We just discovered a problem when looking at the daemon output to stdout when it is piped through tee(1). In that case, status messages only make it into the log file or onto the tty if stdout is explicitly flushed after each output. That includes output terminated by a newline character.
The daemon should either explicitly flush the output file descriptors after each emitted message, configure those file descriptors to be unbuffered, or refrain from using stdout/stderr and instead use the rails logging mechanism for all output. The latter option is probably the most appropriate given that it's a daemon and (in the long run) meant to be run in the background anyway.