This month we dive deeper into the dairy industry, its challenges, and the impact the COVID-19 pandemic has on the industry. The dairy industry is involved in everything from the production of fresh, condensed, and dried milk, yogurt, custard, but also products like butter and cheese. Alternatively, it can also involve the packaging process of products or ingredients solely. Worldwide, the European Union is leading as the largest producer of milk in both absolute and relative terms to the population. The same goes for the production of cheese. However, the largest producer of butter is, in fact, India, second to the EU, with just about half the production.
Manufacturers often have to cope with numerous kinds of end products or by-products that can be made or derived from milk. As various (by-)products are produced, it is important to separate your production stream. During the production of dairy products such as cheese, weight registration can become problematic. As the cheese will dry out as it matures, it affects the weight of the products. Or when the cheese is split up into smaller pieces. This requires a system that can handle these specific challenges and provide your business with a reliable and accurate overview.
As a result of the COVID-19 pandemic, there has been a drop in demand for dairy products from both EU and non-EU countries. This can have a serious impact on the European dairy sector. Over the past few years the market remained stable, but now we can see a clear shift. The fall in prices, difficulties with exporting goods, increased packaging prices, and increased freight prices make export not economically feasible. In particular, to third-world countries. The reduced demand and consumption, in particular from the hospitality industry, is putting pressure on farmers and processors. The EU parliament stated estimations of the European dairy sector currently losing 120 million euros in revenue. Consequently, there are concerns and parliamentary questions about support funds and other measures to support the dairy sector.
Due to the COVID-19 pandemic, the consequent drop in demand, and increase in, for example, packaging prices, there is even more pressure on efficiency and working in a cost-effective way. Moreover, the dairy industry faces some unique challenges, like managing scales during the production process. To assist your food business in the dairy sector, you need the right system in place. Through an integrated software platform that is specifically build for the food industry, you will be able to tackle these challenges, work more efficient and grow your business to the next level.
If you’re interested to learn more about the possibilities please get in touch to have a chat!
In case you missed our previous articles about the bakery and confectionery industry, be sure to give them a read as well.