Milling & Baking News - November 21, 2017 - 23

Industry Activities

segments of the industry subject to assessments.
The board will be responsible for
strategic plan development, allocation of funds and approval of business
plans and programs.
The U.S.D.A.'s oversight role includes ensuring a checkoff's fiscal
responsibility, program effectiveness,
fair treatment of stakeholders, and
auditing nutritional claims in promotional materials and messages.
Ms. Cochran currently is visiting
members of the industry to discuss
issues related to the establishment of
a checkoff program. She recently addressed the board of directors of the
North American Millers' Association
about the subject.
Looking ahead, the steering committee will be focused on answering
questions in three categories: money,
market size and governance.
"The industry wants to know what
annual assessments will be," she said.
"How many promotion dollars we
need, the products to be assessed,
and what level of products. We are

working to develop a return-on-investment model based on category
research and are exploring what products may be exempt, how imports and
exports will be treated for assessment
purposes."
Mr. Nagle said return-on-investment
measures for checkoff
programs have been developed, refined, deeply
studied and validated
by agricultural economists over many years. Nagle
Built based on complex econometric models, the measurements are very different from
analysis of impressions, attitudes and
favorability measures associated with
public relations programs (which, he
said, is important analysis as well), he
said.
Instead, using baseline analysis of
trends in play before the checkoff was
adopted, the return-on-investment
measurements look at changes in the
consumption rates for people exposed
to a campaign/program versus those

who were not. Also measured is the
extent intermediaries, such as retailers or food service customers, adopt
or amplify program strategies or
messages or tools with their own dollars, Mr. Nagle said. The intent is to
measure the impact of actions across
the entire value chain.
Results are validated in numerous
ways, including against the experience of the industry as a whole as well
as the results of individual companies,
he added.
Governance issues cited by Ms. Cochran include board representation,
the nomination process and referendum voting and timing requirements.
What would a checkoff program
look like if developed and approved?
Given the early stage of exploration
at present, that question isn't easy to
answer clearly, Ms. Cochran said. The
current focus is exploring whether
a program that would impact sales
is feasible. Still, the range of activities under a checkoff program likely
would be considerable.
"I would expect we would see

Leading industry executives enthused
about checkoff prospects
KANSAS CITY - What are the thoughts of leading grainbased foods executives about plans to explore a checkoff
program? Given current consumption trends and the high
expense of effective product promotion, a checkoff program may be the best option, perhaps even the only option.
Even as they expressed concern about the possible cost of
such a program and commitment to a process that thoroughly explores its feasibility, the executives all voiced excitement about the potential impact of a grain-based foods
checkoff program.
Dan Dye, chief executive officer,
Ardent Mills, Denver

he gap between the quality of flour-based foods and the
public perception of the products makes Mr. Dye believe
a greater investment in product promotion would pay

off.
"Our core products are affordable, a great
source of health and nutrition, and an important part of a balanced diet," he said. "They
are a staple, and people like our products.
So, how do we do a better job telling that
story?"
While the success of other checkoff programs doesn't guarantee the same results
for milling and baking, Mr. Dye said it is

bakingbusiness.com / world-grain.com

Dye

difficult not to be impressed by the current public perception
of eggs given how poorly they were viewed through much of
the late 20th century.
"Today, there is an egg on almost every dish you can order
at a restaurant, at least as an option," Mr. Dye said. "Pork,
especially bacon, also have had impressive turnarounds."
A thoughtful approach will be crucial if a checkoff program
is to succeed over time, Mr. Dye said.
"Money doesn't solve every problem," he said. "You'll have
to figure out how you'll use the resources.
"Checkoff is a way for flour millers and bakers to collectively participate as an industry - demonstrating
that we're all working together. I think there's real value in that approach. It requires everyone to step back
from their own company lens and look with one vision toward the future and for the industry to look as a
whole. We collectively will be part of building this for the
next generation.
"I think about whether there is a way we can leave a legacy
to the next generation. To be able to say, 'We made a difference. We had an impact. We pulled together resources in
a way to change the story, change the thinking, change the
momentum to help our industry prosper.' And it's not just for
our businesses, but to provide great food, health and nutrition
for consumers."
While committed to moving thoughtfully through the feasibility study, Mr. Dye finds the status quo unappealing.
"If you don't do anything, you aren't going to change

Milling & Baking News

November 21, 2017 / 23

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - November 21, 2017

Table of Contents for the Digital Edition of Milling & Baking News - November 21, 2017