Sweden's Dairy Industry Overview

Sweden is globally recognized for producing high-quality dairy products through innovative and sustainable farming techniques. The dairy sector is a crucial component of Sweden's economy, emphasizing sustainability and advanced processing technologies.

Milk Production and Livestock

The annual milk production in Sweden is approximately 2.8 billion kilograms. This substantial output is supported by a sizeable herd of about 320,000 dairy cows and around 12,000 dairy goats. These figures highlight the sector's importance in both conventional and niche dairy markets.

Milk Processing and Dairy Products

Sweden processes nearly 2.6 billion kilograms of milk annually, with a significant portion dedicated to cheese production, totaling around 190,000 metric tons each year. Additionally, Sweden produces about 50,000 metric tons of milk powder and 75,000 metric tons of whey, demonstrating a diverse range of dairy products.

Key Dairy Plants and Farms

Prominent dairy plants such as Arla Foods, Norrmejerier, Skanemejerier, and Gäsene Dairy play a vital role in processing and distributing dairy products. Key dairy farms, including Imazo AB, Jällsjö Gård, Mandom Gård, KG:s Ägg, and Bonden i Bygden, maintain high standards of milk production, reinforcing Sweden's reputation in the dairy industry.

Export and Import of Dairy Products

Sweden exports about 600,000 metric tons of dairy products annually, valued at approximately €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

Significant developments in the Swedish dairy market include increases in raw milk prices, currently at 44.69 euro cents per kilogram. There is a strong focus on sustainability and reducing environmental impact, alongside advancements in processing technology. The export market is expanding, particularly towards Asia and the Middle East.

Arla Foods, a cooperative with over 8,400 owners across Denmark, Sweden, and the UK, emphasizes sustainable production. 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. The Falkenberg site, known as Europe's largest cottage cheese facility, produces around 60 varieties of cottage cheese, catering to both Swedish and international markets.

Unprecedented demand for quark in Sweden has been noted, with Arla Foods experiencing a significant surge in demand for its quark product, with sales rising by 30%. Sweden had an organic milk share of 9.8%. Sweden was identified as a particularly strong market for Arla during the period. Arla's branded sales and nutrition-oriented sub-brands performed strongly in the Swedish market.

Arla Foods approved a €300 million project for a new cheese dairy at its Götene site in Sweden. The facility is expected to lift the site’s annual milk intake to about 1 billion kilograms, roughly twice its current level, with production starting in 2030. Purchasing prices were unchanged in Sweden, and Swedish milk prices remained stable.

Oatly invested $16 million this year to expand capacity at a facility by more than 33%. Arla Foods will expand cottage cheese operations. A further €28.3m will fund higher cottage cheese output and modernization at the company’s Falkenberg site in Sweden.

Sweden’s Triumf Glass is part of the testing of Tetra Pak's new ice-cream wrapping solution. Trials with Triumf Glass, a Swedish ice-cream company, are taking place in commercial production settings and are being used to collect consumer feedback as well as assess performance.

Arla in Sweden ends contracts with organic and Arla farms. Arla Sweden is ending arrangements with 29 organic dairy farms and closing 27 other Arla farms. Arla has about 240 organic farms in Sweden.

Sweden’s kladdkaka ranked first in a TasteAtlas listing of traditional desserts. Kladdkaka, the Swedish dessert placed first, is a cake made with ingredients including chocolate or cocoa, eggs, butter, sugar, and flour. It is known for a moist center and a firmer surface and is associated in Sweden with fika, a customary coffee break accompanied by something sweet.

Arla will close Swedish cheese packaging facility in 2027. Arla Foods plans to shut its Falbygdens Ost import and packaging site in Falköping, Sweden, in February 2027, affecting about 60 employees.