Milk Moovement, which makes supply chain management software for the dairy industry, now controls about 10 percent of United States milk production and has bagged a $1.5 million grant from federal agency Sustainable Development Technology Canada.
CEO Robert Forsythe said in an interview that, in the wake of a United States expansion that saw the company move its sales office to Minnesota, Milk Moovement has inked deals with three of the country’s largest dairy cooperatives — including California Dairies, which includes more than 300 farms.
He said Milk Moovement’s revenue has grown about 350 percent on the back of the American deals, with annual recurring revenue set to hit $2 million by the end of this year.
In addition to a $4 million equity funding round last Spring, the money from SDTC follows a smaller, $100,000 grant from 2020.
“From there, they really looked at, ‘Okay, who’s high-performing and who’s growing really quickly, and who could benefit from further investment?” said Forsythe.
“They were just seeing traction and an ability to really double down on what we pitched for the $100K.”
Milk Moovement’s software is now used in the production of 23 billion pounds of milk annually — about a tenth of the 223 billion pounds produced every year in the United States. The technology is used by about 800 farms and Forsythe expects that number to double by early next year.
But he said $2 million of revenue from 10 percent of the market does not mean Milk Movement’s annual revenue from the U.S. will top out at $20 million. Dairy co-operatives are the company’s beachhead market, but next year, he expects to begin making inroads into the tenfold larger dairy processing industry.