Overview of Denmark's Dairy Industry

The Danish dairy industry is a vital component of the country's agricultural landscape, recognized for its exceptional quality and global outreach. Leading companies such as Arla Foods drive the industry forward, focusing on sustainability and technological advancements.

Dairy Cattle and Milk Production

Denmark is home to approximately 560,000 dairy cattle, playing a crucial role in the country's extensive milk production system. Annually, Denmark produces about 5.6 billion kilograms of milk, highlighting its commitment to sustainable farming practices and its significant contribution to both domestic and international dairy markets.

Milk Processing

The country processes around 5.4 billion kilograms of milk each year, demonstrating its advanced infrastructure and robust processing capabilities. This processing capacity is essential 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 not only strengthens its export market but also enhances its reputation for premium dairy products worldwide.

Milk Powder and Whey Production

With an estimated production of 1.2 million tonnes of milk powder and whey each year, Denmark is a leader in this sector. These products are crucial for both domestic consumption and the international supply chain.

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

The Danish dairy sector is undergoing significant changes. Arla Foods has invested DKK 200 million in its Esbjerg Dairy Center to enhance the premium milk beverage market with brands like Starbucks and Cocio. However, rising raw milk prices, currently at 47.06 euro cents per kilogram, impact farmer profitability and consumer prices. Additionally, Denmark's decision not to extend the nitrogen stocking rate derogation requires stricter environmental compliance.

Export and Import of Dairy Products

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

Conclusion

The Danish dairy industry is characterized by substantial production volumes, sophisticated processing capacities, and a robust global presence. Companies like Arla Foods continue to innovate to address regulatory changes and market trends, ensuring ongoing growth and competitiveness. Despite challenges such as global issues like bluetongue disease and China's anti-subsidy investigations, strategic expansions, such as Arla Foods' acquisition of the Semper facility from Switzerland's Hero Group, highlight growth potential. Denmark remains a key cheese supplier to South Korea, with ongoing efforts to promote sustainable agricultural practices.

Modified: 2025/09/18


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