Dairy Herd Management Market

Dairy Herd Management Market Size:

The global dairy herd management market size reached USD 4.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 7.8 Billion by 2033, exhibiting a growth rate (CAGR) of 6.75% during 2025-2033. The market is primarily driven by increased milk production, supportive government subsidies and programs, emerging technological advancement, and the rising demand for dairy products due to rapid urbanization and growth across the globe.

Dairy Herd Management Market Analysis:

• Major Market Drivers: The increasing demand for dairy products globally, due to the growing population, rising disposable incomes, and technological advancements in dairy farming, such as IoT, AI, and data analytics, enhancing efficiency and productivity is primarily driving the market growth. 
• Key Market Trends: The adoption of precision farming techniques for better monitoring and management of dairy herds, and the integration of wearable technology and sensors for real-time health monitoring of cows. Moreover, a shift toward automated systems for feeding, milking, and waste management.
• Geographical Trends: Europe leads in the adoption of advanced dairy herd management technologies among others. Moreover, Asia Pacific witnessing rapid growth due to increasing dairy consumption and modernization of dairy farms, and Latin America and the Middle East emerging as potential markets with growing investments in dairy infrastructure.
• Competitive Landscape: Some of the major market players in the dairy herd management industry include Afimilk Ltd., BouMatic LLC, Dairymaster, DeLaval (Tetra Laval), Fullwood JOZ, GEA Group AG, Lely, Nedap N.V., SUM-IT Computer Systems Ltd., Valley Agricultural Software Inc. (URUS Group LP), among many others.
• Challenges and Opportunities: Challenges include high initial investment costs and resistance to technology adoption among traditional dairy farmers. On the other hand, opportunities lie in leveraging big data analytics to optimize herd health and milk production and growing emphasis on sustainable farming practices.

Dairy Herd Management Market Trends:

Increased Milk Production

The use of dairy herd management results in a notable improvement in the efficiency of milk production. According to the United States Department of Agriculture’s (USDA’s) NASS milk production report, milk yield per cow increased steadily between 2000 and 2020, averaging 1.53% per year. By 2020, the amount per cow has increased from 18,197 pounds in 2000 to 23,777 pounds. There was an increase in the size of the national herd, which went from 9,199,000 in 2000 to 9,388,000 in 2020, representing an annual growth rate of only 0.10%. Moreover, for the total milk produced in 2000, dairy enterprises with less than 100 milk cows provided 14.26%, while those with more than 1,000 milk cows supplied 34.53%. Larger businesses with more than 1,000 milk cows had an increase in their proportion to 63.29% by 2016. These numbers demonstrate a discernible trend over time toward larger herds producing better milk yields as well as a noticeable shift in milk production toward larger-scale dairy enterprises. Furthermore, the sector has profited greatly in recent decades from the enhanced efficiency of milk production achieved via dairy herd management. This expansion is indicative of improved breeding procedures, better disease control, and more effective feeding methods made possible by herd management systems thus propelling the dairy herd management market growth.

Government Subsidies and Support Programs

Government initiatives play a crucial role in facilitating the adoption of advanced dairy herd management systems. As per the Union Budget 2017-18 announcement, the Dairy Processing & Infrastructure Development Fund (DIDF) was established with a total corpus of Rs. 8,004 crores under the administration of the National Bank for Agriculture and Rural Development (NABARD). Approved by the Cabinet Committee on Economic Affairs (CCEA) in its meeting on 12 September 2017, the scheme aims to provide subsidized loans at a rate of 6.5% to financially strained milk cooperatives. The primary objective is to replace outdated chilling and processing plants and to introduce new facilities for value-added products. Of the total financial outlay amounting to Rs. 10,881 crores for project components of the DIDF, Rs. 8,004 crores will be allocated as loans from NABARD to NDDB/NCDC. Additionally, the NDDB/NCDC contributed Rs. 12 crores, the DAHD contributed Rs. 864 crores, and the end borrowers contributed Rs. 2,001 crores for interest subvention. The project's main goal is to increase the effectiveness of milk procurement systems by installing electronic milk adulteration testing equipment at the village level and building processing and cooling facilities. Farmers are encouraged to use creative solutions that improve sustainability and production through these government-funded initiatives. Consequently, more farms can increase their operational effectiveness and market competitiveness, which greatly aids in the expansion and modernization of the dairy industry.

