CALIFORNIA MILK ADVISORY BOARD
Board of Directors Meeting
December 10 – December 11, 2025
CALIFORNIA MILK ADVISORY BOARD 2156 W Grant Line Road, Suite 100 Tracy, California 95377 (209) 883-6455 RealCaliforniaMilk.com BOARD MEETING AGENDA Wednesday, December 10, 2025 at 7:30 am and Thursday, December 11, 2025 at 8:00 am
Culinary Institute of America at Copia 500 1st Street
Napa, CA 94559 (707) 967-2500
All matters noticed on this agenda may be considered for action. Items listed on the agenda may be considered in any order at the discretion of the Board Chair. Any item not so noticed will not be considered or discussed. All meeting agendas and notices are available on the California Department of Food and Agricultural website at: https://www.cdfa.ca.gov/mkt/mkt/. (select meeting notices) Each of the agenda items below will include discussion and possible action by the Board. Time will be allowed for members of the public to make comments on each agenda item. Comment time may be limited based on the number of agenda items and/or number of commenters.
1. Call to Order – Chairman Noel Rosa
2. Roll Call – Secretary Corey Scheenstra
3. Introduction of Guests – Chairman Noel Rosa
4. Financial Report – Treasurer Tony Louters
5. Individual District Reports
6. Marketing Branch Report
7. Filling of Board Vacancies
8. Report from Chairman – Noel Rosa
9. Report from Chief Executive Officer – Bob Carroll
10. 2025 Program Review and 2026 Tactical Plan/Budget a. Project Protein b. Advertising c. Communications d. Producer Relations e. Breakout/Round Robin f. Breakout report-back to full Board g. Processor Partnerships h. CDIC i. U.S. Business Development j. International Business Development k. Dairy Council background and recommendation
11. California Dairy Research Foundation 2026 Program and Budget Review
12. First Reading of Proposed 2026 Budget
13. Guest speaker – Fred Schonenberg, Founder, VentureFuel
14. Committee/Industry Meetings Update
15. National Dairy Board Update
16. Consideration of Administrative and Procedural Policy for 2026
17. Consideration of Operations Resolutions for 2026
18. Ratification of Assessment Rate for 2026
19. Second Reading and Adoption of 2026 Budget
20. Minutes of Last Board and Executive Committee Meetings
21. Other Business a. Items to be discussed at next board meeting
22. Public comment on non-agenda items
23. Closed Session Pursuant to Government Code section 11126, the Board is authorized to meet in Closed Session for the purpose of considering matters involving: a. Personnel Matters – Employee Performance Evaluation [Government Code 11126(a)(1)] b. Personnel Matters – CEO Performance Evaluation/Employment Agreement [Government Code 11126(a)(1)]
24. Reconvene Open Session
25. Adjournment
Americans With Disabilities Act Persons with disabilities needing special accommodation or modification in order to attend or participate in any Board or Committee meeting or other Board activity may request assistance by contacting Bob Carroll, C.E.O., California Milk Advisory Board at 209-883-6455.
B AGLEY -K EENE O PEN M EETING A CT S ECTIONS 11120 THROUGH 11132 OF THE C ALIFORNIA G OVERNMENT C ODE Objective of the Act Wi t ihme pn ot sheedLae g“ vi sal laut eu rj ue degnma cetne td” tohne tBhaeggl eoyv-eKr enemneenOt aplepnr Mo ceeestsi .n gI nAecftf e( cAtc, t ) , tchoen sLeengsi sulsa, ttuhreer seani de et dh sa tt owbhee na as eSatta at et tbhoed tya sbiltes rdeoswe rnv et od df oe rv et hl oeppiut sb l i c . Bp uy br lei cs ewr vi tihn gt ht eh iasbpi ll iat cyet of omr tohnei tpour bal ni cd, tphaer tLi ec gi pi saltaet ui nr et hper odveicdi se ido nt h- me a k i n g pr or loec iens st .h eI f dt he cei sSitoant e- mb oa kdiyn wg pe rr eo cpeesrsmwi tot ue dl d t bo emneeegtaitne ds e. cTrhe et ,rtehf oe rpeu, b l i c ’ s as hb os eunl dt ab es pael lcoi wf i ce dr etaos omnotnoi tkoereapntdh pe aprut ibcliipc aot ue ti no ft ht heedme ceies ti oi nng-,mt haek ipnugb l i c process. If one accepts the philosophy behind the reservation of a seat at the tbaebcloemf oermt huec hp uebalsiice, rmt oa nayc coef pt th ae npda rutni cduelrasrt ar un lde. s t h a t e x i s t i n t h e A c t Simply put, some efficiency is sacrificed for the benefit of greater public participation in government. What is a State Body? Am Su tl taitme ebmo dbye ri sbeovdeyr yt hSatta itse cbroeaart de d, cboyu ns tcai lt,uctoemo mr bi sysei oxne court isvi me oi lradr e r , icnocnlsuidsitnsgofcothmrmeeitotreemsoarpepmoienmtebdebrsy)a. State body (if the committee WMeheattinCgo?nstitutes a A( nmo tepe et irnmg i ot tcecdu)r os rwt ho eg ne tah emr ai jno roint ye op fl aac be o, tdoy acdodnrveesns ei ss s, ue iet sh eu rn sdeerri at hl l ey bp or edsye’ sn tj iunrgi sidnifcot ri omna. t Ti ohni st oi nac lbuoddeys. mE ev ee tni ni fg ns os oalcetl iyo nf osr ot rh de epcui sr ipoonsse aorfe ct hoen tbeomd py ’l sa tj eudr i, sadgi cattihoenr ii sn gc oonf sai dme ar ej odr iat ymoefeat i bn og duyn tdoe dr itshceu As sc ti s. s u e s u n d e r WMeheattinagres?Serial Sc oe mr i aml umnei ec taitnegs