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DTHE CITIZEN, THURSDAY, MARCH 9, 2006. PAGE 13.
Dairy farmers hear from GM
By Bonnie Gropp
Citizen editor
"I've always felt that dairy farmers
are probably the hardest working
group we have in society. There is no
one else who works under their
conditions. They are entitled to a fair
return for that."
So said Peter Gould, general
manager of the Dairy Farmers of
Ontario at the Huron County Dairy
Producers annual meeting in
Brussels March 2.
Gould first came on board with
DFO as an economist in 1981, then
spent seven or eight years in trade-
related issues, before moving into
marketing and quality regulations
before being named GM in 2005.
One of the problems facing the
industry right now is the loss of
market for dairy. Butter sales are the
most worrisome with a drop of 4.3
per cent. "Butter's a discretionary
item, but it's good to know that
margarine is down as well, Huron
DFO board member Dave Murray
said earlier in the meeting.
Getting the market back on track,
said Gould is going to require
innovation. He said there is pricing
in place for a lower price on fluid
milk for the introduction of new
products. However, "between 1998
and now we hardly sold any under
that."
Innovation, Gould said can come
under many headings, from
packaging to distribution. He
acknowledged GayLea's new
products, such as aerosol whipped-
cream and single-serve. cottage
cheese, as the type of things they are
hoping to see.
Another way to increase the
market, he said, is to ensure that it's
easier to get money for marketing.
Currently, he said, by the time the
processor has all the points in place
for a new product to be ready for the
market, they have run out of money.
"Giving lower prices will help."
The way products are marketed is
also being looked at. Earlier there
had been discussion about the 100
per cent Canadian dairy logo
depicted by a blue cow. One woman
had earlier stated that if the market is
shrinking DFO was not doing the job
they were being paid to do. "You're
losing our money. Has anyone lost
their job because my market is
shrinking."
Gould spoke to that in his
presentation saying he understood
the frustration. "When you spend
money on marketing you're not
looking for excuses. You want your
money used as effectively as
possible."
However, he added, there had been
major changes over the last six
months. He said DFO had spent lots
of money on generic ads. "But now
we have to ask if it's been useful.
With fewer people watching
television, or more of them flipping
through commercials, that type of
advertising may not be the way to
go. "You hardly see a beer, Coke or
Pepsi commercial anymore. They
are spending their money in different
ways."
Consideration is being given to
other methods to utilize the dollars
including partnering with others to
get more mileage out of the money
DFO has.
One being given serious
consideration is using the internet to
promote dairy. "We did make
changes in that direction and I want
them to go further."
Increasing the ethnic markets is
another direction. Gould said that 50
per cent of the population in some
urban centres comes from countries
where the dairy products are
different than Canada's. "We need to
look at the type of products they will
consume."
Gould also noted that the DFC is
launching a fluid milk advertising
campaign to the Chinese community
in Toronto.
But Gould feels they need to take
it one step further. "Let's do the
research and find out what they
need."
Consumer awareness is another
aspect to be considered in increasing
the market. "The question is logo, no
logo," said Gould, referring to the
100 per cent Canadian dairy symbol
of the blue cow.
"In my mind about 90 per cent
recognize it, but no one really knows
what it stands for."
The logo signifies that the product
being purchased contains no
ingredients such as butter oil and
sugar, commonly found in ice-
cream.
Another problem is that very few
processors of cheese use the logo,
because, said Gould, it's understood
that's dairy.
"But we're trying to get across that
it's a quality product and 100 per
cent Canadian."
"The concern is education. If the
logo doesn't say what it means
there's no point in using it. It needs
to be much more self-explanatory
with an education component to it.
We want to get people to understand
right off when they see it what
they're getting."
Gould also questioned the need for
an original campaign each time.
"There is a big cost to producing a
commercial so we then have to limit
the amount of air time."
He spoke on the possibility of
using commercials already done in
British Columbia at a reduced cost
and see if they have an effect in
Ontario.
"I know B.C. would be thrilled if
we used their ads in Ontario. I hope
we will see progress in that area."
TRADE TALKS
If the big issue is looking at the
declining markets and pinpointing
how to turn that around, Gould said
there is no question the industry has
to be careful about what they do with
pricing in the future.
Gould who attended the trade talks
in Japan, spoke of then minister of
agriculture Andy Mitchell saying
that Canada was fortunate to have
had Mitchell there. He said as it is in
so many international events,
Canada played the role of
Peacekeeper at the World Trade
Continued on page 18
The exec
The new executive for the Huron dairy producers took over
following the annual meeting in Brussels March 2. Back
row, from left: Gerry Van den Hengel, secretary Steve
Hallahan, and Peter Angst. Front: Carolyn Van Dorp, Dairy
Farmers of Ontario board rep Dave Murray and Ellen
Nyland. Absent was chair Bill Wallace. (Bonnie Gropp photo)