The EMEA cluster is driven by customer demands for farm management that draw on high levels of automation and advanced technology. In Europe, the large number of family farms, combined with the lack of labour in the dairy industry, is a solid base for the automatic milking market to expand further. Farmers are also seeking to increase their productivity and reach the highest standard of animal health and milk quality, supported by various automated sensor technologies. Meanwhile, animal welfare and environmental protection are hot topics with new regulation coming into force. The new CAP will also be launched in 2021, but should not reverse the expected rationalisation of the farming industry in Europe, and productivity gains through digitalisation and advisory services are expected to increase. In the Middle East and Africa, political instability and a weak economic outlook are driving the dairy industry into ‘opportunistic strategies’ that could change ‘go to market’ models in the future.
The Americas cluster continues to be an important area for DeLaval, with the U.S. being one of our largest markets worldwide. The Americas produce more than 25 per cent of the world’s milk supply. While challenges like extreme weather conditions and geopolitical uncertainties have created some volatility, a more favourable milk price and reduced trade tensions mean analysts are optimistic about the prospects for dairy in 2020. Farm consolidation and labour shortages are driving the adoption of high-tech solutions to achieve scalability and greater efficiency. Dairy producers in the U.S. and Canada are already benefiting from the newly launched DeLaval VMS™ V300 milking system that meets the needs of the large-herd segment for 1,000+ cows. Producers in Latin America are also interested in robotics to increase milk production and modernise operations. DeLaval continues to benefit from the tremendous success of the largest robotic dairy in the world – Ancali Agricola in Chile where 72 VMS units milk 4,000 cows. Latin America also sees increasing demand for various solutions to improve milk extraction and farm management.
The Asia Pacific cluster provides a dynamic business environment with different farming styles – including traditional family farming systems in Japan, small herd production in India and South East Asia, low-cost pasture production systems in Oceania and intensive large farms that are growing rapidly across China and Russia. Consumer demand projections for dairy products continue to grow rapidly throughout the region with many larger customers now operating outside their traditional country of origin. Increased automation, digitalisation and interconnectivity continue to be key customer demands. Data collection and milk analysis management are a major focus for our large customers, with products like the DeLaval Herd Navigator™ HN500 proving very successful in Japan. Customer programmes like the InService™ All Inclusive performance plans provide our customers with quality hygiene and teat care products, preventative maintenance programmes, and both off and on farm diagnostics. China has been very successful in the delivery of these programmes, including operator training, not only on equipment but also covering animal welfare and milk quality.