sboyc tceul re pwhhoenne ao mr eemmabi el ri nodri vs ti da fuf aol lf ya wS ti taht ea bsoudf fyi c i e n t ni sus mu ebsetro ocf oomt heebr emf oerme bt he er sbtoodcyo. nSsut icthu tsee rai aqlucoormu mm ui nn iocradt ieorntso adries c u s s prohibited by the Act. Social Gatherings Sb oy ctihael gAactthseor ilnognsg oafsaoSf ftiactiea lbboudsyi naer sesnios tncootndsiisdceursesde dm. e e t i n g s c o v e r e d VT ei dl eecoocno fnefreerne cnec e a n d Meetings (Sections 58853 and 63906 of the FAC provide an exemption to Section 11123 of the Act) Videoconference and teleconference meetings are permitted provided that information necessary to access the videoconference or teleconference remotely and a primary physical location are included on the meeting notice, the location is accessible to the public, and at least one member of the body is present at the location. Members planning to participate remotely must notify the office of the body at least 24 hours in advance. The meeting minutes must reflect those members participating remotely. RReegquuliarermMeenettsing Notice A meeting notice and agenda must be published at least ten (10) days prior to the date of the meeting. To avoid issues, issue notice 11 days before meeting at the latest. Required Posting Mr eeqeutei ns tgi nngo tai cceospaynadn adgme nuds at sb me puos st tbeed mo na itl he de D( oerpeamr t ami leendt)’ st owaenbys oi tnee. I f pStoastseibbloed, my’seewtienbgsintoe.tices and agendas should also be posted on the
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Special Meetings Isnh oorrtdne or ttioc ep br oe vc iadues eS toaft et hbeoodci ce us rwr ei tnhc ea omf eaann us noffohr oe lsdeienng eavme nete, ttihneg Aocnt awl lhoi wc hs af obro“dsyp ec ca ina lc ma l le ae tsi pn eg cs i”awl mi t he eat i4n8g- ha roeu rq uniot tei cl iem. iTt ehde . pEuxrapmo spel se sf o r include pending litigation, legislation, and certain personnel actions. Meeting Notice Content The meeting notice must include: Date, time, and place meeting is to be held A specific agenda for the meeting Icfi tteh et hr ee wc oi dl l ebseeac tci ol ons ea dn ds essusbi os ne c, ti ti omn upsrtobvei doi nn gt hl eegaagl eanudt ha oarni tdy mf ours t the closed session. Acosmtamteemnte, natntdhaptoessviebrlye aagcetinodnaoiftethme wboildl yinclude discussion, public Aarcroanngtaecstppeecrisaol nacfcoormqumeosdtiaotniosncsoncerning the meeting or to See example notice and agenda attached. Comments from Public The meeting agenda should allow opportunity for public comment on each agenda item . Members of the public should also have opportunity ttoimoeffleimr ciotsmcmanenbtesaopnpsliuebdj)e.cts not listed on the agenda (reasonable RMeincourtdesof Actions in At h Se tba ot ed by oadnyd mt hues vt or et ec oorrdaibns tt he ne tmi oeneot ifnegamc hi nmuet ems baenryparcetsi eonnt tfaokretnh eb y action. Closed Sessions Isnesmsioosntscfaosrems, athrkeeretinargepornolgyratwmos:authorized reasons for closed Personnel Issues [Government Code Section 11126(a)(1)] pP re enpdai nr eg dL fi ot irg taht ieo bn o–dAy .t t [oGr on ve ey rsnhmo ue nl dt bC eo dper eSseecnt itown i 1t h1 1m2e6m( eo) ( 1 ) ] Closed Session Process Cc lhoasierdms ue ss st iaonnnaonudn sc teaitne ot hpee n( gseenses ri oanl ) tphuart pt ohseeboofdtyh ei s cel onst ee rdi ns eg sisni toon . Only members of the body and people necessary to conduct the business of the closed session should be present. Wa nhdetnh ec l goes ne de rsael sns ai ot un raedoj of ua rnnysa, cotpi oe nn ss teasks ei onni nmcul sots be de rs ee cs os inovne mn euds t be reported. cMoinnfuidteesnotifatlhfielec.losed session must be prepared and kept in Rights of the Public: To attend meetings free from conditions To tape, record, or broadcast meetings To comment on any agenda item (may impose a time limit) To make comments regarding non-agenda items (may impose time limit) To have access to documents provided to members of the body To receive notice to all meetings of the body or its committees, including agenda Assurance that the meeting will not begin before the time stated on the notice
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California Milk Advisory Board 2156 W Grant Line Road, Suite 100 Tracy, CA 95377 Telephone: 209-883-6455
I. Required Continuation Hearing – A public hearing must be held every five years to consider the CMAB’s continuation. The last continuation hearing was September 16, 2020. The next required continuation hearing will likely occur in the summer of 2025.
II. Fiscal Year – The CMAB’s fiscal year is January 1 to December 31.
III. Board Composition – The Board shall consist of 18 producer members and 18 producer alternates. There may also be a public member and public alternate who may not have a financial interest in the milk industry. There may not be more than 1 vote from any one production entity. Board seats are generally allocated in accordance with the number of milk producers within each district. The district allocation of Board seats is reviewed every three years.
