How Dairy Leadership Is Driving Innovation & Growth For 2026
Barb O’Brien took to the stage during the dairy joint annual meetings to share a crystal clear message. Transform investments into momentum by building trust, growing demand and ensuring the future of U.S. dairy.
HART Insight Summary
The dairy industry is moving through a period of rapid change, and national dairy leadership is prioritizing innovation, health-forward messaging, and unified strategy to strengthen market position. While this article focuses on Barbara O’Brien’s remarks at the Joint Annual Meeting, the themes she highlighted, innovation, transparency, health and wellness, and growth, have clear implications for cheese and dairy processors planning for 2025–2026.
A major message from O’Brien’s nationwide farm tour is that today’s dairy environment requires stronger coordination between innovation and execution. As retail demand increases for dairy’s nutritional value and functional benefits, processors may see more opportunities for new formats, improved packaging, and value-added cheese products. Rising interest in health-forward messaging also supports categories like lactose-free items, high-protein snacks, cultured dairy foods, and specialty cheeses—each of which relies on equipment that delivers consistency, sanitation, and throughput at scale.
Partnerships with foodservice brands such as Domino’s, Taco Bell, and McDonald’s further signal that processors supplying these channels must prioritize quality control, reliable high-volume production, and operational efficiency. As large chains refresh menus and introduce more dairy-forward products, plants may need improved changeover times, enhanced traceability, and equipment flexibility to support evolving demand.
Transparency and consumer trust also remain central themes. Dairy operations highlighting animal care, sustainability, and responsible production will continue seeing stronger market positioning. These priorities often require better data capture, stronger documentation, and automation designed to minimize waste and energy usage—areas where modern sanitary equipment can offer measurable advantages.
From HART’s perspective in Green Bay, the leadership direction outlined in this article signals the need for processors to begin assessing bottlenecks, line flexibility, and automation gaps now to align with 2026 growth priorities. Plants that invest in adaptable, sanitary, high-efficiency systems will be better positioned to meet new opportunities emerging from industry-led innovation and long-term strategic demand initiatives.
Key Takeaways
Industry leadership is emphasizing innovation, health-forward messaging, and unified strategy—creating opportunities for new dairy formats and product development.
• Foodservice partnerships are driving increased demand for consistent, high-volume, reliable dairy production.
• Consumer trust and transparency are shaping expectations for traceability, sustainability, and documentation at the plant level.
• Processors with flexible automation, strong QC, and adaptable packaging systems will compete most effectively in this next phase of dairy growth.
At A Glance
Estimated Reading Time: 6 minutes
Original Publish Date: November 2025
Source: Dairy Herd Management
The winds of change are sweeping across the dairy fields of America, guided by the adept leadership of Barbara O’Brien, president and CEO of Dairy Management Inc. Her commitment to steering the U.S. dairy industry toward growth and innovation exemplifies the power of collective effort and resilience in navigating a rapidly evolving landscape.
From Tradition To Innovation
O’Brien took the stage last week at the Joint Annual Meeting hosted by the National Milk Producers Federation, the National Dairy Board, and the United Dairy Industry Association in Arlington, Texas, sharing that she has embarked on a nationwide tour, visiting a diverse array of farms and local promotion boards from Michigan to west Kansas.
“Visiting farms offered valuable insights into various business operations, technology and teamwork that define dairy farming today, regardless of geography or scale,” she says, noting the message remains clear: Innovation is breathing new life into traditional practices, and unity in the industry is crucial to accomplish what no single farmer can achieve alone.
Investing For Momentum
The mission is straightforward: transform investments into momentum by building trust, growing demand and ensuring the future of U.S. dairy. Dairy Management Inc. leverages science, scale and speed-to-market strategies to empower farmers and enhance the dairy category. This shift from a defensive stance to one of leading with confidence is reshaping market dynamics, favoring a proactive approach over a reactive one.
“There was a time, three maybe five years ago, when headlines were dominated by aggressive and well-funded plant-based challengers. Farmers asked: What are you doing to fight back?” O’Brien says. “The answer is we didn’t just fight. We changed the game, followed the science and led. We didn’t tear others down. We built dairy up.”
Dairy In The Consumer Market
The renaissance of dairy in consumer markets highlights strategic maneuvering in response to the rise of plant-based competitors. Rather than refuting these alternatives, the industry fortifies its position through innovation and storytelling grounded in nutritional science. As consumers increasingly appreciate dairy’s taste and nutritional value, retail reports reflect an uptick in sales.
“Over the last 52 weeks of 170 food and beverage categories studied, dairy products ranked in the top 15 for growth, no matter the metric … absolute unit or dollar growth, percent volume growth and fastest growing in units or dollars,” O’Brien reports.
