The role of dairy farmers in driving supply chain 4.0 adoption: A case study from the New Zealand dairy supply chain : A thesis submitted in partial fulfilment of the requirements of the Degree of Master of Commerce and Management at Lincoln University

Abstract

This study explores the crucial role of dairy farmers in driving the adoption of digital technologies within New Zealand’s dairy industry. As a cornerstone of the national economy, the dairy sector significantly contributes to GDP and global exports. With industries worldwide undergoing rapid digital transformation, integrating tools such as the Internet of Things (IoT), Artificial Intelligence (AI), big data analytics, and blockchain has become essential for enhancing efficiency, improving product quality, and ensuring supply chain transparency. However, while large corporations and processing companies have embraced these innovations, the role of dairy farmers—who form the backbone of the industry—remains underexamined. This research employs a qualitative case study approach, drawing on semi‐structured interviews with dairy farmers and processing company representatives. Additionally, it also integrates secondary sources such as industry reports, government publications, and academic journals to provide a broader analysis of the drivers, challenges, and benefits associated with Supply Chain 4.0 adoption. Findings reveal that dairy farmers, as primary producers, are central to the digital transformation process. Their proactive engagement with IoT devices and AI-powered farm management systems has enabled real‐time monitoring of livestock health, milk yield, and environmental conditions. Big data analytics have empowered these stakeholders to predict production trends, optimize resource allocation, and manage supply chain fluctuations effectively. Although blockchain technology remains in its early stages of deployment within the industry. It has the potential to ensure transparency and secure traceability as a significant future asset for enhancing consumer trust in the quality and origin of dairy products. However, the study also highlights several barriers to adopting these digital technologies. High initial investment costs and the steep learning curves associated with complex digital tools limit the widespread implementation of digital technologies particularly for small to medium‐sized farms. In addition, concerns regarding data privacy and the integration of new systems with existing farm operations further complicate the adoption process. Multi-stakeholder collaboration is identified as a critical success factor for the digital transformation of the dairy supply chain. Dairy cooperatives and processing companies play an instrumental role by facilitating access to technical expertise and financial resources. Furthermore, technology providers are urged to design user-friendly, customizable solutions tailored to the specific operational needs of dairy farmers. Government agencies are also recommended to strengthen these initiatives by implementing appropriate solutions to digital transformation in agriculture. The study concludes that while Supply Chain 4.0 technologies are already transforming New Zealand’s dairy industry, there is still significant room for improvement. This research adds to the growing discussion on digital transformation in agriculture by offering valuable insights and practical recommendations to guide future policies and industry practices.