IV. Role of Alternates – When a producer member is unable to attend a meeting, he or she may designate any alternate member from their district to serve in their place.
V. Interim Filling of Vacancies – When a producer member position becomes vacant, the Chairman may designate any alternate from the same district to serve as an interim member until the next round of district nominations and preference voting during which CDFA will seek a replacement. When an alternate producer position becomes vacant, the Board may recommend and the Department may consider appointment of a producer to fill the vacancy or the position may remain vacant until the next round of district nominations and preference voting during which CDFA will seek a replacement. VI. Term of Office – The term of office for all members and alternates is 3 years. Terms are staggered so that one-third of the Board positions are filled each year. Terms begin March 1 and run through February 28 three years later.
VII. Term Limits – The CMAB has no term limits. Board members and alternates may serve as long as they continue to be rechosen via their district’s nomination and preference voting process.
VIII. Selection /Appointment Process – All members and alternates are appointed by CDFA. Recommendations for producer appointments for each district are generated through a two-step mail process conducted each fall consisting of a self-nomination procedure followed by preference voting. Recommendations for the public positions are generated by a vote of the producer Board members. IX. Executive Committee – Each March the Board shall select an Executive Committee consisting of a Chairman, Vice Chairman, Secretary, Treasurer and three additional Board members. The Chairman is limited to three consecutive terms. X. Board Quorum and Board Voting Procedures – A quorum of the Board shall consist of 10 members. Except as provided in the two exceptions below, actions of the Board shall be valid if approved by a majority of the members present, provided there is a quorum of the Board present. • Any action recommending a minor amendment to the CMAB Marketing Order must be approved by not less than 75% of the producer members of the full Board. • Board actions related to the selection or dismissal of the CEO shall not be valid unless approved by a ⅔ vote of the full board.
Over
XI. Maximum Assessment – Either 10 cents per hundredweight or 1% of Gross Dollar Value
XII. Authorized Activities:
A. Research Authority – The CMAB may fund research relating to milk and dairy products. Such research may include research studies concerning the production, processing or distribution of milk, the health and nutrition of milk or dairy products or the development of new uses for milk or dairy products. B. Education Authority – The CMAB may fund programs designed to acquaint producers, handlers, consumers or other interested persons with educational information. Such programs may include information regarding quality improvement, sanitation practices, procedures, or methods as applied to market milk or dairy products. Education programs may be designed to also make available to producers, handlers and the public the findings of research programs.
C. Advertising and Sales Promotion and Market Development Authority:
• Milk and Dairy Products Other than Cheese, Ice Cream and Butter - The Board may develop programs of advertising and trade promotion relating to market milk and dairy products, provided , that any such plans, with the exception of plans that make incidental references to brands of cheese, ice cream, or butter as described below, shall be directed toward increasing the sale of such milk and dairy products without reference to any private trade name used by any handler or milk or dairy products. • Cheese, Ice Cream and Butter - The Board may develop advertising and sales promotion plans to allocate funds for promotions of cheese, ice cream, or butter products made with California milk, including promotions in which brand or trade names are used ; provided , that the use is incidental to the promotion of the California milk product and not in direct promotion of the brand or trade name; and provided further , that the allocation of funds is made available on a nondiscriminatory basis to all retailers and manufacturers of butter, ice cream, or cheese utilizing milk produced in California. Permissible private brand or trade name marketing promotions may include advertising, performance allowances, sales promotions, couponing subject to Section 61375 and in-store promotion programs and materials and other marketing communication tools. • Official Board Brands, Trade Names, Labels and Other Distinctive Designations - The Board is authorized to establish and to regulate the permissive use of official Board brands, trade names and labels, and other distinctive designations of grade, quality or condition, except the grade or quality designations in effect pursuant to State or Federal grade standards, for any product in which market milk or other dairy products are used. Any official Board brand or trade name which is established pursuant to this section shall not be construed as a private brand or trade name with respect to Section 58889 of the Code.
CMAB Glossary of Terms
ACV (All commodity volume) – Total grocery dollars attributed to individual retail groups in a defined geographic trade area .
Advertising awareness – One diagnostic tool that companies use to gauge the success of a campaign, advertising awareness studies measure whether or not consumers have knowledge of the ad or recall seeing it.
Advertorial – An advertisement in a print publication designed to look like a news or feature article.
Aseptic: Aseptic packaging is a procedure consisting of sterilization of the packaging material or container, filling with a commercially sterile product in a sterile environment and producing containers that are tight enough to prevent recontamination (hermetically sealed). Aseptically packaged ultra-high temperature (UHT) milk is shelf-stable and does not require refrigeration.
Brand – A name or symbol that identifies a company’s product as distinct from those of its competitors . A well- developed brand communicates a promise to the consumer about a product’s unique benefits.
Broker – An agent who is authorized to buy or sell products for another organization. Brokers facilitate the movement of dairy products from processors to retail stores.
California Dairy Innovation Center (CDIC) – A collaboration of California processors, universities and check-off organizations focused on stimulating innovation in the dairy sector. Staffed and managed by CMAB. California Dairy Quality Assurance Program (CDQAP) – An educational program collaboratively offered by the California dairy industry, state and federal regulatory agencies, and the University of California. Its goal is to encourage, through education and voluntary certification, science-based dairying practices which promote the health of the consumer, the environment, and dairy livestock. California Dairy Research Foundation (CDRF) – The mission of the CDRF is to increase the utilization of milk through investments in research. The scope of this research includes dairy foods, dairy herd health and food safety, nutrition, and dairy quality assurance. California Department of Food & Agriculture (CDFA) – The CDFA promotes and fosters confidence in California agriculture by implementing and communicating public policy and programs. The CDFA interfaces with the dairy industry in a variety of areas including exports, promotion and research marketing orders, producer milk pricing, pooling and distribution of milk revenue, quality and sanitation, and animal health.
