Dairy lenders and financial consultants got an “insider’s view” of ongoing efforts to strengthen Pennsylvania’s dairy processing infrastructure and overall dairy economy during the Dairy Financial and Risk Management Conference on Sept. 12 in Summerdale, Pennsylvania.

The ninth annual conference, hosted by Pennsylvania’s Center for Dairy Excellence (CDE), featured a panel discussion addressing the challenges facing the state’s dairy industry and how resources are being used to address them.

“Pennsylvania is a great place to do business, and it’s time for others to join in on this opportunity,” said Laura England, director of the Bureau of Market Development within the Pennsylvania Department of Agriculture (PDA).

England was joined on the panel by Jared Grissinger, project manager with the Pennsylvania Department of Community and Economic Development Governor’s Action Team, and Kelly Kundratic, manager of agriculture policy and programs with Team PA, a nonpartisan, nonprofit group established to connect private and public sector leaders.

Efforts on several fronts

England provided updates on efforts to encourage industry support for dairy growth and competitiveness, a newly launched regional milk campaign, efforts to work with international and domestic dairy marketers, and efforts to increase availability of dairy products for food bank programs.

England also touched on PDA’s efforts to encourage availability of fuller-fat milk in schools. Last year, USDA Secretary Sonny Perdue announced that 1 percent flavored milk would be allowed under the National School Lunch Program. In Pennsylvania, more than 300 schools added that option to their menu after the announcement, which resulted in increased sales during the 2017-18 school year.

In addition, U.S. Rep. Tom Marino from Pennsylvania introduced the Whole Milk Act (HR 5640), which would amend the National School Lunch Act to allow schools that participate in the National School Lunch Program to serve unflavored whole milk. Introduced last April, the bill remains in the House Committee on Education and Workforce.

‘Choose PA Dairy’ campaign

A new regional milk campaign funded by the department and private organizations, including CDE, PDA and the American Dairy Association North East, was introduced in the spring.

“With the current dairy situation creating a lot of buzz in the media, we were getting a lot of people asking how they can help the dairy farmer. Our answer: Choose PA Dairy,” England said. “We started a campaign with billboards, social media and other outreach to encourage people to ‘Choose PA Dairy. It’s goodness that matters.’”

Plan addresses dairy study recommendations

The panelists described the state’s efforts to carry out actions suggested in the 2017 Pennsylvania Dairy Study, commissioned by CDE and PDA. This study, completed by dairy economists Chuck Nicholson and Andrew Novakovic of Cornell University and Mark Stephenson of the University of Wisconsin – Madison, identified a series of key recommendations for the state’s dairy industry.

To tackle those opportunities with stakeholders, the PDA, CDE, Governor’s Action Team and Team PA unveiled the Dairy Development Plan this summer. The plan includes immediate and long-term strategies designed to expand public-private partnerships. The panel outlined the plan’s goal to capitalize on marketing, expand infrastructure, improve processes, broaden development and continue investments.

“We’re keeping the conversation of infrastructure going within the departments,” said Grissinger. “There’s high economic impact out there, and we need to bring the right investments to Pennsylvania to take advantage of those opportunities.”

Grissinger outlined the Governor’s Action Team’s collaboration with dairy companies to facilitate investment and expansion in Pennsylvania. As businesses look to expand and relocate, he noted that pre-existing processing properties are their first option, followed by planning and building new infrastructure. The Governor’s Action Team works with companies to identity, inform, engage and assemble the right people for the right economy.

“We’re taking lessons from other states before we make progress with a particular company,” Grissinger said. “But before these companies make their trek to Pennsylvania, we have to ask ourselves – what is the market?”

Involving organizations

In her role, Kundratic seeks to engage other agricultural stakeholders as partners in Pennsylvania’s dairy development. To deepen engagement from the private sector and create collaboration, she works with the agriculture advisory board and other partners to support a 10-year strategic plan for the future of agriculture. 

“We all have a stake in this game,” England said. “I challenge your organization to be involved.”  

Myrannda Kleckner is communications and marketing manager for Pennsylvania’s Center for Dairy Excellence.

Pennsylvania’s Dairy Development Plan

Immediate-term strategies identified in Pennsylvania’s Dairy Development Plan include: 

• Better utilize existing funding to support research and development of new dairy products and packaging to meet changing consumer preferences and demands. Research funding should likewise study consumer demands and buying habits in the marketplace. A new $5 million grant program encourages research and development for value-added processing, organic transition assistance and marketing and promotion of Pennsylvania dairy. 

• Identify and pursue dairy processing economic development projects and better utilize existing funding to attract new dairy processing projects to the state. The PA First Fund has up to $15 million that has been appropriated to provide incentives for dairy processors looking to locate or expand operations in Pennsylvania.

• Better utilize existing funding to help existing producers upgrade their dairy equipment and facilities, and to invest in on-farm processing capacity.

• Better utilize existing funding to help processors invest in new processing and packaging equipment. More than $2 million is appropriated to prioritize research and development work in the dairy products industry and other areas. 

• Better utilize existing funding to promote the sale, consumption and health benefits of fluid milk and dairy products produced in Pennsylvania.

• Further streamline and expedite the state’s regulatory processes to facilitate dairy economic development projects.

• Engage policymakers on the creation of a “School Milk Choice” initiative to encourage schools to offer low-fat flavored milk and other varieties in anticipation of changes in federal education and nutrition policy.

• Consider the development of “Dairy Development Zones” throughout the state to entice additional investments and economic growth.