The dairy herd management market is expected to register a CAGR of 7.0% over the forecast period.
The COVID-19 pandemic negatively impacted the dairy herd management market due to substantial hurdles in the supply chain and price volatility. The demand for dairy products reduced significantly amid the outbreak. For instance, in January 2021, an article published in the journal Animal Frontiers reported that the pandemic led to the interruption of farm visits for non-essential activities, such as milk recording, type evaluation, bull dam care, and bull sire recruitment.
Also, due to the financial burden faced by low- and middle-income countries, subsidies for the animal world, either breeder's associations or research, decreased significantly. Thus, the initial impact of the pandemic on herd management was adverse. However, with the introduction of numerous dairy herd management systems coupled with the advantages of these systems and the resumption of dairy farm activities, the market is anticipated to witness substantial growth over the forecast period.
The factors driving the market include the growing herd size of dairy farms, the growth in the adoption of dairy herd management systems and software, the increasing production and consumption of milk and dairy products, and rising funding investments toward the development of dairy farms.
One of the major factors driving market growth throughout the analysis period is the growing herd size of dairy farms, which is accompanied by increased production and consumption of milk and dairy products. For instance, in March 2022, a report published by the DAFM reported that the average dairy and suckler herd sizes in Ireland stood at 901,503 and dairy cow herds were 1,649,362. Such an increase in the dairy herd is likely to positively impact market growth as this will increase the demand for dairy herd management systems among the farmers.
Furthermore, according to an article published in February 2021 by Animal Welfare, the adoption of robotic milking systems in Ontario, Canada, has increased milk production and quality. Similarly, in March 2022, another article published in the JAS reported that a robotic milking system (RMS) increases and improves milk production and quality. Such an increase in the adoption of dairy herd management systems is likely to augment the market's growth over the coming years.
Similarly, introducing newer systems and software will augment the market's growth shortly. In 2021, the article published by the IOP Conference Series: Earth and Environmental Science reported how a complex system of automated herd management, using electronics and touch sensors, allows analyzing milk samples during milking and evaluating the health status of each animal. This advanced technology saves intensive labor. Also, the use of tools such as data analytics and decision-making tools takes cattle breeding to a whole new level. These technological advancements enable efficient utilization of the individual cow's production potential by focusing on their health, monitoring milk quality, effectively managing farms, enhancing productivity, and supervising breeding. These benefits generate increased interest among dairy farmers toward technologically advanced herd management products and further increase their adoption in the dairy industry.
Therefore, owing to the aforementioned factors, it is anticipated that the studied market will witness growth over the analysis period. However, the low awareness in developing countries and the higher initial investment required to introduce this technology into traditional practices are likely to impede market growth.
Manual milking is often very time-consuming; hence, the automation of auto-milking has grown appreciably, reducing the cost and the need for manpower. Automated milking leads to better milk production; therefore, the milk can be harvested and used for various other purposes. For instance, in July 2021, an article published in the Journal of Dairy reported that automated milking could increase milk production by up to 12%. The article also reported that automation helps detect oestrus or diseased cows in herds by determining and comparing outcomes from the normal milk yield, thereby allowing milk production without supervision.
Product development and launches are expected to boost the segment's growth further. For instance, in March 2021, GEA Group launched its platform, GEA Dairy Net. The forum will help analyze and collect data at the milking parlors and assist them in achieving greater efficiency. GEA has engineered this new herd and farm management system based on over 35 years of experience in the field, and it marks the latest evolution in the proven GEA DairyPlan system. Likewise, in October 2022, Dairy technology start-up Stellapps Technologies Pvt. Ltd was granted a 20-year patent for its Farm and Herd Management System, which helps dairy stakeholders remotely monitor and supervise their farms via mobile devices. Through Internet of Things (IoT) gateways, this invention precisely connects feed mixers and dispensers, milking equipment, bulk milk coolers, milk tankers, and animal health monitoring systems to the cloud. Such developments are anticipated to augment the growth of the milk harvesting segment.
Therefore, the milk harvesting management segment is expected to witness significant growth over the forecast period due to the abovementioned factors.
Furthermore, the market is expected to witness growth owing to increased production of milk and milk-related products. For instance, as per the data recorded by the United States Department of Agriculture (USDA), in June 2021, the annual milk production reported in the United States was 226 billion pounds, which increased by 34.4% in the last two decades, owing to the leading company’s innovative technologies and adoption of dairy herd management solutions.
In addition, strategic initiatives are undertaken by regional players to improve the management of dairy herds, such as the development of sensor systems that can measure physiological, behavioral, and production indicators on individual cows, which are predicted to augment the market’s growth. For instance, in June 2021, Merck and Company (a company in the United States) acquired LICA (a company in New Zealand), which manufactures and supplies specialized, integrated herd management systems and milk-testing sensors for the dairy industry. This acquisition has helped Merck and the company to enhance milk production, support dairy herd management activity, and also enabled farmers to retrieve data on the health and milking data of dairy herds.
Thus, due to the aforesaid reasons, the North American region is expected to witness significant growth over the forecast period.
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The COVID-19 pandemic negatively impacted the dairy herd management market due to substantial hurdles in the supply chain and price volatility. The demand for dairy products reduced significantly amid the outbreak. For instance, in January 2021, an article published in the journal Animal Frontiers reported that the pandemic led to the interruption of farm visits for non-essential activities, such as milk recording, type evaluation, bull dam care, and bull sire recruitment.
Also, due to the financial burden faced by low- and middle-income countries, subsidies for the animal world, either breeder's associations or research, decreased significantly. Thus, the initial impact of the pandemic on herd management was adverse. However, with the introduction of numerous dairy herd management systems coupled with the advantages of these systems and the resumption of dairy farm activities, the market is anticipated to witness substantial growth over the forecast period.
