to all NDFSA members, and I’m excited to see how this level of focus translates into an improved experience for all members in 2024 and beyond.

Meet Your Board of Directors Tony Nassar, Chobani, Director of Dairy Procurement, Chobani LLC 1. How long have you been in the industry? 13 years.

2. What are you most excited about for NDFSA in 2024 and why? The networking aspect, further building relationships, and understanding all the challenges in our industry and how we can solve those collectively together.

Lynn Morrissette, Senior Director Regulatory Affairs, HP Hood LLC

Brian Perry, EVP and Chairman, Perry’s Ice Cream Co., Inc.

1. How long have you been in the industry? 29 years.

2. What are you most excited about for NDFSA in 2024 and why? I’m most excited to work with NDFSA’s legislative committee to ensure regulators and legislators understand the importance of the dairy industry and how their decisions impact our businesses and livelihood.

1. How long have you been in the industry? I have been in the industry my whole life growing up in the family business.

Legally since I was 16, so 44 years!

2. What are you most excited about for NDFSA in 2024 and why? I am most excited about the social events to see old friends and meet the new members. I went to my first clambake when I was 18. Over the years, the NDFA has kept our industry close by hosting events like the clambake, golf outing, dairy mixers, and the convention. My grandfather, Marlo Perry once told me, ‘You buy from people, not companies.’ Relationships are important and the NDFSA events give us many opportunities to get to know others.

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NED Magazine • First Quarter 2024 • 13

Meet Your Board of Directors

Nathan Pistner, Plant Manager, Great Lakes Cheese, President of the New York State Cheese Manufacturers’ Association 1. How long have you been in the industry? Dairy industry – 12 years. Food industry – 20+ years.

2. What are you most excited about for NDFSA in 2024 and why? I am most excited about the new leadership in Alex Walsh and his vision and plans for this upcoming year. Alex not only has great foresight, but also execution, and I think will take the association to the next level.

Darren Schochner, Director of Sales, Farmland

Adam Seybolt, Director of Manufacturing, Stewart’s Shops 1. How long have you been in the industry? 18 years at Stewart’s Shops.

2. What are you most excited about for NDFSA in 2024 and why? The Northeast Dairy Convention – excellent industry networking event hosted in Saratoga Springs, local to Stewart’s Shops headquarters and manufacturing plant.

Fresh Dairies

Rebecca Wallick, Senior Director Dairy Sourcing & Policy, HP Hood

1. How long have you been in the industry? Celebrating 28 years in dairy distribution.

2. What are you most excited about for NDFSA in 2024 and why? As a member of the Board, I am excited about the opportunity to share my knowledge and learn from my peers. I look forward to networking on all levels of our great community of dairy industry.

1. How long have you been in the industry? 10 years 2. What are you most excited about for NDFSA in 2024 and why? I am excited to not only strengthen my relationships within the northeast dairy industry but also work on shared objectives to help continue to move the dairy industry forward.

14 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Meet Your Board of Directors OTHER NORTHEAST DAIRY FOODS ASSOCIATION BOARD MEMBERS

VICE PRESIDENT

TREASURER

Jodi Smith Krzysiak

Randi Muzumdar

Upstate Niagara Cooperative

Lactalis USA – Commonwealth

Kimberly Bukowski

Jordan Clark

Tim Cronin

Cornell University

Agri-Mark

BelGioioso Cheese, Inc.

Friendship Dairies

Lynn Murray

Jennifer Turgeon

Matt Hendricks

Dairy Farmers of America

Lacey Mueller

Cayuga Milk Ingredients

Brian Froebel

Jefferson Bulk Milk Cooperative

HP Hood

NED Magazine • First Quarter 2024 • 15

Meet Your Board of Directors NORTHEAST DAIRY SUPPLIERS ASSOCIATION BOARD MEMBERS John Bucklin, Business Unit Sales Manager, WestRock

PRESIDENT Melissa Fryer, Director of Sales and Marketing, Exergy LLC 1. How long have you been in the industry? 28 years.

2. What are you most excited about for NDFSA in 2024 and why? I am most excited about the many opportunities to network and collaborate with others in the industry at the NDFSA events.

1. How long have you been in the industry? Dairy industry experience: 40 years.

2. What are you most excited about for NDFSA in 2024 and why?

I look forward to all of our networking events throughout the year, highlighted of course by our July clambake. I find the dairy industry full of good, hardworking, down-to-earth people…who are enjoyable to be around!

From my company perspective, this coming year presents an opportunity for our senior staff to further develop newer WestRock employees as they transition into larger technical and leadership roles within our organization. This is true not only for customer-facing employees, but for support staff as well. As many companies are faced with this challenge, our team has placed a high priority on our ability to attract, develop and retain talent.

Lisa Bolduc, MBA, Vice President – Agribusiness Insurance & Risk Management

VICE PRESIDENT Paul Knoerl, Regional Sales Manager-Packaging Equipment, Pactiv Evergreen 1. How long have you been in the industry? 2. What are you most excited about for the NDFSA in 2024 and why? I’m looking forward to meeting our new processor and supplier members, as well as attending the three major NEDA events this year: the Dairy Blender, clambake, and annual convention.

1. How long have you been in the industry? I have accrued more than six years of experience with the association, specializing in insurance and risk management solutions. This extensive experience has helped me develop a profound understanding of challenges faced by members.

2. What are you most excited about for the NDFSA in 2024 and why? I am eagerly looking forward to the convention in Saratoga scheduled for this September.

https://www.youtube.com/watch?v=gtDotmD_Hlw&ab_ channel=DiscoverSaratogaNY

Learn more about Saratoga Springs at www.discoversaratoga.org 16 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Meet Your Board of Directors

Laura McCranie, Director, Fluid Milk Marketing, Dairy Farmers of America

Gloria Little, Logistics Manager, Agri-Mark Cooperative

1. How long have you been in the industry? I have been in the industry full-time for 14 years. However, I grew up on a dairy farm in Central New York, so the industry has always been part of my life.

2. What are you most excited about for NDFSA in 2024 and why?

I am most excited for the upcoming events. They are always well done, and they provide a great opportunity to network with a lot of great people in the industry.

1. How long have you been in the industry? I am going on my 46th year working at Agri-Mark, Inc. 2. What are you most excited about for NDFSA in 2024 and why? I enjoy interacting with people at all of our yearly events. The events are very informative, and we always find time for some fun. I have made many friends through this organization, and I hope to keep making new ones.

Glenn Emory, General Manager, Weidenhammer New Packaging 1. How long have you been in the industry? I have spent more than 30 years of my career in the consumer packaged-goods space working with the spectrum of packaging materials (paper, plastic, flexible, and metal). I have spent nearly half of that time specifically working within the dairy segment. I have enjoyed working in large as well as small companies both in the U.S. and internationally.

2. What are you most excited about for the NDFSA in 2024 and why? Finally, really looking beyond the shadow of COVID and unleashing solutions to address the pent-up consumer and customer expectations. No other group in the country has the breadth and depth of resources across its membership as we do. We have a unique capacity to address the concerns and opportunities of the industry participants in an unmatched manner. I am particularly interested in helping guide the association in increasing its membership participation (both number and active engagement by members).

For the industry, I am acutely concerned with how to attract and retain our workforce. Here again, NDFSA has done more than any other group I am aware of at elevating this topic and providing tactical guidance on potential solution paths; from sharing the ongoing learnings from the Cornell University program to the inclusion of the State of New York workforce development office.

Daniel Seitzer, Area Vice President, Ecolab 1. How long have you been in the industry? I have been active in the dairy, food, and beverage industries for 28 years.

2. What are you most excited about for NDFSA in 2024 and why? In 2024, I’m energized by the development within our industry. As we continue to normalize from the challenges of COVID and inflation, I look around and see so much passion and drive at the farm, producer, and even the consumer levels. Dairy continues to be a key value in nutrition while developing new sustainable strategies that the world can benefit from. The people in this industry driving those future visions are remarkably committed and talented, and their contributions make me proud to be a part of this industry. The future is bright!

NED Magazine • First Quarter 2024 • 17

Meet Your Board of Directors

Tristan Zuber- Hrobuchak, Strategic Account Manager, CHR Hansen

Rick Wadhams, Owner of Wadhams Enterprises 1. How long have you been in the industry? The company was formed in 1949 and I have been full time at it since 1974.

2. What are you most excited about for NDFSA in 2024 and why? I enjoy working with people in the industry and am always excited about attending the events and opening new doors for our companies.

1. How long have you been in the industry? I grew up on a dairy farm with all sorts of chores around the farm, so I guess you could say, I’ve been in the dairy industry since I was born!

2. What are you most excited about for NDFSA in 2024 and why? There is so much change and growth happening in dairy processing here in the northeast and 2024 is going to take this region to the next level for opportunities in the dairy industry. I am extremely excited for our newest, very popular event – the Dairy Blender. This has been such a great event for bringing together key decision makers and suppliers in a fun atmosphere.

OTHER NORTHEAST DAIRY SUPPLIERS BOARD MEMBERS

TREASURER

SECRETARY

Ryan Osterhout

Bruce Alling

KCO Resource

Double H Plastics

18 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Bill Elliott

Wendy Martin Energy Partner Consultants

2024 ANNUAL

NORTHEAST DAIRY CONVENTION HOSTED BY

Scan the QR code and watch your email for the agenda and speaker updates.

You can also register for these other 2024 NDFSA Events today by using the QR code above.

Dairy Blender

March 26, 3-7 p.m.

