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Milk in Sweden

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<strong>Milk</strong><br />

IN SWEDEN


<strong>Milk</strong> creates life,<br />

jobs and health<br />

PLOP! A LARGE BROWNISH-GREEN cowpat hits the ground. A<br />

feast for dung beetles, dor beetles and buzz<strong>in</strong>g fl ies. Which <strong>in</strong> turn<br />

becomes food for the wheatears and other small birds. The tramp<strong>in</strong>g<br />

of milk cows <strong>in</strong> the meadow also makes it easier for new plants to<br />

grow. Without the animals’ graz<strong>in</strong>g, a few types of herbs and grass<br />

would probably have taken over and su� ocated the rest.<br />

While the cows are vital conservationists, they also provide jobs<br />

for large numbers of people throughout the country. Over 50,000<br />

people form l<strong>in</strong>ks <strong>in</strong> the cha<strong>in</strong> that stretches from the cows’ food to<br />

the milk conta<strong>in</strong>ers on store shelves. Directly or <strong>in</strong>directly, milk provides<br />

the livelihood of feed producers, dairy farmers, dairy employees,<br />

transport workers and, to a certa<strong>in</strong> degree, retailers.<br />

<strong>Milk</strong> is not only delicious and fi ll<strong>in</strong>g – it is also nutritious. A halflitre<br />

conta<strong>in</strong>s as many as 18 of the 22 nutrients. These <strong>in</strong>clude calcium<br />

and vitam<strong>in</strong> d, which counteract osteoporosis. Another component<br />

is the prote<strong>in</strong> lactoferr<strong>in</strong>, which appears to be able to protect<br />

aga<strong>in</strong>st cancer and <strong>in</strong>fections. Accord<strong>in</strong>g to the most recent research<br />

fi nd<strong>in</strong>gs, milk has a positive e� ect on cardiovascular functions and<br />

milk prote<strong>in</strong> conta<strong>in</strong>s substances that help lower blood pressure.<br />

Moreover, experts claim that those who consume low-fat milk products<br />

fi nd it easier to control their weight.<br />

In an <strong>in</strong>ternational comparison, Swedish dairy companies are far<br />

ahead <strong>in</strong> their development of foods with specifi c, health-promot<strong>in</strong>g<br />

properties – known as functional foods. These <strong>in</strong>clude edible fats that<br />

conta<strong>in</strong> cholesterol-lower<strong>in</strong>g omega-3 fatty acids, yoghurts conta<strong>in</strong><strong>in</strong>g<br />

lactic acid bacteria that soothe the stomach, and oat-based fruit<br />

dr<strong>in</strong>ks.<br />

The Swedish National Food Adm<strong>in</strong>istration recommends that all<br />

persons over the age of three consume fi ve decilitres of milk or the<br />

equivalent amount of milk products every day, throughout their life.<br />

As a milk-produc<strong>in</strong>g country, <strong>Sweden</strong> is a natural. Indeed, we do<br />

have a strong dairy tradition – as both producers and consumers.<br />

Come with us on an excit<strong>in</strong>g journey <strong>in</strong>to the world of milk. You may<br />

discover that milk means more than you th<strong>in</strong>k.<br />

3


4<br />

Annan fi ka-bild <strong>in</strong> här


<strong>Milk</strong> <strong>in</strong> a new,<br />

<strong>in</strong>novative form<br />

CONVENIENT AND GENUINE is what we want! As a<br />

reaction to the consumer society and all its stress, people<br />

have developed a long<strong>in</strong>g for the authentic. At the same<br />

time, we want to experience and enjoy th<strong>in</strong>gs. There is<br />

also an emerg<strong>in</strong>g trend toward greater focus on quality.<br />

<strong>Milk</strong> fulfi ls all of these desires.<br />

As consumers, we want to know where our food comes<br />

from. We make demands <strong>in</strong> terms of fl avour, nutrition and<br />

climate impact. And we’re ready to pay whatever it costs.<br />

<strong>Milk</strong> has always had a strong position <strong>in</strong> <strong>Sweden</strong>. Apart<br />

