Disruptive Technologies Could Help Dairy Industry Prosper

IDFA CEO Michael Dykes Tells Leaders at Dairy Forum to Lead Bold Change

As U.S. dairy farmers grapple with low prices and decreasing demand for milk, producers and allied industry members are setting their sights on a path forward to growth and prosperity. This was at the center of the discussion at the International Dairy Foods Association (IDFA) Dairy Forum in Orlando, FL, in January.

Michael Dykes, DVM and IDFA president and CEO, highlighted the importance of embracing disruptive technologies and focusing on three critically important areas to position dairy’s path forward: sustainability, innovation and trade to help the industry prosper, emphasizing that “leaders need to work as a team to listen, learn and lead bold changes as we look to the future of the dairy industry.” Dykes shared that to achieve continued success, dairy leaders must center their attention on sustainability, innovation and trade.

See Michael Dyke’s full message to attendees here.

Dykes’ message included direction from a recent study in partnership with McKinsey & Company designed to delve deeper into a winning growth formula for dairy. The research analysis recommends U.S. dairy companies consider four strategies to help the industry prosper:1

  • Innovate to capture domestic growth.
  • Revamp the supply chain to serve a new type of demand.
  • Export to markets with high projected dairy deficits and attractive trading environments.
  • Invest directly in deficit markets to maximize long-term success.

The study also suggests that as the consumer and global environments continually evolve, so should a bold new outlook supported by a growth model that can revolutionize the industry. This is due in large part to modest growth forecasts, shifting consumer tastes and increased domestic competition.

Complete research results can be found here.

“At Merck Animal Health, innovation is at the core of what we do to advance animal health and care,” says Dr. Justin Welsh, executive director, food animal technical services for Merck Animal Health. “Our dedication to the health of animals and the people who care for them is not just our job – it’s our passion. We offer innovative programs and technical services to help protect the health of animals and support safe and affordable food supplies.”

Check out this Merck Animal Health Infographic on a Sustainable Food Supply in Perspective.
1McKinsey&Company. Adams, C., Tores Maluf, I., Meilhac, L., Ramirez, M. and Uchoa de Paula, R. A winning growth formula for dairy. February 2019. https://www.idfa.org/docs/default-source/news-files/a-winning-growth-formula-for-dairy-mckinsey-2019.pdf. Accessed February 21, 2019.