Cable TV – Television service purchased by consumers that is carried to homes by direct wires (cables).
Cause Marketing – An initiative in which CMAB partners with one or more other organizations to positively address a specific need with a social responsibility charge. This includes things like food donation programs and often carry positive public relations opportunities.
Centralized buying – Under a centralized buying system, the responsibility for product selection and purchase is consolidated in a central market office, rather than with the individual stores.
Club store – A members-only, large-scale, high-volume store that stocks a large number of products that sell at low prices. Examples include Costco and Sam’s Club.
Control label products – A brand developed by a small regional or local wholesaler, as distinguished from a brand bearing the name of a manufacturer or producer. Control label products are typically distributed to a limited number of retailers.
Cost-per-engagement (CPE) – A means of measuring digital and social media advertising effectiveness that shows the cost when a digital ad or piece of social media content is engaged with.
Cost-per-thousand (CPM) – A means of measuring advertising effectiveness that shows the cost, per 1,000 people reached, of buying advertising space or time in a given media outlet.
Cross-promotion – A sales promotion that uses one brand to promote another, non-competing brand.
Culinary Advisory Panel – A panel of multi-cultural food bloggers who help guide CMAB on appropriate messaging, thematic content, and recipe creation for all ethnic promotions to ensure relevancy and lend authenticity. Dairy Business Innovation Initiative (DBII) – Pacific Coast Coalition – Funded by USDA, Dairy Business Innovation (DBI) Initiatives support dairy businesses in the development, production, marketing, and distribution of dairy products. DBI Initiatives enhance academic capacity, provide direct technical assistance and grants to dairy businesses. The DBII Pacific Coast Coalition, hosted by Fresno State, in partnership with CMAB/CDIC is one of four in the United States. Dairy Management, Inc. (DMI) – A non-profit organization that conducts integrated programs in marketing communications, promotion, and research on behalf of America’s dairy farmers . It was formed in 1995 by the National Dairy Board and the United Dairy Industry Association. Designated Market Area (DMA) – Is a region or territory where people get the same television and radio options. They are often linked by major metropolitan cities, but in rural areas, can be combined. Nielsen divides the country into 210 DMAs. These areas represent 210 television media markets.
Direct-to-Consumer (DTC) – A business model of selling products directly to consumers through an ecommerce platform without the help of third-party wholesales or retailers.
Drop Shipping – is a form of retail business wherein the seller accepts customer orders without keeping stock on hand. Instead, in a form of supply chain management, the seller transfers the orders and their shipment details to either the manufacturer, a wholesaler, another retailer, or a fulfillment house, which then ships the goods directly to the customer. As such, the retailer is responsible for marketing and selling a product, but has little or no control over product quality, storage, inventory management, or shipping.
E-commerce – Sales completed through the online channel.
ESL (Extended Shelf Life) – means that the milk is “longer lasting” and does not spoil as quickly as fresh milk. Yet, like fresh milk, ESL milk has to be stored in the fridge regardless of whether it is opened or unopened. ESL milk will last drinkable for 4-6 weeks (unopened).
Foodservice – The business of making or serving prepared foods, as in a restaurant.
Freight on Board (FOB) – Is a shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods being transported. Purchase orders between buyers and sellers specify the FOB terms and help determine ownership, risk, and transportation costs. Gallup – A market research company that tests television and radio commercials, print ads and Internet ads to measure their effectiveness. Gallup tracks ads after they run to measure how effective they are at reaching a targeted market segment.
Green House Gasses (GHG) – Includes water vapor, carbon dioxide, methane, nitrous oxide, and ozone. The balance of these gasses in our atmosphere control the temperature at the surface of the earth.
HDPE (High Density Polyethylene) – A thermoplastic polymer made from petroleum. As one of the most versatile plastic materials around, HDPE plastic is used in a wide variety of applications, including milk jugs. HDPE is recyclable. HPP (High Pressure Processing) – A non-thermal preservation method which uses pressure and that guarantees food safety and achieves an increased shelf life, while maintaining the organoleptic and nutritional attributes of fresh products and can help protect heat-sensitive compounds in milk and colostrum (such as immunoglobulin). It can be applied to milk and dairy products but is not approved in the US as an alternative to pasteurization.
Independents – Food retailers that are one-store operations. Independents are usually small businesses serving local communities.
In-store demos – Retail store promotions which involve handing out product samples directly to consumers staffed by a trained local product demonstrator.
Integrated campaign – A marketing campaign that employs a variety of promotional methods – advertising, public relations, direct marketing, in-store promotions -- and coordinates them so they work together to reach the greatest number of people.
IRC (instant redeemable coupon)/on-pack IRC – A coupon placed directly on a product that either gives a price off on that package or a related product in the store immediately at check-out.
IRI (Information Resources, Inc.) – A company that gathers data on food products sold in supermarkets and grocery stores nationwide and sells it to subscribers. The data is collected on a weekly basis from the stores’ scanners, and IRI analyzes it to provide information on pricing, speed of sales and geographic distribution. Mat mail – A publicity method in which a brief feature story on a product is formatted and typeset so that newspapers can run the story as-is. The mat mail typically includes a visual and is distributed to small suburban daily and weekly newspapers. Media Monitoring – A company that monitors traditional and online media as well as social media and captures articles for its customers. For example, through Ketchum, the CMAB contracts with Cision and Lexis-Nexis to capture news and feature stories on California dairy. This enables the CMAB to track its publicity efforts. (formerly Clipping Service)
Merchandising – Drawing attention to products inside a store by arranging them in creative, eye- catching displays.
