Investing in the Internet of Things: Dairy industry

Charlie Kerlin Charlie Kerlin

The Internet of Things (IoT) is continuing to redefine the potential of everyday items. In recent years, we’ve seen basic jewellery become a real time fitness tracker, cars that can alert a tow service when something is wrong, and light bulbs that dim when no one is around.

Infusing products with smart capabilities has given new life to previously commoditised markets and enabled manufacturers to differentiate themselves. Investors are taking notice and with potential applications for the IoT practically anywhere you look the big question now is: which sectors are most likely to be transformed by this technology?

In this paper we focus on one of the most traditional of sectors – dairy farming – to highlight the value creation potential of the IoT.

In arable crops and livestock farms alike, farming 2.0 has arrived. Miniaturisation and the IoT has allowed sensors to be everywhere, recording data and reporting back. From drones tracking weather patterns to activity monitors on animals, when used correctly this data is increasingly enabling farmers to produce more with less.

With private sector investment in food and agriculture innovation on the increase we have investigated technology growth in one of the largest subsectors: dairy farming. From the expansive green pastures of New Zealand through to the barns and fields of Europe and to the ‘mega’ farms of China, the IoT is beginning to crop up.

This report provides an overview of the most interesting technologies available for dairy farms – from the more established to the cutting edge. We look first at the drivers of the dairy industry and why technology will be integral to the future success of dairy farms. This is followed by a deep dive into some of the technologies with the greatest near term growth potential. Lastly, we go on to look at key competitive dynamics currently at play. Given the importance of different farming practices globally, an appendix profiles key producing geographies poised for growth in the near term.

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