Archive for New Technology

Boosting Dairy Farm Efficiency: How Robotic Milking Transforms Workflow and Reduces Labor

Ready to make your dairy farm more efficient and give your cows a better life? Learn how robotic milking can cut down labor and streamline your workflow.

Efficiency is vital for successful dairy production in today’s rapidly changing agricultural world. Technological advancements significantly advance production, animal welfare, and farm management. Robotic milking devices are leading the drive to alter conventional dairy procedures. These devices make milking more efficient, minimize labor needs, and provide farm families with a more flexible lifestyle. This article examines the advantages and disadvantages of robotic milking, emphasizing its influence on daily routines and farm architecture. Join us as we look at how these sophisticated technologies improve efficiency, sustainability, and profitability in dairy farming, resulting in a substantial change in farm management techniques.

Robotic Milking Technology: A Revolutionary Advancement in Dairy Farming 

Robotic milking technology is a significant advancement in dairy production. Automating the milking process improves both worker efficiency and animal welfare. The system comprises automated milking machines, heat-sensing equipment, and data management software. Cows enter the station freely, accompanied by electronic tags. A robotic arm carefully cleans and connects milking cups, analyzes milk flow, and assures maximum extraction. The system then prepares for the next cow by cleaning the equipment.

Advancements have increased the efficiency and accessibility of this technology. Modern milking systems utilize machine learning to tailor the process, enhancing comfort and production. Improved sensors and data analytics enable farmers to monitor their herds better, promoting proactive health and productivity management. These solutions reduce manual labor, increase milk output, and improve farm management.

Transforming the Dairy Industry: The Multifaceted Benefits of Robotic Milking Systems 

Robotic milking systems are transforming dairy farming by significantly decreasing manpower needs, allowing farms of all sizes to function effectively. This technology enables dairy farm families to manage their time better and avoid the tight timetables of conventional milking.

Robotic milking not only saves labor but also improves cow well-being. Since cows pick when they are milked, they enjoy a more peaceful and stress-free atmosphere. This autonomy improves their well-being, increases milking frequency, and may lead to larger yields.

These systems may effectively handle up to 250 cows, allowing even relatively big dairy enterprises to save money on labor and enhance their lifestyle. Integrating robotic milking promotes a more sustainable and compassionate approach to dairy production, establishing a new industry standard.

Designing for Efficiency: Crafting the Ideal Barn Layout for Robotic Milking Systems 

Optimizing efficiency in robotic milking systems is dependent on creative barn design. Open areas around milking stations enable simple, voluntary cow access, increasing milking frequency while minimizing labor requirements. Escape pathways are essential because they provide cows a place to flee if uncomfortable, reducing stress and encouraging natural movement. Lameness prevention is critical for sustaining efficiency, including providing comfortable stalls, keeping alley floors clean, and washing feet regularly. These characteristics improve cow welfare and guarantee regular milking station visits, increasing herd output. A well-designed barn incorporates these elements, reducing operations and optimizing the advantages of robotic milking equipment.

Overcoming Challenges in Robotic Milking: Strategic Solutions for Enhanced Efficiency 

Robotic milking systems provide unique problems that require careful planning to maximize their performance and achieve labor savings. Variable milking periods, for example, may influence cow health and productivity levels. Implementing rigorous scheduling guidelines that balance robotic system flexibility with regular milking periods may help address this problem. Using machine learning to forecast and adapt timetables based on individual cow behavior might also be advantageous.

Foot washing is another major problem since variable milking times make it challenging to maintain adequate foot care. Integrating automatic foot baths into milking stations may guarantee that cows get the necessary care throughout the milking process. Regularly cleaning alley floors and providing comfortable, non-slip surfaces may minimize lameness.

Effective cow routing systems are required when dealing with special needs cows. Milking stations designed with built-in separation options may automatically route these cows to specialized care sections, assuring timely treatment without disturbing the flow for healthier cows.

Simple and efficient cow routing throughout the barn is critical. Guided traffic systems with commitment pens help regulate cow mobility, although they may cause stress in lower-ranking animals. If adequately managed, accessible traffic networks where cows may travel at their leisure are desirable. They need close supervision and early response to reduce labor-intensive cow fetching.

