The manufacturing challenges facing the dairy industry and how to overcome them
The dairy industry is hugely important to the UK economy. The UK is the 13th largest milk producer globally, with an estimated worth of £4.4 billion. Dairy is also a large part of life for many consumers, with many food products on the market reliant on dairy sources for creation.
Despite dairy being a significant and longstanding industry, it faces unprecedented challenges. These challenges affect businesses across dairy production, from farmers to manufacturers.
As the world changes, producers must do too. For plants that process dairy products, this means understanding the barriers in the market and seeking resolutions that mitigate risk, meet demand and maximise performance.
This guide explores the issues facing dairy and what processors can do to overcome the obstacles in more detail.
The challenges facing dairy
Rising costs
The abolition of the milk quota in 2015 has led to a fluctuation in the number of cows in farming. This reduced by 28% between 2019 and 2020.
Although dairy supply has reduced with the falling number of cows, demand has remained steady. This means milk prices have risen – with the increased cost often passed onto processors creating dairy products.
This is on top of other rising costs in UK manufacturing, such as recruitment and energy.
Addressing sustainability pressures
Another issue facing dairy processors is the environmental impact of their production. While this is a factor for all businesses, the energy and water use associated with farming adds pressure.
The drive to improve sustainability affects all parts of dairy production, including farming, processing, packaging, etc. It also covers the welfare of animals used.
Therefore, manufacturers working with dairy need to ensure they are attaining resources from ethical suppliers with processers that aim to minimise emissions and waste. Doing so could cause price fluctuations; however, not making these changes could alienate customers with the resulting decline in sales.
Product variety
When we think of dairy, it’s common to picture the likes of milk and cheese. However, dairy is associated with many product types in the market, including butter, yoghurt, dips, desserts, powders and so on. That’s not to mention the vast volume of brands creating product ranges in each of these formats.
As such, dairy processors are working with countless product types at any one time. Each needs to be processed effectively in its own stream, separated from other output. This means that plants need to be flexible while meeting the requirements of every project.
Ensuring quality and safety
Following the coronavirus pandemic, the need to meet customer standards is higher than ever. There is an increased focus on hygiene and quality.
Food manufacturers must do everything they can to provide excellent experiences for customers, offering high-quality products that can be safely consumed. You need the right processes to achieve this – which could mean adjusting your operations and investing in new systems.
Changing demand
Alongside the changing challenges facing dairy, consumer behaviour and demand has evolved. The most prominent is the rise of veganism globally, in which many people have switched from dairy to plant-based alternatives. This increases competition to the sector and may cause some demand reduction.
There has also been a decline in the doorstep delivery of milk, though the pandemic has seen some resurgence of this trend. These are all consumer trends that reflect how the public consumes dairy – which has knock-on effects on how manufacturing.
It may also cause increased product innovation to satisfy new requirements, so manufacturers need to be agile to cater for such output.
Trade and supply
Brexit has seen a decline in dairy trade between the UK and the EU, with 2020 seeing a negative trade balance for butter and cheese. This might cause demand to decline, with manufacturers restricted to domestic markets or those outside the EU.
Supply chain disruption is also affecting the industry, stemming from the pandemic and Brexit. As such, manufacturers find themselves without the resources they need to create output or having to switch suppliers – leading to potential cost increases and extended timeframes.
Overcoming barriers when processing dairy products
In response to the various obstacles facing the dairy industry in the current climate, many manufacturers are considering what they can do to adapt.
While many of the issues are out of the hands of individual processors, having considered processes in an optimal environment and a detailed understanding of the demand requirements you need to address is key to resilience and performance.
With this in mind, we’ve listed our top tips for dairy manufacturers.
Utilise compatible equipment
When processing dairy products, you need solutions that account for the unique characteristics of the materials you are working with. In most cases, this will mean hygienic, fast, and accurate equipment.
Fortunately, many systems on the market are designed to process dairy products. Typical features include non-stick and anti-static surfaces to encourage product flow and rounded buckets or high IP ratings for ease of cleaning.
Any equipment that sits in your production line needs to be tailored to meet the requirements of your dairy materials to reduce the risk of production issues and allows for faster turnaround times.
Using compatible equipment will maximise quality across your output while eliminating the costs associated with failing to meet customer standards or wastage from incorrectly processed batches.
