IDM ¦ Interview
Digitization
of the dairy
industry
Aterm that is on everyone’s
lips, but still hard to grasp
– digitization. What does it
really mean for dairies and
what changes can be expected?
IDM talked about this matter with Prof.
Matthias Lütke Entrup from the International
School of Management in Dortmund, who is
also a partner of the Düsseldorf-based consultancy
firm HÖVELER HOLZMANN.
IDM: Prof. Lütke Entrup, haven’t we been
talking about digitization for decades? What
distinguishes this digital change from the previous
ones?
Lütke Entrup: This digital change is different.
Cycles to the next-step innovation are much
shorter and sometimes they wipe out entire
industries. Markets change much faster nowadays.
10 · May 2020 ¦ international-dairy.com
Take the popular example of the music
industry: the speed at which CDs have been
almost completely replaced by digital streaming
platforms is enormous. Providers such as Spotify
and Apple Music now largely dominate the
market. The publishing industry has also been
revolutionized, as has the retail sector. One
could go on like this endlessly without running
out of examples to demonstrate the speed of
this digital change.
In the "milk" value chain, the calm before
the big storm still prevails in some cases. However,
there are already some harbingers that
announce accelerated digitization. Keywords
in this matter are, for example: smart or precision
farming and the "digital cowshed". If you
now see these developments as an opportunity,
all doors are open to you. Modern technology
combined with optimal data evaluation can significantly
Prof. Matthias Lütke Entrup, HÖVELER
HOLZMANN: Digitization will fundamentally
change many processes and structures
that are still taken for granted today
– and faster than many people realize
increase the efficiency of the whole
value chain.
IDM: Smart & Precision Farming – just fashionable
terms or a real opportunity for the
dairy industry?
Lütke Entrup: Definitely a real opportunity. For
example, farmers can use drones to monitor
growth in fields and control pests with pinpoint
accuracy. Agricultural machinery is increasingly
autonomous and networked. Sensors provide
valuable information about soil conditions (e.g.
fertility and moisture). The data can be merged
with weather data and other data sources such
as from satellites. This enables targeted seed application,
fertilization and irrigation of land areas.
Once implemented, these measures lead to
lower resource consumption and higher yields.
In addition, the soil is protected and managed
more sustainably. In Europe, these technologies
are still relatively uncommon by comparison,
but the United States is a pioneer in the use of
these technologies.
IDM: What does the digital cowshed look like?
Lütke Entrup: Already relatively widespread
are milking carousels or milking robots, which
make the milking process considerably more
efficient. In some cases, robot technology is
already being used for feeding. Depending on
their age, cows are individually fed automatically
by sensors on the cow’s neck which record
the cow’s feeding behavior and feed intake.
Moreover, pedometers
on the cow’s legs measure
the movement activity. This allows optimal
insemination times or diseases to be detected
(Source: iStock-Ekkasit919)
/international-dairy.com
/international-dairy.com