DoubleTree Hotel East Syracuse, NY

Sept. 25-27 HELD AT THE

Holiday Inn

Saratoga Springs, NY

You don’t want to miss out on the agenda full of educational business sessions, networking opportunities, and fun activities.

Bruce W. Krupke Golf Tournament & Clambake July 10 Golf: 8 a.m.-1 p.m.

Rogues Roost Golf Course

Clambake: 1 p.m.

Spinning Wheel Event Center

Scan the QR code to catch up on the latest NED Magazine.

Don’t forget to find us on Linkedin to stay connected to the latest industry news.

Legislative + Regulations Report

Gaveling in 2024

BY ALEX WALSH, EXECUTIVE DIRECTOR

T

he 2024 legislative sessions across the northeast have gaveled in for what is sure to be a packed and busy legislative season. To add to the entertainment, it’s also an election year. Not only a regular election year, but a congressional and presidential election year, with what is looking to be a potential rematch between President Joe Biden and former President Donald Trump. So, expect to see more politicking than usual until Election Day. From the state to the federal levels, there are certainly a lot of issues pertaining to the dairy industry going on right now.

Federal Order hearings are resuming and will continue over the next several months. Additionally, negotiations with the Farm Bill continue, as house and senate leaders battle over key points that have stalled its progress since last year.

A concerning amount of bills have been introduced throughout the northeast states, including in New Hampshire, Massachusetts, and New Jersey, which would expand the sale of raw milk. Proponents on the issue argue it would provide additional income to farmers; however, the Northeast Dairy Foods & Suppliers Associations have long been opposed to the sale of raw milk for the sake of the health and safety of consumers, who can become violently ill or even die, as can be seen from news articles published regularly reporting on this.

Many states are also taking up legislation that would impact dairy farm labor, such as limiting the number of hours of work or overtime. This is an issue that started in New York a few years ago and, since its passage, has become a domino effect in neighboring states. The Northeast Dairy Foods & Suppliers Associations stand with our industry partners, recognizing that farm labor is different from other types of work and generally requires longer workdays and overtime in order to get the work done that is necessary, especially when operations are weather-dependent. This is a sensitive issue, 20 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

however, as we acknowledge the human component on this matter.

Other legislative issues the association is monitoring closely and engaging with industry partners and legislators on include: taxes on sugary beverages, labeling, post-consumer/ producer responsibility, bottle bills, minimum wage increases, and more. Many of these issues the association has been opposed to, especially when it comes to increasing taxes on beverages and products manufactured by members, making you less competitive in the market space, increasing costs of operations, or, when it comes to labeling, for instance, which the association opposes at a state-level patchwork, and would prefer a federal approach on this and other issues that make it difficult to comply when doing business in multiple states.

As these and other bills are expected to be introduced down the road, it is important for members to stay informed and engaged. Members are not only welcome, but encouraged, to join association staff at meetings with legislators and agency representatives. They find it extremely beneficial to hear directly from members on issues that are impacting you.

The Northeast Dairy Foods & Suppliers Associations are here to represent you, keep you informed, and be fighting for you. Never hesitate to reach out about a position, a bill, or an issue impacting you. The association stands ready to work for you to overcome challenges, and help you improve your operations.

Alex Walsh is the executive director of the Northeast Dairy Foods & Suppliers Associations. You can contact him by email at alex.walsh@ndfsa.org.

Economic Outlook

Inflation, Interest Rates Continue to Have an Impact in 2024

A

t the top of many minds today are inflation, interest rates, immigration, and wars. While inflation seems to be slowly getting under control, at-home and away-from-home food prices are still too high for many consumers. Not only have food prices been running high, but with volatility and occasional spot shortages. Pandemic recovery, weather events, geopolitical conflicts, and two wars have contributed to much of this.

The U.S. economy slowed in the last quarter of 2023. The economy grew a healthy 2.5% in 2023 and is showing positive signs. The Federal Reserve Board met at the end of January and decided to hold interest rates again.

The decision was well received on Wall

BY GARY LATTA

Street and among the economic community. The Fed began an ambitious streak of 11 rate increases since March 2022 to tame inflation that peaked in June 2022. For many, the Fed is not reducing the interest rate soon enough.

At Cornell University’s January Agribusiness Outlook Conference, economics professor Steve Kyle said the Feds should not wait any longer to reduce rates but should do it now. Right now, rumors are that the Fed tentatively could reduce interest rates three times in 2024. As of now, they are holding until more confident inflation is licked and the economy remains strong.

The overall economy affects food prices, and every cost component along the chain, from production to consumption, impacts what consumers ultimately pay. Energy costs, interest rates,

transportation, taxes, weather events, packaging, competition, regulatory compliance, and labor are just a few of these cost components from farm to fork. Many state politicians often fail to recognize or admit this.

Consumer demand plays a role in food prices too. If consumers become more selective in their purchases or cut back on certain items, it could cause prices to ease back. Changes in food prices at grocery stores and restaurants are not always scientifically determined or formula-based. Passing along costs within the supply chain can take time, and once there, it can take time to come down. Changes up and down are not immediate. Over time, consumer choice, product availability, and competition all play a part in determining price.

NED Magazine • First Quarter 2024 • 21

Economic Outlook The USDA’s Economic Research Service (ERS) 2024 Food Price Outlook reports that U.S. food price increases are starting to slow down, or “decelerate.” Food prices increased 5.8% in 2023. Food-at-home increased 5.0%, while food-away-from-home increased 7.1%. For 2024, the ERS is forecasting a deceleration of food price increases to 1.3%, writing “Food prices are expected to continue to decelerate in 2024. In 2024, all food prices are predicted to increase 1.3 percent, with a prediction interval of -1.4 to 4.2 percent. Food-at-home prices are predicted to decrease 0.4 percent, with a prediction interval of -4.5 to 4.0 percent, and food-away-from-home prices are predicted to increase 4.7 percent, with a prediction interval of 3.1 to 6.2 percent.”

So far, the USDA is forecasting lower milk production in 2024 and higher prices for butter, dry whey, and nonfat dry milk.

Annual percent increase in total food prices, U.S. 2019

1.9%

2020

3.4%

2021

3.9%

2022

9.9%

2023

5.8%

2024

1.3% Est.

An abundance of food inflation news was released during the final quarter of last year. Many of these reports compared the cost of groceries between cities and states, revealing a sizable variation among them. Some elected officials took offense if their

22 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Economic Outlook state was listed as one of the most expensive and painful for constituents.

Senator Bob Casey of Pennsylvania accused the manufacturing and grocery industry of price fixing, greedflation, shrinkflation, collusion, stuffing pockets, and other things with press releases. Casey released two reports he titled “Greedflation” and “Shrinkflation.”

The USDA recently reported that U.S. dairy exports faced a challenging year in 2023 because of sluggish economic growth of importers and greater competition from the EU and New Zealand. High interest rates are being experienced globally, cooling demand for dairy in China and Southeast Asia.

This situation is expected to continue into 2024.

In CoBank’s recent report, “2024 The Year Ahead: Forces That Will Shape the U.S. Rural Economy,” analyst Corey Geiger pointed out that domestic dairy sales could be challenged as consumers feel the pressures of higher interest rates, growing credit card debt, and reduced household savings. Geiger believes exports are a wild card for 2024. International demand and the strength of the U.S. dollar will be key. U.S. competitors within the international marketplace may not be positioned to meet demand as these countries struggle with milk production issues.

In a recent U.S. Dairy Exporter blog, Vikki Nicholson-West, Sr. VP of Global Ingredients Marketing at the U.S. Dairy Export Council (USDEC), sees opportunities in Southeast Asia with dairy proteins like whey protein concentrate and isolate, as well as milk protein concentrate and isolate.

The USDEC is building partnerships in Southeast Asia from its Singapore location. The six major Southeast Asian

Retail food price inflation subsided across categories in 2023

NED Magazine • First Quarter 2024 • 23

Economic Outlook

countries are Singapore, Vietnam, Malaysia, Philippines, Thailand, and Indonesia. The USDEC says the demand for high-quality protein in the region is strong.

PYMENTS, a consumer research company, published an extensive report, “Changes in Grocery Shopping Habits, and Perceptions,” that examined the shifts in consumers’ grocery shopping preferences. One of their conclusions is that a growing share of grocery consumers no longer buy from traditional brick and mortar stores.

There is “digital shift” to buying groceries online. More shoppers are trading down, using coupons, and choosing private labels over branded products.

The Food Marketing Institute completed its own similar research, “Power of Private Brands 2023: What's Ahead for Shoppers and Private Brands,” which revealed consumers are increasingly selecting private labels. The cost-conscious behavior is likely to stick around because 90% of those surveyed said they will stick with private labels when prices come down.

Lower milk prices, higher feed costs, rising interest rates, and labor expenses made for a challenging year on many farms. Most university agriculture economists and the USDA appear to be forecasting a better year for dairy pro-

ducers in 2024. Not significantly better, but better. Anything – and a lot – can happen with respect to weather, political conflicts, and exports. The completion of the new farm bill has been pushed into 2024, and the hearings on milk marketing orders have concluded. The USDA’s Dairy Division now has the arduous task of sifting through all the submitted testimony and hearing records. The 12 steps to the milk marketing order amendment process are summarized in this short brochure: Federal Milk Marketing Order Program: Understanding the Milk Order Amendment Process (usda. gov).

24 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Milk production growth is slowing due to fewer cows and lower production per cow. Milk production in the 24 major states in December was down 0.1%. The U.S. was down 0.6% for the fourth quarter of the year. The USDA’s January Milk Production report included tables showing the change in milk production for all states in the third and fourth quarter of 2023.

