Episode 46 - From Momentum to More: Dairy’s 2025 Wins & 2026 Vision

What did dairy checkoff achieve in 2025—and where is the industry headed next? In this episode of Your Dairy Checkoff Podcast, dairy farmer and DMI Chair Marilyn Hershey sits down with DMI President and CEO Barb O’Brien to reflect on the past year and look ahead to the opportunities shaping dairy’s future.

From record-breaking exports and rising consumer demand for protein to cutting-edge science and new product innovation, O’Brien and Hershey reflect on 2025. Unpack how checkoff investments are driving growth, building trust and how dairy can help be a solution for health, sustainability and modern lifestyles.

Listen now to hear how your checkoff is building momentum and creating new opportunities for dairy.

Host & Guest: 

• Host: Marilyn Hershey, Pennsylvania dairy farmer and Chair of Dairy Management Inc.
• Guest: Barb O’Brien, President and CEO of Dairy Management Inc.

Transcript (AI-Generated, please ignore typos)

Your Dairy Checkoff Podcast 00:02

welcome to your dairy check off podcast from dairy Management, Inc, where dairy check off leaders and farmers share real stories, strategies and insights that grow sales and build trust for us dairy, let's get started.

Scott Wallin 00:20

Welcome to another edition of the your dairy check off podcast. I'm Scott Wallen with dairy management Incorporated, and today I'm going to step aside and allow two of our dairy check off leaders to lead the conversation. We've got Marilyn Hershey, who is a Pennsylvania dairy farmer and Chair of dairy management Incorporated, and Barb O'Brien, she is President and CEO of dairy Management, Inc, and together, they're going to look back at some of the wins of 2025 while discussing some of the strategies that are in place for the new year that are designed to grow sales and build trust of us dairy. I hope you enjoy the conversation. Well, welcome Barb, and we get to sit down and have a nice conversation. You know, we closed out 2025

Marilyn Hershey 01:04

so anytime close out a year, you think about,

Barbara O'Brien 01:09

reflect on that year. So when you look back, what are some of the accomplishments that you think about? I would say 2025 was a pretty pivotal year. You know, stepping way back from check off, even just thinking broadly about the dynamics in the industry, it's hard to believe, given where we are today, but think back a year and the fact that traditional signals, supply, demand signals were not really in play, right? We had an unprecedented shortfall in heifers. So, you know, some real limitation in bird size. It had an inevitable effect on pricing. You know, fast forward 12 six months, and then 12 months, and the dynamics changed a ton. So it's really within that context I think about our business. You know, the work we've been doing to drive short term sales,

Barbara O'Brien 02:05

I would say the most significant shift, I think we saw happen this year, was the shift in consumer behavior, the focus on good nutrition and dairies when they're

Barbara O'Brien 02:18

fixation with protein.

Barbara O'Brien 02:21

We are so well positioned, and I think that really

Barbara O'Brien 02:26

came through as we looked at the data in 2025

Barbara O'Brien 02:30

The other thing I'll point out is the continued importance of exports. You know, record high and we continue to see record high cheese sales in global markets, and that has been a gift. As you know, we continue to look at how domestic and global balance each other out. Well, it is an interesting too, with the volatility that we see with with our export market, and that they're still able to find those unique markets and make sure that that dairy is 

Barbara O'Brien 03:03

still leaving the borders as as we needed to, right? You know, I think that's part of the benefit of what we've seen us Dec do over the last couple of years, become much more intentional, and looking at a worldwide plan, we're not reliant on a single region. They've really diversified, prioritized, and are traveling tirelessly to go in and ensure the ground is laid for sales now, but also sales in the future. And it's that complement of domestic and international growth that we need both. We need certainly the US area to be thriving, we certainly need both care and you can't, you can't look one direction and ignore the other,

Marilyn Hershey 03:49

because we certainly need both. And have to make sure we're putting our eggs in all baskets, right? It's one of the reasons we've talked increasingly about as you look at the check off family, this incredible federation of states and regions. I mean, the strength and unique insight that that network brings. But then you look at us stack and some of the other affiliated organizations we're working with, it really is a comprehensive enterprise. You know, that was probably another turning point in 25 was by the end of this three year plan, 2324 25 The goal was to have the enterprise working together in lockstep, recognizing our respective roles. And I think, I think we've seen that improve quite a bit. You know,

Marilyn Hershey 04:35

we often check off. Talk about trust and and when we're in the boardroom, we talk about trust, and that trust with consumers, that trust with farmers,

Marilyn Hershey 04:46

tell me a little bit about how the check off investments that we had in 2025 helped to build that trust. You know, we stay true

Marilyn Hershey 04:56

to the fundamental of science. I mean.

