Items Tagged with 'labor costs'

Our trip to Smith Brothers Farms included two stops: one was a visit to the Kent, Wash., plant, where the company processes milk. Following this visit, we traveled 20 minutes to Federal Way, Wash., to check out the company’s distribution center, the origin of all Smith Brothers Farms’ home delivery services, which is the pillar of many communities.

From 1905 to the 1990s, home delivery was common for dairy processors, but popularity declined as customers turned to supermarkets. While many manufacturers focused solely on processing, Smith Brothers Farms maintained its delivery service and remains strong today, despite competition from Amazon and Costco nearby.

Rexing and his wife, Ranell, operate New Generation Dairy, near Owensville, Ind., milking 1,200 cows and farming 3,500 acres of corn, beans, wheat and alfalfa.

Dairy producers face a daily array of challenges, from ongoing labor shortages and FSMA compliance to increasing throughput demands and rising SKU complexity. To adapt, they need equipment that is reliable, efficient, and, above all, flexible.

Adam Geissler, director of strategic accounts at New York City-based Augury, discusses how innovative tech solutions like artificial intelligence (AI) can help the dairy industry  prevent production loss and much more..

Although some dairy processors are operated by large cooperatives with succession plans, while other family-run businesses have a next generation waiting in the wings, a large swath of business owners are confronted with concerns about future leadership.

If there is one theme I have witnessed beyond the oft-mentioned health and wellness and flavor trends, it is today’s staying power of dairy products. Perhaps we should call this the “Golden Age” of dairy. 

As input and labor costs remain high, dairy processors are looking to optimize production efficiency and cut costs.

Although eCommerce may not be for all dairy processors, it can definitely be an option for additional revenues. In fact, Euromonitor International reported the number of Americans utilizing online grocery services skyrocketed from 13% before the pandemic to some 26% in 2022. 

Glenn Campbell, regional director of operations for Williamston, S.C.-based Transervice Logistics, joins us for Episode 44 of the “Let’s Talk Dairy” podcast to discuss dairy logistics.