Disrupting the cow

Globally, the dairy industry accounts for approximately 18% of total food revenue. In the next decade, the consumption of dairy products in developing countries is projected to increase, and in contrast, a decline in production of dairy products is expected in developed countries.

Major disruption is occurring in terms of how products are produced and distributed. This has arisen due to the need to produce dairy more sustainably and efficiently.

Going forward, South Africa must prepare to shift to a more modern way of producing dairy products for the industry to survive in the future.

Disruption of an industry is not a negative event, but rather an opportunity to innovate and expand.

This disruption entails the use of digital technologies to achieve sustainability in the dairy industry, paired with a focus on the consumer’s want and need for a nutritious and affordable product.

Decades ago, dairy products were delivered to homes, and dairy farmers managed their operations without regulatory, political and economic influence. There were fewer retailers and a smaller variety of dairy-related products available to consumers.

Times have changed. Today we see extended categories of dairy-type products, many which incorporate non-dairy ingredients such as plant-based, imitation dairy products. Costs of production have increased; yet consumer pressure to reduce costs remains, and the growing global demand to reduce the impact of production on the environment is now more than a trend – it is a necessity.

Harnessing technologies and models, such as Food-as-software technology, to produce dairy products that are nutritious and low cost may be the only way to meet industry demands.

Food-as-Software refers to a model of food production that adopts the principles of computing. With this technology, food is designed by altering molecules to produce products of a certain taste, texture and nutrition.

These digitally modified products are designed to compare with the protein content, flavour and textural properties of cow’s milk. In this model, there is no need for a physical cow to produce milk, thereby decreasing the impact cows have on the environment.

Other uses of technology to improve the efficiency of the production of the milk in the supply chain include the use of wearables on cows. With these, farmers can measure the productivity of the individual cow based on the milk produced, and gather data to maximise economic and sustainability benefits at relatively low cost.

Virtual reality is used to make the cow feel more comfortable, by letting it think it is still outside while it is being milked indoors, which increases the output of milk per cow. Augmented reality coupled with facial recognition allows the farmer to check in on each cow with a smartphone, count the herd, and be notified if a cow is sick or injured.

As we move into the next decade, perhaps dairy farmers may need to start thinking of themselves as tech-company owners.

Dairy agriculture has certainly been in the spotlight with regard to the impact dairy farming has on the environment. With the use of tech, farmers and producers of dairy products can measure total carbon footprint, and ensure animal welfare and the transparency of the supply chain throughout, thereby benefiting the planet and communities. Using this data, a story is told to the consumer, which could have a positive effect on producers’ and farmers’ brands.

Consumer awareness is growing, and there is a demand for more nutritious and sustainable alternatives to current food. This includes the movement to include more plant-based foods in our diets. Many dairy-product-producing companies have embraced this, and have begun producing plant-based (imitation) products as an alternative revenue source.

All businesses along the supply chain will be affected by disruptions to the indusrty at some point. It will be a challenge for the industry to adopt these types of digital models to progress into the future.

Although the possibilities associated with technology used in the dairy industry are endless, there is also the possibility that with the introduction of new dairytype products, the industry will become more vulnerable to adulteration or fraudulent practices.

The current regulations focus primarily on composition rather than on food fraud and adulteration. They also have some elements that are open to interpretation, which may be to the detriment of the consumer and/or the manufacturer. If the imitation diary products market is to grow, the compositional requirements must be more clearly defined.

Essentially, the industry, consumerfocused groups and regulators must all collaborate to ensure a future of sustainable and efficient production of dairy products. Without a combined effort to focus on the adoption of these disruptors, the dairy industry may suffer in the long run. •

BY: CANDICE SHARP, FACTS FACTS Food & Allergy Consulting & Testing Services info@factssa.com / +27 21 882 9883