Dairy Herd Management Market Size, Share & Trends Analysis Report By Type, By End-use (Small-scale, Large-scale, Cooperative Farms), By Region, And Segment Forecasts, 2023 - 2030

Dairy Herd Management Market Size & Trends

The global dairy herd management market size was valued at USD 3.11 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.1% from 2023 to 2030.  Increasing demand for milk and milk products such as cream, butter, and cheese is anticipated to boost the market over the forecast period. Additionally, long-term operational cost benefits associated with herd management solutions are expected to augment market growth. These systems assist in maintaining the health of the livestock by keeping track of feeding habits, environment control, diseases encountered, and livestock behavior.

Managing a herd is a labor-intensive process, and labor costs are quite high, which adds up to the operational cost of any livestock owner. However, in recent times, several advanced products such as milking robots, feeding management systems, and waste management systems have made their way into the market and made cattle management possible with minimal human intervention. For instance, several machines utilized in daily activities such as milking or feeding cattle are now performed with the help of herd management techniques.

Datafication in dairy farms provides farmers with quantifiable information to continuously inspect and respond to farm operations and livestock behavior, improving farm efficiency and profitability. Herd management is becoming increasingly prevalent and has indicated the beginning of a broader trend in dairy operation automation and livestock management. Dairy companies are taking advantage of this trend, adding value to herd management for various cattle and livestock management applications. Automated milking parlors, smartphone data applications, micro-sensor technology, and robotics will become commonplace on dairy farms over the next few years.

In the long term, productivity growth becomes a necessity for the survival of a dairy farm. When the milk price is low, farmers need to exercise even tighter controls on production costs to maximize returns from fixed factors of production such as electricity. The application of automated technologies is a growing trend in the dairy industry and plays a crucial role in the prospects of this market. The automatic systems most commonly used in this industry include automatic identification, milking, detection of estrus, feeding, detection of births, and other farm operations. Adopting these systems has significantly reduced labor demand and increased the productivity of dairy farms.

Innovation and the proliferation of dairy equipment are anticipated to serve as key drivers for market growth. As a result, with the growing installation and mass productivity of related products such as sensors and integrated circuits, the price of dairy herd management solutions is expected to dip soon. Moreover, government initiatives, funds/grants, venture capital investments, and enhancement of complementary technologies are expected to impact the market positively. However, the high cost associated with dairy herd management is anticipated to hinder its adoption among small- and medium-sized farms, especially in developing countries such as Brazil and India.

The market for dairy herd management experienced a favorable impact due to the COVID-19 pandemic. As a result of the outbreak, dairy farmers prioritized incorporating advanced technologies and solutions to manage and monitor their herds effectively. Given the challenges faced in the supply chain and workforce shortages during the pandemic, farmers progressively embraced dairy herd management systems to automate and optimize various tasks related to animal health, milk production, and overall herd management.

Type Insights

The milk management systems segment accounted for the largest revenue share of 62.2% in 2022. It is because milking is one of the major labor-intensive operations, and the installation of milk management systems has significantly reduced labor hours. When the milking unit is no longer a barrier to improving throughput, further improvement can only be achieved by automation and replacing elements of the operators’ work routine, making the job less physically demanding and more efficient. Installing more milking units in large dairies is unlikely to result in efficiency gains for dairy farms.

Herd management software is an integrated system that replaces the manual labor required for operations such as fixed milking duration, waste management, and monitoring and inspection operations so that manual labor worktime can be spent elsewhere. This reduction in labor and improvement in operational efficiency is thereby improving the quality of life of farmers. Reduced labor demands, leading to higher profit margins and greater personal time, also improve their living standards.

The breeding management segment is expected to grow at the fastest CAGR of 7.8% during the forecast period. The breeding management segment plays a significant role in the dairy herd management industry. It is designed to optimize the reproductive processes of dairy herds, allowing farmers to efficiently manage breeding cycles, monitor fertility, and enhance genetic selection for improved milk production and overall herd performance.

End-use Insights

The large-scale dairy farms segment accounted for the largest revenue share of around 65.0% in 2022. This larger share can be attributed to the ability of large-scale farms to deploy dairy herd management software as they have ample finances. On average, large-scale dairy farms generate returns that exceed their full operational costs.

At the same time, small-scale farms generally incur economic losses, and their production value does not exceed full costs, including time costs and the cost of capital committed by their owners. Large farms, on average, incur much lower costs than small-scale ones, and these benefits accrue across a wide range of herd sizes until the economies of scale remain intact. It has been observed that owing to the adoption of dairy herd management systems, the price per ton of milk dropped with an expansion in herd size. For instance, an increase in herd size from less than 50 to a herd size of 500 is anticipated to reduce the operational cost by half. The cost will likely continue to fall with expanding herd sizes, decreasing the milk price.