Rising Demand for Dairy Products

As per the Food and Agriculture (FAO), global milk production expanded by 1.1% in 2021, reaching approximately 887 Million Tonnes (Mt). In India, the world's largest milk producer, production grew by 2.2% to 195 Mt. As a result of China's growing demand, the worldwide dairy imports in 2021 totaled 10 Mt, mostly due to cheese, milk powders, and whey powder increasing demand. There is a growing need for effective herd management systems due to this rising demand. Moreover, the market is growing due to the need to produce more dairy products while upholding strict sustainability and quality requirements as populations increase and dietary habits change. Besides this, dairy farms may easily scale up output to satisfy this expanding demand by using efficient herd management technologies. These systems also aid in maintaining the safety and uniformity of milk and other dairy products, which is essential for satisfying the demands of a global market that is becoming more and more quality conscious. Hence, this increasing demand is a major driver of the dairy herd management market, as producers strive to optimize their operations and output across the region.

Dairy Herd Management Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on product, application, and farm size.

Breakup by Product:

• Hardware
• Software
   

The report has provided a detailed breakup and analysis of the market based on the product. This includes hardware and software.

Hardware in dairy herd management typically includes milk meters, fertility monitors, radio-frequency identification (RFID) tags, and health monitoring sensors. These devices are essential for the automated collection of data regarding milk yield, animal health, and reproductive status, directly influencing the efficiency and productivity of dairy operations. They allow farmers to make immediate adjustments in feeding, milking, or medical treatment, enhancing overall herd management.

Moreover, software solutions provide user-friendly interfaces through which farm managers can track and analyze the performance of individual cows and the herd. They include features for feeding management, milk production analysis, breeding programs, and health management. These software tools help in making informed decisions, forecasting productivity trends, and managing day-to-day dairy operations more effectively by consolidating data in a centralized system. This integration of data and analytics is essential for optimizing the profitability and sustainability of dairy farms.

Breakup by Application:

• Milk Management Systems
• Feeding/Nutrition Management Systems
• Animal Waste Management Systems
• Breeding Management
• Health Management
• Others
   

Milk management systems hold the largest share of the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes milk management systems, feeding/nutrition management systems, animal waste management systems, breeding management, health management, and others. According to the report, milk management systems accounted for the largest market share.

Milk management systems are increasing the adoption of advanced technologies by dairy farmers aiming to enhance milk production efficiency and quality. Milk management systems provide comprehensive solutions for monitoring milk yield, analyzing quality parameters, and managing dairy production schedules effectively. These systems integrate data analytics and real-time monitoring tools to optimize the milking process and improve overall farm profitability. As dairy operations worldwide strive for operational efficiency and higher output, the reliance on sophisticated milk management systems continues to grow, driving the expansion within the broader dairy herd management market outlook. Hence key players are introducing advanced product variants to meet these needs. For instance, on 27 March 2023, DeLaval, in Tumba, Sweden, specializing in dairy and farming equipment, introduced the OptiWagon, an autonomous feed distribution robot. This new technology integrates essential functions like weighing, cutting, mixing, and precise delivery of feed directly to designated feeding areas. The OptiWagon enables farms to schedule up to twelve feed distributions per day, promoting consistent and optimized feeding routines that improve animal nutrition and overall farm efficiency.

Breakup by Farm Size:

• Small-Scale Dairy Farms
• Large-Scale Dairy Farms
• Co-Operative Dairy Farms
   

Large-scale dairy farms represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the farm size. This includes small-scale dairy farms, large-scale dairy farms, and co-operative dairy farms. According to the report, large-scale dairy farms represented the largest segment.

