Sweden's Dairy Industry

Sweden plays a vital role in the global dairy market, known for its high-quality dairy produce and innovative, sustainable farming techniques. The dairy sector is crucial to Sweden's economy and is lauded for its forward-thinking practices.

Milk Production and Livestock

Annually, 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. These numbers illustrate Sweden's prominence in both conventional and niche dairy markets.

Milk Processing and Dairy Products

Sweden processes nearly 2.6 billion kilograms of milk annually. The country is especially noted for its cheese production, totaling approximately 190,000 metric tons each year. Sweden also produces around 50,000 metric tons of milk powder and 75,000 metric tons of whey annually, reflecting its 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 like Imazo AB, Jällsjö Gård, Mandom Gård, KG:s Ägg, and Bonden i Bygden uphold the 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 experiencing significant developments, including increases in raw milk prices, now at 44.69 euro cents per kilogram. Efforts are being made towards sustainability and reducing environmental impact, as well as advancements in processing technology. The export market is expanding, particularly to Asia and the Middle East.

Ownership and Economic Activities

Arla Foods, a cooperative with over 8,400 owners across Denmark, Sweden, and the UK, continues to focus on sustainable production. A Swedish pension fund subsidiary, Första AP-fonden, recently sold three dairy farms in Victoria's Goulburn Valley, highlighting economic dynamics within the industry. Challenges remain, as Swedish farmers face complex regulations and cooperative system dissatisfaction. Additionally, the rise of oat-based milk alternatives, led by the Swedish company Oatly, has had a notable impact on the dairy market.

Modified: 2025/04/14

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