Archive for consumer tastes

How Evolving Consumer Preferences Are Transforming Dairy Farming Practices

Learn how changing consumer preferences are shaping dairy farming. Ready to explore the future of sustainable and ethical dairy?

Consumer tastes are constantly changing, necessitating quick reactions. The dairy sector has evolved beyond providing milk to include essential problems such as product diversification and ethical ethics. Those who accept these changes will succeed, while those who do not risk falling behind will fail. Modern customers want sustainability, animal welfare, product diversity, and the incorporation of new technology. Approximately 55% of US consumers said they would buy more dairy products if producers promoted sustainability. The future of dairy farming depends on accepting these adaptive methods. Staying ahead of changing consumer tastes promotes sustainability and helps to create a more ethical and resilient food system.

Embracing Solid and Semi-Solid Dairy: A Necessity for Modern Dairy Farming 

Regarding consumer preferences, dairy customers prefer solid or semi-solid products over typical liquid milk. This trend includes liking cheese, butter, yogurt, and sour cream, indicating a changing taste that values variety and creativity. Furthermore, a rising portion demands lactose-friendly versions to cater to those who are lactose intolerant or sensitive. Moreover, the popularity of plant-based dairy substitutes such as oats, almonds, and soy-based products has expanded the market. These alternatives appeal to vegetarians, people with dietary limitations, and mainstream customers seeking to lessen their environmental impact or try new tastes. For dairy producers, expanding their product lines is critical. Changes in dietary choices underscore the need for innovation and adaptability to stay competitive and profitable. Farmers may extend their variety to include more eatable dairy products and lactose-friendly alternatives, allowing them to enter new markets and increase economic resilience. This move has significant repercussions for the dairy farming business. Farmers must manage new production problems and invest in new processing technology to fulfill rising demand. However, the benefits are substantial: reacting proactively to consumer trends may open new income streams, alleviate diminishing conventional milk consumption concerns, and position farmers to succeed in a changing market.

Sustainability: A Driving Force for Consumer Loyalty and Market Success 

Consumers’ increased concern about sustainability strongly influences their shopping choices. This understanding drives dairy producers to pursue sustainable techniques actively. Consumers increasingly prioritize items from firms that value environmental stewardship and ethical behaviors, demonstrating a clear correlation between sustainability activities and commercial success.

Promoting sustainability in dairy production requires various critical components, including improved animal welfare and modern technology. Better animal care, including optimal living conditions and nutrition, produces higher-quality dairy products. Sustainable practices such as rotational grazing, organic feeding, and prudent manure management promote environmental health while conserving resources.

Adopting new technology may provide significant environmental benefits. Precision agricultural equipment, robots, and data-driven systems allow for more efficient resource usage, less waste, and increased yield. Automated milking systems may improve cow health and comfort while increasing milk output.

As part of the transition to sustainability, dairy producers must rethink established practices and invest in innovative techniques and technology that meet customer expectations. While these adjustments may require a significant initial expenditure, the long-term rewards include improved market position, increased customer loyalty, and enhanced profitability. Finally, by adopting sustainability, dairy producers may ensure their enterprises’ resilience and longevity while contributing to a more ethical and ecologically conscientious food chain.

Consumer-Driven Animal Welfare: The New Benchmark for Dairy Farming Practices 

Consumer concern for animal welfare has reached new heights, directly impacting purchase decisions. This growing awareness is more than just a moral attitude; it influences dairy product purchases, making animal welfare a crucial commercial dynamic. Dairy producers must prioritize health, welfare, and longevity in their breeding programs to gain customer loyalty and confidence. This shift towards consumer-driven animal welfare is not just a trend, but a responsibility that the dairy industry must embrace to ensure the ethical integrity of its operations.

Painless dehorning is popular among customers since it eliminates hardship and matches farming with humane norms. Similarly, restricting antibiotic usage to therapeutic illness applications reduces antibiotic resistance, protecting both animal welfare and public health. Certifications such as “Certified Humane®” reinforce a reputation for ethical farming.

These changes in practice are more than just meeting consumer wants; they represent steps toward a more resilient and sustainable agricultural strategy. Prioritizing animal welfare leads to healthier, more productive cattle, which improves farm efficiency. Furthermore, progressive welfare measures may open premium market sectors, resulting in better returns and longer-term sustainability. Thus, addressing consumer expectations for animal care meshes with ethical imperatives while improving the dairy industry’s sustainability and profitability.