Network TV – A group of television stations that are linked for the simultaneous broadcast of the same programs. With the network system, advertisers can reach a larger audience at a lower cost-per-person than with a single station.
Nielsen – Nielsen is a company that collects sales data on products sold in supermarkets, like cheese and dairy products. These data allow manufacturers to track sales of their products.
PET (Polyethylene terephthalate) – Obtained from petroleum sources, PET is a clear, strong, and lightweight plastic that is widely used for packaging foods and beverages, especially convenience-sized soft drinks, milk, juices, and water. PET is fully recyclable. PHA (Polyhydroxyalkanoates) – An emerging class of bioplastics that are bio-based and biodegradable (some are compostable). PHAs are produced by bacterial fermentation using bio-derived feedstocks – including dairy waste (whey, permeate) – and thus are an alternative to fossil fuel-derived plastics in some applications.
Publicity – A form of public relations that takes the form of editorial exposure, such as a news or feature article about a product. Publicity differs from advertising in that the company doesn’t pay the newspaper or TV station to run the story. POS (Point of Sale)/POP (Point of Purchase) – The in-store promotion of a product to make the product stand out among its competitors. POS can range from a simple ad that is hung on a grocery store shelf to a large, elaborate display. Private label – A brand developed by a large retailer or wholesaler, as distinguished from a brand bearing the name of a manufacturer or producer. Since manufacturers’ brands have large advertising expenditures built into their cost, a private brand can buy the same goods at a lower cost and sell them at a lower price. Product Display Page – A webpage specific to a product, found on a retailer’s own website like HEB.com or other third-party e-commerce website like Instacart.com. This page can include an image gallery, a description of the product, nutrition information, video content, availability in-store, and more. An optimized product display page will increase the product’s relevancy to consumers and likelihood of it showing sooner in web search. Qualitative research – Advertising research that explores issues deeply to gain insight into how consumers feel about a product and why they buy it. Qualitative research relies on in-depth interviews with open- ended questions like “How do you decide which cheese to buy?”
Quantitative research – Research that gathers measurable information from a large number of consumers. The surveys use closed-ended questions that require a simple answer.
Rating points – The measurement of the actual viewing or listening audience for a program or commercial. If a program has a rating of 10 points, it means that 10 percent of all households in a particular area had their television sets tuned to that program. A program with a high rating will deliver a large audience to advertisers for their commercials.
Retail authorizations – Approval by retail chains for their local and regional buyers to purchase merchandise for their organization.
Rotation – The pattern of how television and radio commercials are aired during the broad time period purchased by the advertiser. If an ad runs in the same time period on different days each week, it is called a horizontal rotation. If the ad runs throughout a particular day, it is a vertical rotation. Satellite media tour – A publicity method that allows a celebrity or company spokesperson to participate in up to 25 interviews per day with TV reporters. The person being interviewed sits in a television studio and is connected to remote locations via satellite hook-up, increasing the reach of the publicity program at a relatively low cost. SEO (Search Engine Optimization, as it related to food commerce) – The process of improving the appearance and positioning of your product on a website page. This can be done by optimizing content and boosting relevancy, or through paid means where an individual product is boosted into a top position so more consumers see it, engage with it, and ultimately drive more sales. SKU (Stock Keeping Unit) – A number associated with a retail product for inventory purposes. Retailers use SKUs to identify and track individual products. Each product must have a SKU, and each SKU must be unique; for example, a pint bottle and a quart bottle of the same product have separate SKUs. According to recent research, the average number of SKUs carried in a typical supermarket is 30,580. Shopper Marketing – A retailers own communication vehicles within their physical store and digital touchpoints. Because it is executed by the retailer, loyal shoppers are more likely to engage with shopper marketing tactics such as their weekly email blasts, festival-type promotions, etc.
Short-Lived Climate Pollutants (SLCP) – Short-Lived Climate Pollutants include black carbon, methane, tropospheric ozone, and hydrofluorocarbons (HFCs). They have relatively short atmospheric lifetimes but are believed to have significant warming impacts on climate.
Slotting fees – Fees that supermarkets charge suppliers and manufacturers to place their products on the shelf.
Spot TV – Commercial time on local television stations, as distinguished from commercial time on a network.
Talent Fees/Residuals – Fee paid to actors used in a broadcast commercial.
Third Party Logistics (3PL) – An organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.
UF/MF (Ultra- and microfiltration) – Membrane-based processes applied to milk to separate its components based on molecular weight/size. During UF all the proteins are retained, whereas MF selectively retains casein and permeates whey proteins. UF is primarily used to produce dairy ingredients that have an increased protein content and reduced lactose contents, such as milk protein concentrate (MPC) and whey protein concentrate (WPC) UHT – Ultra-high temperature processing sterilizes milk by heating it above 135 °C (275 °F) for a short- time. UHT milk packaged in a sterile container has a typical unrefrigerated shelf life of six to nine months. Unique Visitors Monthly (UVM) – Refers to the number of distinct individuals requesting pages from the website during a given period, regardless of how often they visit. Visits refers to the number of times a site is visited, no matter how many visitors make up those visits. United Dairy Industry Association (UDIA) – UDIA coordinates with its members, 18 state and regional dairy promotion organizations, to develop and implement programs and services to support the dairy industry. Universal product code (UPC) – Grocers use the UPC to identify products and prices, and to track their sale. UPCs are translated into barcodes (a series of vertical parallel bars printed on a product’s package) that are read or “scanned” by electronic cash registers.