Looking at the northeast states we see that only New York is showing signs of production growth. New Jersey showed a jump in the last quarter, but is a small dairy state compared to Pennsylvania, Vermont, and New York.

Economic Outlook Percent Change in Milk Production 2022 vs. 2023 Third Quarter July to Sept.

CT

-1.9%

ME

-2.2%

MA

-6.4%

NH

-3.7%

NJ

-4.8%

NY

+3.1%

PA

-0.2%

RI

-4.0%

VT

-0.5% 2022 vs. 2023 Fourth Quarter Oct. to Dec.

CT

-1.0%

ME

-3.0%

MA

-2.3%

NH

-1.9%

NJ

+5.0%

NY

+1.2%

PA

-0.9%

RI

N.C.

VT

-2.4%

At present, the U.S. is competitive globally with cheddar cheese. The USDA is forecasting a further decline in milk cow numbers because the reduced margins in 2023 have removed the incentive to expand for many producers. It is expected that U.S. butter and cheese will remain competitive in the international marketplace and export forecasts have been raised. Domestic demand is expected to remain brisk.

The latest USDA Livestock, Dairy, and Poultry Outlook offers a detailed forecast for 2024. The USDA is projecting cheese prices to decline. Butter,

Source: USDA ERS - Market Outlook

nonfat dry milk, and whey are forecast to increase throughout the year. An expected increase in cheese production capacity is listed as one factor that might keep cheese prices down in 2024. If so, the U.S. should have an edge with cheddar in the global marketplace which will push exports.

The USDA summarizes: “Based on recent data, the forecast for the average number of cows in 2024 has been lowered to 9.350 million head (-10,000 head) and the forecast for annual milk per cow has been lowered to 24,415 pounds per cow (-50 pounds). The forecast for 2024 milk production has been lowered 0.7 billion pounds to 228.3 billion pounds. Price forecasts for butter, dry whey, and nonfat dry milk have been raised for 2024, but the price forecast for Cheddar cheese has been lowered. The all-milk price fore-

cast for 2024 is $20.00 per hundredweight, $0.25 lower than last month’s forecast.”

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics, and information to the dairy processing industry.

NED Magazine • First Quarter 2024 • 25

Something to Consider

The Amazing U.S. Dairy Cow

BY GARY LATTA

26 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Source: File:BovineMonarch.png - Wikipedia

Something to Consider

I

n late January, the USDA updated its figures for U.S. agricultural output, inputs, and total factor productivity from 1948 to 2021. The results are astounding.

Agricultural productivity is measured using an abundance of input and output factors.

The image to the right captures all U.S. agriculture. Data isolating the dairy sector are equally impressive, and reports indicate similar advancements have been made in farming cattle, sheep, poultry, hogs, etc. Note, most university animal scientists measure milk output in kilograms. Most of us are familiar with measurements in pounds (lbs.) and the hundredweight (cwt), with 100 pounds being one hundredweight, etc.

For conversion purposes, one kilogram (kg) is about 2.2046 pounds (lbs.)

– most folks round it to 2.205 lbs. One hundredweight (cwt) or 100 pounds, is equal to 45.4 kg. One hundred kilograms is equal to 220.462 lbs., and one thousand kilograms is equal to 2,204.62 lbs., just a little over 22 hundredweights (cwts).

Average milk yield per cow in the U.S. has grown nearly six times since 1940. Many technologies have been discovered and adopted, which have led to this productivity growth.

Improvements in animal genetics, nutrition, farm management, and veterinary science are a few of these. Each of these disciplines is a vast science of their own. Only until you venture into topics like bovine genetic progress and nutrition, do you realize the depth of the science behind modern milk production.

One benefit of this growth is the production of more milk with less resources. According to USDA records, the number of U.S. dairy cows peaked at

Average Annual Milk Production Per Cow

Source: Normand R St-Pierre, Ohio State University Department of Animal Sciences

Average Annual Milk Production Per Cow 1920-Present

Source: Professor Josef J Gross, Universität Bern, Veterinary Physiology NED Magazine • First Quarter 2024 • 27

Something to Consider

ANNUAL MILK PRODUCTION ACROSS COUNTRIES

Source: An article originally published by UC Davis cited this graph from FAOSTAT

25.6 million in 1944. Today, we have 9.4 million cows. We produced 117 billion pounds of milk in 1944 compared to over 226 billion in 2023. The USDA is forecasting just over 228 billion pounds in 2024, nearly twice the milk of 1944, but with 16.2 million fewer cows. At this point, some researchers, for strange reasons, like to convert this much milk into the number of Olympic size swimming pools it would fill. Though tempted, I’ve resisted.

Looking at the past half century, the U.S. stands alone as champion at the top of milk production per cow.

A combination of many technologies is responsible for this impressive performance.

The northeast is blessed with elite agricultural universities whose research and work have contributed significantly to dairy and milk production worldwide. New York’s Cornell University, the University of Vermont, and Penn State are among these.

Cornell has been home to several of the world’s leading dairy researchers, like Dr. Thomas Overton, Professor of Animal Science and Director of the PRO-DAIRY Program, and Dr. Dale E. Bauman, Professor Emeritus in the areas of animal biology, food science, and nutritional biochemistry.

Dr. Bauman is among modern scientists to champion the concept that by improving production efficiency,

28 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

we utilize fewer input resources, and therefore lighten the environmental impact.

In an article titled “Feed Saved - The next step in breeding a more efficient cow?” on the MSU Extension website, Mike VandeHaar, Rob Templeman, and Kent Weigel write, “For years, we have been breeding and managing cows for greater milk production. As cows eat more feed, a greater proportion of their feed intake is used for milk and a smaller proportion is used for maintenance. This is commonly called the “Dilution of maintenance.”

Today’s dairy cows produce 5 times more milk than their predecessors 80 years ago, and, although they are also a little

Something to Consider

larger and they eat more, their feed efficiency had doubled due to the dilution of maintenance.”

Productivity has come a long way in the last 100 years. In this article on the National Agricultural Library’s website, we see a sharp-dressed dairyman operating the Mehring milking machine at York Roads, Maryland, in 1908. The Mehring is a foot operated machine that is peddled. According to Farms.com, “The treadle system made it instantly attractive. Larger commercial operations appreciated the increased efficiency and ability to milk two cows at once. Smaller mixed farms could take advantage of the low physicality by allowing women and

children to milk.” Improvements in both equipment and management have contributed to the phenomenal rise in output per cow while also optimizing the use of resources.

The steady growth in production per cow shows few signs of abating.

We can expect the slope and upward trajectory of these graphs to continue. The composition of milk has also changed over time as producers respond to the demand for different products in the marketplace.

This could be the subject matter of a future article. The USDA’s long term dairy projections have average milk per cow reaching near 26,540 lbs. by 2033, up from 24,500 lbs. projected

for 2024.

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics, and information to the dairy processing industry.

NED Magazine • First Quarter 2024 • 29

2024 Industry Forecast

2 0 2 4

industry industry forecast 30 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

2024 Industry Forecast

Members Share Their Thoughts on the Upcoming Year

BY COURTNEY KLESS

F

or the Q1 issue of Northeast Dairy Magazine, we typically distribute a survey to members of the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association that asks them to share their predictions (and plans) for the upcoming year.

The results were overwhelmingly positive for 2024, with the majority of respondents projecting increased sales. But the year won’t be without its challenges; respondents also listed inflation, labor, and the supply chain among the things impacting their business the most.

Read on for the results, broken down by company. And thank you to all who participated!

RWS Design & Controls

Despite facing challenges in recruiting experienced talent, Dave Scherr, National Sales Manager for RWS Design & Controls, expects sales to rise in 2024. For the industry, he projects continued product innovation, expansion, and upgrades to plant assets.

Scherr concludes, “RWS is expanding as follows: stainless tank, mixer, silo, fabrication facility actively producing quality product as of November 2023. Addition of an industry training center. Expanded national field service division, including regional, on demand weld teams. Now offering design, sales, and service of most makes of fillers, conveyors and end of line packaging equipment.”

Stanpac

Murray Bain, vice president of marketing, anticipates “modest growth” for Stanpac in 2024.

“As pricing levels begin to stabilize or in some cases decline, we have been able to pass along some cost savings and reductions to the market,” he adds. “That is welcome news for the industry.”

And the company is gearing up for a busy year.

“In addition to the paper snap on lids for novelty size ice cream products, we are adding a spoon in lid option that will bring added convenience to consumers,” says Bain. “To further our efforts in sustainability, we are introducing a line of ice cream packing that will be recyclable and compostable.

A dispersion barrier coating (DBC) replaces standard polyethylene coatings. In the bulk ice cream space, we recently added our 2.75-gallon tub and lid, which offers an alternative to standard three-gallon packaging. The packaging comes preformed and nested to save space on the production floor.

A new Flex E Fill ice cream filler for bulk packaging efficiently fills containers at rates up to 15 tubs per minute.

Finally, a new paper non round lid is making inroads in the marketplace providing an all-paper option to the standard non round composite lid. As you can see, we have a lot on the go!”

NED Magazine • First Quarter 2024 • 31

2024 Industry Forecast

HP Hood

“In 2024, the dairy industry is expected to witness several technical advancements that will enhance efficiency, sustainability, and product quality,” says Jennifer Turgeon, Senior Manager, Dairy Sourcing & Logistics at HP Hood.