Barbara O'Brien 05:00

It is truly our foundation, but it's, it's one piece of it, because science doesn't always sell, right? It's critical to credibility. But you need transparency, you need innovation, you need to meet consumers where they are. And I think it takes, takes each piece in play to ultimately connect with the consumer relevance, maybe, is the last piece in that, in that, in that lineup. So I think you've got, you've got staff who understand that and are expert in each piece along that chain. And we've got programs that have been designed very specifically to go from science to consumer marketplace in a way that's relevant. I'd also say Marilyn the use of third party voices, and that third party can be Mayo Clinic, a physician who's talking to other physicians, bringing that credibility, a chef, a teacher, a neighbor. You know, people want to talk to people like themselves, and they they trust that science has always been something that you have focused on. So when you look at,

Barbara O'Brien 06:16

when you look at the science, what is it that really excites you the most. You know it's it is the mechanism by which

Barbara O'Brien 06:28

dairy will diversify. And what the science team here, the National Dairy Council has done in their work with the universities across the country, is to imagine what else, and to explore dairy's role, not just in child health, which is well established, or not just in sport performance and growth,

Barbara O'Brien 06:51

but new areas. You know, last couple of years, we've really doubled down in not just the important role dairy plays in child's physical development, but increasingly in mental and cognitive development we've had based on that science. We in the states and regions and US deck. We took it. We took it global. Pursued a program called the first 1000 Days, unprecedented collaboration across the system we invested in bringing them messaging, to the consumer marketplace, to the health professional audiences, to really let people know

Barbara O'Brien 07:31

dairy's role in that in that first 1000 Days, from prenatal to to Age, to the role we play in in mental development, we have

Barbara O'Brien 07:46

components. I want to say there are 14 essential nutrients for cognitive development of a child's brain,

Barbara O'Brien 07:54

and we have maybe seven of those 14, including iodine. And

Barbara O'Brien 08:00

it's, really resonated with pediatricians, with pediatric caregivers, our states and regions have been amazing in terms of taking that messaging on the road and calling on physician offices. So we're laying ground, and for me by being so essential in that first phase in life. Dairy can play across the lifespan from there, it's so exciting, and that's necessary. It doesn't matter where you live. And you know, you mentioned us, deck, taking taking it on the road. And I, I can personally attest to that, sitting in a in a meeting with another country. And you you know, we mentioned the first 1000 Days project that we have and and the science behind that, and everybody was always, we'd like more information on that. That's something our our consumers need in this country. So, you know, very important for us, absolutely. So when you look ahead at 26

Marilyn Hershey 09:01

what excites? What? What is so exciting to you?

Barbara O'Brien 09:05

Oh, you know, I feel like the ground's been laid, and it really was, as a result of both the 2020 to 2022

Barbara O'Brien 09:14

and the 23 to 25 plans that, again, all laid ground for where we are today. So let's get in market. Let's get dairy in front of the right decision makers, whether that's health or or environmental or end consumer. 

Barbara O'Brien 09:38

I think we're, we are primed to answer that call food is medicine, right? You got a big deal, you got it, and the science continues to support that. You know, I had a meeting with Eve.

