Dairy Processing - April 2021 - 66

ASSOCIATION INSIGHTS

Room for

Change
IDFA leadership sees key areas for improvement in the industry.
by Michael Dykes | The International Dairy Foods Association

S

top defending, start questioning. " I immediately wrote
down those words when Peter Diamandis, a leading
innovator, spoke them at the International Dairy Foods
Association Dairy Forum 2021. To me, this is the essence of
leadership: Resisting the tendency to stick to what's familiar
or comfortable, and instead, asking yourself how it can be
done better.
The advice to stop defending and start questioning is
more pertinent than ever. As US dairy reflects on the effects
of COVID-19 and embarks on a path toward recovery, we
must also address how the pandemic exposed areas for
improvement in our industry.
There's no way anyone could have predicted what 2020
had in store. We learned some things the hard way. But the
key is that we learned. The challenge and opportunity now:
Apply these lessons so we emerge smarter, with more strength
and more success.
I anticipate (and welcome) the biggest changes occurring
in four areas:
1.	 Supply chain. While it's true that US dairy closed 2020
on a strong note, we took a big hit earlier in the year
when COVID-19 lockdowns took hold. Retail demand
surged, with milk sales increasing more than 50% during
one week in March. At the same time, restaurant business
plunged. The dairy supply chain was not equipped to
66 APR 2021 | DAIRYPROCESSING.COM

adjust to the sudden shift, forcing producers to dump
millions of pounds of milk. Looking ahead, dairy supply
chains will transition away from a just-in-time model to
become more flexible and therefore, more dependable.
And we may see additional consolidation as players
seek combinations that provide more balance between
customer channels.
2.	 Trade. Accessing global markets became even more
important for US dairy in 2020 as domestic demand
faced challenges. Even before the pandemic, structural
changes to global trade were high on US dairy's list of
priorities. In the last 20 years, global trade has gone
from near zero to accounting for more than 15% of our
milk supply. Plus, 95% of potential dairy customers
live outside the United States. This is an enormous
opportunity for US dairy to make investments that
enhance the way we produce, process, and sell
dairy products today. I look forward to getting more
aggressive in global trade and establishing US dairy as
a major player in the space, which should lead to new,
positive negotiations and growth in years to come.
3.	 Technology. In 2020, US dairy adopted and benefited
from technology at a rate we never thought possible,
and I firmly believe we will continue to see our



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Dairy Processing - April 2021

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