Who among us wouldn’t make an investment that returns $4.78 for every $1 spent?
According to an independent report by Texas A&M University, every $1 invested in the dairy checkoff netted a $4.78 return on investment from demand-enhancing activities. Those results were verified by USDA in a recently released report, “U.S. Department of Agriculture Report to Congress on the Dairy Promotion and Research Program and the Fluid Milk Processor Promotion Program, 2016 Program Activities.”
Butter is best
The returns varied by dairy product category.
Butter led the way with a $22.74 return to dairy farmers for every $1 in contributions. Next came dairy exports at $8.10. That was followed by cheese at $4.81 and fluid milk at a $4.11 return for every $1 of dairy farmer investment.
When reporting the data, it’s easier to convert calculations to a $1 basis. In reality, dairy farmers contribute 15 cents per hundredweight for dairy promotion.
Texas A&M also looked at the value of the Fluid Milk Processor campaign. That netted $3.73 for every $1 of investment.
“The national programs have effectively increased demand for promoted dairy products, especially cheese and butter, while moderating the decline in per capita fluid milk consumption,” concluded Texas A&M economists.