For Lely, 2016 was a tumultuous year. The extremely low milk prices worldwide, which are on average below cost price, meant that many dairy farmers yet again suffered financially. As a result, investments were moved forward and takeovers were postponed. In the Netherlands, the uncertainty as regards the introduction of phosphate rights, also contributed to a wait-and-see approach among dairy farmers. This led to a comparable fall in turnover of around 10% for Lely as compared with 2015. The turnover came to € 502 million.
Despite the disappointing turnover results, 2016 also had some bright spots for the company. Growth in new markets such as Turkey, Japan and Russia was steady, and Dairy XL projects at dairy farms with more than 500 cows showed positive growth. The sale of the 100,000th Lely Lotus tedder was a special event for the company, as well as the successful takeover of Lely Turfcare by Royal Reesink.
There were also new products and concepts introduced in 2016, including a new line of Welger balers, the Discovery Collector manure-scraping robot for barns with a solid floor, the Meteor hoof-health approach, and new applications within the T4C (Time-for-Cows) management system, with which farmers can monitor the health status of their herd at all times.
Alexander van der Lely, CEO of Lely: “2016 was a difficult year for our customers and therefore for us too. The market conditions were particularly bad, and we have clearly suffered the effects of this over the last year. We have therefore focused on the one hand on cost savings, and on the other hand on our vision for the future, Route25. With Route25, we place an emphasis for the coming years on innovation, sustainability, and customer focus. Our goal is to become a future-proof organisation, with an ongoing focus on strengthening our market share and customer relations worldwide”.
Lely again expects an uncertain market in 2017, in which milk prices will continue to fluctuate. Within the Dairy segment, there are some positive aspects in the offing, although many customers will also suffer turbulent economic times over the coming year.
In 2017, the company will take further steps to achieve the strategic goals contained in the Route25 programme. Lely also continues to invest in the organisation’s cooperation, professionalisation and effectiveness, as part of which the uniformity of systems and processes within the group will be further improved.
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June 16, 2023
The next generation Lely Juno
Lely introduces the next generation of Lely Juno, the automated feed pushing solution. The first generation Juno was launched in 2008. Over the years the model has been optimized with new benefits to take it to a next level. In the meanwhile the Lely Juno has become market leader within the feed pushing market with an installed base of more than 14,000 Juno’s in 45 countries all over the world. The past learnings have been used to further optimize the current introduced Juno model with the main goal to lower the running costs for the end users.
June 6, 2023
Lely presents vision Farm of the Future 2035
How can innovation contribute to the major challenges of the agricultural sector?
Maassluis, 6 June 2023 - To mark its 75th anniversary, Lely, market leader in robots for dairy farming, today presented its new vision for the Farm of the Future. A growing world population means wise choices have to be made for food production. Cautious estimates show that demand for food will increase by 70% over the next 30 years. How innovation can contribute to the major challenges of dairy farming, Lely shows by means of five themes that are central to the Farm of the Future.