Economic viability is first and foremost<br />Dairy farmers have a long heritage of environmental stewardship<br />Dairy p...
Concerns about GHG-driven climate change are creating imminent risks to dairy consumption:<br />  Consumers areconcerned a...
Sustainability Summit<br />“System in the Room”<br /><ul><li>More than 250 Stakeholders from across the value chain
Informed by analysis
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Rick Naczi, Executive VP of Strategic Insights & Analysis, Innovation Center for U.S. Dairy

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Rick Naczi, Executive VP of Strategic Insights & Analysis, Innovation Center for U.S. Dairy presentation slides for the Sustainability Panel discussion at the Minnesota Agri-Growth Council Annual Meeting 2009.

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  • Part of our goal is to make sure that we define what sustainability means for our industry, rather than have it defined for us by others. For dairy, sustainability means “providing consumers with the nutritious dairy products they want in a way that makes the industry, people, and the earth economically, environmentally, and socially better – now and for future generations.”The economic dimension of this definition is first and foremost, because sustainability presents opportunities to increase business value across the dairy supply chain. And if something isn’t economically viable, then it isn’t sustainable. So this is fundamental to the initiative. The environmental dimension has to do with preserving our environment for generations to come. This isn’t new to dairy; in fact, we have a long history of environmental stewardship. This initiative is about doing more, but it’s also about telling our story to ensure we get credit for the work we have already done and are positioned well for the forces shaping the market. The social dimension of sustainability for dairy begins with our ability to provide nutrient-rich products that sustain and enrich life for consumers and communities.
  • Clearly the industry faces imminent threats to dairy consumption.As Clay discussed, there is growing concern among consumers, a segment of whom are demanding nutritious dairy products produced in an environmentally sustainable way. Some are asking: do cows cause global warming? Obviously this is not something we want consumers to think about when they think of dairy. Our competitors – and retailers – are already responding to this consumer demand. Some food service companies and dieticians are even touting a “low carbon diet” which minimizes or even eliminates dairy in favor of plant-based foods.Regulators, too, are signaling that they will work to achieve dramatic greenhouse gas reductions, and there is legitimate concern that they will do this through regulation. We’ve all seen the news about some people wanting to regulate agriculture – and animal agriculture in particular – around this issue. Demonstrating leadership around GHG is key to being at the table with credibility. A number of dairy businesses have already taken impressive first steps to address this issue. This initiative will build on that great work; it is not an issue that can be fully solved by individual companies or producers; it’s an industry-wide issue. We need to work together to accelerate innovation in the face of the current economic conditions, potential regulation, and consumer perceptions.
  • The Sustainability Summit represented the first time the dairy industry came together across the entire value chain. We used a process called “System in the Room” which leads to collaboration and broad thinking More than 250 participantsFarmers, businesses, retailers, processors, governmental and non-governmental organizations and industry associations were represented, covering all aspects of the dairy industry, from farm to consumer
  • Industry goals for greenhouse gas reductionThrough the process I described earlier, the Carbon Council worked together with the project teams to identify industry goals for greenhouse gas reduction at each step in the fluid milk value chain. In this chart, the lightly-shaded (grey) portion of each bar illustrates the GHG reduction targets that the Carbon Council views as “stretch” goals achievable by 2020. When you add up the reductions targeted for each area, these goals represent a 25% reduction in total greenhouse gas emissions. This is equal to taking 1.25 million passenger cars off the road every year!
  • Rick Naczi, Executive VP of Strategic Insights & Analysis, Innovation Center for U.S. Dairy

    1. 1. Economic viability is first and foremost<br />Dairy farmers have a long heritage of environmental stewardship<br />Dairy products contribute to health and well-being<br />0<br />Sustainability Means . . .<br />Providing consumers with the nutritious dairy products they want in a way that makes the industry, people and the earth economically, environmentally and socially better – <br />now and for future generations. <br />
    2. 2. Concerns about GHG-driven climate change are creating imminent risks to dairy consumption:<br /> Consumers areconcerned about their “carbon footprint”<br /> Competitors are positioning themselves as better environmental alternatives<br /> Retailers are measuring the GHG footprint of their supply chain<br /> Food services are touting “low carbon” diet<br />1<br />Risks and Opportunities of GHG<br />The Obama administration will likely act quickly to regulate GHG emissions and drive action on GHG reductions and renewable energy. <br />
    3. 3. Sustainability Summit<br />“System in the Room”<br /><ul><li>More than 250 Stakeholders from across the value chain
    4. 4. Informed by analysis
    5. 5. Developed quick wins, innovation projects, and game changers</li></ul>2<br />
    6. 6. 2020 GHG Reduction Goals<br />2020: 27%<br />Overall Goal: 25% CO2e reduction<br />Equal to taking 1.25 million passenger cars off the road every year<br />2020: 17%<br />2020: 25%<br />2020: 25%<br />2020: 30%<br />2020: 20%<br />
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