Dairy Industry Navigates E-Commerce Landscape: Trends, Shipping, and Food Safety
Sourse: The DairyNews
The dairy industry is evolving with the rise of e-commerce, presenting new trends, shipping challenges, and food safety considerations. The Direct to Consumer (D2C) model is gaining momentum, allowing dairy manufacturers to connect directly with consumers. This trend, accelerated by the pandemic, has seen substantial growth in online sales of fluid milk and natural cheese.
Consumers continue to embrace online grocery shopping, with projections indicating that online grocery will be a significant source of growth for the food and beverage industry in the United States. The D2C model provides dairy processors the opportunity to cut out traditional supply chain intermediaries and reach consumers directly, offering greater control over branding, marketing, and sales.
While the traditional retail distribution channel holds a significant market share, many dairy companies are adopting D2C sales to enhance their distribution channels. Notable cheese and ice cream processors, including Tillamook, Cabot Creamery, Ben & Jerry's, and others, have successfully incorporated D2C operations, providing consumers with convenient options and expanding their reach beyond local markets.
However, transitioning to D2C involves addressing shipping challenges, especially for perishable dairy products. Managing the perishable nature of dairy items during shipping requires careful inventory management, a well-established distribution network, and proper storage. The supply chain disruptions experienced during the pandemic highlighted the need for improved supply management to ensure profitability and brand loyalty.
The 2023 State of Logistics Report emphasizes the importance of building strategic capacity in logistics operations to enhance resilience against future disruptions. The report suggests proactive planning for geopolitical tensions, cybersecurity threats, and climate change to build long-term resilience.
Shipping D2C introduces additional considerations, as errors incur more costs than other shipping methods. Automation becomes a vital tool in ensuring efficiency and minimizing mistakes in the shipping process.
Food safety is a paramount concern when it comes to ordering perishable items online. The "danger zone" for perishable foods (40 to 140 degrees Fahrenheit) must be managed effectively during shipping to prevent the rapid growth of pathogenic bacteria. Best practices, including proper packaging, temperature control, and labeling, are crucial in ensuring the safety of perishable food items delivered directly to consumers.
In response to these challenges, the US Food and Drug Administration (FDA), in collaboration with the US Department of Agriculture (USDA) and the Centers for Disease Control and Prevention (CDC), has outlined food safety best practices in the New Era of Smarter Food Safety blueprint. This includes preventive controls, risk assessment mechanisms, and recommendations for packaging, temperature control, contamination control, and allergen control in the "last mile" of delivery.
As the dairy industry continues to navigate the e-commerce landscape, embracing D2C models, addressing shipping challenges, and prioritizing food safety are essential for success in this evolving market. Dairy processors can leverage these trends to enhance customer experience, expand market reach, and build resilience in their operations.
While the traditional retail distribution channel holds a significant market share, many dairy companies are adopting D2C sales to enhance their distribution channels. Notable cheese and ice cream processors, including Tillamook, Cabot Creamery, Ben & Jerry's, and others, have successfully incorporated D2C operations, providing consumers with convenient options and expanding their reach beyond local markets.
However, transitioning to D2C involves addressing shipping challenges, especially for perishable dairy products. Managing the perishable nature of dairy items during shipping requires careful inventory management, a well-established distribution network, and proper storage. The supply chain disruptions experienced during the pandemic highlighted the need for improved supply management to ensure profitability and brand loyalty.
The 2023 State of Logistics Report emphasizes the importance of building strategic capacity in logistics operations to enhance resilience against future disruptions. The report suggests proactive planning for geopolitical tensions, cybersecurity threats, and climate change to build long-term resilience.
Shipping D2C introduces additional considerations, as errors incur more costs than other shipping methods. Automation becomes a vital tool in ensuring efficiency and minimizing mistakes in the shipping process.
Food safety is a paramount concern when it comes to ordering perishable items online. The "danger zone" for perishable foods (40 to 140 degrees Fahrenheit) must be managed effectively during shipping to prevent the rapid growth of pathogenic bacteria. Best practices, including proper packaging, temperature control, and labeling, are crucial in ensuring the safety of perishable food items delivered directly to consumers.
In response to these challenges, the US Food and Drug Administration (FDA), in collaboration with the US Department of Agriculture (USDA) and the Centers for Disease Control and Prevention (CDC), has outlined food safety best practices in the New Era of Smarter Food Safety blueprint. This includes preventive controls, risk assessment mechanisms, and recommendations for packaging, temperature control, contamination control, and allergen control in the "last mile" of delivery.
As the dairy industry continues to navigate the e-commerce landscape, embracing D2C models, addressing shipping challenges, and prioritizing food safety are essential for success in this evolving market. Dairy processors can leverage these trends to enhance customer experience, expand market reach, and build resilience in their operations.
