In a world increasingly driven by plant-based alternatives, the dairy industry finds itself at a pivotal moment. According to Barb O’Brien, president and CEO of Dairy Management Inc. (DMI), it’s an exciting time for dairy, as consumers circle back toward appreciating genuine nutritional value.
“This is dairy’s time to shine,” O’Brien says.
Food as Medicine
For years, the market experienced a surge in plant-based and alternative beverages; however, O’Brien points out a notable shift.
“I think the consumers have gotten smart. They want food that contributes to their health,” she says, underscoring checkoff-led research that reveals a renewed consumer interest in foods that offer authentic nutritional value.
American sales of dairy milk increased 2% overall in 2024 to $17.1 billion, according to research firm Circana. There was also an increase in the amount of whole milk being consumed and a decrease in plant-based dairy alternative consumption. Whole milk consumption rose 3.2% while non-dairy consumption fell 5.9%.
The concept of food as medicine is gaining traction, a sentiment shared by Paul Ziemnisky, leader for nutrition research, product science and innovation at DMI, at the 2025 Western Dairy Management Conference in Reno, Nev. O’Brien also supports this notion, highlighting the transformative nature of this perspective. She emphasizes that innovation starts at both ends of the spectrum, from farmers’ investments in science to the industry’s commitment to delivering health benefits.
“It starts with the farmers’ investment in science, which has been such a privilege,” she said, noting that the farmer-board oversees DMI and gives them the ability to invest in the now, but also in the next.
The Power of Farmers’ Voices
Under O’Brien’s leadership, DMI has intensified its focus on nutrition research, collaborating with esteemed partners such as the Mayo Clinic. Such partnerships enhance credibility and affirm the dairy industry’s commitment to health. O’Brien believes farmers are naturally the most credible voices in the industry, and their involvement is crucial.
“We need the voices of farmers because of the credibility and authenticity that they bring to the category,” O’Brien asserts.
Engaging farmers in consumer events has proven game-changing, adding authenticity to dairy’s narrative. Events such as Expo West have allowed farmers to directly interact with brands and consumers, effectively promoting the benefits of dairy products.
Sustainability: A Core Commitment
O’Brien addresses sustainability’s importance, both environmentally and economically. She believes that without economic sustainability, efforts to maintain the environment lack feasibility. She acknowledges that for dairy farmers, their dedication to animals, land, and natural resources is integral to providing nutrition worldwide.
“Dairy Farmers wake up every day to feed people, and their care of the animals, the lands and the natural resources is so fundamental to their ability to deliver nutrition to people that it’s innate,” she says.
Shared Responsibility for Growth
Looking ahead, with more than $8 billion in upcoming dairy processing, O’Brien recognizes the need for shared responsibility in driving demand for dairy domestically and internationally. Highlighting the challenges posed by the current tariff situation, she emphasizes the necessity for agility in navigating these waters.
“As we set growth goals for the next three years, it’s a shared responsibility,” she says. “I will say the current tariff situation does require a level of nimbleness.”
Industry Commitment and Future Outlook
To ensure continuous progression, O’Brien assures U.S. dairy farmers that DMI is closely observing the changes at the farm level and appreciates their investments in alternative revenue streams, such as on-farm processing, beef-on-dairy and the use of renewable energy. Plans are in place for DMI staff to visit more farms to better understand farmers’ needs and to enhance their understanding of checkoff investments and expectations.
With the combined voice of leadership, scientific research and the farmers themselves, dairy is not only poised for a comeback but is ready to redefine its place in the global market.
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