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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)