Denmark's Dairy Industry

The Danish dairy sector is an integral part of the nation's agricultural framework, celebrated for its exceptional quality and extensive international reach. Leading companies such as Arla Foods are at the forefront of sustainability and technological progress.

Dairy Cattle and Milk Production

Denmark is home to approximately 560,000 dairy cattle, which are the backbone of its strong milk production system. The country produces around 5.6 billion kilograms of milk annually, highlighting its commitment to sustainable farming practices and its vital role in the global dairy market.

Milk Processing

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

Cheese Production

Renowned for its high-quality cheeses, Denmark exports approximately 500,000 tonnes annually. This enhances its export market and reinforces its global reputation for superior dairy products.

Milk Powder and Whey Production

Denmark is a leader in milk powder and whey production, with an estimated 1.2 million tonnes produced each year. These products are crucial for both 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 include Tinglev Dairy Farm, Gudsoe Dairy Farm, Holmdrup Dairy, and 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 boost the premium milk beverage market, including brands like Starbucks and Cocio. Rising raw milk prices, currently at 47.06 euro cents per kilogram, have affected 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

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

Arla Foods' Danish plant uses an innovative electric high-temperature heat pump at its AKAFA powdered milk plant in Svenstrup, replacing natural gas in drying processes, showcasing 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. Denmark lost its bluetongue-free status in 2024, yet imports of vaccinated animals are permitted. The country continues to supply cattle to Kazakhstan by allowing imports of vaccinated animals from all regions.

Modified: 2026/01/02