Addressing robotic milking systems’ limitations requires new technology, intelligent barn design, and strict management practices. By resolving these issues, dairy producers may fully realize the benefits of robotic milking, including significant labor savings and increased cow well-being.

Innovative Solutions for Efficient and Humane Robotic Milking 

Innovative technology must be combined with intelligent management methods to address the issues of robotic milking. Variable milking intervals make foot-washing regimens difficult. Still, adaptable foot bathing devices like mechanical foot baths may keep hooves healthy without disturbing the milking process.

Efficient barn design is critical for sorting and managing special needs cows. Clear cow navigation pathways and convenient separation alternatives at milking stations make these chores easier. Equipping stations with sensors and machine learning may help identify cows that need extra care, increasing efficiency.

Cow comfort has a considerable effect on robotic milking performance. Providing comfortable stalls, clean alley floors, and efficient lameness prevention increases cow attendance at milking stations. Designing barns with escape routes and enough space near milking stations decreases stress and improves efficiency.

Labor savings rely on procedures that allow herd personnel to perform all activities independently and an efficient layout and gating system. Both free and directed traffic systems operate well when managed. In contrast, guided systems may stress lower-ranking cows under less optimal situations. Thus, maintaining good management is critical for achieving labor savings.

Integrating robotic milking into dairy production requires inventive design, efficient management, and a dedication to cow welfare. Implementing these best practices ensures that dairy farms operate more efficiently and effectively.

Mastering Cow Traffic Management: Key to Unlocking the Full Potential of Robotic Milking Systems 

Effective management is required to use free and directed traffic systems in robotic milking properly. Cows may visit milking stations freely under well-managed accessible traffic networks, resulting in a stress-free atmosphere that can increase milk supply. Guided traffic systems, on the other hand, simplify cow movement and eliminate congestion, resulting in an orderly flow to and from milking stations. However, ineffective management might negate these advantages. Inadequate monitoring in free traffic systems often requires human intervention, such as bringing cows and negating labor savings. In guided traffic systems, bad management causes longer standing periods, particularly for lower-ranking cows, which increases stress and reduces output. Thus, diligent management is required to maximize both infrastructure and herd welfare. Flexible farm design and well-established processes help to ensure seamless operations. A careful herd manager’s skill is critical in realizing the benefits of robotic milking, which range from increased labor efficiency to enhanced animal comfort.

The Bottom Line

Robotic milking systems are a game changer in dairy production, dramatically increasing efficiency and lowering labor needs across all farm sizes. These technologies overcome conventional milking difficulties by allowing farm families to live more flexibly while enhancing cow welfare via less stressful barn design and rigorous lameness avoidance. Furthermore, effective cow traffic management and the installation of proper routing and separation procedures are critical to attaining robotic milking’s full labor-saving potential. Integrating such modern technology requires an initial investment. Still, it offers significant returns in terms of more excellent production and simplified processes. As a result, dairy producers are urged to consider robotic milking systems as a feasible alternative for improving farm operating efficiency and overall profitability.

Key Takeaways:

  • Robotic milking reduces labor demands and provides a more flexible lifestyle for dairy farm families, particularly for those managing up to 250 cows.
  • Barn layouts that offer adequate open space near milking stations and escape routes for waiting cows can lead to higher milking frequency and reduced need for fetching.
  • Preventing lameness in cows is crucial in robotic dairies, necessitating comfortable stalls, clean alley floors, and effective foot bathing practices.
  • Variable milking intervals bring about challenges in areas such as foot bathing, sorting, handling, and managing special-needs cows, making appropriate cow routing and separation essential.
  • Both free traffic and guided traffic systems can yield positive results with excellent management; however, poor management may result in increased labor and stress for lower-ranking cows.
  • Efficient protocols and layouts should aim to enable a single herd worker to complete all handling tasks alone, ensuring the anticipated labor savings are achieved.

Summary:

Robotic milking technology is revolutionizing dairy production by automating the milking process, reducing labor needs, and offering farm families a more flexible lifestyle. This technology includes automated milking machines, heat-sensing equipment, and data management software. Machine learning is used to tailor the process, enhance comfort and production, and improve farmers’ health and productivity management. Robotic milking systems can handle up to 250 cows, saving dairy enterprises money on labor and improving their lifestyle. Designing for efficiency depends on creative barn design, such as open areas around milking stations, escape pathways, and foot washing. Overcoming challenges requires careful planning, rigorous scheduling guidelines, and machine learning to forecast and adapt timetables based on individual cow behavior. Integrating robotic milking into dairy production requires inventive design, efficient management, and a dedication to cow welfare.

