Odhi Case Essay

1840 Words Oct 27th, 2015 8 Pages
Executive Summary
The Ontario Dairy Herd Improvement Corporation is a non- profit organization, which provides milk-testing services for Ontario dairy producers. Physical facilities include a head office and computer system located in Guelph, as well as milk testing labs in Kemptville and Woodstock. Ontario DHI’s mission is to maintain an organization that will deliver an accurate, timely and cost-effective milk testing service and promote improvements in the efficiency and profitability of dairy production in the province of Ontario.
ODHI has been facing several problems. Although ODHI has a moderate financial surplus, the number of members subscribing to the services has been declining at about three percent per year for the past five
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Direct promotion is used for loyal customers while price focused advertising will be used for concerned customers. Coupons, discounts and promotional services is going to be used for customers that see some value in the service and are willing to pay reasonable prices. Circuit supervisors will be assigned to the full service. For the moderate service, supervisor will only assist the owners or person who is primarily in charge. Owners will be responsible for collecting and sending the sample to the test labs.

PEST Analysis
In 1990, there were over 9300 dairy farms in Ontario housing almost 450,000 cows. The farm-gate value of milk produced exceeded 1.3 billion dollars. At the retail level, dairy product sales in Ontario exceeded 4 billion dollars. The number of dairy herds in Ontario on a milk-testing program had declined from about 7100 in 1985 to 6000 in 1990. Moreover, a continued decrease was projected.
Through the process called genetic screening, average milk production per cow increased dramatically in Ontario over the past 10 years. This trend is likely to continue into the future.
The Ontario Milk Marketing Board regulates the Ontario dairy industry (OMMB). They limit production by issuing quotas on the amount of milk that farmers can ship to local dairies. OMMB pays farmers for the amount of milk shipped and gives premiums for higher levels of protein and butterfat content.

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