from water, milk is our most common dr<strong>in</strong>k with meals.<br />

From hav<strong>in</strong>g been a typical at-home dr<strong>in</strong>k, it has now<br />

established itself <strong>in</strong> a more public sphere – particularly<br />

through the ca� è latte trend. The same applies to milk<br />

products. More and more people are hav<strong>in</strong>g breakfast at<br />

their corner store or grabb<strong>in</strong>g a yoghurt dr<strong>in</strong>k and a<br />

cheese sandwich <strong>in</strong> their car on the way to work.<br />

We have become more mobile and simultaneously more<br />

<strong>in</strong>sistent on convenience. The portion-packaged milk prod-<br />

Coffee to go <strong>in</strong> mugs with<br />

the same design as<br />

grandma’s best ch<strong>in</strong>a.<br />

5


ucts fi t <strong>in</strong> perfectly with our new lifestyle. It’s so easy to<br />

just pop them <strong>in</strong>to your bag, easy to reseal them and<br />

there’s no mess.<br />

Dur<strong>in</strong>g the week, its rush, rush, rush, and maybe readycooked<br />

food – but on the weekend, we relax and take it<br />

easy. That’s when we’re happy to spend time prepar<strong>in</strong>g<br />

food <strong>in</strong> the company of family and friends.<br />

Studies conducted by the Swedish Dairy Association<br />

show that authenticity is about reliability – be<strong>in</strong>g genu<strong>in</strong>e,<br />

good-quality, reliable, real, correct, proper and true.<br />

“Natural” is associated with health.<br />

WE WANT FEWER ADDITIVES, higher nutritional density,<br />

and perhaps even a shorter best-before date. There has<br />

been a marked <strong>in</strong>crease <strong>in</strong> awareness and <strong>in</strong>terest <strong>in</strong> what<br />

we consume. A result of the <strong>in</strong>sight that every <strong>in</strong>gredient<br />

goes right <strong>in</strong>to our cells, form<strong>in</strong>g part of our bodies!<br />

6<br />

“<strong>Milk</strong> and dairy products are key <strong>in</strong>gredients, and above all,<br />

excellent sources of taste. Butter, the epitome of authenticity,<br />

is obviously part of the trend.”<br />

There is a grow<strong>in</strong>g market for food with special characteristics.<br />

This can <strong>in</strong>volve orig<strong>in</strong>, health-promot<strong>in</strong>g properties<br />

or simply someth<strong>in</strong>g really tasty, convenient and genu<strong>in</strong>e.<br />

Traditional methods of preparation and simple raw<br />

materials, free of additives, are examples of genu<strong>in</strong>e food.<br />

CLEARLY WE DON’T WANT TO have to choose between<br />

tasty and nutritious. We demand both. Driv<strong>in</strong>g the food<br />

trends is our long<strong>in</strong>g for Nordic or Swedish cuis<strong>in</strong>e,<br />

based on domestic raw materials. Obviously, milk and<br />

dairy products are key <strong>in</strong>gredients <strong>in</strong> this, and above all,<br />

excellent sources of taste. Butter, the epitome of authenticity,<br />

is obviously part of the trend. Cheese, cultured products<br />

and fl avoured milk are also <strong>in</strong>creas<strong>in</strong>gly popular, and<br />

the convenience trend is boost<strong>in</strong>g products such as seasoned<br />

