The dairy and cheese industries are narrow margin businesses. Cheese accounts for 35% of the total revenue of the dairy industry. The profitability of individual companies depends on efficient operations and marketing, as milk is a commodity product. There are few economies of scale in the manufacturing process except in distribution, which is why small companies can effectively compete with large ones in local markets.
The difference between profit and loss can literally mean the difference between a couple of gross margin percentage points. The Federal Government dictates milk prices, which represent over 68% of a dairy or cheese plant’s total costs of goods manufactured. Milk is considered liquid gold and tracking how it is used is critical to dairy processors. Yield management in the cheese industry is equally critical.
IPACT provides solutions to dairy and cheese industries that include:
- Blending, including in-line continuous blending
- Bulk storage and retrieval
- Cut & Wrap Packaging
- Dairy Workflow
- Dryers and Ovens
- KPI tracking, downtime tracking, OEE
- MES – track and trace, genealogy
- Product distribution
- Regulatory Compliance – HACCP
IPACT, working with partners, is able to provide a variety of consulting services to the dairy and cheese industries including:
Dairy Plant Design– including small projects, line extensions and plant modifications.
- Product and capacity selection and budget preparation
- Specifying Equipment (source dairy equipment)
- Preparation of Process flows and equipment
- Feasibility Studies
- Business Planning
- Dairy Factory Design
Lean Manufacturing and Performance Management — We can work with your team to prepare and implement management reporting formats & key performance indicators relevant to your product range and processes. The focus is people, operational efficiency, yield maximization and waste reduction.
Automation Strategy — a five year plan for improving operational performance through the implementation of level 2 and level 3 systems.
Strategic Manufacturing Assessment — a targeted engagement comparing an “as is” state to industry best practices, with a conclusion designed to implement level 3 systems to improve the business.