Overview of Sweden's Dairy Industry
Sweden is a prominent figure in the global dairy market, celebrated for producing high-quality dairy products through innovative and sustainable farming techniques. The dairy sector plays a vital role in Sweden's economy, with an emphasis on sustainability and advanced processing technologies.
Milk Production and Livestock
The annual milk production in Sweden reaches approximately 2.8 billion kilograms. This is supported by a sizeable herd of about 320,000 dairy cows and around 12,000 dairy goats, underscoring its importance in both conventional and niche dairy markets.
Milk Processing and Dairy Products
Sweden processes nearly 2.6 billion kilograms of milk annually, with significant cheese production totaling around 190,000 metric tons each year. Additionally, the country produces about 50,000 metric tons of milk powder and 75,000 metric tons of whey, highlighting a diverse range of dairy products.
Key Dairy Plants and Farms
Several key dairy plants, such as Arla Foods, Norrmejerier, Skanemejerier, and Gäsene Dairy, play a pivotal role in processing and distributing dairy products. Prominent dairy farms, including Imazo AB, Jällsjö Gård, Mandom Gård, KG:s Ägg, and Bonden i Bygden, maintain high standards of milk production, further cementing Sweden's reputation in the dairy industry.
Export and Import of Dairy Products
Sweden exports about 600,000 metric tons of dairy products annually, with an estimated value of €1.2 billion. Key export markets include Germany, Denmark, and Finland. Conversely, the country imports roughly 400,000 metric tons of dairy products, valued at approximately €800 million, primarily from the European Union.
Recent Trends and Events
The Swedish dairy market is experiencing significant developments, including increases in raw milk prices, currently at 44.69 euro cents per kilogram. A strong focus on sustainability and reducing environmental impact is evident, alongside advancements in processing technology. The export market is expanding, particularly towards Asia and the Middle East.
In terms of ownership and economic activities, Arla Foods, a cooperative with over 8,400 owners across Denmark, Sweden, and the UK, continues to emphasize sustainable production. Notably, a Swedish pension fund subsidiary recently sold three dairy farms in Victoria's Goulburn Valley, highlighting economic dynamics within the industry.
Challenges persist, with Swedish farmers facing complex regulations and dissatisfaction with the cooperative system. The rise of oat-based milk alternatives, led by the Swedish company Oatly, has notably impacted the dairy market. Arla and DMK Group's merger will include members from Sweden and other countries.
Greenpeace Denmark has raised concerns about Arla's methodological shift in emissions calculations, suggesting it misleads consumers and breaches financial reporting laws in Denmark and Sweden. Arla Foods plans to begin skyr production in Sweden, investing €34.5 million in its Jönköping dairy to meet growing demand by 2028. This investment is part of Arla Foods' strategy to strengthen its market position.
Modified: 2025/05/18