Perfect Day Foods is planning to produce a synthetic milk that is very similar to milk. The company even claims that their synthetic milk taste more like milk than real milk.
The firm uses a fermentation process to product the synthetic milk. Its product is gluten-free, soy-free, lactose-free, and nut-free. It’s also more environmentally friendly, as the production of milk from plant-based material is more efficient than traditional milk production.
Video Spotlight: Changing the Dairy Industry by Perfect Day
This post is based on the NBC News article, Fake Milk Is Real News, As Synthetic Alternatives Threaten Traditional Dairy Farms, by Cassie Slane, February 19, 2019, and the YouTube video, Changing the Dairy Industry by Perfect Day, by Slush, December 5, 2017. Image source: © McGraw-Hill Education/Jack Holtel
1. What potential problems to the supply chain does Perfect Day Foods’ synthetic milk cause?
Guidance: Perfect Day Foods’ process is potentially a disruptive technology. It could change how milk is produced. Current dairy production could be replaced, along with its current supply chain. Dairy farmers are already facing falling prices and competition from other plant-based milks. Details regarding this new synthetic milk, such as shelf life, cost, and customer acceptance, will determine its impact on milk sales and production.
2. What problems must Perfect Day Foods overcome?
Guidance: As the product is not in commercial production yet, several issues must be solved. These include development of production facilities, locations, development of supply chains to bring the product to market, and technical issues related to production.
Additionally, if the product is used in the production of other products like ice cream, yogurt, and cheese, each will bring its own set of supply chain issues.
Perfect Day Foods will also face the challenge of gaining consumer acceptance, and must consider options if the U.S. Department of Agriculture will not allow synthetic milk to be called milk.