Velocity – The rate of retail sales that a brand or SKU achieves through a store, group of stores or market area over a defined period of time.
Video news release (VNR) – Information about a product produced in a video newscast format and distributed to the news departments of television statements. If, after the news director reviews the VNR and he/she decides to use it, the video is typically edited and aired as a news item during a newscast. Warehouse store (superstore ) – A large-scale, high-volume store that stocks a large number of products that sell at low prices such as Wal-Mart. Can be called a “warehouse club” if the store sells only to members such as Costco or Sam’s Club.
Wire service (Associated Press) – A newsgathering organization that that collects stories for newspapers and distributes them electronically to subscribers.
Cheeses
Artisan Cheese – Refers to cheeses that are handmade in small quantities with respect for the tradition of the cheese. Artisan cheeses can be, but are not necessarily, made from milk obtained from animals located on the farm where the cheese is made.
Commodity Cheese – Describes popular varieties of cheese typically produced in large quantities with a flavor profile that appeals to the majority of consumers. These cheeses are sold in supermarkets, either as branded products or under private labels, or distributed for foodservice use. In California, Cheddar, Jack, and Mozzarella (low-moisture form) are popular commodity cheeses.
Farmstead Cheese – Refers to cheeses made from milk obtained from animals located on the farm where the cheese is made.
Specialty Cheese – A broad term that describes non-commodity cheeses. Specialty cheeses are cheese varieties with distinctive flavor profiles catering to a special niche in the market. Specialty cheeses can be unique varieties of cheese (i.e., Camembert, St. George, Teleme) or specialized versions of popular cheeses such as Cheddar, Jack, or Mozzarella (i.e., raw milk Cheddar, Dry Jack, high-moisture Mozzarella). This category also includes handmade artisan and farmstead cheeses. Specialty cheeses are typically sold as branded products in specialty food stores and in supermarket gourmet cases.
Organizations
CARB – California Air Resource Board CARES – Dairy CARES CCOA – California Creamery Operators Association CDC – California Dairy Campaign CDI – California Dairies, Inc. CDIC – California Dairy Innovation Center CDFA – California Department of Food and Agriculture CDQAP – California Dairy Quality Assurance Program CDRF – California Dairy Research Foundation CEPA – California Environmental Protection Agency CFMPB – California Fluid Milk Processor Board CMAB – California Milk Advisory Board
DCC – Dairy Council of California DFA – Dairy Farmers of America DIC – Dairy Institute of California DMI – Dairy Management, Inc. DWR – Department of Water Resources
IDFA – International Dairy Foods Association IFIC – International Food Information Council IMGC – International Milk Genomics Consortium LOL – Land O’ Lakes MilkPEP – Milk Processor Education Program MPC – Milk Producers Council NMPF – National Milk Producers Federation USDA – United States Department of Agriculture
USDEC – U.S. Dairy Export Council WUD – Western United Dairymen
ADMINISTRATION
Presentation to Board of Directors
December 2025
Statement of Income & Expenses
Milk Production Comparison
2026 Administrative and Procedural Policy
2026 Operations Resolutions
California Milk Advisory Board Statement of Income and Expenses As of October 31, 2025
Month Ending CY % to Month Ending PY % to Year Ending 10/31/2025 Budget 10/31/2024 Budget 12/31/2025 Actual PY Budget
Revenue Assessment Income *
86% $ 33,978,869
84% $ 39,441,046
$ 33,927,711
Non-Assessment Income **
86,413
78,103
94,610 641,585 125,000
91%
82%
Other Income
785,255 122%
717,914 131%
Outside Income - Grant Reim
113,114 34,912,494 11,118,213 3,377,190 4,354,797 1,664,420 5,591,202 1,607,263 895,583 559,194 496,056 17,756 873,825
87,149
90% 87%
39% 85%
Total Revenue
34,862,036
40,302,241
Expenses
Advertising
14,431,353 3,193,277 3,933,166 1,648,081 4,210,782 1,474,298 706,873 582,912
16,884,000 4,139,000 6,665,000 2,505,000 7,338,388 1,759,000 1,416,600 773,658 624,923 48,000 1,323,581 1,840,000 45,317,150
66% 82% 65% 66% 76% 91% 63% 72% 79% 37% 66%
85% 79% 59% 70% 65% 89% 70% 75% 73% 36% 63%
Communications Domestic Retail
Foodservice
International Initiative
Tradeshows
Processor Relations Industry Intelligence Producer Relations
454,210 17,057 735,277
Education and Community Relations
CDIC
Dairy Research Foundation
1,840,000 100%
1,696,731 100%
32,395,499
33,084,017
71%
76%
255,635 7,049 28,761 35,411 139,210 29,016 90,067 43,576 58,297 592,108 41,552 77,368 12,575 80,146 - 52,500 18,167
476,000 8,550 42,000 45,000 178,000 45,000 10,000 110,000 58,000 72,000 762,200 50,000 110,000 15,000 125,000 52,500 23,600
Office Operational
298,894 7,727 45,088 30,072 154,610 33,241 88,502 42,612 60,954 608,281 27,361 76,447 9,925 100,643 - 52,000 19,225
63% 90%
54%
Rent
122%
Travel & Automobile
107%
68% 79% 80% 60%
Legal
67% 87% 74%
Insurance - Employee Freight & Postage Employee Education Depr, Amort & Interest Liability Insurance Money Investment Plan Admin Salary & Wages Board Travel Expenses Board Meeting Expenses
0%
0%
80% 73% 85% 80% 55% 69% 66% 81% 99% 81% 76%
78% 75% 81% 80% 83% 77%
Board Per Diem Marketing Branch
119%
64%
Fiscal & Compliance Audit Assessment Collection Fee
108%
83% 73%
1,655,581
1,561,436
2,182,850
Total Expenses
