Sweden's Dairy Industry Overview
Sweden is recognized for its vital role in the global dairy market, celebrated for its high-quality dairy produce and commitment to innovative, sustainable farming techniques. The dairy sector is crucial to Sweden's economy, with a strong emphasis on forward-thinking practices.
Milk Production and Livestock
Each year, Sweden produces approximately 2.8 billion kilograms of milk, supported by a herd of about 320,000 dairy cows and around 12,000 dairy goats. This underscores Sweden's significance in both conventional and niche dairy markets.
Milk Processing and Dairy Products
Sweden processes nearly 2.6 billion kilograms of milk annually. The country's cheese production is noteworthy, totaling approximately 190,000 metric tons each year. Additionally, Sweden produces around 50,000 metric tons of milk powder and 75,000 metric tons of whey annually, showcasing a diverse range of dairy products.
Key Dairy Plants and Farms
Several key dairy plants, such as Arla Foods, Norrmejerier, Skanemejerier, and Gäsene Dairy, are pivotal in processing and distributing dairy products. Prominent dairy farms, including Imazo AB, Jällsjö Gård, Mandom Gård, KG:s Ägg, and Bonden i Bygden, uphold high standards of milk production in Sweden.
Export and Import of Dairy Products
Sweden exports roughly 600,000 metric tons of dairy products annually, valued at about €1.2 billion. Key export markets include Germany, Denmark, and Finland. The country imports approximately 400,000 metric tons of dairy products yearly, with an estimated value of €800 million, mainly sourced from the European Union.
Recent Trends and Events
The Swedish dairy market is undergoing significant developments, including increases in raw milk prices, now at 44.69 euro cents per kilogram. Efforts towards sustainability and reducing environmental impact are prominent, alongside advancements in processing technology. The export market is expanding, particularly towards Asia and the Middle East.
Ownership and economic activities are also noteworthy. Arla Foods, a cooperative with over 8,400 owners across Denmark, Sweden, and the UK, continues to focus on sustainable production. The recent sale of three dairy farms in Victoria's Goulburn Valley by a Swedish pension fund subsidiary highlights economic dynamics within the industry.
Challenges persist, as Swedish farmers face complex regulations and cooperative system dissatisfaction. The rise of oat-based milk alternatives, led by the Swedish company Oatly, has notably impacted the dairy market. The new entity formed by the Arla and DMK Group merger will include members from Sweden and other countries. Sales in Germany reached €1.27 billion in 2024, marking a 1.5% increase from the previous year, making it Arla's third-largest market behind the UK and Sweden.
Greenpeace Denmark argues that Arla's methodological shift in emissions calculations misleads consumers and breaches financial reporting laws in both Denmark and Sweden. Arla Foods is set to begin skyr production in Sweden. Arla Foods is investing €34.5m in its Jönköping dairy to begin skyr production, aiming to meet growing demand in Sweden by 2028.
Modified: 2025/05/18