and herbed crème fraîche, ready-to-use soups and<br />

sauces. At the same time, there is a great deal of product


BREAKFAST<br />

Breakfast gives us<br />

the ability to listen<br />

and concentrate on<br />

what we do for the<br />

rest of the day. A<br />

good breakfast <strong>in</strong> -<br />

cludes a dairy product<br />

such as milk,<br />

soured milk or<br />

yoghurt; bread, porridge<br />

or muesli, vegetables<br />

and a tasty<br />

sandwich filler.<br />

LUNCH<br />

Lunch is a break,<br />

du r<strong>in</strong>g which we<br />

want to rest and<br />

enjoy. Accord<strong>in</strong>gly,<br />

<strong>in</strong>terest has <strong>in</strong> creased<br />

<strong>in</strong> ready-made<br />

meals that enhance<br />

conve ni ence. Tasty<br />

and fill<strong>in</strong>g soups contribute<br />

to mak<strong>in</strong>g<br />

lunch a relax<strong>in</strong>g<br />

experience and leave<br />

time for relaxation.<br />

SNACKS<br />

Dairy products are<br />

be<strong>in</strong>g consumed<br />

<strong>in</strong> new ways and<br />

places. Flavour ed<br />

milk, yoghurt with<br />

health-promot<strong>in</strong>g<br />

addi tives, smo othies<br />

and caffè latte fit <strong>in</strong><br />

with our new lifestyle.<br />

DINNER<br />

Food <strong>in</strong> a rush on<br />

weekdays and hours<br />

of cook<strong>in</strong>g at the<br />

week ends. Prefer ably<br />

<strong>in</strong> the company of<br />

family and friends.<br />

7


“Labelled for socially ethical production, local production, climate impact,<br />

ecological production, luxury products and specially selected products.<br />

Our <strong>in</strong>terest often reflects our values.”<br />

A beverage across the generations. <strong>Milk</strong> is beneficial at every age.<br />

8


development of low-fat and ecological products, as well<br />

as low-sugar products.<br />

We are curious about food orig<strong>in</strong>. The product is so<br />

much more <strong>in</strong>terest<strong>in</strong>g when we know it is from a specifi<br />

c place or person and we are <strong>in</strong>creas<strong>in</strong>gly concerned<br />

about how food is produced. Studies show that Swedish<br />

dairy farmers, dairy companies and their brand names<br />

enjoy a high level of confi dence among consumers.<br />

Labelled for socially ethical production, local production,<br />

climate impact, ecological production, luxury products<br />

and specially selected products – these are some of<br />

the selection criteria that are becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly common.<br />

Variation, small-scale production methods and diversity<br />

are also becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly relevant. Our <strong>in</strong>terest<br />

often refl ects our values.<br />

YOUNG CONSUMERS OFTEN want to try someth<strong>in</strong>g<br />

new, though not where food is concerned. They tend to<br />

feel secure with the same brand names they know from<br />

the refrigerator <strong>in</strong> their childhood home – these are the<br />

brands they look for when they beg<strong>in</strong> to shop for themselves.<br />

Major demographic changes create changes <strong>in</strong> the relative<br />

strength of di� erent groups of consumers. In 1999,<br />

there were about 35,000 fewer children born than <strong>in</strong> 1990.<br />

This has a major e� ect on milk consumption, s<strong>in</strong>ce children<br />

between 5 and 14 are our largest consumers of milk.<br />

Schoolchildren dr<strong>in</strong>k at least as much milk with their<br />

school lunches as before – however, total consumption is<br />

decl<strong>in</strong><strong>in</strong>g, s<strong>in</strong>ce they are now so much fewer <strong>in</strong> number.<br />

The Swedish National Food Adm<strong>in</strong>istration’s recommendation<br />

that everyone – young and old alike – should consume<br />

fi ve decilitres of milk or dairy products per day,<br />

shows how signifi cant milk is from a nutritional po<strong>in</strong>t of<br />

view. Of the 22 nutrients that we need every day and that<br />

are recommended, milk conta<strong>in</strong>s as many as 18. So milk is<br />

obviously a “smart” dr<strong>in</strong>k – a 100 per cent natural energy<br />

dr<strong>in</strong>k. A dr<strong>in</strong>k to rema<strong>in</strong> loyal to throughout our lives.<br />