Barbara O'Brien 10:00

Call it from staff who's been responsible for that milk molecule work high potential molecules that have strong science behind them that can help us build out the next 10 year pipeline. Right? We've been working against a current pipeline

Barbara O'Brien 10:17

this, this one will lay ground for years to come in terms of innovation, new claims, new benefits to people. Again, you talk about food as medicine,

Barbara O'Brien 10:26

it's It's the magic of those molecules combined with the fat that that really deliver for consumers. So that's awesome, yeah. So just for those who aren't familiar with milk molecule, what? What are you referring to? So that is an amazing, what I would call discovery project. We worked through a university, and

Barbara O'Brien 10:50

it started with a deep analysis of the composition of fluid milk samples from across the country were collected and analyzed, understanding, certainly the macro and micronutrient composition. But what else? What else is within this product that that makes it as

Barbara O'Brien 11:14

critically important a nutrition source as it is that study revealed over 6000 molecules, previously unknown molecules at work was then married up with

Barbara O'Brien 11:30

artificial intelligence, other learning capabilities, married with nutrition science to understand sort of the state of The science on each of those molecules and where opportunities may be for contributing to people's health. It's now been prioritized. It's been

Barbara O'Brien 11:51

embedded in a workable database that now farmers and farmer owned entities have access to to to begin to explore what's possible for new product development, for new claims, opportunities for new messaging. And in my mind, it reinforces our ability to talk about just the magic of our whole products, milk, cheese, yogurt, but also begin to explore how we extract those molecules, concentrate them and play. You know, we've talked about this. Food is medicine movement. I think this gives us the ability to customize, personalize and play in that space that's incredible. 

Marilyn Hershey 12:32

A little bit further than the, you know, was nine essential vitamins, exactly, you know, and isn't it? Here's this,

Barbara O'Brien 12:45

you know, hundreds and hundreds, 1000s of year old product that has been consumed by people for health and other reasons, and we just keep discovering more value, more value, and the interaction between those components and compounds is really what makes dairy different. I think it played out in the dietary islands. Oh, wow. What other strategies or priorities or focus areas do we have a DMI now is our time to go back and recapture space at retail. So there's a really important conversation happening here at DMI with the states and regions with milk pep to go get space back on shelf. And it's actually not just in the dairy case, but it's across the store. I remember this goes back early in my career here hearing a figure that Coca Cola and the soda industries

Barbara O'Brien 13:42

prided themselves on having 26 touch points in the store

Barbara O'Brien 13:48

that in my that should be our vision. We should be able to identify dairy in the snacking aisle, in cereal, in the ambient beverage aisle, in the supplement aisle, right, all of that is made possible by a consumer who wants it science that supports sort of the diversification of our of our category and claims, and an industry who's got $12 billion in new infrastructure and are looking for what's next. They too, want to, want to grow the category. So I'm excited about some work we're going to do at retail, continued work at Food Service, some new partners. We're going to work hand in glove with the states and regions, and be far more, I would say, category assertive. So think coffee right? Instead of a single partner, we're going to diversify our coffee partners across the country and just drive innovation and growth through that segment. 

Barbara O'Brien 15:00

What are some other areas that consumers, you know? How are we staying relevant with a very unique consumer that it was 10 years ago. Yeah. I mean, I think absolutely it's protein. And, you know, again, I take pride in what your science investment has accomplished. We've been working on this protein proposition for a decade, for a long time, readying, readying the science and or the industry to be ready to pounce on that opportunity. You know, fiber is not natural to our product, but it is absolutely a close second in terms of what consumers are looking for. So I know manufacturers in the sector are looking at how to bring that, how to bring that forward, um, you know, fat is the other component that we all have our eyes on. You know, as you and I have talked about fat and protein move together, and we do have a lot of fat that we need to clear. And so between us, deck, looking at looking at exports and our domestic markets, higher fat items. At food service. Consumers want it. They want the mouth feel. But the retail numbers show that consumers have already made that switch. When you look at whole milk being 48 to 50% of the fluid category,

Barbara O'Brien 17:14

they're spending their dollars on on taste right? So that's the other area that you know we'll be pursuing. 

Marilyn Hershey 17:21

So when you think about a year from now, where would you where do you hope we are? Where do you want us to be in a year from now? Oh, you know, it's, I think, given production, what we've seen in terms of production growth, the goal is always to keep demand ahead of production. And I we've had some softness,

Barbara O'Brien 17:42

we've got some consumer caution. The numbers definitely, the retail numbers definitely show that, you know, they're not spending dollars out of the home and when they are spending dollars for home meetings,

Barbara O'Brien 17:59

maybe a little bit of a decline there in terms of their willingness to spend too much, cutting back a little bit portion size. Part of that is GLP one as well, right? It's growing number of people in the marketplace are on those diet drugs.