“These technical advancements will transform the dairy industry, making it more efficient, sustainable, and responsive to consumer demands.”

Tremcar

In the upcoming year, Melanie Dufresne, marketing & communications director at Tremcar, expects sales of tanker trailers to be comparable to 2023.

“The food industry is the most stable market we can invest in,” she says, adding, “Our capacity will double this year thus providing reduced delivery times for custom built units and greater capacities for standard in stock units.”

But that’s not all that’s on the horizon for Tremcar.

“We have numerous expansion projects for three of our major production plants in Ohio and in Quebec,” says Dufresne. “We are doubling production capacities and modernizing our production plants to optimize resources. We are also expanding our sales team in the USA, developing the west, central, and southern United States.”

The Probst Group

The Probst Group celebrated its 15th anniversary in 2023.

“We're anticipating that Sales will continue to increase in 2024, as our pipeline continues to be strong with clients seeking engineered solutions for treatment plant upgrades and new Greenfield sites,” says Garry Gibson, vice president of business development at The Probst Group.

In January, the company relocated to a new headquarters, specifically designed to foster collaboration, communication, and provide an ideal platform for sparking new and innovative solutions “We are already at capacity for people and are looking to add another 5% to our headcount this year,” says Gibson. “We are seeing our operations team expand in 2024 as new dairy processing plants are being constructed and need operators to effectively their wastewater. Probst can supply startup and commissioning services as well as a team to run the wastewater plant. We're here to handle their wastewater so our clients can focus on what they do best – producing high quality products that can increase their profits."

He concludes by saying, “There are still ITC credits available for the reuse of biogas, but you would need to act quickly to get those credits.”

“We are continuing to see a shortage in skilled wastewater operators throughout the nation. As a result, we are recommending upgrading to automated services when practical, which may be especially beneficial as it becomes necessary to hire new employees."

Corbion

Kevin Harrah, who works in dairy sales at Corbion, predicts that sales will be up in 2024, naming raw materials and freight as the biggest challenges facing his company right now. He says that NDFA members should also be aware of a “Chinese flood of raw materials designed to disrupt pricing and supply.”

32 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

2024 Industry Forecast

Vivolac Culture Corp.

Aaron Miller, director of sales and technical services, forecasts another positive year for Vivolac Culture Corp.

“We have averaged roughly 6-9% growth over the last six years, and in 2022 and 2023, we hit double-digit growth for each of those years,” he continued. “We anticipate this trend to continue, and our projections are 7-8% in 2024. Not double digits, but happy with the trajectory!”

Labor and inflationary pressures will be the company’s two biggest limiting factors as it moves into 2024.

“The labor market as you know is so competitive right now,” says Miller. “We have done a great job recruiting specialized people and I know this seems odd, but we struggle

with entry level and everyday supporting positions the most.

With the labor market being tight employees can leverage themselves and their skills to their advantage and to combat this we have gone up roughly 30% in employee compensation since the beginning of covid to secure our place in the market and be competitive. This combined with inflation has driven the cost of doing business up significantly. We have done our best to combat this by being innovative in our process as well as looking at other venues to improve and streamline our business. We then pass these cost reductions to our customers, so they know we are actively trying to improve and grow with them all the while being cautious of both our bottom lines.”

He concludes, “As far as disruptors, we had a customer who had their email servers held hostage by ransomware.

This is the second time in six months I have heard of this. I’m not sure if this will be a trend but cyber attaches are becoming more frequent and as technology grows, so will this threat.

Also, as a trend, the end consumers are getting more cost conscious and selective on what they want. On the manufacturing side even smaller and medium size facilities have a procurement department now. Always looking on projects to save and new ways to improve. We like that we can help and be part of these conversations. Lastly customer service seems to be at a premium. We look at this as one of our core strengths. We will always continue to service our customer needs in person but are also looking at more meetings online and we think this trend will continue.”

Lactalis American Group

Daniel Lausch, Director Milk Procurement at Lactalis USA, anticipates an increase in sales in 2024. “Customer price inflation is holding sales in check,” he adds. Lausch also says that the industry will see a “milk supply increase of 0.005%, so around half of one percent for 2024.”

NED Magazine • First Quarter 2024 • 33

2024 Industry Forecast Weidenhammer New Packaging

It will be another year of growth for Weidenhammer New Packaging, says General Manager Glenn Emory, resulting in a “new record high” for the company. He adds, “That continued pace of growth in customer development is supporting additional capital expansion for our business.”

Even so, the company continues to face the same challenges as others in the industry.

“The market remains very challenging for everyone, and I am sure they are similar for all readers: supply chain rationalizations, manpower shortages and ability to attract new team members, and need to deliver more sustainability in our programs,” says Emory. “To that last point, we do see a positive trend toward our offering as we are fully recyclable in all of our packaging; the legacy metal-ring based packaging in the market is not readily recyclable by the customers.”

In 2024, Weidenhammer will invest in new production assets, customer forming machines, and a facility expansion.

“We remain totally committed to eliminating the risks to the broad market from the use of metal-based bulk ice cream packaging,” says Emory. “The market is definitely taking steps to move beyond metal; the pace of that commercial change is a tremendous opportunity and also a challenge. Weidenhammer is eager to rise to meet both.”

W.N. Van Alstine

Will Dwyer, vice president of W.N. Van Alstine, predicts that his company’s sales will be up in 2024, citing continuity of supply and transportation as its biggest challenges.

Last year, W.N. Van Alstine joined forces with Syracuse Label & Surround Printing and Macaran Printed Products to create the NextGen Label Group™.

“The recent merger of three companies gives us complete control of the customer’s needs,” says Dwyer. “We

34 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

supply everything a customer needs after their product is made to get it out to the customer. From coding, labeling, case packing, palletizing, and stretch wrapping.”

Courtney Kless is the Managing Editor of Northeast Dairy Media.

2024 Industry Forecast

Cautiously Optimistic For 2024

BY ROB FULTON, CAE

T

hanks again to the Northeast Dairy Foods & Suppliers Associations for allowing us to share some updates on the dairy industry in Pennsylvania.

The PAMD membership includes Dealers (fluid milk processing plants) from Pennsylvania and surrounding states who process Class I fluid milk and other dairy products. Our members provide thousands of good, family-sustaining jobs at Pennsylvania plants and in transportation, and they provide good local markets for many dairy farm families in the Commonwealth, which in turn support the economy and infrastructure of Pennsylvania’s rural communities.

Like all of you, we are watching closely the many issues facing our industry as we move into 2024. What’s ahead for dairy supply/demand and milk prices in 2024? What will the outcomes be from the Federal Milk Marketing Order hearings as they wrap up and move on to digesting all the information shared since the hearings began in August? There is certainly a lot in play for the industry around the country.

As we look to 2024 here in Pennsylvania, I wanted to share an update on a recent study released in November of 2023, commissioned by the Pennsylvania Milk Marketing Board and conducted by Ken Bailey, Dairy Consulting LLC – Economic Impact of Elimination of Pennsylvania’s Minimum Pricing System.

The timing of Bailey’s study on behalf of the Pennsylvania Milk Marketing Board has been a real help to our industry.

The PAMD and other stakeholders have long defended our state’s Minimum Milk Pricing System, and this study provides some much-needed data to support our continued efforts to keep our current system in place.

Bailey highlights the following on page 1 of his study: “Pennsylvania has a long history in the dairy industry. In 2022, Pennsylvania was ranked eighth in the U.S. in terms of milk production. The state is unique in terms of 1) the number of dairy farms producing milk, 2) size and number of dairy proces-

sors that manufacture fluid milk, ice cream, and storable dairy products, 3) access to high-quality land and water, 4) a large agribusiness community that supports farmers and processors, and 5) location within the high population Northeast corridor of the U.S.” The study concluded that eliminating minimum milk prices would result in a significant negative economic impact on our dairy industry. While fluid milk consumption may see a slight increase, the overall economic impact would not be good for our dairy industry.

Some of the highlights from the study are as follows: • Short-to medium-term 1.3% increase in fluid milk consumption • Decrease in farm milk prices • Bankruptcy for 57% of fluid milk processors with 66% loss of fluid milk processing volume • $182 million loss to dairy farmers • $717 million loss to milk processors • $2.8 billion reduction in state-wide economic activity • $683 million in lost wages • 10,047 jobs lost Going into 2024, this study provides some great data insights into the importance of the Minimum Pricing System we have in place here in Pennsylvania. This will help us protect our milk pricing system as we advocate for our producers, processors, retailers, and consumers.

The study is well done. We appreciate the Pennsylvania Milk Marketing Board’s commitment to commissioning this study and to Bailey for his excellent work. You can find the complete study at our website, pamd.org/advocacy.

Rob Fulton is the executive director of the Pennsylvania Association of Milk Dealers.

NED Magazine • First Quarter 2024 • 35

Member Profile

PACTIV EVERGREEN

‘Packaging a Better Future’ Through Innovation

P

activ Evergreen’s mission, “Packaging a Better Future,” guides all aspects of its operations, from its choice of materials to its organizational goals.

But the company’s past is also a key part of its identity.

Pactiv Evergreen’s filling equipment boasts a rich 143-year history in the liquid packaging industry.

Its origins can be traced back to 1880 with the founding of J.G. Cherry Co. (that company specialized in the handling of fluids, like milk). After a merger with D.H. Burrell and Co., known for producing dairy equipment (including the first cream separator), the newly formed entity, Cherry-Burrell, emerged as a leader in the production of dairy and food processing and packaging machinery.

