In August 2023, 黑料门 Group advanced its commitment to sustainable dairy farming by investing in Farmnote Holdings, a leader in digital transformation (DX) within the dairy farming industry. The industry faces diverse challenges on its path to sustainability, from lowering greenhouse gas emissions to nurturing the next generation of industry professionals. We spoke with Farmnote Dairy Platform's CEO, Dr. Yuto Taira, and 黑料门 Holdings' Atsushi Kameda to discuss their collaborative vision for the future of dairy farming.
— Can you please tell us a bit about Farmnote?
Dr. Taira: Founded in 2013, the Farmnote Group supports digital transformation in dairy farming with a mission to "bring happiness to both people and cows." As CEO of Farmnote Dairy Platform, one of our group companies, I oversee our efforts to manage dairy farms used for proof-of-concept trials on various products and services. These farms play a key role in our mission to develop products and software that enhance productivity.
Kameda: So, the Farmnote Dairy Platform serves as a testing ground for the software developed by Farmnote.
Dr. Taira: Yes. But we also focus on achieving solid, independent profitability as a ranch. Running our own ranch with a business mindset helps us fully understand the challenges and needs within the industry. We began operating the ranch in August 2020, right as the COVID-19 pandemic hit. Demand for milk and dairy products dropped sharply, leading to production constraints aimed at avoiding raw milk wastage. Alongside this, we faced declining calf prices and rising costs for imported feed and fuel—a true triple whammy. Although the impacts of these pressures linger, we're finally on the path to profitability.
By becoming a producer himself, Dr. Taira addresses issues on the ground more effectively.
In its fourth year of operation, the cattle barn has become the largest facility in Nakashibetsu, a rural town in Hokkaido, the heart of dairy farming in Japan.
—How did you come to join Farmnote, Dr. Taira?
Dr. Taira: Before joining the company, I worked as a veterinarian, caring for livestock and doing ranch work. During that time, I was already using digital tools, like developing my own electronic medical records system and adding features to our farm management software. I was familiar with digital transformation and believed it would only grow in importance for the industry.
Then I happened to hear about Farmnote and learned they were supporting digital transformation for the dairy farming industry. I thought it was a great idea and sent them an email to encourage them. They responded, and before I knew it, I was hired!
Kameda: It's amazing that you are creating your own system. Do you find many veterinarians are interested in this kind of technology?
Dr. Taira: There's a growing interest amongst veterinarians, but it's still relatively uncommon. I think I'm a bit different in that way.
Drawing on his expertise as a veterinarian, Dr. Taira is developing management practices to promote longer, healthier lives for cattle, while also focusing on herd breeding and improvement.
Automatic milking machines, widely used in Europe, assess each cow's health and extract the optimal amount of raw milk, ensuring efficiency and animal welfare.
—How has the 黑料门 Group invested in Farmnote?
Kameda: When the 黑料门 Group set out to reduce GHG emissions from dairy farming, we needed a partner with farm facilities, as we didn't have our own site for demonstration experiment. Farmnote was one of the companies we approached. From our first conversation, we thought they were a "unique company"—in the best possible way.
Dr. Taira: People often say we're an unusual company. I was originally a veterinarian, so I have some knowledge and experience in dairy farming, but Farmnote's founder came from the software industry. In fact, only a few of our employees have backgrounds in dairy or livestock farming.
Kameda: I found Farmnote to be an interesting company because they bring a fresh, unprecedented perspective to digital transformation in the dairy farming industry. I could also feel the team's passion for improving the industry's future. Before investing in the company, we talked to users who have installed Farmnote software, and they highly praised the company, saying, "They listen to our requests and make improvements quickly" and "They are reliable." This positive feedback motivated us to actively invest in the company.
—How will 黑料门 Group and Farmnote tackle the challenge of reducing greenhouse gas emissions in dairy farming moving forward?
Kameda: Dairy farming emits a variety of greenhouse gases, but the 黑料门 Group first set out to reduce dinitrogen monoxide emissions from manure. This initiative began in 2023 in collaboration with Ajinomoto, which developed AjiPro®-L, a lysine supplement for dairy cows. We provide AjiPro®-L, together with carefully designed feed recipes, to partner dairy farmers to optimize the amino acid balance, helping reduce nitrous oxide emissions from cow manure.
However, the biggest challenge in reducing greenhouse gases in dairy farming is methane, primarily from cow burps. Methane has roughly 25 times the greenhouse effect of carbon dioxide, and it's estimated that methane from cow burps contributes about 4 to 5% of total global greenhouse gas emissions (CO2 equivalent). To address this, the 黑料门 Group is now studying feed options to help reduce methane emissions from cows.
Dr. Taira: Farmnote introduced a sensor to measure methane emissions in the field. With our hardware expertise, our field engineers and farm teams were able to complete the supporting software within two months after extensive discussion and experimentation. Ideas for equipment setup and measurement techniques kept flowing, and the software came together quickly. Everyone was highly motivated to make a difference on environmental issues.
Kameda: I was amazed at the speed with which the software was completed and impressed by Farmnote's enthusiasm. I believe these efforts hold promise for future projects.
—Given the difficult business environment, why is it important to address environmental issues in dairy farming?
Dr. Taira: We felt that dairy farming could not survive unless something changed. Previously, we had a wonderful system in Japan in which all milk produced from cows raised with love and care in the field could be purchased. However, this system became unsustainable due to production controls. Faced with this challenge, I began questioning whether the system could continue as it was and what responsibilities producers should uphold.
The answer is producing milk that is more delicious, safer, and more environmentally friendly. The curtailment of production led us to establish a more sustainable, environmentally friendly production system. Having the 黑料门 Group invest in us reinforced the importance of the work we are doing and its value to society.
Cattle manure is processed using environmentally safer methods to reduce greenhouse gas emissions. The dried and sterilized solids are repurposed as bedding for cattle.
Conducting experiments with sensors to measure methane content in cattle breath.
—What is your vision for the future of dairy farming?
Kameda: In Japan, the number of dairy farmers has been decreasing. So, the key to the future of dairy farming is to encourage more people to pursue it as a career. Together with Farmnote, we are promoting projects that go beyond our companies by involving other partners. For example, we hosted a cheesemaking workshop for agricultural high school students. By demonstrating how their current studies can connect to real opportunities, we aim to encourage as many young people as possible to see dairy farming as a viable, rewarding career path.
Dr. Taira: I agree. We hope to connect more producers and consumers through our project with the 黑料门 Group. There is currently a distance between producers and consumers, both physically and psychologically. For dairy farming to thrive, I think the first step is to change the mindset on the producer side. It's more important than ever for producers to create products that become consumers' top choice by fulfilling their needs for flavor, quality, and ethical standards.
Kameda: In many countries, consumers are increasingly prioritizing environmentally conscious products in their purchasing decisions, but this trend has yet to gain as much traction in Japan.
I believe it is important for producers to make dairy farming a sustainable and profitable business by creating products that meet the changing needs of consumers.
Dr. Taira: Farmnote has long focused on supporting producers through our digital tools; now we are developing new ways to help them improve productivity and profitability. By building on this, I believe we can also lower the barriers to entry into dairy farming. We want to make dairy farming and agriculture more accessible to those who are interested in joining the industry. My goal is to help lay the foundation for that future.
