There are several fundamental trends taking place in the dairy industry today that impact our Marketing Strategy.
1) Commercial Dairy farms are getting bigger driven by the economics of high volume production.
2) This production strategy requires the automation of the milking process and provides the cash to do so.
3) As a result the number of dairy farms are decreasing in most of the developed world.
4) Milk cows are producing more milk per cow so the number of cows in the herd is not increasing proportionally to the increase in milk production.
5) Therefore the value of each milk cow is increasing.
6) The increased size of the average commercial dairy farm leads to less attention paid to each animal.
7) This leads to increased stress on the animals due to 3 shift milking operations and the decreasing attention to cow health by unskilled labor.
8) This environmental reality results in an increasing mortality rate for lactating cows. In the US the rate has gone from 4% on average 25 years ago to an average of 8-10% today. The US dairy industry by itself is losing close to $2.0 billion per year from this 10% mortality rate.
VitalMetric will benefit from the fact that the use of our equipment to reduce this cow mortality rate is a Moral imperative fully justified by dairy economics.