Integrating Biotechnology with Consumer Expectations: A Strategic Balance 

New technologies, including gene editing, can improve animal health and production in dairy farming. These improvements could enhance disease resistance, nutritional quality, and milk production, boosting dairy farms’ sustainability and profitability.

For example, gene editing may make cattle less disease-prone, lowering antibiotic consumption and coinciding with rising customer demand for low-antibiotic food. However, many customers remain wary of GMOs and prefer humane agricultural techniques. As a result, openness and regulation are critical for building customer confidence. Labels such as “Non-GMO” and certificates for humane practices give customers the confidence they desire.

Farmers’ impressions of consumer support are crucial. If they feel that customers can be trained to support these advances, they are more inclined to implement them. In contrast, perceived opposition might stymie acceptance. Thus, good communication and education regarding advantages and safety are critical for increasing customer adoption.

For dairy producers, reconciling cutting-edge technology with customer expectations is critical. Responsible innovation promotes healthier herds and more sustainable agricultural techniques. Transparency and regard for customer views, as expressed through feedback and market trends, will boost productivity and foster trust, assuring long-term market acceptability and corporate survival.

Transparency and Connection: Building Trust and Loyalty in the Dairy Industry 

The modern consumer environment demands transparency and a real connection to their food source. This needs reinvented food supply networks, including more segmentation and direct contact between farmers and consumers. The growing interest in farm management labels such as “Non-GMO” and “Certified Humane®” indicates a cultural movement toward educated and ethical consumption.

Dairy producers face both difficulties and opportunities. Adapting to these expectations requires substantial expenditures in openness and certification. However, it also allows for higher prices and improved customer loyalty. Direct marketing is promising because it will enable farmers to sell their goods directly—via farmers’ markets, internet platforms, or local partnerships—thereby increasing value and distinction.

This trend of openness and direct interaction has far-reaching ramifications for the dairy industry’s sustainability and resilience. Farmers receive insights into changing customer tastes and market trends by developing tighter relationships with them, allowing for more adaptable business methods. Finally, aligning with these consumer-driven imperatives not only increases market relevance but also ensures the long-term sustainability and ethical integrity of dairy farming operations by building trust and loyalty.

The Bottom Line

In an age of shifting customer expectations, dairy producers must adapt to a demanding market by focusing on product diversity, sustainability, animal welfare, and the incorporation of innovative technology. The transition to solid and semi-solid dairy products necessitates diversification. The demand for sustainable and environmentally friendly goods highlights the need for green procedures. At the same time, increased awareness about animal welfare promotes a rethinking of established approaches. Technology adoption should strike a balance between innovation and ethical issues. Aligning with changing tastes is crucial for long-term profitability and sustainability, allowing farmers to remain relevant and contribute to a more ethical food system. The message is clear: accept change, innovate, and match practices with current consumer ideals.

Key Takeaways:

  • Dairy farmers must adapt to the growing consumer demand for solid and semi-solid dairy products like cheese, yogurt, and lactose-friendly options.
  • Sustainability is a crucial factor in consumer purchasing decisions, encouraging farms to adopt eco-friendly and animal-friendly practices.
  • Consumers prioritize animal welfare, pushing farmers to focus on health, welfare, and humane treatment in their breeding and care practices.
  • New technologies, including genetic biotechnologies, are becoming integral to dairy farming, but must be balanced with consumer preferences for non-GMO and humane practices.
  • Transparency and direct consumer engagement are essential for building trust, with labels such as “Non-GMO” and “Certified Humane®” enhancing product appeal.

Summary:

The dairy sector is facing a shift in consumer preferences due to evolving consumer tastes. Modern customers demand sustainability, animal welfare, product diversity, and new technology. Around 55% of US consumers would buy more dairy products if producers promoted sustainability. Dairy customers prefer solid or semi-solid products over liquid milk, and a growing portion demands lactose-friendly versions. Plant-based dairy substitutes are also popular, appealing to vegetarians and dietary restrictions. Dairy producers must expand their product lines to stay competitive and profitable, including more eatable dairy products and lactose-friendly alternatives. Prioritizing animal welfare in breeding programs is crucial for customer loyalty and confidence. Farmers’ support, communication, and education about benefits and safety are essential for increasing customer adoption.

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Global Dairy Industry First Half 2024: Key Events, Mergers, and Market Trends

Learn about important events, mergers, and market trends in the global dairy industry for the first half of 2024. How are companies changing to meet new consumer demands?

