Several innovations in end-of-line packaging for the dairy industry are transforming the way processors operate. Key equipment advancements such as automated case packing, shrink wrapping and palletizing systems are not only streamlining workflows, but also significantly reducing touchpoints, thereby enhancing overall productivity.

According to Future Market Insights research, the global end-of-line packaging market is set to reach a valuation of $8.2 billion by 2033. Additionally, McKinsey & Company reports automation can enhance throughput by up to 40%, significantly increasing production capacity.

“Dairy manufacturers are increasingly investing in automated end-of-line packaging solutions,” said Robert Khachatryan, chief executive officer and founder of Freight Right Global Logistics. “Technologies such as robotic arms for palletizing and case packing are becoming standard, allowing companies to reduce labor costs and minimize human error.”


Sustainability

As the industry faces mounting pressure to adopt eco-friendly practices, packaging solutions are evolving towards materials like recyclable cartons while employing energy-efficient machinery. Secondary packaging with reduced corrugate, including trays and display trays, are becoming more common.

Extended Producer Responsibility (EPR) for packaging has arrived in the US. While there have been well established sustainability-driven EPR regulations for packaging in other regions of the world, packaging EPR was proposed in 13 states in 2023 and has recently been enacted within California, Colorado, Maine, Oregon and Minnesota.

However, the transition to these advanced systems is not without its hurdles. Integrating cutting-edge technologies with existing infrastructure poses challenges. Recent developments in modular equipment are paving the way for seamless upgrades.

For instance, as consumer preferences increasingly lean toward convenience, designs such as easy-open cartons and portion-controlled packaging are emerging as essential features.

Additionally, the role of data integration and smart technology stands out, providing dairy processors with real-time insights that optimize operations and enable predictive maintenance.

For example, Bryan Sinicrope, vice president of marketing and integrator sales for A-B-C Packaging, a Tarpon Springs, Fla.-based company that offers end-of-line packaging solutions for the dairy industry, noted next-generation smart technology for end-of-line packaging machines benefit dairy processors by providing improved production, greater control, simplified maintenance and total connectivity.

“This technology offers multiple benefits,” he said. “All operating data, down to component and sensor level, can be readily accessed at the HMI as well as the factory control station. This data is important for several reasons. It is used for OEE measurement to analyze line productivity; from an operating standpoint, it provides an ongoing snapshot of machine operation and productivity; and from a maintenance standpoint, along with continuous monitoring of operation, is the ability to anticipate and manage faults.”

Plus, with immediate access to this data at the HMI, it is easy for the plant operators to troubleshoot and proactively correct any issues. A-B-C can provide full support with remote IO link via VPN, which allows service technicians to see machine functions and provide immediate, real-time remote troubleshooting and service.

Point Reyes Farmstead Cheese Company in Point Reyes Station, Calif., recently streamlined its packaging process, adding in more automation and getting higher outputs in a shorter amount of time.

“Shifting from thermoforming packaging to shrink vacuum pouches drastically reduced vacuum leak rate, while simultaneously elevating the overall look of our branding,” said Kuba Hemmerling, vice president of operations for the company. “Our previous equipment was not as accurate, nor were we visually satisfied with the finished product. Our new packaging material and technology not only increases efficiency but also makes our SKUs easier to display in-store.”

In addition to better capturing consumers’ attention and aligning with their demands, this equipment transition has also helped the company move toward sustainability objectives.

“Our new equipment allows us to now work with up-and-coming packaging brands that are incorporating more and more recycled materials,” Hemmerling said. “At the end of the day, our overarching goal with our packaging is efficiency, while maintaining the excellence of our product and keeping it accessible for our customers. Especially in the face of inflation, and subsequent rise of production fees, we want to ensure we can provide our distributors and consumers with a reliable product in terms of both quality and cost.”

Consumer preferences are shaping the design and functionality of end-of-line packaging for dairy products, especially in terms of convenience and usability.

Sinicrope noted stand-up pouches are popular with consumers, because they offer easy storage and maintain product quality.

“Single-serve packages offer convenient right-size packaging for on-the-go consumers,” he said. “Secondary packaging must accommodate these new packages.”

Throughput, ease of operation and low maintenance are all priorities for dairy customers, but they often have other pressing needs, as well.

“If a processor is running a variety of products, ease of changeover is a top priority,” Sinicrope said. “If their packaging equipment is in a damp location, moisture-proof components are needed.”

Additionally, from his experience with dairy processor customers, flexibility is important, as it allows them to innovate with new primary packaging, without additional capital expenses for their end-of-line equipment.

Tom Wiersma is the marketing and business development manager for Integrated Packaging Machinery (IPM), a Rockford, Mich.-based equipment manufacturer for the dairy industry, particularly those involved in milk, yogurt and ice cream processing.

“One of the trends we are seeing is an absolute emphasis on uptime,” he said. “Customers have all of this investment in producing milk, and if the packaging line goes down, all of that investment is at risk.”

Advancements in automaton in the palletizing space has addressed this worry.

“Our customers are creating pallets of cheese or yogurt or milk or whatever, and it all needs to be properly labeled, and we are labeling at the primary package level, case level and pallet level,” Wiersma said. “Labeling at speed is essential. Therefore, the automation in the palletizing area is huge.”

 

Overcoming challenges

There are some challenges dairy processors face in automating end-of-line packaging processes, but recent technological developments are addressing these issues.

“The cost of automated end-of-line packaging equipment can be a challenge,” Sinicrope said. “There are a range of equipment options, from semi-automatic machines that provide an affordable upgrade from manual operation to fully integrated systems. Smart machines minimize labor, increase efficiency and reduce maintenance costs. They provide real-time production data, enabling dairy processors to document and evaluate their production advances.”

In palletizing, software advances make it possible to customize product loads for multiple channels. After all, intuitive pallet builder software enables setup and modification of layer configurations at the palletizer control panel.

Khachatryan noted that the integration of smart technologies, such as sensors and IoT devices, allows for real-time monitoring of packaging integrity and product freshness.

“This technology can help reduce spoilage rates, which currently average around 5% in the dairy industry, leading to cost savings and improved product quality,” he said.

IPM is seeing more customers looking to integrate AI in their packaging line to monitor performance and waste.

“Contemporary AI technology allows us to collect the data, distribute to the plant and our customers have the tools they need to respond,” Wiersma said. “They see AI as being increasingly competitive.”

Robotics are also playing a major role in automation at the end-of-line packaging stage.

“Robot packers offer flexibility to run a range of package styles, with efficient changeover, and future-facing automation,” Sinicrope said.