The Path to Sustainable Dairy Industry: Addressing Challenges and Embracing Opportunities

Precipitous transition has been documented in the global dairy sector in the past few years with a range of challenges. Opting for a justifiable state of the art-based research approach has become critical. There are numerous repetitive sustainability challenges witnessed across the entire dairy production and supply chain that have put intense pressure on the system. This, in turn, has precipitated the need to develop and implement innovative technological solutions, such as innovative cost-effective processing and preservation technologies, prediction models, life cycle analysis, artificial intelligence, IoT, digitalization, and much more. These innovations must benefit and meet the demands of the consumers, producers, and dairy industry stakeholders.

The global dairy industry is under aggregated pressure to address sustainability challenges, and there is an urgent need for innovation, regulatory action, and meeting consumer demand for more sustainable practices. Some of the challenges faced by the dairy industry that have impacted the environment, the economy and the society, and the feasible solutions offered include the following: (i) Greenhouse gas emissions (GHG) or methane emissions from dairy cows during digestion (enteric fermentation) and the decomposition of manure that releases methane and nitrous oxide, contributing to climate change. One solution could be the use of advanced feed additives and breeding for lower methane-emitting cattle, which could have an impact on reducing the climate impacts. (ii) Water use: Being water-intensive, significant amounts of water are required for both animal hydration and crop irrigation (for feed). In regions facing water scarcity, this can impose pressure on local water resources. Hence, efficient water management practices are vital. Innovative technologies focusing on efficient water use, including rainwater harvesting and wastewater treatments could significantly reduce the pressure imposed on local water sources. (iii) Land use and deforestation: Excessive land requirements for grazing and growing animal feed can contribute to deforestation wherein the conversion of natural ecosystems to agricultural land can deplete biodiversity and contribute to carbon emissions through soil disturbance and vegetation loss. In addition, monoculture farming for animal feed can deplete soil health and biodiversity. Moreover, there are widespread concerns that overgrazing and extensive land use to accommodate dairy production can disintegrate natural habitats. In addressing these issues related to land health and biodiversity, rotational grazing, regenerative farming, and agroforestry are potentially viable solutions. (iv) Animal Welfare: The intensity of some dairy operations can lead to poor animal welfare, such as inadequate access to pasture and physical stress from the milking process. Of late, there has been increased pressure from regulatory bodies to improve the conditions where dairy cows are maintained. (v) Pollution issues: Dairy farms produce enormous volumes of waste via wastewater, manure, and packaging materials. Deprived of proper management, this waste can pollute nearby water resources, as well as the land and the air. In the majority of countries worldwide, one of the major concerns comes from the nitrate contamination of groundwater from excessive fertilizer/manure usage. In addition, most of the dairy products are sold in plastic or non-biodegradable multilayer packaging that, unless properly recycled, contributes to plastic pollution. Hence, pollution reduction, improved recycling, and transition to more sustainable materials are requires. (vi) Energy consumption: Dairy farms often rely on energy-intensive processes (e.g., milking, refrigeration, transportation) that increase the carbon footprint, and this needs to be addressed through the adoption of appropriate, cost-effective technologies. (vii) Climate resilience: Dairy farms are highly vulnerable to the impact of climate change and extreme weather events (e.g., droughts, floods, heat waves) that can affect animal health, feed production, and water availability. Hence, understanding climate resilience in the dairy industry with respect to the capacity of dairy farms and supply chains and preparing for, or responding to the challenges posed by climate change are issues of high importance. The global dairy industry must develop strategies that not only minimize negative effects but also help farmers adapt to the new realities of a changing climate. (viii) Sustainable nutrition: Nutritional sustainability is focused on ensuring that dairy production delivers essential nutrients for human health while addressing socioeconomic and environmental impacts. Today, there is a developing market trend, and consumers are shifting towards using plant-based alternatives. Alternative proteins, or the rise of plant-based and lab-grown dairy alternatives, can offer more sustainable options to consumers.

(i)

With this as the background, this second Special Issue (SI) “Sustainability in the Global Dairy Sector: Challenges and Opportunities” (https://www.mdpi.com/journal/sustainability/special_issues/Dairy_Opportunities_Sustainability_II, accessed on 13 April 2025) follows on from the successful issue “Dairy Sector: Opportunities and Sustainability Challenges” (https://www.mdpi.com/journal/sustainability/special_issues/Dairy_Opportunities_Sustainability accessed on 12 April 2025).