With new technology developments, market swings, and strategic mergers and acquisitions driving fast change in the global dairy sector, Important events on many continents in the first half of 2024 have molded the direction of the industry. These phenomena point to more general trends and economic transformations from leadership transitions to creative sustainability initiatives. This thorough study explains how these developments affect consumer tastes and world marketplaces. We address essential events like Danone’s strategic sale of Horizon Organic and Wallaby premium dairy businesses and Molly Pelzer’s resignation from Midwest Dairy. Knowing these changes is necessary as the dairy sector significantly affects local farmers and foreign commerce. Maintaining knowledge of these critical events helps you understand present market circumstances and prepare for trends influencing consumer behavior and corporate plans.

January’s Dairy Delight: A Month of Pivotal Strategic Moves and Groundbreaking Sustainability EffortsJanuary witnessed a flurry of global activity in the dairy sector. In the USA, Midwest Dairy CEO Molly Pelzer announced her retirement in March 2024, while Archer-Daniels-Midland, after acquiring Revela Foods, bolstered its presence in dairy products.

January also saw the formation of strategic alliances in the dairy sector. Cathay Capital joined forces with Savencia Fromage and Dairy to enhance Savencia’s market position in China, while Pinlive Foods in China commenced cheese manufacturing at their new Shanghai plant. Similarly, Natural Organic in Australia expanded its operations in Vietnam and Thailand through strategic alliances.

Volac International sold Denkavit, its milk replacer company, in Europe. At the same time, Danone agreed to transfer its Horizon Organic and Wallaby brands to Platinum Equity. Lactalis built a solar power facility in Verdun to help reduce CO2 emissions. This commitment to sustainability is a positive sign for the industry’s future. At the same time, Irish business Lakeland Dairies extended its Killeshandra factory. FrieslandCampina, with an eye on sustainability, released a paper on critical dietary trends in 2024.

While Danone intended to close its Parets del Vallès facility in Spain, PAG Private Equity bought a share in Latvia’s Food Union Europe. Meiji quadrupled its outlay on the Danone Wexford, Ireland facility. Danone also made €100 million investments in Mexico and guaranteed NotCo’s rights to use “milk” on Chilean labels.

Targeting higher production capacity, Imagindairy started operations in Israel using modern precision fermentation lines. Emphasizing sustainability, market growth, and technical developments, these acts show a vibrant beginning to 2024.

February’s Flourish in the Dairy Sector: Strategic Expansions, Sustainability, and Leadership Shifts

February featured notable developments across the dairy sector, marked by strategic expansions, environmental projects, packaging innovations, mergers, and leadership changes.

EkoNiva Group expanded into Xi’an, China, to increase dairy exports through improved brand awareness and logistics.

With the Value4Dairy consortium—led by FrieslandCampina—securing a $5 million grant from the Bill & Melinda Gates Foundation to improve Nigeria’s dairy output and sustainability, Africa achieved progress in sustainability.

Australia and New Zealand improved their efforts at sustainability. Fonterra’s “Naked Mozz” project in Australia removed cardboard packaging, cutting waste and expenses for their Perfect Italiano Mozzarella cheese. Fonterra proposed a 20-megawatt electrode boiler for its Edendale facility in New Zealand to reduce emissions.

In the USA, the sudden closing of the Kansas Dairy Ingredients (KDI) factory in Hugoton was a significant event. Ornua signaled a strategic change by appointing Conor Galvin as its new CEO.

Europe was very active. Arla Foods started negotiations to buy the Semper facility in Sweden, indicating possible expansion. Emmi Group credited critical markets like the USA and Italy for their consistent income and profit gains. With an eye toward plant-based yogurt to satisfy changing customer tastes, Danone rebuilt a factory in France.

These events underline the dynamic character of the dairy sector, which is defined by strategic advancements, sustainability pledges, and leadership changes—all meant to fit and flourish in a fast-changing global market.

March’s Strategic Realignments and Financial Recap in the Dairy Industry

In the dairy industry, March was a time for strategic choices and financial recalibrations covering Europe, Australia, New Zealand, and India. FrieslandCampina’s income dropped 7.1% to €13 billion ($14 billion). Still, operating profit dropped dramatically to €75 million in Europe primarily due to market problems and currency effects. On the other hand, Savencia Fromage & Dairy reported a 3.7% sales rise to €6.8 billion despite a drop in operating profit to €212.9 million brought on by changing raw material and energy prices.