In the years that followed, the company experienced several shifts in ownership. The first came in 1991, when International Paper, a carton manufacturing company, acquired Cherry-Burrell’s packaging equipment division.

Sixteen years later, its Beverage Packaging Division and Blue Ridge Paper Products were purchased by the Rank Group, and the name was changed to Evergreen Packaging. That company and Pactiv, which were both part of Reynolds Group Holdings Limited, merged forces in 2020 and formed Pactiv Evergreen, a publicly traded entity.

“More important than the history that can be traced back through our corporate lineage, though, is our legacy that we have built with our products,” said Gary Nissen, general manager.

The company has several gable top products in its lineup, including standard machines and extended life machines – both are manufactured at a 440,000-square-foot plant in Cedar Rapids, Iowa.

“We are pioneers in extending beverage shelf life (ESL and ELL), clean-in-place advancements, improving speed, and more,” said Nissen.

36 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

“Our gable top filling equipment has such a solid reputation that a good deal of our revenue comes from the service and maintenance of the equipment because many customers just don’t want to let these machines go.”

– Gary Nissen, general manager of Pactiv Evergreen And Pactiv Evergreen is continuing to add to its product portfolio.

“Recent developments for the gable top market include the EH-84, which forms, fills, and seals up to 8,400 standard half-gallon/2 liter cross-section cartons per hour,” said Nissen. “The N-200 providing additional carton sanitization features was also recently introduced, packaging 340 EcoPak® cartons per minute with an optional spout application system. And for the quart/liter cross-section market- the EQ-70 remains competitive with a speed of 7,000 cartons per hour. Our fillers are the industry standard for direct manufacturers and co-packers. Hundreds are installed in the U.S. and Canada with more than 1,300 worldwide. Our single indexing machines provide the highest production per square foot.”

But Pactiv Evergreen’s capabilities extend beyond manufacturing. The company also employs an engineering staff,

Member Profile

tasked with the creation of new products, and a support staff, responsible for maintaining the equipment and providing technical assistance and the delivery of emergency parts.

“Our gable top filling equipment has such a solid reputation that a good deal of our revenue comes from the service and maintenance of the equipment because many customers just don’t want to let these machines go,” said Nissen.

Good equipment isn’t the company’s only focus, though.

As part of its ESG strategy, Pactiv Evergreen is working to “reduce emissions and energ­­­­y use,” “minimize water use,” “offer a wide array of sustainable products and materials,” and “design innovative materials and products.”

“Our commitment to sustainability is foundational to our purpose of ‘Packaging a Better Future’ and is guided by our value to ‘Do What’s Right’ to deliver sustainably manufactured products with ethics and integrity,” said Mike King, president and chief executive officer, in a press release. “Every day we strive to operate with respect for the environment and are dedicated to sustainability across our product portfolio, manufacturing, and supply chains.”

Courtney Kless is the Managing Editor of Northeast Dairy Media.

NED Magazine • First Quarter 2024 • 37

Member News

MEMBER AND INDUSTRY NEWS NORTHEAST DAIRY FOODS ASSOCIATION, INC.

the delicious, high-quality cold brew and ready-to-drink craftmanship of La Colombe to a next generation of consumers, powered by a strong distribution partner in KDP.”

BYRNE DAIRY AWARDED $1 MILLION GRANT TO EXPAND DEWITT PLANT

CHOBANI ACQUIRES LA COLOMBE

Chobani recently announced that it has acquired La Colombe for $900 million. Chobani financed the acquisition through the combination of a newly issued $550 million term loan, cash on hand, and the exchange of Keurig Dr Pepper’s (KDP) minority equity stake in La Colombe into Chobani equity.

La Colombe currently serves consumers across multiple channels, including retail, cafes, foodservice, and direct-to-consumer. The brand is the only ready-to-drink coffee company, owning its supply chain from conscious bean sourcing and premium roasting to the creation of exceptional product experiences for loyal customers.

“At a time where the industry has faced challenges to grow sales, Chobani has delivered double-digit, volume-led sales growth, and considerable margin expansion. We have never been stronger or better positioned to chart our next chapter of growth,” said Chobani Founder and Chief Executive Officer Hamdi Ulukaya. “We’ve already made an investment in the coffee category with our creamers and are excited about bringing La Colombe into the Chobani family, and offering 38 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Byrne Dairy wrapped up its 90th anniversary year with a sizable investment in its future. Byrne’s DeWitt plant was one of 35 awardees of the Northeast Dairy Business Innovation Center (NE-DBIC) Existing Dairy Processor Expansion Grant.

With its award of $1 million, Byrne DeWitt will install an Ultra-High Temperature processing system dedicated to current and future extended shelf-life and aseptic production of milk and cream.

“We’re grateful to NE-DBIC for recognizing the importance of this processing expansion,” said Carl Byrne, president of Byrne Dairy. “Increasing our processing capacity is good news for farmers in the Northeast who supply the milk. Milk and cream products made from milk supplied by Northeast producers will be sold to consumers throughout the Eastern United States and beyond.”

Member News GREAT LAKES CHEESE LEADER RECEIVES IDFA’S 2024 FOOD SAFETY LEADERSHIP AWARD

Rob Shumaker of Great Lakes Cheese received the International Dairy Foods Association’s (IDFA) 2024 Food Safety Leadership Award during IDFA’s Dairy Forum on Jan. 23. The award, now in its eighth year, honors an individual, group or organization for demonstrating outstanding leadership directed at enhancing food safety within the dairy products industry.

Shumaker has worked with IDFA’s Food Safety Committee and the University of Wisconsin to determine various food safety and risk factors in cheese production. Dr. Kathy Glass with the University of Wisconsin’s Food Research Institute wrote in her letter of support for Rob’s nomination: “Rob is a guardian of food safety for Great Lakes Cheese and for the dairy industry.”

“This award is a testament to the unwavering commitment the industry and IDFA have made to ensuring the safety and quality of dairy products,” said Shumaker. “I am deeply appreciative of the guidance and mentorship from industry partners, academia, and the management team and Epprecht family at Great Lakes Cheese. We remain steadfast in our pursuit of excellence and look forward to advancing food safety initiatives in the industry, supported by the collective efforts of our partners and colleagues.”

GALBANI® ITALIAN CHEESE SELECTED AS PREFERRED PIZZA CHEESE BY DELAWARE NORTH

Galbani Italian cheese is now the preferred pizza cheese of Buffalo-based global hospitality and entertainment company Delaware North. Galbani cheese is manufactured in Buffalo, New York, and Nampa, Idaho, by Lactalis American Group, part of Lactalis USA. Delaware North is using Galbani Fresh Mozzarella and Galbani Premio Shredded Mozzarella to enhance pizza offerings at more than 60 operations across all divisions, most notably for its operations at Major League Baseball, National

Football League, and National Hockey League stadiums.

Many of Delaware North’s parks and resorts, gaming, travel, and Patina Restaurant Group locations are also using Galbani Mozzarella cheese for their pizza offerings.

“We’re proud to partner with Delaware North and bring the authentic flavor and premium quality of Galbani cheese to guests at its popular venues across the United States,” said Tim Connor, vice president, Culinary, Lactalis American Group.

“Lactalis worked with Delaware North to bring Galbani’s exceptional quality to its most recognizable food items. We’re excited to help enhance the guest concession experience with our award-winning cheeses.”

STEWART’S HOLIDAY MATCH FINISHES STRONG, RAISES $2 MILLION FOR LOCAL CHILDREN’S CHARITIES

Stewart’s customers came through in a big way, helping the 2023 Holiday Match program raise more than $2 million for local children’s charities.

Customers donated more than $1 million between Thanksgiving and Christmas Day again this year. With the company match, hundreds of nonprofit children’s organizations will benefit from the $2 million that will be distributed over the next few months, serving as a big boost to communities throughout New York and Vermont.

“Even during uncertain economic times, our customers continue to amaze me with their generosity,” said Stewart’s Shops Chief Operating Officer Chad Kiesow. “Stewart’s is a sharing company and clearly so are our loyal customers.”

Including this year’s tally, the Stewart’s Holiday Match program has raised more than $38 million since the program started in 1986.

CONTINUED ON NEXT PAGE ► NED Magazine | Fourth Quarter 2023 • 39

Member News NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. NELSON-JAMESON FOUNDATION SUPPORTS MORE THAN 20 COMMUNITY ORGANIZATIONS IN INAUGURAL YEAR

preserve the well-being of the industry for generations.

Nelson-Jameson has launched several projects this year that have contributed to NJF’s goals including leading a Breast Cancer Awareness Campaign and creating a Dairy Art Calendar. Additionally, a percentage of the proceeds from We Supply America’s “Force for Good” online store is being donated to NJF. Nelson-Jameson also has a strong partnership with Marshfield Area United Way, where employees have volunteered for community programs working to improve mental and physical health, expand education, grow livelihoods, and address essential needs (food, shelter, and clothing).

ECOLAB AGAIN RECOGNIZED FOR SUSTAINABILITY LEADERSHIP

Food and beverage processing distributor Nelson-Jameson announced details of its philanthropic program this year with contributions from the Nelson-Jameson Foundation (NJF).

Nelson-Jameson launched NJF in September 2022 as a 501(c) (3) private foundation to formalize its longstanding culture of philanthropy and community stewardship. Since then, NJF has provided direct donations, volunteer-based support, scholarships, matching gifts, and financial grants to more than 20 non-profits and charitable organizations in the greater Marshfield, Wisconsin area and across the nation.

