Arla Foods harnesses AI to predict milk supply with precision

DENMARK – Arla Foods has introduced an artificial intelligence tool designed to predict milk intake from farms across northern Europe. 

The technology aims to enhance profitability and sustainability by forecasting the milk production of 1.5 million cows, a process that previously relied on manual calculations and Excel sheets. 

According to Arla, this new AI tool slashes forecasting time from days to just a few hours while improving accuracy by 1.4%.

Arla collects approximately 13 billion kilograms of milk annually from its 10,300 farmer-owners spread across countries like Denmark, Germany, Sweden, and the UK. 

The cooperative has emphasized its commitment to leveraging emerging technologies to make dairy production more efficient. 

A report by Arla highlights that the AI tool allows the company to transform this vast milk supply into sustainable dairy products more effectively. 

By closely monitoring milk intake, Arla aims to streamline its operations and reduce waste across its value chain.

“The better we are at predicting what our milk intake will be, the better we can plan and optimise our entire value chain, which both improves profitability for our farmer-owners and drives sustainability,” said Michael Bøgh Linde Vinther, Arla’s director of global milk planning. 

He stressed that accurate forecasts are key to balancing supply and demand in the dairy industry.

The AI technology draws on a wealth of data, including seasonal shifts, the number of farmers switching to new milk types, and geographical factors influencing production. 

 Daily milk output from individual farmers is also factored in, creating what Arla describes as a richer and more reliable data foundation. 

“We are now able to make important strategic decisions on a more informed basis,” Michael Bøgh Linde Vinther explained. 

“The data has become more valid as it is now formalised in a bulletproof system rather than based on individual knowledge. It’s amazing to see how this new technology is able to optimise and improve a, up until now, very time-consuming task.” 

The new forecasting system has already been rolled out across all of Arla’s European markets, including Belgium, Luxembourg, and the Netherlands, in addition to its core regions. 

Arla Foods stated that this move reflects its broader strategy to stay ahead in the dairy sector by embracing cutting-edge solutions. 

With this AI-driven approach, the cooperative is setting a new standard for efficiency and sustainability in milk production.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE