Checkoff-led Innovation Keeps Dairy in Lead Spot

Apple Inc. co-founder Steve Jobs once said, “Innovation distinguishes between a leader and a follower.” His words highlight a truth that’s more relevant than ever: to stay ahead, you must keep moving forward, especially when competitors are right behind you.

Dairy has long held a leadership position in American households – 96 percent make dairy purchases annually. But today, the dairy aisle is more competitive than ever, with alternatives and emerging food trends threatening our market share. That’s why checkoff-led innovation efforts remain a non-negotiable part of our strategy.

A defining example of dairy innovation is the whey protein story. Many farmers remember when whey was a waste product, often spread on fields or discarded with little thought to its potential. That changed in 1987, when dairy farmers, through their checkoff, helped create the Dairy Foods Research Centers network. These centers, featuring six core institutions and 24 affiliated universities, have more than 150 research and development experts specializing in areas like ingredients, product development, food safety and more.

Whey was known to be protein-rich, but it had a harsh flavor and limited use in manufacturing. Checkoff-funded scientists cracked the code on how to process and refine it, transforming whey into a high-value ingredient. Today, whey is a multi-billion-dollar business that increases milk’s value. This is a textbook example of how innovation fuels the checkoff’s core mission of driving sales and building trust.

School-based Pizza Innovation

Innovation also is alive and well through our partnerships with leading restaurant chains. One standout example is Smart Slice pizza developed with our longtime partner Domino’s. Pizza always has been a cafeteria favorite, but its nutritional value didn’t always meet USDA guidelines. Enter Smart Slice – a reformulated option using real lite mozzarella cheese and other improved ingredients that meets federal school nutrition standards.

Smart Slice has gone from 300 schools to 21,000 over the past 15 years. Last year, more than 59 million slices were served, and DMI and regional checkoff teams continue to support Domino’s as we work to expand the program.

Fluid milk is another focus of checkoff-led innovation that is important to farmers. Since 2015, the checkoff has spearheaded a revitalization strategy aimed at improving milk’s relevance in today’s marketplace. We’ve brought together processors, cooperatives, marketers, farmers and nutrition researchers to reimagine what fluid milk can be – from packaging and promotion to value-added options like higher protein, lower sugar and lactose-free options.

This work helped pave the way for successes, beginning with fairlife, which has grown into a billion-dollar brand. Researchers within the checkoff network had been exploring ultrafiltration as a way to offer milk with more protein and less sugar, without lactose. Fairlife brought that science to the shelf.

Similarly, DMI supported Darigold’s launch of FIT Milk in 2019. FIT features 14 grams of protein per serving, 40 percent less sugar than traditional milk, and an extended shelf life thanks to ultra-pasteurization. It hits the right notes for today’s health-conscious consumers.

Most recently, we collaborated with Dairy Farmers of America on Milk50, a breakthrough product offering just 50 calories and 75 percent less sugar per serving than fat-free skim milk, while still delivering 9 grams of protein. Our decade-long partnership with DFA reflects the checkoff’s sustained commitment to driving fluid milk innovation.

Bringing Innovation to Innovators

Beyond products, the checkoff is positioning dairy in new, often unexpected places, such as Natural Products Expo West, the country’s largest natural foods trade show. This event attracts over 65,000 attendees, from entrepreneurs and investors to retailers and food companies, all looking for the next big thing. For the past two years, DMI has had a presence at Expo West to showcase dairy’s versatility and to spark new ideas that can fuel future growth.

As national checkoff leaders finalize our Unified Plan for 2026-28, innovation will remain front and center. The future isn’t something we wait for – it’s something we build. And the checkoff’s innovation strategies are ensuring the U.S. dairy industry continues to lead, not follow.

Jobs was right. Innovation is the mark of a leader. For dairy, it’s our path to sustained relevance, resilience and growth and provides farmers hope for our future.