CONTENTS:<br />

Vitam<strong>in</strong> A<br />

Vitam<strong>in</strong> D<br />

Vitam<strong>in</strong> B12<br />

Vitam<strong>in</strong> B6<br />

Phosphorous<br />

Thiam<strong>in</strong>e<br />

Selenium<br />

Niac<strong>in</strong><br />

Z<strong>in</strong>c<br />

Magnesium<br />

Carbohydrates<br />

Riboflav<strong>in</strong><br />

Calcium<br />

Potassium<br />

Prote<strong>in</strong><br />

Folic acid<br />

Lod<strong>in</strong>e<br />

Fat<br />

9


THE BATTLE FOR CONSUMERS occurs largely <strong>in</strong> stores.<br />

Retail trends a� ect both the dairy companies and ultimately,<br />

the consumers.<br />

Retail stores are tighten<strong>in</strong>g their grip on suppliers,<br />

<strong>in</strong>clud<strong>in</strong>g the dairy companies. One major change is that<br />

centralized purchas<strong>in</strong>g is becom<strong>in</strong>g <strong>in</strong>creas<strong>in</strong>gly common.<br />

Also, the retail sector is tak<strong>in</strong>g over responsibility for distribution.<br />

To date, however, it is the dairy companies that<br />

deliver fresh dairy products, such as milk, cultured milk<br />

and yoghurt.<br />

As part of the retail stores’ e� orts to enhance their e� -<br />

ciency, store personnel have begun to handle replenishment<br />

of products on shelves. In return, the suppliers have<br />

reduced their prices. The dilemma is that this has reduced<br />

suppliers’ ability to <strong>in</strong>fl uence product exposure.<br />

10<br />

The consumers’ shortage of time governs the retail offer<strong>in</strong>g.<br />

Efficiency – an important<br />

driv<strong>in</strong>g force for bus<strong>in</strong>ess<br />

Another trend is that certa<strong>in</strong> retail players no longer<br />

accept sales visits <strong>in</strong> their stores, so suppliers must fi nd<br />

new ways of market<strong>in</strong>g their products.<br />

The Swedish retail store trade is dom<strong>in</strong>ated by ica, followed<br />

by Coop, Axfood and Bergendahls. The two foreign<br />

discount giants Lidl and Netto hold modest market shares.<br />

With few <strong>in</strong>dependent wholesalers that are not tied to the<br />

established convenience store cha<strong>in</strong>s, it is di� cult for new<br />

players to become established <strong>in</strong> <strong>Sweden</strong>.<br />

IT HAS BEEN RUMOURED for some time that the American<br />

giant Wal-Mart and uk-based Tesco have been prepar<strong>in</strong>g<br />

to establish themselves <strong>in</strong> <strong>Sweden</strong>, however, their<br />

ex pansion plans prioritize Ch<strong>in</strong>a, Russia and India. The<br />

Nordic region is much lower on their lists of priority.


Did you know…<br />

Compared with many other EU<br />

countries, <strong>Sweden</strong> has a small<br />

proportion of retail own brands,<br />

particularly <strong>in</strong> the dairy segment.<br />

13


14<br />

Did you know…<br />

The body can best absorb calcium<br />

if calcium <strong>in</strong>take is distributed<br />

throughout the day.


A number of years ago, the four Swedish retail groups<br />

established themselves <strong>in</strong>ternationally, to vary<strong>in</strong>g degrees,<br />

through acquisitions and mergers across national boundaries.<br />

The Grocery Manufacturers of <strong>Sweden</strong> are expect<strong>in</strong>g<br />

further mergers, particularly among suppliers, but also<br />

among retailers.<br />

RETAILERS’ OWN BRANDS – the so-called private-label<br />

brands – cont<strong>in</strong>ue to grow <strong>in</strong> strength. Compared with<br />