Arla Foods in Denmark said they will close a failing factory by 2025, moving cheese manufacturing to a more effective operation in Taulov. Under geopolitical and internal changes, Danone revealed a strategic divestment—selling its Russian business for RUB 17.7 billion ($192 million). Driven by developments in dairy and plant-based proteins, the firm also announced a 7% sales rise to €27.6 million ($30 million) for 2023.

With financial difficulty in the southern hemisphere, New Zealand’s Synlait Milk Ltd. missed a crucial loan payment and recorded a net loss of NZD 96 million ($57 million) for the first half of 2024. Fonterra reacted by shutting older operations to concentrate on more valuable output. Australia saw fresh investments and closures: Bega Cheese shuttered its Betta Milk and Pyengana factories. Beston Global Food Co. also revealed at the same time a net loss of AUD 18.8 million ($12.4 million). Lactalis, on the other hand, showed dedication to efficiency; it shuttered its Echuca facility but invested AUD 85 million ($56 million) in its Victorian supply chain over three years.

Driven by a robust distribution system and value-driven products, Amul, under Jayen Mehta’s direction, sought worldwide growth and unheard-of income in India.

These advances highlight the dairy sector’s resilience, constant strategic realignment, and commitment to innovation and expansion.

April’s Momentum in Dairy: Strategic Collaborations, Financial Triumphs, and Operational Overhauls

April saw significant developments in the global dairy industry. Together, Qatar and Algeria helped increase the yearly output of powdered milk by 200,000 tons. Danone started the liquidation of DanoneBel in Belarus after asset seizures in Europe.

With a 9% growth, India’s Amul Dairy oversaw Rs 12,880 crore during the fiscal year 2023-24. While China Shengmu’s net profits sharply declined despite an increase in income, Modern Farming Group improved raw milk sales in China.

Australia and New Zealand faced both strategic developments and difficulties. Synlait Milk got a debt payback extension despite continuous problems. To concentrate on higher-value goods, Lactalis streamlined its activities while Fonterra eliminated two processing facilities. Thanks to Yili Group’s investments, Westland Milk Products declared record earnings.

While Saputo saw a little income gain combined with a notable decline in net profit, Royal Milk was approved in Canada to begin manufacturing baby formula.

May’s Strategic Shifts and Ambitious Investments: Boosting Efficiency, Expanding Capacities, and Driving Innovation in Dairy

Valio shuttered two manufacturing plants and relocated activities to Riiheimäki in Europe to improve efficiency. Declining milk yields caused Dairygold to cut cheese output. Arla Foods Ingredients bought Volac, therefore enhancing its sports nutrition range. Kerry Group also established a cheese facility in Charleville to increase production with government backing. At last, FrieslandCampina moved its UK headquarters and opened a new technological center in Malaysia.

Up 9% from last year, Amul Dairy revealed a record turnover of Rs 12,880 crore in 2023–24 in India.

Daisy Brand spent $708 million on a new facility in Boone, Iowa, generating 255 jobs in the United States. While Walmart is establishing a milk processing factory in Robinson, Texas, Oberweis Dairy will shut its North Aurora operation after bankruptcy. Darigold named Allan Hattum chief executive. General Mills is considering selling its North American yogurt company—including Yoplait—for about $2 billion. Mars Inc. started a $47 million project on environmentally friendly dairy farming. Nestlé sold Grupo Gloria its Cayambe, Ecuadorian plant. Danone finished acquiring Functional Formularies with Ohio bases.

Nestlé confirmed its Latin American footprint by selling Grupo Gloria its Cayambe, Ecuadorian factory. Tropicale Foods is now concentrating its output on Texas and Ontario, California, after closing its Modesto, California facility.

June’s Global Dairy Dynamics: Strategic Shifts, Facility Overhauls, and New Leadership Amid Market Challenges

Strategic actions, financial outcomes, and new facility debuts defined the transforming global events the dairy industry experienced in June. In Australia and New Zealand, the sector faced apparent difficulties. High expenses, dwindling sales, and unpaid debt for New Zealand’s Synlait Milk caused numerous suppliers to stop delivering milk. NZD 19 million ($12 million) was lost, according to Oceania Dairy. But looking for fresh guidance, Australian Dairy Nutritionals hired Mahi Sundaranathan as CEO. Two elderly Waikato facilities were closed, and Fonterra announced leadership changes. In line with its optimizing strategy, Saputo sold Coles Group Ltd.’s Australian fresh milk facility for CAD 95 million ($70 million).