Barbara O'Brien 18:17

So it's it's ensuring that we're putting the right products in the marketplace that in the right size and form that consumers are ready to buy and spend their their precious dollars on. It's looking at attracting talent to the category,

Barbara O'Brien 18:34

yes, on the food science and R and D side. But even beyond that, how do we how do we make dairy across all aspects of the business, an attractive career for people who are in it today, but people who choose to join the industry in the future? So got a lot, got a lot going on, but the bottom line, in my mind, is it's all about being a growth category, a modern, attractive dairy industry that starts with farmers, and hopefully the rest of us bring that to life through the rest of the chain. You know, you mentioned supply, demand, you mentioned keeping pace. And you know, my mind goes to the boom in processing that we've had. So I know maybe, maybe give us a top line of some of that

Barbara O'Brien 19:29

that we're anticipating in the next year or so. It is astounding, and it's not going to stop here. I mean, that's the bottom line. I feel like when we first started talking about the processing boom, I think the calculation was at about $7 billion of investment. We are now talking 11, $12 billion in investment.

Barbara O'Brien 19:51

And frankly, if you look at the map, it's across the entire country. It is across all dairy sectors. So.

Barbara O'Brien 19:59

So this is where we're about to go into our third year of check off outreach again. This is where the B to B, the business to business model of our business, has us knocking on doors, sharing the science

Barbara O'Brien 20:16

developing tools and resources that processors of all sectors, all sizes, from vertically integrated farm to, you know, large scale proprietaries. It's not all traditional, right? It's not, you know, it's not all going in a gallon jug. It's it's ingredients, it's new products that that our science team have helped to develop. So absolutely, very exciting to see some and startups. Yeah, there's a lot of opportunity to invest in dairy and a lot of startup opportunities. You know, one of the things on the R and D front we've been talking about is,

Barbara O'Brien 20:53

is there the infrastructure, like pilot plant infrastructure, to support new companies coming into the business? How do we make sure that as an industry, we're prepared to support the growth that we know we can fulfill through these $12 billion and more? 

Marilyn Hershey 21:09

You know you often will talk about farmers fingerprints, and I often hear that phrase, whether you're presenting at at a meeting or even in the boardroom. What do you mean by farmers fingerprints? 

Barbara O'Brien 21:24

You know, Marilyn, this goes back to when I was asked to step into this role, and my commitment to you personally and to the board fully,

Barbara O'Brien 21:38

to listen.

Barbara O'Brien 21:40

You know, communication is a really important skill, and listening, in my mind, is the number one. And so, you know, it was 100 days on the road, meeting with farmers, understanding what's on their mind, their perceptions of check off, taking it all in, and working with the staff here, nationally and locally, to ensure we were listening that we had a plan that reflected that input. Fast forward a number of years, and that priority remains. It's about hearing from farmers, and increasingly farmers and you and I've talked about this, farmers who are not on our boards, investors who are not on our boards. That's how I think about it, learning the business through their eyes, understanding their current perceptions and where, where they may have misinformation, and again, coming back and reflecting that input. It might not be exactly but it's in in its entirety, to ensure we've got a plan that farmers feel they own, they understand, if they don't see transparency or understand a certain aspect of it, there is not a farmer in this country who shouldn't feel like they can pick up the phone and call me or you or somebody to get an answer to their question. So that's what fingerprints are to me. 

Marilyn Hershey 22:56

Very good. Love that. Love that. And I would, I would say, you've done that so well in the past years and and each year, I think your your Rolodex of farmers

Marilyn Hershey 23:10

just continues to grow. You you visit farms in nearly every every time you're going to a meeting, you're visiting a farm somewhere. 

Barbara O'Brien 23:16

Well, that's the plan any market I go into for a presentation or a conference or a co op, meeting, whatever it may be. I want to, I want to visit with farmers. 

Marilyn Hershey 23:25

Did you ever see yourself from city girl in suburban Chicago? Or, guess not city girl, but Suburban Girl? Yeah, hitting the farms. 

Barbara O'Brien 23:36

You know, you and I have talked about this, right? I mean, I was far from it. Agency background. Worked in pharmaceutical and health and wellness.