many other EU countries, <strong>Sweden</strong> has a small proportion<br />

of proprietary brands, particularly <strong>in</strong> the dairy segment.<br />

In certa<strong>in</strong> product categories, the trend is toward a more<br />

limited selection or no selection at all, however, there are<br />

also examples where the range has actually <strong>in</strong>creased. In<br />

countries with a high proportion of proprietary brands,<br />

private-label brands can be found <strong>in</strong> all price classes, from<br />

the cheapest to the most expensive on the shelf.<br />

Growth <strong>in</strong> the superstore and discount segment is<br />

expected to rema<strong>in</strong> high. At the same time, however,<br />

If consumers are allowed to<br />

choose, food should be ecological,<br />

healthy and easy to prepare.<br />

many consumers have thicker wallets and the demand for<br />

more exclusive, high-added-value products is <strong>in</strong>creas<strong>in</strong>g.<br />

Specialty goods and non-food products are areas <strong>in</strong><br />

which the convenience store <strong>in</strong>dustry is heavily <strong>in</strong>creas<strong>in</strong>g<br />

its <strong>in</strong>vest<strong>in</strong>g. The <strong>in</strong>dustry is also adapt<strong>in</strong>g itself to grow<strong>in</strong>g<br />

health trends. Locally produced and ecological products are<br />

proliferat<strong>in</strong>g on store shelves. There is an <strong>in</strong>creas<strong>in</strong>g focus<br />

on environmental impact throughout the value cha<strong>in</strong>.<br />

Accord<strong>in</strong>g to a general forecast for Europe, the percentage<br />

of convenience-store trade conducted via the Internet<br />

will be about 15–25 per cent <strong>in</strong> 2016. In the op<strong>in</strong>ion of the<br />

Grocery Manufacturers, these fi gures are far too high for<br />

<strong>Sweden</strong>, consider<strong>in</strong>g that Internet shopp<strong>in</strong>g <strong>in</strong> this sector<br />

is currently negligible. Despite the poor success with previous<br />

e� orts, retail cha<strong>in</strong>s have not give up. New solutions<br />

are under development. Industry peers <strong>in</strong> other countries<br />

have demonstrated profi tability <strong>in</strong> their Internet stores,<br />

and several analysts believe that the commodity <strong>in</strong> shortest<br />

supply for consumers <strong>in</strong> the future will be time.<br />

15


New world<br />

of dairies<br />

DAIRY COUNTERS OCCUPY <strong>in</strong>creas<strong>in</strong>gly large spaces <strong>in</strong><br />

the stores. Consumers want variation and new products.<br />

Dairy companies have not been slow to respond to these<br />

wishes. Product development is <strong>in</strong>tensive. Success demands<br />

products with added value – whether it is a health argument,<br />

tempt<strong>in</strong>g packag<strong>in</strong>g or someth<strong>in</strong>g that makes food<br />

preparation easier. The dairy companies must also take<br />

<strong>in</strong>to consideration the fact that s<strong>in</strong>gle-person households<br />

are <strong>in</strong>creas<strong>in</strong>gly common.<br />

The dairy companies have <strong>in</strong>vested heavily <strong>in</strong> expand<strong>in</strong>g<br />

strong proprietary brand names. The challenge is also<br />

to develop a range that <strong>in</strong>cludes all price classes and the<br />

stores’ own “private-label” brands. In an <strong>in</strong>ternational perspective,<br />

Swedish dairy companies are among the<br />

leaders as regards develop<strong>in</strong>g new tastes and food<br />

<strong>in</strong>novations <strong>in</strong>volv<strong>in</strong>g special health characteristics.<br />

16


The dairies’ market crosses<br />

<strong>in</strong>ternational boundaries.<br />

The import of cheese is<br />

ma<strong>in</strong>ly from Denmark, the<br />

Netherlands and Germany.<br />

Exports are primarily<br />

dest<strong>in</strong>ed for Den mark,<br />

F<strong>in</strong>land, Greece and<br />

Russia.<br />

17


Swedish milk is a highly controlled food and quality control is well-developed. This guarantees consumers the best quality throughout the<br />