Critical events in Europe included the Dutch business DL MI under Royal Friesland Campina, which was building a new dairy facility in Malaysia, tripling output capacity. Unternehmensgruppe Theo Müller’s UK business bought Yew Tree Dairy, strengthening its dry product line. It only shelved its first UK plant proposal. At the same time, German cooperative DMK Group announced closing its Dargun factory because of low milk quantities. Lactalis intended to shut down its Romanian operation and concentrate on other sites. Kerry Group expanded production by building a new cheese facility in Ireland. DMK Group bought Polish Mlekoma Dairy to increase their European activities. Ehrmann AG bought Trewithen Dairy from the United Kingdom.

Suntado opened a sizable manufacturing plant in Idaho, USA, which increased raw milk processing capacity. Focusing on cheese manufacture and improving technical capacity in Wisconsin, Saputo announced the closing of six US plants. Citing worldwide market circumstances, Saputo witnessed a 1.7% revenue gain but a 42.1% net profit drop financially.

Because of declining pricing and modest worldwide dairy demand, Saputo’s performance in Canada followed global trends with higher income but lower profitability.

Aiming for 2.8 million bottles daily, Yakult Honsha opened a new facility in the Philippines to accommodate growing demand, which is seeing growth in Southeast Asia. Fonterra intended to launch a new applications center in Wuhan, China, to increase its regional visibility by September.

The Bottom Line

Strategic activities, financial changes, and sustainability initiatives have defined the first half of 2024 in the global dairy sector as proof of resilience among changing market circumstances. Significant events include mergers, sustainable technology, market diversification, and leadership transitions, underline the dynamic character of the sector. The industry is still dedicated to strategic development, creativity, and sustainability, improving output, broadening market reach, and prioritizing sustainable practices. These changes demonstrate how actively the dairy sector determines its future in line with world sustainability objectives, using technology and changing to meet customer needs. Staying alert and creative will help stakeholders guarantee a prosperous and sustainable future in the second half of the year.

Key Takeaways:

  • Leadership Changes: Major leadership transitions occurred, including the appointment of new CEOs and strategic retirements.
  • Market Expansions: Several companies expanded their presence in new markets, including Nutura Organic’s growth in Vietnam and Thailand.
  • Mergers and Acquisitions: Noteworthy deals include ADM’s acquisition of Revela Foods and Danone’s divestment from Horizon Organic and Wallaby operations in the USA.
  • Strategic Partnerships: Partnerships like Cathay Capital’s collaboration with Savencia to bolster the latter’s footprint in China were prominent.
  • R&D Investments: Substantial investments in research and innovation, such as Valio’s “Food 2.0” project, aimed to reshape the future of food systems.
  • Sustainability Efforts: Initiatives to reduce carbon footprints, such as Lactalis’s new solar plant, highlighted the industry’s move towards sustainability.
  • Production Efficiency: Numerous companies, including Fonterra and Danone, announced plant closures and consolidations to enhance production efficiency.
  • Financial Highlights: Revenue fluctuations and profit changes were reported by major players, reflecting market conditions and strategic decisions.
  • Technological Advancements: Investments in technology and infrastructure, such as Mars Inc.’s sustainable dairy production plan, underscored the focus on innovation.

Summary:

In the first half of 2024, the global dairy sector experienced significant changes due to new technology, market swings, and strategic mergers and acquisitions. These events impacted consumer tastes and global marketplaces, emphasizing the importance of understanding current market circumstances and preparing for trends influencing consumer behavior and corporate plans. Key events included Midwest Dairy CEO Molly Pelzer’s retirement, Cathay Capital partnering with Savencia Fromage and Dairy to enhance its market position in China, Pinlive Foods starting cheese manufacturing in Shanghai, Natural Organic expanding its operations in Vietnam and Thailand, Volac International selling Denkavit in Europe, Danone transferring Horizon Organic and Wallaby brands to Platinum Equity, and Lactalis building a solar power facility in Verdun to reduce CO2 emissions. In February, the dairy sector experienced notable developments, including expansions, environmental projects, packaging innovations, mergers, and leadership changes. In April, Qatar and Algeria contributed to a 200,000-ton increase in powdered milk output. In May, strategic shifts and ambitious investments were made, including Valio shuttering two manufacturing plants, Dairygold cutting cheese output, Arla Foods Ingredients buying Volac, Kerry Group establishing a cheese facility in Charleville, and FrieslandCampina moving its UK headquarters and opening a new technological center in Malaysia.

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