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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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Best Practices when Buying New Technology for Your Dairy Operation

Last week, while, at World Dairy Expo, I took the opportunity to attend a seminar presented by Jeffrey Bewley from the University of Kentucky. His topic was New Monitoring Technologies May Help Manage Cow Reproduction and Health. Before Dr. Bewley started I wondered what his take home message would be and if it would have been better for me to attend another seminar on breeding for feed efficiency.  With more than one topic of interest going on simultaneously and not being able to clone myself, it meant that a choice had to be made. I will need to catch up on the materials shared on feed efficiency via electronic means however the ideas shared by Dr. Bewley struck a desirable note for me.

New Technologies Leading Change

Dr. Bewley started his presentation by stating “Technologies are quickly changing the shape of the dairy industry across the globe. In fact, many of the new technologies being applied to the dairy industry are variations of base technologies used in larger industries such as an automobile or personal electronic industries. These new technologies will continue to change the way dairy cattle are managed, bred and fed.”

Dr. Bewley’s presentation focused on numerous devices that are being connected simultaneously to cows in the University of Kentucky herd to measure performance, reproduction and animal health. Individual cows have more than one device attached to them so that the data captured can be inter-related. He strongly stressed that knowing single observations without knowing other measurements on a cow does not make the dairyman’s job easier. In fact, it makes it harder. Lots of data but no way of linking a piece of information from one device to another does not help make better decisions. In Dr. Bewley’s words “data is only useful if it translates into meaningful actions that herd managers can apply”.

Which Device(s) to Invest In?

The number of devices mentioned, by Dr. Bewley that the team at the University of Kentucky are testing was overwhelming. However, Dr. Bewley did provide thoughts on criteria for dairymen to use when deciding on equipment.

Ideal Technology       

  • Must be cost effective not just something that is nice to have.
  • Needs to be flexible, robust and reliable (barns are harsh environments).
  • Best if device is simple to use and the data captured is solutions focused.
  • Information needs to be quickly available and user-friendly.
  • Equipment supplier needs to be available 24/7 to troubleshoot.

Limitations

  • New technology is not a fit for every dairy. Trial it before you buy it.
  • Some devices are brought to market before they are fully field tested.
  • Software is not always user-friendly. Test if it works for you.
  • Some devices are developed and sold without consideration for work patterns on farm.
  • Avoid stand-alone devices that cannot be linked to other on-farm technology.

How to Judge Benefits

  • Will the information produced be more accurate than was previously available?
  • Will the information provided save on labor costs?
  • Will the information provided lead to increased profit per cow per day?
  • Will the information result in improved product quality?
  • When using the device will there be minimal environmental impact?
  • Will your cows be healthier, have improved reproduction and be more profitable?
  • Will managing the herd be easier and less time-consuming?
  • If a device cannot provide at least two of the above benefits then don’t buy it!

Lessons Learned

Dr. Bewley and his team of researchers have focus on Precision Dairy Farming. Some of the lessons they have learned include:

  • Be cautious about buying early stage technologies.
  • Take the time to thoroughly learn how to use the technology and interpret the results.
  • Integrating the data from the various on-farm technologies takes an expert.
  • Having qualified customer service available is crucial.
  • Give priority to buying devices that will have the largest impact on profit.

The Bullvine Bottom Line

The application of precision dairy farming technologies is important as herd size increases and margins narrow. A good place to get an objective view on technologies that apply to health and reproduction is the University of Kentucky website. Of course, another good source of information are breeders that have already installed the technology. Ask them both what’s good and what’s not so good about the device. By all means identify where your operation can be improved and then pencil out the cost – benefit of each technology. Applying technology will be a leading contributor to profitability and sustainability on dairy farms in the future.

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From Beakers to Breakthroughs Milk Reveals Its Secrets

The breaking news out of Australia was all about milk. “Unlocking milk’s formula could save lives say scientists” from Monash University.