In total, there are 15 dairy companies <strong>in</strong> <strong>Sweden</strong>. Seven<br />

of them are members of the <strong>in</strong>dustry organisation the<br />

Swedish Dairy Association and account for over 99 per<br />

cent of the country’s milk production. The others are dairy<br />

farms of vary<strong>in</strong>g size. The seven large companies are all<br />

cooperatives. Competition between the dairy companies<br />

has <strong>in</strong>creased, locally and globally.<br />

ARLA FOODS, BY FAR THE LARGEST, processes about<br />

two-thirds of Swedish milk and is the only company that<br />

can be considered a global player. The other large companies<br />

are: <strong>Milk</strong>o, Skånemejerier, Norrmejerier, Falköp<strong>in</strong>gs<br />

meje ri, Gefl eortens mejerifören<strong>in</strong>g and Gäsene mejerifören<strong>in</strong>g.<br />

18<br />

In the rest of Europe, further mergers and cooperation<br />

between di� erent dairy players are expected. In particular,<br />

the newest members of the eu tend to have many<br />

small dairies that will probably soon form amalgamations,<br />

even across national borders. Invest<strong>in</strong>g <strong>in</strong> new markets,<br />

such as Ch<strong>in</strong>a and India, is capital-<strong>in</strong>tensive and<br />

consequently attractive only to extremely large, strong<br />

players.<br />

The <strong>in</strong>dustry devotes considerable e� ort to develop<strong>in</strong>g<br />

its exports of bulk products to <strong>in</strong>clude more value-added<br />

products. Swedish dairy companies export ma<strong>in</strong>ly valueadded<br />

products <strong>in</strong> the form of cheese and milk powder,<br />

while imports ma<strong>in</strong>ly consist of cheese and yoghurt.<br />

Cheese imports are more than twice as high as exports.


ha<strong>in</strong> from feed<strong>in</strong>g to packag<strong>in</strong>g.<br />

Cheese is ma<strong>in</strong>ly imported from Denmark, the Netherlands<br />

and Germany. Our own cheese is exported ma<strong>in</strong>ly to<br />

Denmark, F<strong>in</strong>land, Greece and Russia.<br />

Our largest trade volumes are with our neighbours<br />

– Denmark and F<strong>in</strong>land. Relatively large quantities of<br />

butter and milk powder are exported to Oman and Saudi<br />

Arabia.<br />

One of our well-aged Swedish hard cheeses, Svecia,<br />

holds a Protected Designation of Orig<strong>in</strong> with<strong>in</strong> the eu –<br />

just like the well-known Italian cheese, Parmigiano Reggiano.<br />

This protection implies that Svecia may only be<br />

produced <strong>in</strong> certa<strong>in</strong> regions of <strong>Sweden</strong> and <strong>in</strong> accordance<br />

with the orig<strong>in</strong>al recipe.<br />

Grevé ® , Präst ® and Herrgård ® are registered eu trade-<br />

marks, which imply legal protection of the trademark<br />

with<strong>in</strong> the eu. Hushållsost is protected as a “Guaranteed<br />

Traditional Specialty” with<strong>in</strong> the eu, imply<strong>in</strong>g that is must<br />

be manufactured <strong>in</strong> accordance with the orig<strong>in</strong>al recipe.<br />

Västerbottensost ® , is another Swedish classic that has be -<br />

come a favourite of many chefs.<br />

SWEDISH DAIRY PRODUCTS are safe food. Apart from<br />

exact<strong>in</strong>g quality monitor<strong>in</strong>g by the Swedish authorities,<br />

the dairy companies rigorously apply control programs of<br />

their own, which are approved by the Swedish National<br />

Food Adm<strong>in</strong>istration. The aim is of course to guarantee<br />

consumers top quality throughout the cha<strong>in</strong>, from feed to<br />

packaged product.<br />

19


Dairy enterprise<br />

for the future<br />

A SELF-PROPELLED SCRAPER pushes fertilizer away<br />

from the ribbed concrete fl oor. Simultaneously, a driverless<br />

wagon glides along the feed trough to distribute the<br />

feed. The heavy duties of the dairy farms are <strong>in</strong>creas<strong>in</strong>gly<br />

