Market
The dairy industry is shaped by global trends, which create both opportunities and challenges for DeLaval’s market. The current major trends include:
DEMAND FOR DAIRY CONTINUES TO INCREASE, WHILE SUPPLY GROWTH REMAINS LIMITED
As income and population increase, more dairy products are expected to be consumed globally, especially in dairy deficit regions. Milk production growth in key dairy export regions such as EU and New Zealand is limited due to environmental policies and regulations. US milk production growth has the highest potential among the traditional export regions. Future growth in milk produc- tion will come mainly from increased cow yield rather than herd growth.
MACROECONOMICS REMAIN CHALLENGING
Slow economic growth, geopolitical instability and on-going conflicts, protectionism and potential trade barriers, increased cost of living and high interest rates are all challenges for DeLaval and the wider dairy industry. On a positive note, dairy farmers are seeing improved margins and cash flow thanks to lower milk production costs and higher milk prices.
FARM CONSOLIDATION
Global farm consolidation continues. The continued global shift towards large-scale operations is mitigating escalating costs and increasing efficiency. New opportunities will emerge for progressive farmers who are growth-oriented and invest in an efficient and sustainable production. There is a growing demand for solutions that promote automation, digitalisation and sustainability in the dairy industry.
SUSTAINABILITY
Consumer expectations on sustainability are increasingly reflected in agricul- tural policies, subsidies and incentives from dairy processing companies and retailers. This will continue to trigger sustainability investments by farmers. Dairy farmers’ ‘social license’ to produce milk in developed countries will be tied to reducing the sector’s carbon footprint. The biggest impact DeLaval can have on sustainability is by bringing innovations to farms.
DIGITALISATION
Digitalisation is changing the competitive landscape and creating new business opportunities. Digital solutions are enabling dairy farmers to improve nutritional security, animal health and increase productivity by providing valuable insights that enable informed decisions. Data is becoming critical for farmers to demonstrate improvements, comply with regulations and benefit from incentives.
LABOUR COSTS AND SHORTAGES
Investments in automation and milking robots will continue to increase driven by high labour costs and low availability. Such investments in automation are often a prerequisite for new generations on family-owned farms.
Technology
Revolutionising cow health: artificial intelligence-powered solution unlocks advanced disease risk prediction
The DeLaval Plus Predictions Disease Risk application was refined and scaled up in 2024 to further enhance its disease risk prediction capabilities.
Accurately predicting the risk of disease
The Disease Risk application is part of the DeLaval Plus Predictions service and can support farmers by quickly identi- fying animals at risk of having a disease. The application helps make efficient data-driven decisions, to manage the cows’ health – and ultimately produce more milk.
“Disease Risk combines huge amounts of constantly updated data from DeLaval milking systems and sensors to support farmers in detecting diseases early,” said Martina Dadomo, Product Manager in Digital Services. “The neural network artificial intelligence model used to analyse this data will continuously improve as more cows and farms worldwide are connected.”
Enhanced prediction capabilities
Disease Risk was refined and scaled up in 2024 as more farms began using the application, which further enhances how it predicts the risk of cows having a disease. Additionally, the frequency of updates increased from once a day to eight times a day and new types of diseases were added to the risk analysis to provide even greater insight for farmers.
“I believe the application will become an essential tool that will help farmers to optimise the efficiency of their operations,” claimed Dadomo. “Our progress with Disease Risk in 2024 was an important step on our DeLaval Plus journey that will include more powerful prediction tools in the years ahead.”
The DeLaval Plus: Disease Risk application was among the finalists for the International Dairy Federation (IDF) Dairy Inno- vation Awards 2024 for how it improves animal health and welfare and contributes towards the United Nations Sustain- able Development Goals.
What is DeLaval Plus?
DeLaval Plus is an advanced customer portal that turns farm data into easy-to-understand actionable insights to enable farmers to make fast, accurate decisions that improve sustain- ability and profitability. The portal is powered by DeepBlue, DeLaval’s unique artificial intelligence system that collects and analyses herd data from various farm sensors and milking systems.