“Philanthropy and community support have been part of Nelson-Jameson’s culture since it was founded more than 76 years ago,” said Amanda Nelson Sasse, president of the Nelson-Jameson Foundation. “We’re proud to build on this important legacy while also stepping up to meet the growing needs of our community partners.”

Central to Nelson-Jameson’s philanthropic approach is its investment in people through education, including its own Golden Rule Scholarships and scholarships with University of Wisconsin-River Falls, University of Wisconsin-Stevens Point, and University of Wisconsin-Madison. These scholarships provide well-deserving students the opportunity for higher education opportunities to pursue greater academic goals without the increased financial stress of college. NJF has also donated to the University of Idaho’s Center for Agriculture, Food, and the Environment to support the development of the country’s largest research dairy that will 40 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Ecolab Inc., a global sustainability leader offering water, hygiene and infection prevention solutions and services that protect people and the resources vital to life, announced it has again earned a place on the annual Dow Jones Sustainability Indices (DJSI). Ecolab ranks on both the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability North America Index (DJSI North America) for its continued competitive sustainability performance.

Out of more than 13,800 companies invited to participate, Ecolab is one of roughly 300 companies across all sectors and one of 26 companies in the chemical sector named to the World Index. This is the fourth consecutive year that Ecolab has been recognized on the World Index and the ninth consecutive year on the North America Index.

“Our ability to help deliver a positive future for people, customers and the planet begins with our business success,” said Christophe Beck, chairman and CEO. “Our continued growth and leadership ranking on the Dow Jones Sustainability Indices are a testament to the hard work and dedication of our 47,000 associates around the world.”

Have you recently won an award? Do you have any new products coming out?

Are you planning an expansion?

Email courtneyk@nedairymedia.com with more information.

Member News NEWSWEEK RANKS BERRY AMONG AMERICA’S MOST RESPONSIBLE COMPANIES FOR THE THIRD YEAR IN A ROW

Berry Global proudly accepts its top 50 ranking among America’s Most Responsible Companies, presented

by Newsweek and global research firm Statista, Inc. Ranking 35 out of 600 of the most responsible companies in the United States across 14 industry subcategories, Berry is recognized for its commitment to environmental, social, and corporate governance (ESG).

“A company is a collection of people with a shared vision.

Responsible companies ensure their long-term vision includes improving people’s lives and protecting our planet in addition to generating a profit,” said Berry CEO Kevin Kwilinski. “This high recognition is consistent with what I’ve experienced across Berry within my first 50 days. Our team’s technical know-how and material engineering expertise is second to none, and these exceptional skills and knowledge are put to great use helping our customers achieve their sustainability goals.”

THOMAS EMMERLING NAMED TO 2024 BUSINESS FIRST OF BUFFALO’S POWER 250 LIST

Dopkins & Company, LLP, a full-service Certified Public Accounting and Consulting firm, announced that Thomas R. Emmerling has been named to the “Power 250” list

by Business First of Buffalo. Compiled

by Business First’s editorial staff, the Power 250 identifies the 250 most influential people in Western New York from business, government, education, health care and non-profit industry sectors. Visit the Business First website for more information.

As managing partner, Emmerling has overall responsibility for the operation and management of the firm. Capitalizing on his 40 years of experience as a certified public accountant and certified financial planner, he works to continuously develop strategy and improve the firm’s processes and suite of services.

WELCOME NEW MEMBERS The following new members recently joined Northeast Dairy Foods Association, Inc., or the The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available from both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Leanne Ziemba at 315-452-MILK (6455) or leanne.ziemba@ndfsa.org.

ALL AMERICAN POLY

FAIRLIFE, LLC

SAFETYCHAIN

Tom Quinn

Senior Procurement Category

Events Manager

Northeast Sales Manager

Manager

jgreenawalt@safetychain.com

tquinn@allampoly.com

mikes@fairlife.com

7599 Redwood Blvd., #205

40 Turner Place

10001 W. Adams St.

Novato, California

Piscataway, New Jersey

Chicago, Illinois

safetychain.com

(518) 338-2995

fairlife.com

Mike Skeels

Jennifer Greenawalt

allamericanpoly.com NED Magazine • First Quarter 2024 • 41

Human Resources

The Five Most Common Mistakes Companies Make When Hiring or Acquiring New Employees

T

he hiring process is a critical aspect of any organization – and it is the foundation of the company’s success. It is essential to get it right. Unfortunately, many businesses make mistakes when hiring new employees or acquiring new personnel from a merger, which can lead to costly consequences.

In this article, learn about the five most common mistakes companies make when bringing on new talent and how you as the employer can avoid them.

MISTAKE #1: NOT PREPARING YOUR TEAM FOR THEIR NEW CO-WORKER

One of the most common mistakes companies make is not preparing their team for their new co-worker. No one likes to be surprised, and equally, no one likes to be “forced” on other people. Your existing team is as important

BY DR. GARY KUSTIS

as the new members you acquire, and tending to both makes the difference between a strong team and high turnover. It’s important both sides are well-informed before the new hire’s first day.

How to Fix It: Keep your team in the loop during the hiring process. If possible, invite them to meet the final two candidates one-on-one, and be part of decision-making. This way, they’ll feel more ownership over the outcome. Another useful tactic is a light, but meaningful questionnaire.

Ask questions that get to the heart of the new person’s personal interests, office pet peeves, and quirks. This makes them more relatable right out of the gate. Collect the same from your team and provide this information to the new team member—it’s only fair they know what they’re coming into, too.

42 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

MISTAKE #2: NOT DEFINING THE BOSS-DIRECT REPORT DYNAMIC

It’s almost impossible to fully trust someone you don’t know. In the same way you’re trusting a new hire with their responsibilities, they’re trusting you to lead them to success. You’re an especially important part of their career journey.

What story do you want them to tell in the future? Do you want to be the terrible manager who taught them everything not to do or the one who showed them good management was possible?

How to Fix It: Host a one-on-one “welcome to the company!” meeting at an offsite location (or take them out to lunch on their first day). Use this time to get to know your new hire better, and share your vision for their role in your organization. Be clear about your expectations and how you plan on supporting them in their role.

Human Resources MISTAKE #3: RUSHING THROUGH INTERVIEWS

Interviews are an essential part of the hiring process, but many companies rush through them or don’t take them seriously enough. This can be especially true of second interviews, where many people find that they don’t have much more to ask the job candidates. All of this can lead to hiring someone who isn’t a good fit for your organization.

How to Fix It: Take your time with interviews and ask open-ended questions that allow candidates to share their experiences and thought processes. Use behavioral interviewing techniques that focus on past behavior as an indicator of future performance. Consider using a personality test before the second interview and make use of what you learn to inform your questions in that second interview.

MISTAKE #5: NOT OFFERING COMPETITIVE COMPENSATION PACKAGES

Offering competitive compensation packages is essential if you want to attract top talent. Unfortunately, many companies don’t offer competitive salaries or benefits packages, which can lead to losing out on top candidates.

The labor situation today is definitely a “seller’s market” so don’t be surprised if you find that you’re paying more for talent than you did just 3-5 years ago.

How to Fix It: Research industry standards for salaries and benefits packages in your area and adjust your offerings accordingly.

Be transparent about what you’re offering and why it’s competitive. Be sure to also point out the aspects of your com-

pany’s culture that make it a great place to work. Meaningful work and worklife balance have value to people, too.

IN CONCLUSION

Avoiding these five common mistakes when onboarding new talent can help ensure that your organization attracts top talent and builds a strong team. By preparing your team for their new co-worker, defining the boss-direct report dynamic, taking your time with interviews, checking references, and offering competitive compensation packages, you can set yourself up for success.

Herbein + Company, Inc. is a member of the Northeast Dairy Suppliers Association, Inc. This article originally appeared on the company’s blog.

MISTAKE #4: NOT CHECKING REFERENCES

Checking references is an essential part of the hiring process, but many companies skip this step, or don’t take it seriously enough. This can lead to hiring someone who isn’t a good fit for your organization.

How to Fix It: Take reference checks seriously and ask open-ended questions that allow references to share their experiences with the candidate. Ask about specific examples of how they worked with others, how they managed demanding situations, and how they responded to feedback. Describe the job they are applying for and ask them where they think the candidate may shine or struggle.

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NED Magazine • First Quarter 2024 • 43

Business Trends

The Customer Experience Continues to Change

BY ART WASKEY

Editor’s note: This article first appeared in the Q1 issue of Welding & Gases Today. Though the industry is slightly different, the tenets in the article are the same.

THE CUSTOMER RELATIONSHIP

I consult primarily with distributors with revenues of $10 million and below. This is a group that succeeds based on its ability to provide exceptional customer service along with its products. Technology has dramatically changed the way these services are delivered. The salesperson’s one-time habit of regular customer visits to catch up on personal and professional information has been replaced by online communications. With so much material available on the internet, salespeople find it difficult to add something technically significant to a sales discussion. Also, digital interactions broaden the time between sales calls, diminishing a rep’s ability to build strong personal relationships. These trends are of great concern to my distributor clients. They fear losing their longterm, hard-earned customer relationships to the digital world.

TAKE ACTION

To adapt to the changes in the customer experience, learn how to make these new interactions work for you. Find ways to build trust with your customers that will differentiate your distributorship from competitive virtual channels.

Look at the widespread adoption of technology as an exciting challenge. Take the following actions to ensure your company is making the appropriate changes to succeed in the digital world.

44 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

Build Online Confidence We all recognize the need for an online presence in the form of a good website. You can’t stop there, however. You need to continually build online confidence by adding more tools.

