We frequently receive the question — do dairy farmers receive adequate returns on investment from state, regional, and national dairy promotion activities? Yes.
That’s the short answer.
The more detailed answer involves reading a 109-page document, “U.S. Department of Agriculture Report to Congress on the Dairy Promotion and Research Program and the Fluid Processor Promotion Program, 2015 Program Activities.” That report gives a thorough analysis of the 15 cents per hundredweight that every dairy farmer contributes to fund dairy product research and promotion. In its independent analysis, Texas A&M University found the following:
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- For every $1 spent by dairy farmers in demand-enhancing activities, the benefits received back by dairy farmers were $2.99 for fluid milk. That’s a 3 to 1 return on investment.
- For every $1 invested in cheese, the benefits were $7.72. That’s a 7.7 to 1 return on investment.
- For every $1 invested in butter, the benefits were $32.06. That’s a 32 to 1 return on investment.