$ 34,051,079
72% $ 34,645,453
76% $ 47,500,000
Year to Date Payroll: $4,051,620 * Estimated October Assessment at $3,330,275 ** Estimated September and October Non-Assessment at $17,740
CMAB Milk Production Comparison
2021 to 2022 2022 to 2023 2023 to 2024 2024 to 2025 % Change % Change % Change % Change
2022
2023
2024
2025
January February
3,523,704,645 3,516,877,642 3,294,415,818 3,255,648,146 3,704,999,229 3,623,879,592 3,597,030,053 3,524,284,916 3,655,797,733 3,627,458,745 3,457,426,027 3,404,671,543 3,508,881,474 3,309,799,621 3,446,864,031 3,291,637,904
3,523,229,176 3,336,359,624 3,350,814,288 3,144,079,095 3,640,845,001 3,539,143,535 3,516,527,062 3,453,721,886 3,562,152,707 3,548,122,685 3,328,497,972 3,411,640,313 3,297,636,812 3,493,371,368 3,364,262,898 3,397,341,815
-1.90% -0.19% -0.64% -1.18% -0.16% -2.19%
0.18% -5.30% 2.92% -6.17% 0.47% -2.79%
March
April May June
-0.90% -2.02% -0.22% -1.79% -1.46% -0.78% -1.80% -0.39%
0.39% 2.53% 2.27% 0.08%
-1.53% -2.24% 2.50% -5.67% -0.37% 5.94%
July
August
-4.50%
2.21% 0.98%
September
-1.99% -0.02% 2.41%
3,262,119,753 3,197,210,620 3,196,520,582 3,273,656,362 3,392,424,997 3,297,301,642 3,180,845,057 3,395,475,634
-1.05% -2.80% -3.53% 6.75%
October
November December
-0.84% -2.01% -7.98% -0.30% -1.13% -7.86%
3,310,255,775 3,243,630,168 2,984,734,174
3,159,198,458
3,467,696,688 3,428,650,576
Total
-0.19%
41,621,616,223
-2.16%
41,621,616,223 40,721,051,115
-1.51%
40,721,051,115 40,105,264,187
0.09%
33,961,331,555 33,992,912,317
11/24/202512:32 PM
Milk Assessments
Production Comparisons
2026 Administrative and Procedural Policy of the California Milk Producers Advisory Board
The Administrative and Procedural Policy set forth below is not intended to amend or modify relevant provisions within the Marketing Order for Research, Education, and Promotion of Market Milk and Dairy Products in California. The purpose of this policy is to clarify the general provisions of the Marketing Order. The policy may be amended from time to time upon recommendation of the California Milk Producers Advisory Board and approval of the Department of Food and Agriculture.
I.
Officers of the Board
The Officers of the Board shall be the Chairman, Vice Chairman, Secretary, and Treasurer.
A. The Chairman shall: (1) call meetings of the Board when he deems it necessary; (2) preside at meetings of the Board; (3) sign contracts approved by the Board in conjunction with the Chief Executive Officer on behalf of the Board; (4) buy group meals as necessary; (5) be an ex officio member of all committees other than the Executive Committee; (6) recommend the establishment of committees; and (7) recommend committee appointments.
B. The Vice Chairman shall be first in line to act in the place of the Chairman in case of the Chairman’s absence, disqualification, disability, or at the discretion of the Chairman.
C. The Treasurer shall be second in line to act in the case of the absence, disqualification, disability, or at the discretion of the presiding officer. The Treasurer is responsible for reviewing the financial statement accounts to the Board.
D. The Secretary shall be third in line to act in the case of absence, disqualification, disability, or at the discretion of the presiding officer. The Secretary shall: (1) keep an accurate record of the proceedings of the Board; and (2) attest papers, documents, and other instruments on its behalf. E. As the terms of office of new members and alternate members are from March 1 through February 28 of the following year, and since usually a few days of March elapse before the newly-elected Board meets to elect new officers and Executive Committee members, the officers and Executive Committee members, as well as members of the special committees of the Board, shall be appointed to serve from March 1 of any given year through February 28 of the following year, or until their successors have been named and qualified for the following year.
II.
The Executive Committee
A. An Executive Committee shall be selected by the Board, consisting of the Chairman, Vice Chairman, Secretary, and Treasurer of the Board and three additional members of the Board.
B. The Executive Committee, in all cases in which specific directions to the contrary shall not have been given by the Board, shall have and may exercise during the intervals between the meetings of the Board, all the powers and authority of the Board in the management of the Board’s affairs and which are necessary to carry out the actions and policies of the Board in such manner as the Executive Committee may deem best for the interests of the Board, all within the scope of the budget of the Board and each department thereof. C. The Executive Committee shall also serve as the finance committee of the Board and as such shall be specifically delegated the authority to establish the wages and salaries of the employees of the Board. D. The Executive Committee is authorized to recommend the appointment of the Chief Executive Officer of the Board. The Executive Committee shall be responsible for providing general supervision and direction to the Chief Executive Officer and shall periodically report to the Board regarding his performance. This formal annual review shall take place at the December Board meeting. The Executive Committee shall report all of its actions to the Board and all actions taken by the Executive Committee shall be subject to the approval of the Board and the Secretary of the Department of Food and Agriculture.