Today, in addition to a website, any serious distribution business also must have business management software known as ERP (enterprise resource planning). Business consultants predict that if you don’t have an operational ERP in the next 12 to 18 months you will not remain relevant in today’s competitive digital world.

A functional ERP gives your sales force rapid access to important tools. It provides inventory accessibility, customer finance engagement, digital product information, and other distribution efficiencies. Your team may show initial resistance to ERP due to concerns about losing control of their accounts. That is generally quickly overcome by the realization that its application improves customer experiences.

Once an ERP is implemented, consider the addition of some third-party APIs (application programming interfaces) for eCommerce and improved product description, pricing, and inventory management. These strengthen your ability to provide a great customer experience.

Increase Your Product Knowledge For the traditional distributor, there is no question that its ability to provide customers with differentiated product knowledge is its greatest asset. The availability of online research, however, allows customers to look for information

Business Trends on their own. As a result, salespeople are entering the buying cycle later than ever before.

Online research can be overwhelming. No one wants to waste time trying to get answers from automated attendants or overly dense web pages. Salespeople can use this problem to their advantage. They can do the research and provide personal access and product knowledge selected especially for their customers. Reps need to build upon what they already do and increase their focus on customer education and product information.

It is also important to eliminate products that are no longer being purchased. Remember the 80/20 rule which states that 80% of revenue comes from 20% of products. Also, devote time to building stronger partnerships with key vendors that demonstrate superior products and digital technology prowess.

Be an Agent of Change To be an agent of change, look outside your company for trade associations, buying groups, manufacturers and other communities for the latest technologies, continuous improvement tools, marketing techniques, APIs, VMI (Vendor Managed Inventory) practices, etc.

Within your industrial vertical there are technology companies that are specialists in what you need. This was true within the distribution industry where I worked. One ERP provider commands the market by providing regular forums for information exchange between themselves and their distributor clients. This ensures that their product enhancements and solutions work within that particular business space. It also reduces the cost of updates to the distributors as the provider has been able to spend less time on product development.

Get ready to Embrace AI By now, most of us have connected with ChatGPT and understand its ability to write a discourse on any subject. It has scanned the internet and assembled a collective response from all the information available on the topic.

In a similar fashion, machine learning can be applied by distributors to provide enriched content. When implemented, AI can optimize supplier and customer pricing information, relationship content, product selection, promotional strategies, etc. AI can serve as a continuous improvement agent. It will be up to you to determine how best to implement AI in your business and to understand how to communicate these capabilities to your customers.

Be a Differentiator The distribution business is built on strong relationships and the ability to find solutions that are best for its customers. The competitive internet verticals, on the other hand, are not looking for personal relationships. Be a differentiator by focusing on your customer’s best interest and staying on the cutting edge of technology. Here lie plenty of opportunities for distributors to provide a better customer experience than the internet verticals.

Grow Your Digital Skills You have the customer’s trust, now build on it. Your customers won’t use the other verticals if you continue to deliver the best experience. You have the advantage of being more intimately aware of customer needs. Continue to do your homework.

Find the time to view webcasts from the best-in-thebusiness gurus. These webinars provide insights from top consultants as well as analytics. Distribution Strategy Group (DSG), Modern Distribution Management (MDM), and the National Association of Wholesalers (NAW) are three great groups to start with. They have daily blogs with industrial news including M&As, earnings, feature articles, events, and up-and-coming webcasts. Whether you are in the initial stages of your digital journey or are seeking to enhance existing strategies, you must stay current with the rapid changes in the digitalization of your channel.

MANAGING CHANGE

Managing change is never easy. Navigating the digital customer experience in a rapidly changing world requires time, energy, and financial investment. It demands you have an ongoing focus on delivering the latest improvements in product, price, and promotion. The challenge is to provide all this in an easy-to-use digital format, while continuing to build and strengthen your personal customer relationships.

Art Waskey has over 50 years’ experience in the welding and gas industry. You can subscribe to Art’s weekly sales/ leadership tips and monthly articles on his website. Also, check out his posts on LinkedIn. For services, contact Art at 720-341-9405, artwaskey@ispeakd.com, impactspeakingdynamics.com.

NED Magazine • First Quarter 2024 • 45

Sales + Marketing

Unify Your Sales and Marketing Teams to Close More Deals in 2024 The importance of collaboration in the modern B2B world

BY DEVON E. HOFFMAN

I

f you’ve spent time in the B2B world recently, you may have noticed a new trend.

And I’m not talking about ChatGPT or VR, although those are important and moving quickly, too. Sales and Marketing teams are finally finding ways to become better aligned and work more closely together.

It’s long overdue.

With better alignment, team members can work towards the same goals and boost organizational efficiencies, ultimately leading to more closed-won business.

WHY SALES AND MARKETING STRUGGLE TO GET ALONG

Historically, Sales and Marketing haven’t really worked well together.

“We gave you leads!” exclaims Marketing. “Why can't you close the deals?”

“Well,” Sales responds, “The leads you sent us were horrible! They were just tire-kickers with no interest.”

46 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

And that fight continues until the business folds or the world stops spinning. Whichever comes first.

The main reason for the contention is that Sales and Marketing have typically had their own separate goals.

Marketing is usually focused on brand building and lead generation. They have a long-term vision, and most marketers love trial and error. Especially when it comes to emerging trends or technology, to see if there’s a way for something new to impact the company in a positive way.

For Sales, time is money. Most salespeople (especially ones that are well-seasoned or formerly trained) are very results-driven. “Will this effort get me appointments?” is their primary mindset. Many times, they’re aloof to the inner workings of marketing, especially the backend of a website, the behind-the-scenes management of software, or all that goes into content development.

The fastest route between two points is a straight line, and working out the kinks between the two teams can bring positive change.

Sales + Marketing Specifically, the connection between the two will: • Help both teams agree upon what a “quality” lead actually is so the Sales team is only working with the best ones, thus reducing friction and helping close more deals.

• Shorten the sales cycle since there’s less “drop off” when leads are passed from Marketing to Sales and more intel on each prospect.

• Reduce time, effort, and frustration that comes with reporting on different metrics, reporting on the wrong metrics, or managing cross-department communication.

Here are a few recommendations on how to better unify your two teams.

HOW TO IMPROVE ALIGNMENT BETWEEN SALES AND MARKETING

Communication The most important way to promote alignment is through transparency and regular communication.

That includes from beginning to end – strategic planning all the way through to reporting. There must also be a feedback loop, meaning Sales should provide Marketing with insight into the quality of leads, what drove those opportunities, the status of opportunities, the size of deals, and more.

Marketing should allow Sales to support their efforts, too.

Here are a few examples of ways to develop more transparency and communication across your Sales and Marketing departments: • Share Strategies: At the beginning of the fiscal year, Marketing presents its strategies to the Sales team.

Additionally, the Sales team presents their strategies to the Marketing team.

• Share Budgets: Make Sales and Marketing budgets available for the opposite department to see. How much is being spent on tradeshows for Sales? How much does Marketing have available to spend on Google Ads? Reveal all the line items and encourage a discussion on how to best optimize available funds.

• Share Processes: Have Marketing members regularly join sales calls and presentations to gain deeper insight into the sales process, customer needs and pain points, and how Sales positions the product. Allow Marketing to offer critiques following those calls.

• Share Brainstorming: Have salespeople join the Marketing team’s brainstorming sessions where campaigns are developed and planned. Salespeople who have a knack for speaking and writing (ideal-

ly, all of them) can offer their talents and assist with content development, article writing, or act as video spokespeople.

• Share KPIs (Key Performance Indicators): Share the metrics you're focusing on and targeting. Track where certain initiatives are intended to drive and see how you’re impacting performance for the following in every stage. Visitor >> Lead >> MQLs >> SQLs >> Opportunity >> Closed Lost >> Closed Won >> Customer Plan ongoing scheduled monthly meetings, where Sales & Marketing teams come together to review dashboards, goal statutes, and milestones, talk through upcoming promotions, events, and offers, and map out a plan to tag-team upcoming projects.

Buyer Personas and Customer Insight 50-70% of a buyer’s research is done before making contact with a brand. Therefore, one could argue that marketing is equally as responsible as sales (if not more) for helping secure a deal. This truly begs the importance of understanding one’s customers.

What specific questions does the potential customer ask the salesperson when in the sales process, and what answers are given? For the Marketing team, customer insight helps with important decisions, and the Sales team may have already uncovered these insights in their discovery process.

They may have customer information that helps Marketing answer the questions: What social media sites to invest in?

What targeting can be done within advertising networks?

How to organize a website layout? What style, voice, and messaging to focus on with your content?

Sales can also benefit from the data. Pacing, pricing, and packaging can all reflect the buyer’s needs.

Both Marketing and Sales should develop buyer personas and profiles.

By building these profiles together, all team members can weigh in on not only the demographics of buyers but also what goes into their buying processes.

Technology Stack Forrester Research found that highly aligned companies grow 19% faster and are 15% more profitable.

That alignment certainly comes from better teamwork, but it also comes from unified systems.

There are many software programs available to help both marketers and salespeople do their jobs more efficiently. Start NED Magazine • First Quarter 2024 • 47

Sales + Marketing

•

by identifying what tools are needed and how both teams can learn and embrace them.

Here are some examples: • CRM (Customer Relationships Management) and/or Marketing Automation: Consider tools like Salesforce, Pardot, and Hubspot. Having a system that has built-in form capture, lead segmentation, email, opportunity management, forecasting, user behavior tracking, meeting notes, etc., makes it so both teams can access all they need to know about leads and prospects. There’s more transparency on what campaigns are running too.

