Denmark's Dairy Industry

The Danish dairy sector is a cornerstone of the nation's agricultural landscape, renowned for its premium quality and extensive global reach. Major industry players like Arla Foods lead the charge in sustainability and technological advancements.

Dairy Cattle and Milk Production

Denmark hosts approximately 560,000 dairy cattle, which form the foundation of its robust milk production system. The country produces around 5.6 billion kilograms of milk annually, underscoring its dedication to sustainable farming practices and its significant role in the global dairy market.

Milk Processing

The Danish dairy industry processes about 5.4 billion kilograms of milk each year, showcasing its advanced infrastructure and efficient processing capabilities. This processing capacity is crucial for maintaining the quality and efficiency of Denmark's dairy products.

Cheese Production

Denmark is renowned for its high-quality cheeses, exporting approximately 500,000 tonnes annually. This strengthens its export market and enhances its global reputation for premium dairy products.

Milk Powder and Whey Production

As a leader in milk powder and whey production, Denmark produces an estimated 1.2 million tonnes each year. These products are vital for domestic consumption and the global supply chain.

Key Dairy Enterprises

Prominent Danish dairy enterprises include Arla Foods, Thise Dairy, Hansen Dairy, and Mammen Cheese. Notable dairy farms in Denmark are Tinglev Dairy Farm, Gudsoe Dairy Farm, Holmdrup Dairy, and Lemvig Dairy Farm.

Recent Events in the Dairy Market

The Danish dairy sector is experiencing significant developments. Arla Foods has invested DKK 200 million in its Esbjerg Dairy Center to enhance the premium milk beverage market, including brands like Starbucks and Cocio. Rising raw milk prices, now at 47.06 euro cents per kilogram, have impacted farmer profitability and consumer prices. Additionally, Denmark's decision not to extend the nitrogen stocking rate derogation necessitates stricter environmental compliance.

Export and Import of Dairy Products

The Danish dairy industry is heavily export-oriented, with annual exports valued at around €2.2 billion. Key export markets include Germany, the UK, and China. On the import side, Denmark purchases approximately €0.4 billion worth of dairy products annually, focusing on specialty cheeses and niche products not widely produced domestically.

Innovative Practices

The Danish plant of Arla Foods utilizes an innovative electric high-temperature heat pump at its AKAFA powdered milk plant in Svenstrup, replacing natural gas in drying processes, thus demonstrating a commitment to sustainability. PlanetDairy, a Danish startup, has launched hybrid milk combining cow’s milk and plant proteins, aiming to attract eco-conscious consumers and reduce carbon emissions by 30%-40%.

Denmark has been awarded the Yves Boutonnat International Milk Promotion Trophy at the IDF World Dairy Summit 2025 for its 'Think Dairy' campaign, recognized for creativity and positive promotion of dairy. A Danish delegation explored investment opportunities in Haryana's dairy and agriculture sectors, involving 20 Danish companies discussing potential collaborations to enhance technology and productivity in Haryana.

Danish dairy farmers have ceased using a methane-reducing feed additive due to cow health issues. The additive, Bovaer, was linked to significant health problems in cattle. PlanetDairy has acquired key equipment and technological expertise from Stockeld Dreamery, and Arla Foods plans to invest nearly DKK 300 million to upgrade its Videbæk facility, focusing on retrofitting a spray-drying tower to boost ingredient production and energy efficiency.

Denmark experienced a 21% rise in milk prices in 2025, reflecting the broader EU trend of rising agricultural prices.

Modified: 2025/12/25