The factors driving the market include the growing herd size of dairy farms, the growth in the adoption of dairy herd management systems and software, the increasing production and consumption of milk and dairy products, and rising funding investments toward the development of dairy farms.
One of the major factors driving market growth throughout the analysis period is the growing herd size of dairy farms, which is accompanied by increased production and consumption of milk and dairy products. For instance, in March 2022, a report published by the DAFM reported that the average dairy and suckler herd sizes in Ireland stood at 901,503 and dairy cow herds were 1,649,362. Such an increase in the dairy herd is likely to positively impact market growth as this will increase the demand for dairy herd management systems among the farmers.
Furthermore, according to an article published in February 2021 by Animal Welfare, the adoption of robotic milking systems in Ontario, Canada, has increased milk production and quality. Similarly, in March 2022, another article published in the JAS reported that a robotic milking system (RMS) increases and improves milk production and quality. Such an increase in the adoption of dairy herd management systems is likely to augment the market's growth over the coming years.
Similarly, introducing newer systems and software will augment the market's growth shortly. In 2021, the article published by the IOP Conference Series: Earth and Environmental Science reported how a complex system of automated herd management, using electronics and touch sensors, allows analyzing milk samples during milking and evaluating the health status of each animal. This advanced technology saves intensive labor. Also, the use of tools such as data analytics and decision-making tools takes cattle breeding to a whole new level. These technological advancements enable efficient utilization of the individual cow's production potential by focusing on their health, monitoring milk quality, effectively managing farms, enhancing productivity, and supervising breeding. These benefits generate increased interest among dairy farmers toward technologically advanced herd management products and further increase their adoption in the dairy industry.
Therefore, owing to the aforementioned factors, it is anticipated that the studied market will witness growth over the analysis period. However, the low awareness in developing countries and the higher initial investment required to introduce this technology into traditional practices are likely to impede market growth.
Dairy Herd Management Market Trends
Milk Harvesting Management Segment Expected to Witness Significant Growth
The milk harvesting management segment is expected to garner a significant share over the forecast period, owing to automation milking and significant improvements in all the unit operations of milk processing.Manual milking is often very time-consuming; hence, the automation of auto-milking has grown appreciably, reducing the cost and the need for manpower. Automated milking leads to better milk production; therefore, the milk can be harvested and used for various other purposes. For instance, in July 2021, an article published in the Journal of Dairy reported that automated milking could increase milk production by up to 12%. The article also reported that automation helps detect oestrus or diseased cows in herds by determining and comparing outcomes from the normal milk yield, thereby allowing milk production without supervision.
Product development and launches are expected to boost the segment's growth further. For instance, in March 2021, GEA Group launched its platform, GEA Dairy Net. The forum will help analyze and collect data at the milking parlors and assist them in achieving greater efficiency. GEA has engineered this new herd and farm management system based on over 35 years of experience in the field, and it marks the latest evolution in the proven GEA DairyPlan system. Likewise, in October 2022, Dairy technology start-up Stellapps Technologies Pvt. Ltd was granted a 20-year patent for its Farm and Herd Management System, which helps dairy stakeholders remotely monitor and supervise their farms via mobile devices. Through Internet of Things (IoT) gateways, this invention precisely connects feed mixers and dispensers, milking equipment, bulk milk coolers, milk tankers, and animal health monitoring systems to the cloud. Such developments are anticipated to augment the growth of the milk harvesting segment.
Therefore, the milk harvesting management segment is expected to witness significant growth over the forecast period due to the abovementioned factors.
North America Expected to Witness Significant Growth
North America is expected to witness significant growth owing to crucial factors, such as strategic planning toward dairy herd improvement and government initiatives and policies that have led farmers to improve the organization, leadership, and operation, along with the guidance for further development of dairy herd management activities.Furthermore, the market is expected to witness growth owing to increased production of milk and milk-related products. For instance, as per the data recorded by the United States Department of Agriculture (USDA), in June 2021, the annual milk production reported in the United States was 226 billion pounds, which increased by 34.4% in the last two decades, owing to the leading company’s innovative technologies and adoption of dairy herd management solutions.
In addition, strategic initiatives are undertaken by regional players to improve the management of dairy herds, such as the development of sensor systems that can measure physiological, behavioral, and production indicators on individual cows, which are predicted to augment the market’s growth. For instance, in June 2021, Merck and Company (a company in the United States) acquired LICA (a company in New Zealand), which manufactures and supplies specialized, integrated herd management systems and milk-testing sensors for the dairy industry. This acquisition has helped Merck and the company to enhance milk production, support dairy herd management activity, and also enabled farmers to retrieve data on the health and milking data of dairy herds.
Thus, due to the aforesaid reasons, the North American region is expected to witness significant growth over the forecast period.
Dairy Herd Management Market Competitor Analysis
The dairy herd management market is consolidated due to the presence of a few companies operating globally and regionally. The competitive landscape includes an analysis of a few international as well as local companies that hold market shares, such as Afimilk Agricultural Co-operative Ltd, Boumatic LLC, Dairy Master Inc., DeLaval Inc., Mesoblast Ltd, GEA Group AG, Infovet S.R.L., Lely Holdings (S.A.R.L.), SCR Dairy Inc., Merck & Co., Inc., and Valley Agriculture Inc.Additional benefits of purchasing the report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION (Market Size by Value - USD million)
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Afimilk Agricultural Co-operative Ltd
- Boumatic LLC
- Dairy Master Inc.
- DeLaval Inc.
- Mesoblast Ltd
- GEA Group AG
- Infovet S.R.L.
- Lely Holdings (S.A.R.L.)
- SCR Dairy Inc.
- Merck and Co., Inc.
- Valley Agriculture Inc.
Methodology
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