(ii)

The focus of this second SI was on identifying sustainability challenges and future opportunities in the global dairy sector. A Web of Science search with keywords such as “innovative technologies in the dairy industry”, “sustainable production”, “valorization strategies”, “circular bioeconomy”, “climate change”, “carbon footprint functional products”, “blockchain technology”, “IoT”, “digitalization and supply chain management”, “regulatory and safety issues”, “food security”, “education”, and “energy crisis” were considered. This SI comprises original articles and reviews focusing on various issues about the dairy sector.

(iii)

Two interesting reviews have been published. The first one focuses on the One Health approach for improved sustainability in dairy farming (Noble Method^®) and highlights the nutritional properties of dairy products, improving animal welfare, human health, and environmental sustainability. The second review systematically covers the sustainable management and valorization of agri-food wastes/by-products and the opportunities to develop animal feed/feed supplements (for ruminants, non-ruminants, and poultry feed). In addition, this review covers safety and regulatory aspects. Regarding the research articles, we received very intriguing research reports covering much of this diverse field. The articles published were on the sustainable utilization of hemp press cake flour in ice cream production; the influence of psychological factors on dairy farmers’ intentions to adopt environmental sustainability practices; the optimization of ultrasonic-assisted extraction of antioxidants in apple pomace, using RSM to develop a potential feed supplement or feed ingredient; digital technology; factor allocation and the environmental efficiency of dairy farms; predicting raw milk prices based on in-depth time-series features for consumer behaviour analysis; Tasmanian dairy farmers’ attitudes towards using e-extension methods; strengthening the dairy extension system for a sustainable dairy industry; the influence of functional feed supplements on milk production efficiency; feed utilization, blood metabolites, and health of Holstein cows during mid-lactation; and qualitative study on Irish dairy farmers’ values with respect to sustainable grass-based production practices using the concept of “good farming”.

Moreover, the global dairy system displays great diversity, ranging from subsistence farms, where small numbers of low-yielding animals address the household’s basic needs, to large-scale, market-oriented farms with large numbers of high-yielding animals. Regardless of the production model, several concerns have been raised with respect to the dairy sector: (i) the aging demographics among dairy producers, with relatively few young farmers and a notable gender imbalance; (ii) high degree of specialization, where farm revenues are reliant on a single output, increasing producers’ vulnerability to income fluctuations; or, on the contrary, the lack of resources in small-scale farms, which heightens their exposure to adverse market conditions; (iii) environmental concerns, including improper manure disposal or the excessive utilization of fertilizers for forage production; (iv) the impact of climate change: high temperatures and humidity negatively affect animal welfare, milk yield, and milk fat content, particularly in pasture-based systems, whereas housed cattle may benefit from technologies designed to mitigate heat; (v) unfair trading practices, with the dairy farmers being in a weak position in the food supply chain compared to the large operators in the chain, making them more susceptible to market fluctuations; (vi) conflicting demands by consumers, who seek high environmental standards and animal welfare standards, and market interests, which prioritize affordability; and (vii) growing interest in plant-based milk substitutes [1].

Therefore, both the ecological and the economic sustainability of dairy systems present a complex and multifaceted challenge that encompasses significant issues across different scales, regions, and management practices that require integrated proposals, concerted efforts, and original solutions [2].

Due to the world population growth, the demand for dairy products has progressively increased, yet this growth needs to be achieved sustainably in order to guarantee productive supply chains with minimal environmental impact. The identification of the most sustainable production model, whether intensive or extensive, remains challenging as each system exhibits distinct benefits and detriments. While some research attributes a better environmental performance to low-input systems, others associate highly intensive systems with a lower environmental impact. In general, the improvements in production efficiency have been associated with a reduced environmental impact per kilogram of milk due to the dilution of the environmental cost associated with an individual animal over a larger output. Additionally, high-yielding cows usually receive low-fiber rations, which results in lower methane emissions per kilogram of milk. However, increased productivity also heightens other environmental pressures, including greater demand for feed, energy, and water production. Furthermore, the use of highly productive breeds can positively affect the environmental efficiency of milk production when assessing the impact per unit of milk produced.