The opportunities that could (grow) from this study include:

  • New formulas for premature babies
  • Weight loss drinks
  • New drug delivery systems

This ground breaking research was published in the journal ACS Nano, the Monash University For the first time the research goes well beyond the known nutritional values of milk and provides detailed insights into the structure of milk during digestion. This study delves into the detailed structure of milk and how its fats interact with the digestive system.

Research Reveals Interaction of Milk and Digestion

This unique approach to the study of the makeup of milk was funded by the Australian Research Council (ARC). Dr Stefan Salentinig and Professor Ben Boyd from the Monash Institute of Pharmaceutical Sciences (MIPS) led the team that looked at the nanostructure of milk to find out how its components interact with the human digestive system. Their findings are detailed in the article published in 2013:  Formation of Highly Organized Nanostructures during the Digestion of Milk. The Australian team discovered milk has a highly geometrically ordered structure when being digested. Dr Salentinig said the research provides a blueprint for the development of new milk products. It could also lead to a new system for drug delivery. “By unlocking the detailed structure of milk we have the potential to create milk loaded with fat soluble vitamins and brain building molecules for premature babies, or a drink that slows digestion so people feel fuller for longer. We could even harness milk’s ability as a ‘carrier’ to develop new forms of drug delivery.”

Breakthrough Research is Needed for Dairy Development

The dairy industry urgently requires this kind of breakthrough science that has the potential to improve global health and cure disease. It is easy from the day to day side of milk production to keep scientific research at arm’s length forgetting that it moves the dairy industry forward.The Monash research team recreated the characteristics of the digestive system in a glass beaker. They then added cows’ milk.  They found that “an emulsion of fats, nutrients and water forms a structure which enhances digestion. The breakthrough made by Monash University team was the discovery that milk has a “unique structure” during digestion, which they have described as “similar to a sponge.” In simple terms Salentinig summarizes”We found that when the body starts the digestion process, an enzyme called lipase breaks down the fat molecules to form a highly geometrically ordered structure. These small and highly organized components enable fats, vitamins and lipid-soluble drugs to cross cell membranes and get into the circulatory system.” 

Specialist Instruments Simulate Digestion

The progress in science gains further impetus from the astonishing progress in recent years in medical technology. Collaborations among physical scientists, engineers, and doctors have given us CAT scans, Magnetic Resonance Imaging, and a wide variety of therapeutic devices.  This was also part of the work in Australia. As well as laboratory work at MIPS, the researchers accessed specialist instruments at the Australian Synchrotron to simulate digestion and accelerate the research. Using enzymes present in the body, water was added to milk fat to break it down, and the Synchrotron’s small angle X-ray scattering beam showed that when digested, the by-products of milk become highly organised. Dr Salentinig said the structure is similar to a sponge, potentially enhancing the absorption of milk’s healthy fats. He further elaborates “We knew about the building blocks of milk and that milk fat has significant influence on the flavor, texture and nutritional value of all dairy food. But what we didn’t know was the structural arrangement of this fat during digestion,” The possibilities promise exciting results. “We could even harness milk’s ability as a ‘carrier’ to develop new forms of drug delivery.”

A Post Genomics Revolution

The dairy world has been changed by the genomics revolution and the practical benefits are more evident all the time. It is important to recognize how strong science provides practical benefits to the dairy industry. However, that strong science cannot exist without support.  It is especially important not to neglect fundamental research. It is from this curiosity-driven, disciplinary research that projects such as the one from Monash can contribute to understanding and real progress for the dairy industry. We need research to lead the way to advances in detection, diagnosis and treatment of dairy diseases and even ways to advance human health prevention, diagnosis and treatment.  Although it is unlikely that science and technology will solve all the problems, it is equally unlikely that they will be solved without research.

The Bullvine Bottom Line

With regards to milk, the next phase of the research studies at Monash University includes working with nutritionists to make stronger links between these new findings and dietary outcomes. Ultimately the plan is to utilize these findings to design and test improved medicines.  The Australian researchers have the vision, commitment, and most importantly, the funding. It only proves that Mother was right, “Don’t cry over spilled milk!”  Instead, we should applaud, encourage and support dairy research, wherever we are.

 

 

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