Building Trust Through Transparency
Trust remains a cornerstone of this strategy. With consumers seeking transparency regarding food origins, the dairy industry emphasizes openness and addresses concerns around animal care and climate change. Initiatives like the First 1,000 Days showcase dairy’s pivotal role in early childhood development and positively shape consumer perceptions.
“In partnership with MilkPEP, USDEC and our state and regional teams, we brought dairy’s science-based benefits for cognitive growth and early nutrition to parents and health professionals through earned media, podcasts and leading professional conferences,” O’Brien says. “That work reached more than 60,000 pediatric care specialists, shared dairy science at 30+ national conferences and generated over 21 million media impressions.”
Driving Demand With Partnerships
Innovative partnerships are key to driving demand. Collaborations with renowned brands such as Domino’s and Taco Bell have led to exciting new product offerings, while strategic campaigns with retail giants like Walmart and Costco ensure dairy’s prominence in consumer markets.
“Even in a tough environment, with inflation and cautious consumer spending weakening restaurant traffic, we’re still seeing strong gains in dairy utilization with three of our four major foodservice partners,” O’Brien says. “Our team has already developed new product platforms for a McDonald’s turnaround in 2026, and as the largest user of dairy in U.S. foodservice, we expect big news ahead.”
Encouraging Long-Term Growth
Looking ahead, the industry remains focused on long-term growth with its strategic Unified Plan, setting clear sales goals and emphasizing dairy’s health and wellness potential. At the heart of these initiatives is the determination of America’s dairy farmers, whose stories of progress and community fuel this remarkable journey.
“So, let me end where I started; at the heart of every result we deliver is the dedication of America’s dairy farmers, through your tireless efforts to feed people and care for your land and animals, and through your ongoing commitment to today’s dairy research, education, innovation and promotion organization,” O’Brien proudly says. “You make it possible for us to tell a powerful story, one of progress, care and community.”
Teamwork Between Promotion And Policy
As chair of Dairy Management Inc. board, for the seventh year, Marilyn Hershey, Pennsylvania dairy farmer also took to the stage, sharing her passion and purpose for DMI, as it maximizes research, partnerships and marketing efforts.
“This unified approach allows every farmer’s dollar to work harder and drive tangible results, contributing to an all-time high in dairy consumption,” she says.
Hershey says the DMI board success relies on the synergy between policy and promotion.
“Collaborative efforts with NMPF and IDFA bolster our influence, providing credible science and knowledge to shape industry conversations,” she says. “The retirement of Randy Mooney, NMPF chairman, underscores the importance of leadership that supports our shared goals.”
Driving Results By Making Your Voice Heard
U.S. dairy maintains a sturdy global presence, supported by partnerships and leadership that engage in global food and nutrition conversations.
“We continue to assert our own narrative, a significant shift from when international perceptions defined us,” Hershey says.
Progress is driven by engaged partners, both in and out of the trade show arenas. Encouraging community engagement, we invite everyone to share ideas and connect through various networking opportunities. By fostering these connections, we forge a secure future for U.S. dairy, upholding the legacy of American farming while setting new food trends. Together, we are driving results that will ensure the industry thrives for generations to come.
HART Perspective
As processors evaluate their 2025–2026 plans, industry leadership’s renewed focus on growth and innovation is a reminder that equipment decisions should support more than current production—they should enable long-term opportunity. We’re seeing heightened interest in packaging flexibility, QC automation, and sanitary design features that reduce labor strain and improve consistency across SKUs.
Demand from QSR partnerships means production must remain stable across high-volume runs. Plants supplying foodservice formats—shreds, slices, diced cheese, cream cheese extrusions, sticks, and value-added items—benefit from equipment that maintains repeatable performance under continuous use. Changeover efficiency becomes especially important as menu cycles accelerate and new dairy-forward items appear.
We also see greater interest in data capture and traceability as companies respond to consumer expectations. Automation that reduces human error, logs sanitation cycles, and supports process transparency helps processors reinforce trust while improving internal efficiency.
For teams planning upgrades, start with a line audit focused on bottlenecks around throughput, sanitation windows, operator ergonomics, and material handling. Many processors find that targeted modernization—improved infeed design, updated controls, or advanced forming/packaging modules—delivers meaningful gains without a full system replacement.
What This Means For Dairy & Cheese Plants
- Operational agility matters. Flexible equipment supports new product formats and emerging growth channels.
- Consistency is non-negotiable. Foodservice partners require stable, repeatable, high-speed performance.
- Traceability expectations are rising. Plants benefit from systems that support documentation, QC verification, and consumer transparency initiatives.
Attribution
Portions of this article reference a November 2025 report published by Dairy Herd Management. HART Design & Manufacturing has added independent analysis and dairy-industry context. The original publisher did not contribute to or review these additions.
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