Create the appropriate conditions
There are specific conditions required when processing dairy. This typically includes cold environments and delicate handling that prevents flaws.
To create the right products and account for customers’ safety and quality concerns, you need to design appropriate conditions for production. Key is identifying equipment and processes that will work in those conditions, such as optimal machinery for lower temperatures.
By using compatible systems in the right conditions, you will maintain the integrity of your products meeting customer expectations. This will also lower waste and optimise your resources in the ongoing supply chain crisis.
Meet different product needs
We have already mentioned the growing need for manufacturers to handle multiple product types. If you are processing a multitude of dairy products, you need to create different lines in your plant to allow each to run smoothly and successfully.
Part of this includes planning for the unique requirements of each of your products and ensuring your production line is equipped accordingly. It also means identifying agile solutions that will work against a wide range of formats.
One example of this is utilising dairy within your product set – for example, cheese topping on pizzas or salads. In this instance, you need a weigher that accurately sorts the topping you need then distributes it effectively.
By understanding the various needs of any product you process and the specifications to meet, you ensure you have sustainable product flows in your plant. This will allow you to maximise productivity and quality across all streams. By doing so, you can remain flexible to any demands a client may come to you with, driving your sales potential.
Lower your costs
With factors like inflation and milk prices out of your control, the best action to take to counterbalance rising expenses is to lower your costs elsewhere.
There are many ways manufacturers can lower their costs. Some of the measures we have already mentioned, such as utilising integrated equipment, optimising your operations and incorporating leaner processes.
On top of this, utilising optimised equipment and processes helps to reduce product giveaway and waste that maximises resources. This also drives through safety, reducing the risk of product recalls while driving sales through high-quality output.
Other cost-cutting measures might include introducing automation to your plant, researching competitive suppliers or conducting cost audits to eliminate unnecessary fees.
Introduce eco-friendly processes
Manufacturers need to be greener to meet global net-zero targets in the modern climate. This means implementing eco-friendly processes into your plant that allows you to reduce emissions and waste.
There are many options to do this, including:
- Utilising solutions with less product giveaway to minimised waste
- Ensuring maximum quality to prevent waste from subpar output
- Using effective waste management
- Use sustainably sourced supplies and working with similarly minded partners where possible
- Choosing machinery that operates with reduced power consumption – such as the Yamato Omega Series
- Seeking ways to recycle and reuse resources
- Enabling faster product times to limit the energy used per cycle
By identifying ways to make your existing processes more eco-friendly, even with just minuscule adjustments, you will help your plant meet your goals without impacting quality.
Many of the solutions listed above will also help to lower your costs and efficiency for further benefits.
It’s also essential to note that customers are now prioritising ethical and sustainable purchases more than ever – by showing you embody this into your production, you have the potential to grow your business further.
Utilise product inspection
One of the leading factors in accessing performance is ensuring high levels of quality. This means creating a product that is safe to consume and satisfies customers’ needs.
Utilising production inspection is the best way to guarantee quality. For dairy products, solutions such as checkweighers, metal detectors and x-rays safeguard against a wide range of contaminants and flaws in production in line with industry and safety standards.
It’s even possible to use x-ray to review the distribution of holes in cheese or other dairy toppings. This intricate attention to your products, ensures that you consistently meet the specification.
Through using product inspection processes, you will improve the quality of your products and ensure that you meet customer expectation whilst building brand value.
Conclusion
As behaviours and contexts change, industries do too. Many factors currently affect the dairy industry, ranging from climate change targets and supply issues to new consumer demand and cost increases.
However, the key to overcoming any challenge is focusing on what you can control and maximising performance. In the dairy industry, this means managing costs effectively, implementing efficient processes, including quality control and understanding the evolving customer requirements.
When you do this, you will ensure you meet standards for enhanced customer safety, maximise the utilisation of your resources and remain agile to what the industry needs. This will continue to grow your reputation and fulfil the goals you set for your production, regardless of the obstacles.
Yamato have a range of solutions that work with dairy products and environments, including product inspection systems, checkweighers and multihead weighers to meet your business needs.
We also offer cost-efficient, environmentally conscious equipment to optimise performance, enabling results across your objectives.