The Dutch dairy equipment group, Lely, grew its turnover by 25% to €888 million last year, according to a new financial report.
The family-owned business, which specialises in automated systems and data management for dairy farmers, released provisional revenue results for 2023 which showed a solid year on year increase.
Andre van Troost, chief executive of Lely said while he was “proud” of the results, he also had a “mixed feeling”.
“Worldwide, we continue to see a growing demand for sustainably produced dairy. We also see the adoption of robotics and data management increasing due to labour shortages and the farmers’ wish to optimise milk yield and increase animal health.
“At the same time, many farmers are struggling due to stricter regulations, lower milk prices, high interest rates and political uncertainty,” van Troost added.
According to Lely, it’s latest results for 2023 highlight the “adoption of robotics and data increased globally”, and said it reached an annual production record with the 5,000th Lely Astronaut.
It saw it’s largest growth levels in western Europe, but also in North and South America. It also identified “interest in milking, feeding, manure and digital solutions” in Asia.
According to Lely, 8% of it’s total turnover was invested in research and development in 2023, particularly in relation to new innovations.
Last year, the family owned business, which was founded in 1948, celebrated its 75th anniversary, and launched its vision of the ‘Farm of the Future’, which is based around five key themes, including:
- Improved environment – reducing the environmental impact of dairy farming;
- Increased farmer prosperity;
- Buy-in from consumers – bringing farmer and consumer closer together;
- Improve animal welfare;
- Sustainable and nutritious dairy products.
Outlook
The Dutch group has cautioned that 2024 may “prove challenging” because of low milk prices, high interest rates and political uncertainty.
But it said it remained confident that the long term prospects for robotic and data management “remains very bright”.
“We also look forward to launching our new strategy 2025-2030 in 2024 as well as making steps in a number of new exciting propositions in line with our vision on the Farm of the Future,” the company added.
