Business case studies

Innovating a traditional product such as milk: the challenge facing Malgherosse

A farm that is reinventing livestock farming and milk production through a circular, inclusive approach focused on new market and communication strategies

Cascina Malgherosse

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

In a world that is constantly accelerating, where theAI is redefining organisational models and processes, how can a company that produces one of the oldest and most traditional goods in human history innovate?

This is a question that Giuseppe Ruggeri and Valeria Comensoli Ruggeri, agricultural entrepreneurs at the helm of Cascina Malgherosse, a farm with a turnover of 25 million that rears nearly 3,000 head of cattle and produces more than 100,000 litres of milk a day.

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There is no shortage of challenges: a sector so dependent on geopolitical dynamics and weather conditions suffers more than others from the consequences of the wars and the climate crisis the planet is currently facing. Events such as the closure of the Strait of Hormuz or fluctuations in the prices of commodities such as soya or maize necessitate a review of agronomic decisions. This requires a constant ability to reinvent oneself, moving beyond the mindset of “we’ve always done it this way” that has characterised the agricultural sector for years. Whilst in the past the volume of milk produced was the sole KPI, today the variables are multiplying and prompting business owners to think in terms of cost-benefit analysis.

Synergies between local businesses

The history of Malgherosse began in 2003, when Giuseppe Ruggeri took over the management of the family business through a business unit lease agreement. In 2021, he acquired ownership of the business, consolidating a path of growth, innovation and process optimisation guided by a long-term entrepreneurial vision.

One business model worthy of attention involves managing a substantial area of land – around 300 hectares – relative to the number of cattle reared, to enable neighbouring farms to cultivate their fields and supply the crops that feed the cattle. After the harvest, these fields are enriched with the manure produced by the animals, returning organic matter and valuable nutrients to the soil. This creates a virtuous cycle in which the carbon captured by the crops is not lost but returns to the fields, helping to preserve their fertility and support further production.

Thus, each brings the wealth of knowledge and experience from their own specific field. “This is where the idea of creating synergies between different professionals to generate shared value came from,” say the Ruggeris. Forging strategic alliances makes it possible to capitalise on the skills available in the local area and, at the same time, build a supply chain based on lasting partnerships, with a view to achieving results that would be difficult to attain on one’s own.

Bringing milk back to the centre

We live in an age in which not only consumers but also farmers themselves seem to have lost sight of the value of milk. Once an indispensable part of Italian breakfasts, statistics show that we are now witnessing a gradual decline in its consumption. Malgherosse’s aim is to give milk a new narrative that reposition it as a nutritious, protein-rich food and increase the opportunities for people to consume it. Hence the idea of stocking vending machines in schools, offices and gyms with cartons of chilled milk.

Wellbeing for all living beings on the farm

The dairy sector is subject to two conflicting narratives: whilst, on the one hand, the image of the idyllic farmstead where herds graze peacefully remains deeply rooted in the collective imagination, on the other hand, investigative journalism has brought to light reports of intensive livestock farms where cattle are kept in the worst possible conditions.

The reality is that there are countless nuances between these two extremes. Malgherosse’s philosophy is to provide the utmost care and attention to the animal whilst recognising its place within a production cycle. This is a complex challenge both to put into practice and to communicate. For this reason, the company has chosen to raise its profile through a disruptive social media strategy, organising visits to the farm for children and young people and setting up a bed and breakfast to bring city dwellers closer to the farming world.

In practical terms, Valeria and Giuseppe explain how they have changed the way they conceive, design and build livestock housing in order to respect the zoology and way of life of the animal. This does not mean humanising the animal, but allowing it to express its nature as a grazing ruminant. This requires spacious areas and a floor surface made of organic material that ensures a level of comfort similar to that of grazing, promoting freedom of movement, easy access to feed, and a state of wellbeing and safety.

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For years, innovation has focused exclusively on the needs of the milker, transforming barns into sterile factories full of machinery, robots and sensors. Malgherosse has realised that innovation today is not synonymous with automation. It means finding solutions capable of reconciling two seemingly conflicting requirements: those of production and those of the animal. “Cattle, as living beings, must be cared for by another living being. You cannot robotise everything: only humans have the sensitivity to understand their needs,” explains Valeria. It is no coincidence that the human presence is another factor that sets the farm apart, and its 40 staff members are proof of this. A community of people from every corner of the globe who have found in the dignity of work the foundation of their integration.

Ultimately, Malgherosse is a company capable of creating value in a widespread and sustainable manner. It values people, promoting inclusion across different cultures; it protects animals, providing them with environments that allow them to express their natural instincts; it invests in environmental sustainability, adopting circular economy models; and, finally, it strengthens the local economy through meaningful partnerships. The figures confirm the validity of this strategy because, as Giuseppe Ruggeri is keen to point out, ‘the market is the true judge’.  

(*) Director of the Academy of Strategic Communication

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