The cooperative dairy farms segment is estimated to register the fastest CAGR of 7.3% over the forecast period. Cooperative farms benefit from dairy herd management solutions by providing economies of scale, which helps lower production costs for individual farms. Lower production costs can also be passed along to consumers, which helps small farms compete on pricing against their larger rivals/large-scale farms.

Regional Insights

An increasing number of dairy farms and rising labor costs have helped drive the adoption of dairy herd management solutions in several European and North American countries. Advantages such as reduced labor costs and increased operational efficiency of dairy farms have also led to the wide adoption of dairy herd management solutions in agriculture-based economies such as China, Brazil, Japan, and India. Implementing dairy herd management solutions over the last few years was challenging, requiring careful installation. However, in recent years, awareness about adopting dairy systems has increased with growing practical experience.

Europe dominated the market and accounted for the largest revenue share of 31.3% in 2022. This growth is attributed to increasing awareness regarding automation among dairy farm owners, leading to the high adoption of milk and nutrition management systems.

Asia Pacific is expected to grow at the fastest CAGR of 9.5% during the forecast period. Government arbitration plays a major role in regulating market growth. Governments in key dairy-producing countries such as China, India, and Japan monitor the pricing structure and provide subsidies on automation installation to increase productivity. Moreover, growing awareness among farmers about the automation of dairy farm operations is a major driving factor in the Asia Pacific market.

Key Companies & Market Share Insights

The industry players are undertaking strategies such as product launches, acquisitions, and collaborations to increase their global reach. For instance, in March 2023, DeLaval, a milking equipment manufacturer, along with its affiliates UNIFORM-Agri, a herd management software, and a dairy data company, Dairy Data Warehouse formed a strategic partnership with iDDEN. Through this collaboration, the company to offer a safe and fast system that will simplify the exchange of data for the customers. The following are some of the major participants in the global dairy herd management market:

• Alta Genetics Inc.

• DeLaval

• GEA Group Aktiengesellschaft

• Lely

• Afimilk Ltd.

• BouMatic

• Herdlync

• Dun & Bradstreet, Inc.

• SUM-IT

• VAS

Recent Developments

• In April 2023, the European Union of Romania provided farmers with co-financing through grants for milking and feeding robots. Subsidies, grants, and regulatory frameworks support adopting precision agriculture technologies and sustainable farming practices, fostering market growth in the dairy herd management sector.

• In March 2023, DeLaval, a Swedish dairy and farming machinery company, launched a new autonomous feed distribution robot OptiWagon. This innovative solution offers a comprehensive feeding system encompassing key functionalities such as weighing, cutting, mixing, and precise delivery of feed to the designated feed This advanced technology allows for up to twelve daily feed distributions, ensuring regular and optimized feeding schedules for enhanced animal nutrition and overall farm productivity.

• In November 2022, N2 Applied, a technology company, unveiled a strategic alliance with GEA, a food corporation, to expedite and expand the implementation of a revolutionary solution for sustainable livestock farming on a global scale. This partnership is important in empowering dairy farmers and the dairy industry to achieve sustainability goals. GEA and N2 Applied have entered an exclusive partnership for manufacturing and distributing the manure processing solution for livestock farming markets, which will be made accessible worldwide through Gea's sales organization.

• In September 2022, VAS, a connected farm management systems company, launched MyDC on PULSE. This cloud-based herd management platform aims to streamline daily operations by simplifying tasks for farm members. Its user-friendly interface and intuitive guided workflows allow users to easily set up antibiotic protocols and ovsynch schedules and manage overall herd health. All tasks are automatically organized in a calendar view for convenient tracking and planning.

• In June 2021, Waikato Milking Systems, a dairy technology manufacturer, collaborated with Nedap, a dairy herd management technology company. They introduced two products, CowTraQ and TracHQ automation platforms, which automate daily tasks and offer comprehensive insights to dairy farmers, enabling informed decision-making. The partnership aims to enhance dairy farm management and animal care, ensuring timely and proper treatment while providing dairy farmers with advanced technology and management capabilities.

Dairy Herd Management Market Report Scope

Global Dairy Herd Management Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the global dairy herd management market report based on type, end-use, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Milk Management Systems

  • Feeding/Nutrition Management Systems

  • Animal Waste Management Systems

  • Breeding Management

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Small-scale Dairy Farms

  • Large-scale Dairy Farms

  • Cooperative Dairy Farms

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE