Wrap Element
health appeal (in that it can be
enjoyed by consumers both
lactose-tolerant and intolerant
alike) and is disassociated
from the detrimental
environmental impact of the
traditional dairy industry.
The shifting allegiance of
younger consumers away
from traditional milk has
previously been referred to
by the former chairman of
Dairy UK, David Dobbin, as
“a demographic time bomb”.
Put simply, plant-based milks
represent an existential
crisis for traditional dairy;
younger consumers look set
to continue the move away
from dairy milk and thus
create a future in which their
loyalty to plant-alternatives
is propagated while dairy
loyalists fade away. The
question is, what can the
dairy industry do to renovate
their image and win over
both transitioning and new
customers alike?
Exploring New
Markets: Chinese Dairy
is on the rise
Perhaps surprisingly, one of
the answers may come from
looking to regions that may
not typically be considered
big dairy consumers.
Consider for example that
– although the recent trade
war between China and
the US has put some dent
in this – China is one of the
top importers of US milk and
cheese products. According
to ResearchandMarkets, the
internal dairy production of
the country has remained
somewhat sluggish despite
a growing economy
leading to increased per
capita consumption of
dairy products; as such,
the research predicts that
Chinese dairy imports will
be worth $10.65bn by 2023.
However, as Li Shengli,
a professor at China
Agricultural University, told
state press agency Xinhua,
“leading Chinese dairy fi rms
Yili Group and Mengniu Dairy
Co are expected to increase
their sales each by ¥30bn
(about $4.35bn) to ¥50bn in
the next fi ve years, and they
are hopeful of joining the top
fi ve global dairy producers.”
For now, exporters have
the advantage of Chinese
companies purely in terms
of production capacity and
success in the Chinese market
could well be a broader signal
to diversify outside of the
traditionally successful dairy
regions.
There are notes of caution
to consider, however; not
only are Chinese companies
themselves looking to beef
Perfect Day
is a brand
that uses 3D
printers to
place cow
DNA into yeast
microfl ora to
ultimately
produce
dairy proteins
identical to
those found in
regular cow’s
milk.
up their production capacity,
but Stockhead has highlighted
that Chinese authorities
may be looking to cut into
imports (at least of dairy
formula) in order to help
drive the growth of national
companies. Such competition
could prove tough to beat but
remains indicative of markets
growing outside of the more
established regions.
Digital Dairy: Evolving
the industry with
the help of smart
technology
One of the dairy ’s other
areas for evolution in the
future is more predictable:
digitalisation and smart
t e c h n o l o g y. C e r t a i n
elements aren’t exactly
n e w, r o b o t i c m i l k i n g
equipment, for example,
will likely be iterative rather
than transformative going
forward, but developing
technologies could open up
whole new approaches for
the dairy industry. Some of
these measures will probably
prove to be more along
the lines of improvements
to effi ciency than industry-
wide evolution; considering
drones as an example, they
are unlikely to revolutionise
dairy but will vastly improve
farmers’ ability to survey
pasture areas and respond
to emergencies.
More likely to provide a shock
to the system is the possibility
of 3D printing dairy products.
One of the principal negatives
of the current form of the
dairy industry is its impact on
the environment. However,
while it would certainly entail
a dramatic shift, the dairy
industry’s long-term future
could lie in replacing their
cows with 3D printers.
Perfect Day is a brand
that uses 3D printers to
place cow DNA into yeast
microflora to ultimately
produce dairy proteins
identical to those found
in regular cow ’s milk.
Although 3D printing at a
cheap commercial scale is
still somewhat nascent, and
shifting away from cows
entirely would likely meet
opposition, the possibility
remains for the industry
to stick to ‘real’ milk while
moving towards the future.
Perhaps more in the near-
term is the industry adopting
the power of machine
learning and big data on a
wider scale. As is happening
across industries, dairy
manufacturers are getting
to grips with the possibilities
offered by the ever increasing
digitalisation of the world
and our ability to process
the data that is produced
as a result. With proper
implementation, however,
big data technologies could
allow dairy manufacturers
to monitor herd health
to a far more granular
degree, as well as tracking
herd location in real-time
and improving production
based on a variety of data
points. The industry still has
large challenges ahead, and
important decisions to make,
but an ever-expanding range
of digital tools could prove to
be what is required for the
next stage of dairy.
Source: https://www.drinks-insight-network.com/features/dairy-2-
0-adapting-the-dairy-industry-to-the-changing-market/
Drink Asia
40
March-April 2020