PART I THE 100% CANADIAN LOGO PART II GENERIC vs BRANDED ADVERTISING PART III NATIONAL POOLING … IS IT ACHIEVABLE?

1. PRESENTATION TO THE ONTARIO DAIRY COUNCILANNUAL CONVENTION JUNE 6, 2011COLLINGWOOD, ONTARIOBY PETER GOULD GENERAL MANAGER AND CEODAIRY FARMERS OF ONTARIO

2. PART I THE 100% CANADIAN LOGO PART II GENERIC vs BRANDED ADVERTISING PART III NATIONAL POOLING … IS IT ACHIEVABLE?

3. PART I - THE 100% CANADIAN LOGO- was and remains a great idea- so, what went wrong? • The logo cannot be used on products that use imported ingredients. • Those ingredients have not been produced in Canada at a competitive price and may not be for another year or two. • Processors don’t want to put the logo on some of their products, but not others. • The rules are not transparent. • There have been instances when the rules have been applied in an arbitrary manner. • There is no mechanism to address and resolve problems.

4. ONE SOLUTION • make it an industry logo • have transparent rules subject to 3rd party audit “Let’s identify the issue and resolve the problem … not perpetuate them.”

5. PART II – GENERIC vs BRANDED ADVERTISING • producers spend more than $100,000,000 annually on generic activities • what things does it make sense to promote generically? • is there a rational approach … an industry agreement on what is done generically and what is branded? • are there models in other countries that the Canadian dairy industry could/should look at? “While it’s easy to identify the need for change, the hard part is getting people to agree to change.”

6. PART III – NATIONAL POOLING … IS IT ACHIEVABLE? What Does it Mean? - pooling means different things to different people → revenue, quota, transportation - throughout, the processors and producers have to be kept “whole”

7. WHY DO IT? • there has to be a compelling reason • increased market access (WTO) or a tariff wall breach • broad-based decision-making requiring consensus • can we make decisions over the next 25 years the same as we have for the last 25 years? • we … dairy industry stakeholders “need to think about and solve Canadian Dairy Industry Problems” • can we effectively deal with today’s issues?

8. WHY DO IT? (cont’d…) • right now we have a national, annual quota administered by 10 provinces • what would be wrong with delivering “the right amount of milk to the right plant at the right time!” • over 20 years ago, Ontario (ODC and DFO) agreed to treat companies corporately … no one else does. → it should be done nationally • there are benefits to rationalization but they pale in comparison to the decisions that are delayed AND those that NEVER get made

9. WHY DO IT? (cont’d…) • are processors any different? … do you need an Atlantic, Quebec, Ontario, Manitoba, Saskatchewan(?), Alberta and BC Dairy Council(s) + DPAC? • governance is key … it is possible “Them pigs ain’t going to slaughter themselves”