E. All members of the Executive Committee and the Chief Executive Officer shall serve as Trustees for the California Milk Producers Advisory Board Money Investment Plan.
III.
Board Members
A. District Representation At least once every three years, since 1981, the Board or an authorized committee of the Board shall review the production of market milk, the number of producers, geographic area, and other relevant conditions in relationship to the district representation on the Board to insure equitable representation.
IV.
The Chief Executive Officer
A. Subject to the general direction and control of the Board, the Chief Executive Officer shall: (1) be responsible for supervising all Board employees; (2) employ all other salaried personnel of the Board subject to authorization as to position by the Board; (3) discharge employees as may be deemed necessary; (4) recommend salary adjustments to the Executive Committee for consideration; (5) define job responsibilities of each employee; (6) be responsible for the proper and appropriate administration of all policies and actions that the Board adopts and undertakes; (7) be responsible for the proper performance on behalf of the Marketing Order; (8) be responsible for developing contracts or other legal documents requiring Board approval; (9) be authorized to sign, on behalf of the Board, and in
conjunction with the signature of the Chairman, contracts or other legal documents approved by the Board; and (10) serves as Assistant Secretary of the Board.
B. In order to ensure an uninterrupted operation of the Board in the event of extended illness or injury or death of the Chief Executive Officer, a committee has been appointed by the Board of Directors to administer the daily operations of the Board. The committee will be activated when necessary by order of the Executive Committee of the Board. The appointed committee consists of the Executive Vice President of Strategy & Global Markets and the Director of Finance and Administration.
The Executive Vice President of Strategy & Global Markets will be the chairman of the committee, acting as liaison to the Board of Directors. All procedures applicable to the Chief Executive Officer shall be applicable to the chairman of the committee.
The Director of Finance and Administration will be responsible for the financial well-being of the Board, signing documents associated with payroll and related matters.
Each member of the committee, upon activation of the committee, would be immediately authorized to sign all administrative papers designated as their responsibility to provide for the uninterrupted flow of business of the Board.
The following employees of the Board are authorized to sign checks for administration of the Board expenses: Chief Executive Officer, Director of Finance and Administration, and the Accounting Manager. Checks require any two signatures of the above, but usually are signed by the Chief Executive Officer and the Director of Finance and Administration. The signatures of the signatories are officially recorded on bank signature cards. C. Vacancy in the Position of Chief Executive Officer The Executive Committee shall within three months of the date of a vacancy in the position of Chief Executive Officer seek qualified applicants by advertising in a national, state, or regional publication (newspapers or dairy magazines). Within six months of the date of the vacancy, the Executive Committee will screen prospective applicants and select at least the two most qualified candidates for the full Board’s consideration.
The Board shall diligently try to select a new Chief Executive Officer within a year of the date of a vacancy. Any Board action recommending the appointment of a new Chief Executive Officer shall require the concurring vote of two-thirds (2/3) of the full Board.
V.
Board Employees
A. VACATION
Eligibility and Accrual
Temporary and part-time employees do not accrue paid vacation.
Regular full-time employees are entitled to standard vacation accruals as follows: *
Vacation To Be Earned** All vacation will be accrued on a monthly basis by dividing annual vacation amount by twelve.
Length of Service With CMAB
Minimum of 2 weeks per year (0.833 days per month) or a higher amount of vacation time/year agreed to at the time of hire. Vacation accrual rate with prior employer will be considered in setting initial rate. The accrual rate cannot exceed 4 weeks/year.
1 month to 36 months (3 years)
Minimum of 3 weeks per year (1.25 days per month) or one week more per year than the employee’s initial accrual rate. The accrual rate cannot exceed 4 weeks/year.
37 months to 120 months (10years)
4 weeks per year (1.666 days per month) The accrual rate cannot exceed 4 weeks/year.
121 months and over
*Employees hired prior to 1998 are subject to a separate vacation accrual schedule and maximum.
** For purposes of this section on vacation leave and other paid leave, including but not limited to sick leave, bereavement leave, etc., a “week” for both accrual and use of leave is defined as 5 days and a “day” as 8 hours for full-time regular employees.
Vacation can accrue up to a maximum of 10 paid weeks (400 hours). No additional vacation will be earned until accrued vacation time is used or paid out as follows:
Eligible employees may carry over accrued but unused vacation from one year to the next but accrual may not exceed 50 days (400 hours). We encourage employees to use their vacation time, but we recognize that due to the nature of some employees’ jobs, it is difficult to schedule a vacation each year. Therefore, CMAB will allow employees to sell back unused vacation time up to 10 days per year.
B. Employee Vacation Consolidation for the Week of July 4 and the Christmas Holiday
Employees will use vacation days at designated times based on a Board incentive of additional days as Board Holidays. The office will be staffed during normal business hours during the July and December vacation time with minimal staff. The office will be closed the week of Christmas and the week between Christmas and New Year’s.
July 2026 7/01 Vacation (1/2 day)
7/02 Board Holiday
7/03 Holiday
Dec. 2026 12/23 Vacation (1/2 day)
12/24 Holiday
12/25 Holiday
12/28 Vacation
12/29 Vacation
12/30 Board Holiday
12/31 Board Holiday
01/01 Holiday
Jan. 2027 01/04 Return to work (Monday)
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