The intensive genetic selection has resulted in the reduced longevity of the animals, leading to a reduction in the number of lactation cycles despite an increase in productivity. This, in turn, increases the speed at which heifers are replaced, which inevitably entails higher costs for the farmer and extends periods of unproductivity, as well as contributing to greenhouse gas emissions and manure production, further intensifying the environmental and economic burden of dairy farming. Conversely, grazing systems typically rely on local or more resilient breeds, which are better adapted to diverse environmental conditions. The rational use of pastures, through the nutritional assessment and the careful selection of suitable breeds, can support high production efficiency while maintaining superior product quality [3]. It is also important to point out that with the use of permanent pastures, characterized by natural grasses, which are particularly present in marginal areas, zootechnical activities ensure the safeguarding of territories facing abandonment and enable access to food of animal origin with a high nutritive value in marginal areas. In addition, the emissions associated with the production of animal feed represent a significant contributor to the environmental impact of dairy ruminants, largely due to the widespread reliance on concentrated feedstuffs such as soybeans. Conversely, the use of locally available resources or agricultural by-products can positively affect the impact generated by the dairy supply chain, as in other animal production systems. Feeding management has been identified as one of the most effective strategies for reducing CH₄ and NH₃ emissions [4]. A promising approach for mitigating the environmental footprint of the dairy sector involves the replacement of concentrate feed with by-products. Several studies have demonstrated that the incorporation of by-products into dairy cattle diets does not compromise milk production, feed intake, or diet digestibility, while it has been associated with a reduction of methane emission. This effect is attributed to the higher content of plant secondary compounds, such as tannins and isoflavones, which are able to reduce rumen methanogenesis. In addition, the inclusion of such phenolic compounds in animal diets enriches the milk with antioxidant molecules, thereby providing additional health benefits. In addition, the common agricultural policy (CAP) provisions producers’ organisations to use bargaining options to stabilize price, thus facilitating increase in farm milk prices and overcome price fluctuation [5].

In conclusion, some of the additional key considerations for ensuring a sustainable dairy sector includes:

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An efficient and transparent traceability system has become essential due to the rising incidence of adulteration and toxic substances. A robust traceability system ensures compliance with ethical standards that promote consumer trust and strengthen collaboration among related stakeholders. Furthermore, it enhances the efficiency of dairy operations, yielding economic benefits while enabling the comprehensive tracking and monitoring of production processes. By optimizing the resource utilization and reducing waste, such a system supports the principal objectives of sustainable development by promoting reliability and constant advancements [6].

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The milk matrix and the chemical and physical interactions among its components play a crucial role in determining the storage stability, safety, sensory attributes, and health properties of dairy products. A more holistic approach is required that considers the impact of macro-, micro-, and nano-structural elements within food, as opposed to a reductionist perspective that limits nutrition to the analysis of individual nutrients. In this context, there are huge opportunities for further research on the relationship between the structure and function of foods. Such advancements will reinforce the benefits of dairy consumption and support the development of new dairy products and food formulations incorporating dairy ingredients. Beyond nutrition and health considerations, those new foods will need to align with consumers’ expectations regarding taste, convenience, affordability, and ethical values, including sustainable production practices and their broader implications. In this regard, the development of foods with a lower environmental footprint will represent an opportunity rather than a necessity [7]. Furthermore, the customization of dietary solutions for individuals across different stages of life and with distinct lifestyle preferences is intricately linked to food structuring. For instance, probiotics emerge as a promising avenue for dairy product innovation given their capacity to modulate the microbiome by reducing potentially harmful bacterial species while promoting the growth of beneficial ones, particularly in the context of the microbiome-mediated effects of diet on health.

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Although technological advancements and digitalization offer significant potential benefits for the dairy industry, there are still several challenges to be addressed to completely harness these opportunities. These comprise issues related to digital infrastructure and connectivity, the high cost of implementing new technologies, the demand for skilled workforce, and the need for greater collaboration among supply chain stakeholders.

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Consumer preferences and willingness to pay for sustainable dairy products are driving global market demand, thereby shaping industry practices and influencing sustainability outcomes within the dairy sector. Understanding consumer attitudes toward sustainability, environmental responsibility, and ethical sourcing is vital for dairy producers, retailers, and policymakers seeking to meet consumer expectations and attract value in competitive markets. By aligning the development of products, marketing strategies, and supply chain practices with consumer values and preferences, the dairy industry can enhance both economic and ecological sustainability while effectively responding to the evolving needs of global consumers [8].

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Policy frameworks and institutional planning play a vital role in supporting the transition towards sustainable dairy systems by providing guidelines and promoting sustainable practices, thus generating positive socioeconomic and environmental impacts.

Nevertheless, challenges related to food security and sustainable food production in the entire agri-food sector are envisaged to remain elevated; hence, recognizing their importance and embracing the revolution along the entire supply chain via modern-day innovative production technologies, information technologies (ICTs), and digitalization are vital, especially in the rural and semi-urban set-up [9].