Dairy Herd Management Market - Industry Analysis, Market Size, Share, Trends, Growth and Forecast 2022 - 2027
Dairy Herd Management Market Overview
The dairy herd management market size is estimated to reach $4.6 billion by 2026. Furthermore, it is poised to grow at a CAGR of 6.84% over the forecast period of 2021-2026. Dairy herd management provides insights and efficient management techniques, which the producers and managers can adopt. Moreover, the following management offers safer, healthier, and higher quality dairy products. Dairy herd management is highly correlated with the concept of smart farming, for which the modern-day lingo is- Third Green Revolution. Additionally, modern information and communication can help the producers and managers to offer sustainable produce with low labor dependence. Furthermore, milking parlours have started to adopt modern-day technological dairy equipment to assist them in finding any probable disease or find a low production from a particular herd. The insights readily provide with actions that can cross-correct the course of action. Furthermore, the following management practices promise to save time and money by using herd analytics, forage quality, and cow comfort.
The technological advancements to develop reliant systems and the growing need for finding sustainable products and processes are some of the factors driving the dairy herd management industry forward in the projected period of 2021-2026.
The report: “Dairy
Herd Management Market Forecast (2021-2026)”, by Industry ARC covers an in-depth
analysis of the following segments of the Dairy Herd Management Market.
By Product- Automated Dairy Herd Management Systems and Software &AI.
By Application- Milk Harvesting, Feeding, Breeding, Heat Management and Comfort, Health Management, Calf Management, and Others.
By Farm Size- Small Scale Farms, Medium Scale Farms, and Large-Scale Farms.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, and Rest of South America), and Rest of the World (the Middle East, and Africa).
- Geographically, Europe’s Dairy Herd Management Market dominated the market and held the largest revenue share in the year 2020. It is owing to the predominant position of the following region in producing raw milk. Moreover, the management systems for the dairy herd are predominantly used in controlling and producing the maximum output with sustainable practices. However, Asia-Pacific is set to offer lucrative growth opportunities in the projected period. It is owing to the recent adaptation of farmers to use technology. Additionally, the availability of cheap mobile internet has increased their subject knowledge and the associated benefits of adopting such practices.
- The advent of the latest technology in dairy herd management is one of the drivers for the following market. However, ongoing campaigns and the availability of alternative dairy products are a growth dampener and are a grave market challenge.
- A detailed analysis
of strengths, weaknesses, opportunities, and threats will be provided in the
Dairy Herd Management Market report.
Dairy Herd Management Market Share, By Application, 2020(%)
Dairy Herd Management Market Segmentation Analysis- By Product
The dairy herd management market based on the product can be further segmented into Automated Dairy Herd Management Systems and Standalone Software and AI. The automated dairy herd management systems held a dominant market share in the year 2020. It is owing to the vast areas of managing it covers. For example, the milk management systems can help enhance profits, reduce the wastage of milk, and, lastly helps in interacting with customers. Moreover, reproductive health management systems help confer the health of the mother and the newborn calf and the dietary supplements and intakes necessary. Moreover, the body condition of a pre-calving cow will influence her post-calving feed needs and her rebreeding performance. For example, a thin body condition at the time of breeding, post 20 days, will result in a 4% chance of pregnancy. However, a good body condition post-breeding can have a 65% chance of getting pregnant. The following aspects have helped the following segment in the market.
However, Software and AI is estimated to be the fastest-growing, with a CAGR of 7.6% over the forecast period of 2021-2026. It is owing to the advent of analytics and AI in the field of dairy management. Moreover, IoT tools have helped gain better insights for production, breeding, and overall health metrics which would help in achieving the objectives related to smart farming.
Dairy Herd Management Market Segmentation Analysis- By Application
The dairy herd management market based on applications can be further segmented into - Milk Harvesting, Feeding, Breeding, Heat Management and Comfort, Health Management, Calf Management, and Others. The milk harvesting segment held a dominant market share in the year 2020. It is owing to the dependence on the final products which can be manufactured by using automated systems. As a result, higher efficiency can be observed while using the management systems for the milk harvesting procedure.
