As the US dairy industry continues to play a vital role in the nation’s food supply chain, it faces an evolving set of challenges. Among the most pressing concerns is labor — specifically, how to address a shrinking workforce, an aging employee base and the ongoing struggle to attract younger workers into dairy processing jobs.

These issues are not new, but they have grown more urgent as the demographic shift in the workforce accelerates. Through a combination of innovation, automation, workforce development initiatives and a shift in culture, dairy processors are working hard to ensure the industry’s future viability.

The aging workforce

The US dairy industry supports more than 3 million American jobs that generate $42 billion in direct wages, according to the International Dairy Foods Association (IDFA). Yet it faces mounting challenges in securing an adequate workforce to run the farms and manufacturing operations year-round. With perishable products, labor shortages aren’t just an inconvenience; they’re a threat to business viability for the dairy industry.  

One of the primary concerns is the aging workforce within dairy processing plants. According to recent reports, the average age of workers in food manufacturing, including dairy processing, has been rising steadily for years. A significant percentage of the current workforce is nearing retirement age, leaving a void that is becoming harder to fill.

The US Bureau of Labor Statistics projects that employment in the manufacturing sector, including dairy processing, will grow at a slower rate than other industries over the next decade, exacerbating the challenge of replacing experienced workers.Image: Sosland Publishing

People under the age of 40 represent a smaller portion of the population compared to baby boomers at the same age. With each generation having fewer children, there aren’t enough Gen Xers and millennials to offset the growing number of retirees, which impacts economic growth. However, boomers’ departure from the workforce has been mitigated by an increase in older Americans working longer due to longer lifespans, financial needs and incentives.

According to the US Bureau of Labor Statistics, employment of workers aged 65 or older has grown by 117% within 20 years. Employment of individuals 75 years or older has increased by 117%. As a result, the workforce is older than ever, with those under 40 now making up 45% of the workforce, down from over 60% in 1984, while workers over 60 have doubled.

The push for technology

To mitigate the impacts of an aging workforce, many dairy processors are turning to automation and advanced technologies. Robotics, artificial intelligence (AI), and machine learning are being integrated into processing plants to help improve efficiency, reduce reliance on manual labor and address staffing shortages.

Automated systems are particularly useful in repetitive tasks, such as packaging, sorting and quality control, which can be labor intensive. By implementing robotic arms, vision systems and automated conveyor belts, high levels of output can be maintained, while minimizing the risk of worker injury — an important consideration as workers get older.

Within dairy processing facilities, AI-driven predictive maintenance tools help prevent costly equipment breakdowns, further alleviating pressure on the workforce.

The business intelligence division of PMMI, The Association for Packaging and Processing Technologies, recently highlighted the potential impact artificial intelligence may have on the industry. The PMMI Business Intelligence report, The AI Advantage in Equipment: Boosting Performance and Bridging Skills Gaps, noted that some companies that jumped on AI early already are experiencing its benefits, with an even greater impact expected in the years to come.

Per the report, the applications most likely to boost the packaging and processing industry are AI assistants, machine vision, predictive maintenance, digital twins and connected worker platforms. Advantages of implementing AI in operations, the report pointed out, include improved machine efficiency, increased worker productivity, and optimized and personalized training.

Photo: Dusko - stock.adobe.com

Training and development

While automation offers solutions in the short term, the long-term health of the dairy industry overall still depends on a steady influx of skilled workers. With the US dairy workforce aging, companies are strategically investing more in training programs that may attract and retain younger employees.

Many dairy processors have partnered with community colleges and vocational schools to create programs that equip students with the skills needed to thrive in dairy processing careers. These programs cover everything from the basics of food safety, to advanced training in the latest technologies used inside dairy facilities. Some companies also have offered apprenticeships, paid internships and scholarships to cultivate the next generation of workers.

Designed to support, guide and prepare mid- and senior-level dairy industry professionals to take the next step in their leadership journey, IDFA’s NextGen Leadership Program works with member companies to grow their talent with a year-long program of training, education, advocacy and networking.

“IDFA and dairy business leaders have made it a priority to develop future leaders for our industry who can effectively inspire the workforce of the future, advocate for sound policy and lead with integrity,” said Michael Dykes, president and chief executive officer, IDFA. “Every new NextGen cohort offers a glimpse at some of the best and brightest men and women rising through the ranks of our industry. IDFA’s NextGen Leadership Program will prepare them to lead dairy into a new era.”

Once in the workforce, on-the-job training is essential to the growth and success of the organization.

“Training is beneficial to both employers and employees, as it leads to more productivity, better morale and promotion opportunities for employees,” said Kimberlee (KJ) Burrington, vice president of technical development for the American Dairy Products Institute (ADPI). “In the long run, training improves the employee’s ability to adopt new technologies and methods, which will help the company to remain competitive in the market.”

Burrington said companies use training as an investment in their employees because it provides knowledge-based information and professional development for current and future employees of the dairy industry.

“Many dairy companies have internal training courses to provide these benefits to employees, but the United States has many other training opportunities across the country to expand the knowledge base on all things dairy and help manage future challenges in the dairy industry,” she said.

Improving workplace culture

To make dairy processing jobs more appealing to younger workers, the industry is also shifting its workplace culture. Today, many dairy processors are implementing flexible work hours, better safety protocols, and wellness programs to create a more attractive and supportive environment for employees.

Moreover, dairy companies are placing a renewed emphasis on diversity and inclusion. By actively recruiting from a broader pool of candidates, including women and minorities, dairy processing plants are not only fostering a more equitable workforce, but also tapping into the diverse talents of individuals who may have previously felt excluded from the industry.

Wisconsin Cheese Makers Association (WCMA) offers a training series for frontline dairy processing employees.

The trade association said its three-part series, which is returning in early 2025, focuses on frontline leadership that benefits new and experienced supervisors alike.

The sessions begin by asking dairy industry employees to evaluate their current leadership skills and find opportunities for growth. WCMA said the second part examines practical approaches for emerging leaders to elevate their respective team’s work performance, and the third part helps attendees identify strategies that drive productivity through cultivating a positive, team-oriented environment.

WCMA senior director of programs and policy Rebekah Sweeney said the classes sell out each year.

“With over 1,000 graduates to date, WCMA’s Front-Line Leadership courses are the trusted choice for dairy manufacturers, processors and suppliers who want to train – and retain – their staff,” Sweeney said.

Sara Schmidt, WCMA membership director, said the sessions strengthen first-time managers, as well as longtime supervisors who need a refresher.

“Strong leadership skills are key to success in any dairy processing business, and they’re especially important for managers on the front lines of production,” Schmidt said.

Innovation and adaptation will be key as the dairy industry confronts the challenges of an aging workforce and labor shortages. By embracing automation, investing in training and development, and transforming workplace culture, the industry is setting itself up for success in the years ahead.