• Lead Intelligence: Lead intelligence isn’t limited to just sales use. Think about a tool like DealFront- which identifies businesses who are on your website and their pageview history - or ZoomInfo, which provides intent data - giving you contact information of folks who have recently expressed interest in your industry or product.

Think about how Marketing can tap into this data for greater market insight, remarketing, or improving conversion rate optimization (CRO).

• Project Management: Software like Wrike or LiquidPlanner is great at helping teams create and manage projects and tasks and also helps with internal collaboration. By reducing meeting time and the number of emails - and helping keep conversations aligned to specific projects - it improves organizational efficiency.

• Person Gifting: Thanks to modern gifting software like Sendosa - you can plan to send postcards, direct mail or personal gifts to prospects in bulk - or based

48 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

on specific actions they’ve taken on your marketing campaigns. Timing out gift-giving to specific buying stages can help nudge a lead closer toward a purchase and develop greater brand loyalty.

Reporting: Both teams need to report on results. By building dashboards in one single system, there’s a greater appreciation for each other’s work and efforts. Use a business intelligence tool like Google Looker Studio that allows you to integrate with other third-party reports and bring multiple data sets into one interface. Doing so makes it easier for all involved to quickly and easily revisit numbers and hold team members accountable.

SUMMARY

Marketing’s main responsibility is still to generate awareness, interest, and demand for a brand and its products. Sales’ main responsibility is still to forecast, prospect, work deals, and close business.

In silos, major holes can appear that lead to inefficiencies and lost opportunities. With better alignment, efficiencies are added, sales cycles are shortened, there’s less churn, and more deals are closed.

What’s the investment?

Patience, collaboration, better tools, and an agreement that both teams will work together to make a more significant impact on the business.

You may have heard the term “Smarketing.”

It was coined to describe cohesion between the Sales and Marketing departments.

Organizations that embrace “smarketing” get better results.

It’s not easy. But it’s doable.

Watch your business soar to new heights by letting the collaborative sparks fly, igniting the DYNAMIC DUO of Sales and Marketing!

Team Lead.

Devon E. Hoffman joined Site-Seeker in 2016 as a digital marketing assistant. His creativity has driven his ability to create custom, client-focused content. He now supports a number of facets throughout the company, holding the position of Digital Marketing and Sales Specialist

Northeast Dairy Online Buyers guide

A self-service communication platform for NED Members.

directory.ndfsa.org CATEGORIES

Dairy Producers can find suppliers that will help their businesses run more profitably and efficiently.

• Co-Packing/Private Label • Distribution and Transportation • Ingredients • R&D Quality Control • Packaging • Process Equipment • Sanitation and Maintenance • Service and Supplies

ARTICLES Weekly articles announcing the latest and greatest technologies from key industry suppliers.

Classified listings offering deals on used equipment.

NDSA CATALOGS And much more!

ACCESS NOW

Sales + Marketing

Search Engine

TRENDS

for the Dairy Industry

P

art of developing a comprehensive digital marketing campaign is understanding how customers and potential customers are using the Internet to find your products and your website.

The graphs and information below all come from Google Trends, which analyzes the popularity of queries in Google Search across various regions and languages.

The graphs scale “Interest Over Time,” which represent search interest relative to the highest point in the chart for the given region and time-period. So, a value of 100 is the peak popularity for the term.

Another alternative is Google Keyword Planner. To use this tool, you must have a Google Ads account. The Keyword Planner lets you search keywords and suggests other words or phrases related to your products and services. It lets you research the trend information for how often certain words are searched and how those searches have changed over time and also gives you suggested bid estimates for each keyword, so you can determine your advertising budget.

In today’s digital environment, we strongly encourage members to capitalize on this growing trend and ensure that your company is visible in the place where people search the most.

DAIRY

Average Search Volume has increased 6.3% Average Search Volume has increased 14% over the past five years 50 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

RELATED SEARCH QUERIES 1.

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Dairy milk Ice cream Dairy products Dairy foods

Sales + Marketing CREAM

Average Search Volume has decreased 5.9% YoY Average Search Volume has increased 12.3% over the past five years

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Ice cream Heavy cream Sour cream Cream cheese

SALES AND MARKETING

Average Search Volume has increased 45% YoY Average Search Volume has increased 88.7% over the past five years

RELATED SEARCH QUERIES 1.

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Sales and marketing strategy What is sales and marketing What is marketing Sales and marketing management

SUSTAINABILITY

Average Search Volume has increased 24.1% YoY Average Search Volume has increased 80.4% over the past five years

RELATED SEARCH QUERIES 1.

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What is sustainability Sustainability report Sustainability definition Sustainability in business

NED Magazine • First Quarter 2024 • 51

Leanne’s Kitchen

Comfort Food Made with Delicious Dairy

S o ut h e r n C h e d da r & H e r b C h e e s e St r aws INGREDIENTS: • 8 ounces (2 packed cups) grated extra-sharp cheddar cheese • 1½ cups all-purpose flour, spooned into measuring cup and leveled-off with knife, plus more for dusting • 1 tsp. kosher salt • Scant tsp. crushed red pepper flakes • 1½ tbsp. roughly chopped fresh herbs, such as rosemary and/or thyme • 1 stick (½ cup) cold unsalted butter • 6 tbsp. heavy cream

INSTRUCTIONS: 1. Preheat the oven to 400°F. Set two oven racks in the center of the oven. Line two baking sheets with parchment paper.

2. In the bowl of a food processor, combine the cheese, flour, salt, red pepper flakes, and herbs.

Pulse until the mixture resembles coarse crumbs.

3. Cut the butter into ½-inch chunks and add to

the flour/cheese mixture. Pulse until the mixture resembles coarse crumbs, with some pea-size clumps of butter within. Add the heavy cream and pulse until the mixture starts to clump together into a mass.

4. Lightly flour a work surface and dump the dough on top. Dust the top of the dough with flour and use your hands to shape into a rectangle about 1 inch high. Cut the rectangle in half.

5. Dust the work surface with more flour and roll each block of dough into a 8 x 10-inch rectangle about ⅛-inch thick (turn the dough as you go and add more flour as necessary so it doesn't stick). Using a pizza cutter or sharp knife, trim the edges straight without sacrificing too much dough, then cut the dough into thin strips about ¼-inch wide. Transfer the strips to the prepared baking sheets, leaving about a ¼ inch of space between them.

6. Bake the straws for 10-12 minutes, or until lightly golden on top and a rich golden color on the bottom, rotating the pans from top to bottom and front to back midway through. Remove from the pans from the oven and set on a rack to cool. Carefully transfer the cheese straws to a plate and serve.

Many of our members may know Leanne Ziemba as the business operations manager for the Northeast Dairy Foods & Suppliers Associations. But we’ve discovered she also is queen of the kitchen, as she has some delicious recipes that include fresh, wholesome dairy products.

52 • Northeast Dairy Foods and Suppliers Associations • ndfsa.org

OSHA UPDATE OSHA Shares Top Safety Violations in 2023 The Occupational Safety and Health Administration (OSHA) has once again released a preliminary list of the 10 most commonly cited standards.

For the 2023 fiscal year they were: 1. Fall Protection – General Requirements – 7,271 VIOLATIONS 2. Hazard Communication – 3,213 violations 3. Ladders (1926.1053) – 2,978 violations 4. Scaffolding – 2,859 violations 5. Powered Industrial Trucks – 2,561 violations 6. Lockout/Tagout – 2,554 violations 7. Respiratory Protection – 2,481 violations 8. Fall Protection – Training Requirements – 2,112 violations 9. Personal Protective and Lifesaving Equipment – Eye and Face Protection – 2,074 violations 10. Machine Guarding – 1,644 violations

“Although incredible advancements are made in safety each year, we continue to see many of the same types of violations appear on OSHA’s Top 10 list,” said Lorraine Martin, NSC president and CEO, in a press release. “As a safety community, we must come together to acknowledge these persistent trends and identify solutions to better protect workers.”

For more information, and to view a list of the top violations in 2022, visit osha.gov.

NED Magazine • First Quarter 2024 • 53

NDFA and NDSA members shared these posts on LinkedIn and Facebook

Cayuga Milk Ingredients, LLC’s Today is National Milk Day! On January 11th each year, we commemorate the initiation of milk deliveries in glass bottles sealed with waxed paper, dating back to the significant year of 1878.

We are thrilled to be part of this annual observance that pays homage to a pivotal moment in history.

Cabot Creamery Cooperative Introducing our updated Cabot Creamery logo! Keep an eye out as it begins popping up on shelves. Cabot Creamery cheese & dairy products continue to be made with love, pride & purpose as they have been since 1919; read more about the evolution of our logo and our brand. https://lnkd.in/eF4ZmNh5

Hydrite Our #HydriteHelps team has been busy giving back to the local community. Last week we packed 1,967 pounds of green beans at Feeding America Eastern Wisconsin, providing 1,639 meals to be distributed locally. This week we assembled 150+ snack packs for Boys & Girls Clubs of America, providing essential nutrition to kids in need.

See other ways Hydrite gives back to the community: https://ow.ly/3Rxa50QuwSy

WestRock

WestRock announced today plans to break ground on a new, state-of-the-art corrugated box plant in Pleasant Prairie, Wisconsin. This investment will better position WestRock to serve the market by elevating production capabilities, enhancing digital technologies and improving the sustainability of operations.

Learn more: https://lnkd.in/ezhJjmYC