Moreover, the milk harvesting segment is estimated to be the fastest-growing, with a CAGR of 7.9% over the forecast period of 2021-2026. It is owing to the various supplantation program such as SNAP by the USA and will help 42 million users with a benefit of $36 a month. The following would create demand, which will further help the market and the segment to grow.
Dairy Herd Management Market Segmentation Analysis- By Geography
The dairy herd management market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held a dominant market share of 35% as compared to the others. It is owing to the region’s predominant position in producing dairy and other ancillary products related. As per the 2020 data factsheet, the European region contributed to around 65% of the total exports. With the rising farm sizes across the region, the need for dairy herd management systems was primarily utilized to maintain quality, quantity, and other distinguishing factors.
However, Asia-Pacific is expected to offer lucrative growth opportunities to marketers. It is owing to the growing demand for milk and dairy products from other regions. Moreover, Europe’s dominant position negatively affects the price and demand. Hence, the global organizations have started to expand their operations beyond, which will primarily help in the growth of the following region’s market in the projected period.
Dairy Herd Management Market Drivers
The recent adaptation of sustainable practices will augment the growth of the dairy herd management market.
Dairy herd managers have widely adopted sustainability
models. For one, they help in conserving the environment. For two, they help
them save costs in their daily operations. For example, MVP dairy, a budding
farm model, has adopted manure management, soil health management, and
bio-diversity in totality. The results generated from their regenerative
farming provided them with strong results. They observed a CO2 reduction of
6,755 tons in a year, which was equivalent to saving energy from 662 American
homes. Moreover, their manure management systems allowed them to emit 60% less
emission than the traditional methods. Similarly, other managers of dairy herds
save costs up to $200,000 a year by using organic digestate instead of chemical
fertilizers, which in turn reduces carbon emissions and soil erosion. The
following practices adopted will help in the growth of dairy herd management
The usage of AI models and analytics has subjugated the demand for the following market.
Dairy producers have always encountered problems pertaining to labor shortages and hikes. Moreover, technology such as AI and analytics have helped in compensating for their need. For example, as per the recent testimonial by the DeLaval Dairy Service, age-old dairy producers, and managers, said that the challenge for finding reliable labor or people forced them to adapt to machines and robots in their daily activities. As a result, they adopted using robots, which helped save the hours and the labor cost associated by up to 52-54%; moreover, it helped to increase the consistency of post-dip application, which have helped mitigate the use of laborers in the broader terms.
Dairy Herd Management Market Challenges
The advent of alternative dairy products and unethical dairy practices have hampered the growth of the dairy herd management market.
Alternative dairy products have taken the market by surprise. More so, the demand for alternative dairy products came into the spotlight when the ill effects on the dairy practices were highlighted. As per the researchers, a cup of coffee made from cow’s milk provides 53grams of C02, which can be mitigated by up to 50% if plant-based milk is used. Furthermore, soy milk takes 297 liters of water to produce; however, cow’s milk can take up to 1050 liters of water. The following discrepancies, along with ill practices for dairy production, is set to hamper the market's growth.
Dairy Herd Management Market Competitive Landscape
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the dairy herd management market. The top 10 dairy herd management market companies include:
- DeLaval Inc.
- Merck & Co., Inc.
- GEA Group Aktiengesellschaft
- Afimilk Ltd.
- Fullwood Packo
- Pearson International LLC
- In January 2021, MSD Animal Health, a division of Merck & Co., Inc. went into a partnership with LIC Automation. The latter provides specialized and integrated herd management systems and testing sensors for the livestock. LICA is a leader in automation and technology for the dairy industry which in turn will help MSD Animal health especially in increasing its reach.
- In March 2021, GEA Group launched their platform- GEA Dairy Net. The following would help in analysing and collecting data at the milking parlors and help them achieve more efficiency. GEA has engineered this new herd and farm management system based on over 35 years of experience in the field and marks the latest evolution in the proven GEA DairyPlan system.
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