Barbara O'Brien 23:47

I didn't imagine it, but what a privilege it is to work for farmers. Again, I'll go back to what I said at the beginning. There is there is a authenticity to that ownership relationship that is unlike anything I've experienced, and just

Barbara O'Brien 24:07

investment the purpose, purposeful nature with which you all wake up every day, it is inspiring. I think it keeps me and many others wanting to work in this segment. So I never imagined it. Thank you. It will appreciate it. Well, thank you. 

Marilyn Hershey 24:24

So send you in another direction. Okay, what's your favorite part of the job of what you do? 

Barbara O'Brien 24:31

Hmm, you know it is. It

Barbara O'Brien 24:38

starts with the people, I would say, farmers first. And you know, we talk about, I talk about the diversity of our farmer foundation. Here, every farmer I have met is

Barbara O'Brien 24:54

a new experience. Is an

Barbara O'Brien 24:57

a nuanced perspective. Um.

Barbara O'Brien 25:00

Um, is a nuanced operation, size, scale, geography, technology,

Barbara O'Brien 25:07

and that, to me, is fascinating, but I can, I can say it about my colleagues here at DMI and across the country, in check off, what a privilege to work with all of them and the experiences each of them bring to the category? And I would then say, given my commitment to work with and through the chain,

Barbara O'Brien 25:27

the innovation center, working with leaders across this industry, amazing. Yes, just the commitment, the purpose,

Barbara O'Brien 25:37

the shared vision of potential for us. Dairy. So it starts with the people, and then I would just say it's working for a product that I believe in so deeply. Yeah, I see it in my own family. There's something about that how tangible dairy is and how real it is in our lives. When I started working for check off 20 years ago, my kids were little, they were in school, and they'd come home and talk about school milk. So I mean, there just was, like a practical nature to this work that, again, has made it just so fulfilling. And I think our opportunities are endless, right? This portfolio will continue to expand and grow and fill people's lives. Yeah, that's my favorite part. Well, it's good. Yeah, it's awesome. 

Barbara O'Brien 26:28

Why don't you reflect a little bit? I mean, anything on 25/26and what are you most proud of? 

Marilyn Hershey 26:35

You know, it's a team. It really is a team, and we have an incredible team

Marilyn Hershey 26:43

of farmers that are working. I love the fact that the board is engaged.

Marilyn Hershey 26:51

I don't feel like, you know, often near the term rubber stamping. I don't feel like our board. Board does that. They want to know the ins and outs of what we're talking about. They asked the the 

Marilyn Hershey 27:05

tough questions and and I like that. I think that's good.

Marilyn Hershey 27:12

Personally, I've been getting more involved in international work, and I think 26 will be exciting. I'm looking forward to that,

Marilyn Hershey 27:23

having having the first pharmacy on the international dairy Federation from the US, it's exciting for me, amazing.

Barbara O'Brien 27:33

But I also feel like it's a big role. It's a big responsibility, and how can I best carry the US voice in that area. You know, we've talked about, though, you've got to show up. You've got to be a part of the conversation. And I don't think you know, although we are a global industry, and there's so much commonality across the world when you look at Dairy, but there are also some really important distinctions in US dairy that we need to make sure the US shows up. So thank you. Know, I know it's it's a lot of travel, it's a lot of long days and nights, but thank you for doing what you do well. We have to define ourselves, right? And I think every country deserves that right. It's not just just the US that should define themselves. Every country should be able to define themselves and what they need in their dairy industry. So,

Barbara O'Brien 28:27

you know, it's about making sure that we all have that opportunity. But you're right if I if, if we don't show up as a US dairy industry, someone else will tell our story absolutely well. And then you expand that to the broader food system discussion, and that really is, you know, I was thinking about your export work, your international work, and how that is. That's goal number three in this year's plan is, is our positioning as a category within the broader food system discussion, and farmers voices are so important to sort of setting the record straight and ensuring the dairy stays central to it.

Marilyn Hershey 29:08

Thank you

Marilyn Hershey 29:11

for good team. We're good team.

Your Dairy Checkoff Podcast 29:19

Thanks for listening to your dairy check off podcast. Want to hear more about how your checkoff is making every drop count, head over to dairy checkoff.com or follow us wherever you get your podcast. See you next time you.