The number of farms across the globe is shrinking. Globally, the number of farms is forecast to reduce by over the next 10 years. Coupled with this trend is the rise in the global population in the next 30 years. With population estimated to reach 10 billion in this period, the need for increased food production across a decreasing number of farms has become pressing. Milk production is going through an upward trend. Key indicators such as milk produced per cow and number of cows are on upward incline. The number of cows were going through a downward cycle till 2005. However, this trend has reversed and there is a continuous increase in the number of milk cows since 2010.
The current forecast period is a favorable cycle for milk production and dairy farmers. The upward trend in milk production, output per cow and number of milk cows is a strong indicator for positive and exponential growth in revenues for systems aiding production. Consequently, feed costs are going through a downward trend, making the forecast cycle a profitable growth period for farms and farm owners.
Increased consumption of dairy products at home is another positive driver for the milk market. Cheese, prepared foods and other dairy products are going through an upward cycle. Milk and dairy exports are increasing in the key countries. The rising milk prices during the period is a significant driver for farmer and farm owners to reinvest in improved technologies for the farm towards maintaining the desired productivity and profitability.
Automation is one of the key technology trends in the dairy farm ecosystem. It forms the basis for the deployment of connected technologies and IoT in farm environments. The advent of Industrial IoT in this environment enhances the intelligence at the farm, thereby enabling the farmer to increase production and revenues exponentially. The adoption of automation systems across the chain – from milking, measuring to cooling and storage is a trend widespread around the world. The market opportunity for automation and connected dairy farm systems is considerable and is expected to be remain like that through the next 5 years. The proliferation of robotics, software and automation systems in the food and agriculture ecosystem is set to transform the fundamental operational characteristics in the dairy farming market.
Arcluster forecasts market revenues from systems, equipment, parlors and services to reach $6.04 billion in revenues in 2021