Dairy Management Inc

Grow New Opportunities for Domestic & International Sales Leverage power partners to drive dairy volume : Dairy checkoff innovation and sales-driving efforts focus on growing incremental and sustainable dairy sales via partners. Domestic checkoff foodservice partners Domino's, McDonald's and Taco Bell have averaged 3% growth in dairy sales by volume since the strategic relationships began, totaling about 7.6 billion pounds of dairy sold. Partner with leaders in Foodservice, Domestic, and Fluid Milk to bring disruptive new products and marketing programs: Within Foodservice, partners launched 10 new products and executed 5 marketing programs in 2023. New products launched included the Grilled Cheese platform at Taco Bell, Domino's Pepperoni Stuffed Cheesy Bread and Loaded Tots, McDonald's Strawberry Shortcake McFlurry and Cheesy Jalapeno McMuffin, among others. The marketing programs spanned from promotions on social media (McDonald's Grimace Shake) to an improved digital loyalty program (Domino's). Retail partner General Mills introduced new product launches in both Health & Wellness (Ratio Protein/ Keto Oui Whole Milk) and permissible indulgence (Haagen Dazs Cultured Cream). The Yogurt Category volume grew 2.4%, while General Mills new product volume grew 25M lbs. Specific to fluid milk, checkoff launched two new product lines including Good Culture Probiotic (DFA), MOO'V (DARI) in 2023 and Darigold Belle Creamers in January 2024, and the Darigold coffee marketing program. Value- added milk grew 0.2% in 2023, lactose free volume grew 6.8%, and alternatives declined -6.5%. The Exports team works in lockstep with USDEC to bring to life our vision, ensuring U.S. dairy is growing, consistent, and the preferred supplier in key markets globally. Checkoff is partnering with US Foodservice companies, dairy cooperatives, and the industry to drive innovation and build capabilities. Within our international partnerships, U.S. dairy volume grew 5% over 2022. In 2023, we continued to expand pizza partnerships with the #1 and #2 global pizza brands, as pizza is the top carrier for U.S. cheese and is a growing category in primary export markets. Checkoff partnerships launched more than 10 new items including Pizza Hut Melts in Japan and Indonesia, MyBox and BigBox in Japan and Taiwan, and incremental Halloween-themed Limited Time Offers with both Pizza Hut and Domino's. A short-term partnership with Yum! China delivering 10.84M cheese pounds through December 2023. Reached 1.7M consumers with the US cheese messaging by Pizza Hut Indonesia through the new incorporation of the USDEC "Made with US Cheese" logo, unifying U.S. cheese marketing and branding efforts for the Indonesian consumer. Partnered with U.S. co-ops to build capabilities and co-fund value-added growth initiatives. Darigold continues to grow and expand its International direct sales business model, expanding into value-added Extended Shelf Life (ESL) milk in retail channels in Asia. Initially selling-in incremental eggnog pallets in China for December 2023 and aiming to expand to include other ESL products in Philippines. Initial partnership with AMPI ended in June 2023, resulting in nearly 2,000 outlets selling Dinner Bell Creamery or Mera-branded cheese in China and Middle East and a 650% increase in exports volume since beginning of partnership. In 2024, AMPI is expanding into new markets (from 4 to 17) with new products and channels. This partnership was essential for AMPI to grow their export intelligence and capabilities with a long-term focus on exports as an area for growth.

THE DMI SUSTAINABILITY PROGRAM IS CRITICAL TO DMI's MISSION TO INCREASE DEMAND FOR DAIRY. THE PROGRAM DEMONSTRATES THAT DAIRY IS AN ENVIRONMENTAL SOLUTION - BACKED BY SCIENCE AND PROOF - AND ECONOMICALLY ADDITIVE FOR FARMERS, MARKETS AND SOCIETY. THE PROGRAM IS COMMITTED TO SUPPORTING SCIENTIFIC RESEARCH AIMED AT UNDERSTANDING, MEASURING AND IMPROVING THE ENVIRONMENTAL IMPACT OF DAIRY OPERATIONS THAT WILL SUPPORT INDUSTRY EFFORTS TO DRIVE CONSUMER DEMAND FOR PRODUCTS THAT ARE BOTH GOOD FOR HUMAN HEALTH AND THE ENVIRONMENT. SUSTAINABILITY RESEARCH FOCUSES ON GREENHOUSE GAS EMISSION REDUCTION opportunities, LIFE CYCLE ASSESSMENTS, WATER USE EFFICIENCY AND WATER QUALITY, SUSTAINABILITY MEASUREMENT AND REPORTING, AND TECHNOLOGY TRANSFER AND KNOWLEDGE SHARING TO IMPROVE FARM ADVISOR ACCESS TO SCIENCE BASED TECHNICAL RESOURCES. COLLABORATING WITH PARTNERS IS NECESSARY FOR SUCCESS. KEY PARTNERS INCLUDE FARM ADVISORS, UNIVERSITIES, NON-GOVERNMENTAL ORGANIZATIONS, FOUNDATIONS, GOVERNMENT, AGRICULTURE INDUSTRY AND VALUE CHAIN. TOGETHER, THESE INITIATIVES SERVE THE PUBLIC INTEREST BY PROMOTING ENVIRONMENTAL SUSTAINABILITY, COMBATING CLIMATE CHANGE AND PROTECTING WATER RESOURCES.