Dairy Processing - September/October 2024 - 48

OPERATIONS
navigating
roadblocks
The sustainability journey isn't without challenges for dairy companies.
by Kristen Putch | kputch@sosland.com
S
tainability in the dairy processing industry focuses on
implementing practices that minimize environmental
impact and optimize resource use. Implementing
sustainable practices can help dairy processing companies not
only reduce their environmental footprint, but also contribute
to a more sustainable food system.
However, implementing sustainability in the dairy industry
presents several challenges, which often stem from the
complex nature of dairy processing, supply chains and market
demands. Despite these challenges, many companies in the
dairy processing sector are exploring innovative solutions,
collaborating with stakeholders and adopting gradual changes
to move toward more sustainable operations.
MAIN FOCUS AREA
To gain insight into how dairy executives' priorities have
shifted over time, McKinsey & Co. recently completed its
sixth annual survey of US dairy executives, conducted with
the International Dairy Foods Association (IDFA), revealing a
shift in priorities for the dairy industry during Q4 of 2023.
The previous survey of dairy executives, conducted in
2022, showed that concerns were divided between growth,
48 SEP-OCT 2024 | DAIRYPROCESSING.COM
resilience and sustainability. But in the most recent study,
sustainability moved to the center of the conversation. And
while there has been progress on sustainability commitments
and actions, challenges with addressing farm-level
emissions remain.
About 75% of survey respondents said their sustainability
efforts are motivated by their customers (retailers and
other dairy vendors), and just under half said the same
of consumers. However, interviewed executives said that
consumers may not be willing to pay more for sustainable
products, raising understandable concerns about the costs
associated with sustainability initiatives.
Some signals suggest environmental, social and
governance (ESG) programs could be growing in importance
for consumers. In a joint analysis with Nielsen IQ, McKinsey
found that yogurt and cheese products with ESG-related
claims outperformed products without those claims.
PACKAGING SOLUTIONS
Packaging in the dairy sector is a significant source of waste,
and the transition to sustainable packaging options can prove
challenging.
©Artinun-stock.adobe.com

Dairy Processing - September/October 2024

Table of Contents for the Digital Edition of Dairy Processing - September/October 2024

Dairy Processing - September/October 2024 - Intro
Dairy Processing - September/October 2024 - 1
Dairy Processing - September/October 2024 - 2
Dairy Processing - September/October 2024 - 3
Dairy Processing - September/October 2024 - 4
Dairy Processing - September/October 2024 - 5
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