Iceland's Dairy Industry: A Comprehensive Analysis

Overview

Iceland is a nation known for its robust dairy sector, which is pivotal to its agricultural economy. Despite facing challenges from international trade dynamics, including embargoes, the country has maintained a steady dairy production framework.

Milk Production and Dairy Cattle

As of the latest data, Iceland boasts approximately 70,000 dairy cattle. The annual milk production volume is estimated at around 145 million liters per year. This reflects the country's commitment to maintaining high standards in dairy farming.

Dairy Processing and Cheese Production

Milk processing in Iceland is streamlined through advanced facilities capable of handling the entire milk production volume. Annually, Iceland produces approximately 10,000-12,000 tons of cheese, which is a staple in the Icelandic diet and also has international appeal for its unique flavors.

Production of Milk Powder and Whey

The production of milk powder and whey is estimated to be in the range of 2,000-3,000 tons per year. These products not only serve the local market but also find their way into exports, contributing significantly to the economy.

Key Enterprises in the Dairy Market

The Icelandic dairy market is represented by key enterprises such as MS Iceland Dairies and Fjallalamb, among others. These companies are at the forefront of dairy innovation and production in the country.

Dairy Farms

Iceland's dairy farms are primarily family-owned and operate on a small to medium scale. The farms emphasize sustainable practices and prioritize the well-being of their dairy cattle.

Export and Import of Dairy Products

Due to international embargoes, Iceland's export activities have been fluctuating. However, it manages to export dairy products worth approximately 15 million USD annually. On the import side, Iceland imports dairy products valued at around 5 million USD, focusing on complementing its domestic offerings.

Dairy Market Events

Recent events impacting the Icelandic dairy market include adjustments in trade policies due to international embargoes, which have affected both the import and export dynamics. Despite these challenges, Iceland continues to focus on strengthening its dairy industry internally, with initiatives aimed at improving sustainability and product diversification.

References

For further details and updates on the Icelandic dairy market, sources like the Icelandic Ministry of Industries and Innovation and FAO reports are recommended.

Modified: 2025/02/03

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