Denmark's Dairy Industry Overview

The dairy industry in Denmark is integral to the country's agricultural fabric, noted for its high-quality production and significant impact on global dairy markets. With companies such as Arla Foods, Denmark amplifies its international presence, fostering a competitive global edge.

Milk Production

Denmark produces approximately 5.6 billion kilograms of milk annually, underlining its essential role in both local and international dairy markets. This impressive production is a testament to Denmark's commitment to sustainable farming practices.

Dairy Cattle

The nation supports around 560,000 dairy cattle, crucial to Denmark's extensive milk output and central to its agricultural framework.

Milk Processing

With an annual processing volume of about 5.4 billion kilograms, Denmark's advanced infrastructure and industrial capacity are showcased, underscoring its robust processing facilities.

Cheese Production

Celebrated for its high-quality cheeses, Denmark exports approximately 500,000 tonnes annually. This production bolsters Denmark's export market and enhances its international reputation for premium dairy products.

Milk Powder and Whey Production

Denmark leads in milk powder and whey production, generating an estimated 1.2 million tonnes each year. This is crucial for both domestic uses and international supply chains, reinforcing its strong market position.

Key Dairy Enterprises

• Arla Foods
• Thise Dairy
• Hansen Dairy
• Mammen Cheese

Notable Dairy Farms

• Tinglev Dairy Farm
• Gudsoe Dairy Farm
• Holmdrup Dairy
• Lemvig Dairy Farm

Recent Events in the Dairy Market

Denmark's dairy sector is experiencing noteworthy transformations, including Arla Foods' DKK 200 million investment in its Esbjerg Dairy Center, enhancing the premium milk beverage market with brands such as Starbucks and Cocio. Rising raw milk prices, now at 47.06 euro cents per kilogram, influence farmer profitability and consumer pricing. Furthermore, Denmark's decision not to extend the nitrogen stocking rate derogation requires more stringent environmental compliance.

Export of Dairy Products

Denmark's dairy sector is primarily export-oriented, with annual exports valued at approximately €2.2 billion. Key markets include Germany, the UK, and China, emphasizing Denmark's prominent role in global dairy commerce.

Import of Dairy Products

Denmark imports about €0.4 billion worth of dairy products each year, primarily focusing on specialty cheeses and niche products not widely produced domestically.

Conclusion

The Danish dairy industry is marked by substantial production volumes, sophisticated processing capacities, and a robust global presence. Major enterprises such as Arla Foods are innovating to meet regulatory changes and market trends, ensuring ongoing growth and competitive performance. Strategic obstacles arise from global challenges like bluetongue disease and China's anti-subsidy investigations. Additionally, Arla Foods' acquisition of the Semper facility from Switzerland's Hero Group marks strategic growth. Denmark remains a key cheese supplier to South Korea. Initiatives stress public awareness on reducing meat and dairy consumption, with Denmark exemplifying sustainable agriculture.

Key events include the Dairy Innovation Strategies event, scheduled for Copenhagen on March 26 and 27, 2025. Arla Foods has revised its strategies following Domty's demerger concerns, and announced a collaboration with Germany’s DMK to create the largest dairy cooperative in Europe. Greenpeace Denmark filed a formal complaint against Arla for greenwashing, backed by documentation showing that Arla overstated its CO2 reductions. Skyr was previously manufactured by Arla only in Denmark before expanding to Sweden.

Arla Foods Ingredients is a subsidiary of Danish dairy cooperative Arla Foods. Arla Foods Ingredients has developed a breakthrough concept for the dairy industry, eliminating acid whey from the strained dairy production process. PlanetDairy Denmark contributed tech knowledge to the innovative dairy and plant milk blends. PlanetDairy Denmark collaborated with Albert Heijn and Farm Dairy Netherlands in developing the new blend of dairy and plant milk products. Arla Foods is based in Denmark, with its headquarters in Viby, Denmark. Collaborative research efforts by institutions such as the University of Copenhagen in Denmark were discussed. The event discussed advancements in energy usage and milk powder processing, highlighting the University of Copenhagen's role in research.

Denmark's efforts to eradicate Salmonella Dublin continue. A persistent and multi-resistant variant of Salmonella, known as Salmonella Dublin, continues to threaten Danish dairy herds even after the implementation of an eradication plan in 2008. Despite the decline of infection rates in Danish herds, from 20-25% in 2008 to around 5% today, the country continues to face challenges in completely eradicating the pathogen.

Danish dairy giant Arla invests €59.4m to increase cream cheese capacity at its Holstebro Dairy. Located in western Denmark, Holstebro Dairy currently manufactures 119,000 tonnes of cream cheese annually, along with 155,000 tonnes of butter and spreadable products.

The community market has seen increases of up to 19.8% in countries like Denmark. In May, average prices reached 53.03 cents/liter, reflecting a significant increase in the dairy market. The average prices reaching 53.03 cents/liter in May, a 15.2% year-on-year increase.

Modified: 2025/07/26