Large-scale dairy farms are widely adopting advanced herd management technologies due to the high volume of animals and the corresponding need for efficient management systems. These technologies include automated milking systems, herd health monitoring tools, and data management systems, which help in optimizing productivity, enhancing milk quality, and improving overall farm efficiency. Additionally, large farms often have the capital to invest in these advanced solutions, aiming to maximize returns and streamline operations on a larger scale. Top of FormFor instance, in January 2024, Dairymaster launched RoboSpray, a robotic arm and the first in a new line of automation solutions for rotary milking parlors. RoboSpray ensures precise teat disinfection with a consistent spray pattern closer to the udder, maximizing coverage and disinfectant efficiency. It is equipped with machine vision technology, which accurately positions the spray head for optimal application. Moreover, RoboSpray integrates with milking parlor controls to retain cows if milking issues arise, allowing operators to inspect and reattach milking clusters as needed. It addresses labor shortages and provides reliable teat spraying, freeing up farm resources for other tasks. Dairymaster remains committed to advancing dairy farming profitability and sustainability through innovative technology and collaborative research efforts.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe leads the market, accounting for the largest dairy herd management market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for dairy herd management.

Europe is emerging as the largest segment due to the strong emphasis on enhancing dairy farm productivity through technological integration and sustainable practices. Additionally, European countries are keen on adopting advanced herd management software and equipment to improve milk quality, animal health, and productivity. Moreover, the robust infrastructure for dairy farming in Europe, coupled with government support for modernizing agricultural practices, further propels the market growth. Additionally, the presence of major market players who are continually innovating dairy management solutions contributes significantly to the region's leading position in the global market. For instance, in April 2023, Romania's allocation of the European Union (EU) funds for milking robots and farm automation. The Minister for European Investments and Projects (MIPE), Marcel Bolos, unveiled the financial instruments under the National Resilience and Recovery Programme (NRRP) aimed at supporting farmers. These funds will enable farmers to invest in milking robots, feeding robots, and other automated farm systems, fostering digitization across agricultural operations.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the dairy herd management companies include Afimilk Ltd., BouMatic LLC, Dairymaster, DeLaval (Tetra Laval), Fullwood JOZ, GEA Group AG, Lely, Nedap N.V., SUM-IT Computer Systems Ltd., Valley Agricultural Software Inc. (URUS Group LP).
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• At present, key players in the dairy herd management market are actively innovating and expanding their product portfolios to meet the diverse needs of modern dairy farms. These companies focus on developing integrated software solutions and advanced monitoring equipment that enhance efficiency and productivity. They are also investing in research and partnerships to push technological boundaries, aiming to offer more comprehensive and user-friendly management systems. Moreover, they engage in strategic collaborations and acquisitions to strengthen their market presence and provide enhanced support and services to dairy farmers worldwide. For instance, on 4 April 2024, BouMatic, a leader in dairy technology, revealed its collaboration with Brolis Sensor Technology to integrate the Brolis in-line milk analyzer into the Gemini UP milking robot and other BouMatic milking systems. This partnership aims to enhance dairy farm operations by incorporating the advanced capabilities of the Brolis HerdLine concept into BouMatic's innovative milking solutions.

Dairy Herd Management Market News:

• 13 March 2024: Gesellschaft für Entstaubungs-Anlagen mbH (GEA) acquired CattleEye Ltd., an agricultural software company from Northern Ireland known for its advanced AI solutions. This acquisition enhances GEA's portfolio with technology aimed at improving dairy farm management, specifically through early detection of lameness in cows. CattleEye's AI system combines a 2D camera and specialized software to analyze cow movement and body scores, providing crucial data for assessing animal health and welfare. This aligns with GEA's commitment to animal health under its Next Generation Farming strategy. The system's versatility allows integration into various milking systems, offering farmers actionable insights to enhance herd health and productivity by addressing issues like lameness promptly, which can impact fertility and milk production in dairy cows.

Dairy Herd Management Market Report Scope:

Key Questions Answered in This Report:

• How has the global dairy herd management market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global dairy herd management market?
• What is the impact of each driver, restraint, and opportunity on the global dairy herd management market?
• What are the key regional markets?
• Which countries represent the most attractive dairy herd management market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the dairy herd management market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the dairy herd management market?
• What is the breakup of the market based on the farm size?
• Which is the most attractive farm size in the dairy herd management market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global dairy herd management market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the dairy herd management market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global dairy herd management market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the dairy herd management industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.