automated. As the farms grow, many choose to <strong>in</strong>stall<br />

milk<strong>in</strong>g robots. From a fi nancial po<strong>in</strong>t of view, the best<br />

model is still stalls where the dairy farmers operate the<br />

milk<strong>in</strong>g mach<strong>in</strong>e themselves.<br />

<strong>Milk</strong><strong>in</strong>g robots are more a way of improv<strong>in</strong>g the work<br />

environment and br<strong>in</strong>g<strong>in</strong>g more freedom to cows and people.<br />

The cow itself chooses when it wants to be milked<br />

and the dairy farmer is spared hav<strong>in</strong>g to sit <strong>in</strong> uncomfortable<br />

positions <strong>in</strong> the milk<strong>in</strong>g pit. The more the technology<br />

develops and the more cows a robot can manage, the<br />

more attractive it becomes. There are many work<strong>in</strong>g hours<br />

to be won, but the important <strong>in</strong>teraction between man<br />

and beast is preserved. Another alternative is the milk<strong>in</strong>g<br />

carousel. For this technology to be fi nancially advantageous,<br />

extremely large herds are required.<br />

Swedish milk production is constantly chang<strong>in</strong>g. S<strong>in</strong>ce<br />

the 1960s, the orig<strong>in</strong>al total of 200,000 dairy farmers has<br />

shrunk to slightly more than 7,000. Those with smaller<br />

herds quit, while those with larger herds become even<br />

larger. In the 1960s, the average size of a herd was 10–14<br />

cows. Today, the correspond<strong>in</strong>g fi gure is around 50 and<br />

those that embark on new construction generally plan, on<br />

average, for 130 cows.<br />

The total number of cows is decl<strong>in</strong><strong>in</strong>g (just under<br />

400,000 cows <strong>in</strong> 2006, as compared with 1,200,000 <strong>in</strong><br />

1960), but at the same time, the yield is <strong>in</strong>creas<strong>in</strong>g somewhat.<br />

A little more than 40 years ago, the average yield<br />

was about 10 kg of milk per cow per day. With their current<br />

yield of around 30 kg of milk per day, Swedish dairy<br />

cows are among the top performers <strong>in</strong> the world. There<br />

21


“Around 40 per cent of all Swedish cows move around freely <strong>in</strong> the cow-house. This<br />

solution is also called non-conf<strong>in</strong>ement and represents the wave of the future.”<br />

are a few record-break<strong>in</strong>g cows <strong>in</strong> <strong>Sweden</strong> that actually<br />

deliver double that yield.<br />

A relatively high yield is necessary for milk production<br />

to be profi table <strong>in</strong> our country where cold w<strong>in</strong>ters require<br />

expensive stall build<strong>in</strong>gs. Healthy animals are the most<br />

critical parameter <strong>in</strong> achiev<strong>in</strong>g success. This presupposes<br />

a comfortable stall environment with clean air, well-balanced<br />

feed and particularly, thorough disease-prevention<br />

measures. Naturally, constant concern for the animals<br />

welfare is a given. For many years, we have had the most<br />

str<strong>in</strong>gent animal-protection legislation <strong>in</strong> the world. While<br />

on the one hand, it raises costs for the <strong>in</strong>dustry, on the<br />

other, it has driven the dairy farmers to achieve worldlead<strong>in</strong>g<br />

results <strong>in</strong> animal health. The high level of expertise<br />

of Swedish dairy farmers is widely acknowledged and<br />

<strong>in</strong> many areas <strong>in</strong> <strong>in</strong>ternational contexts, they have set the<br />

standards that others strive to equal.<br />

AROUND 40 PER CENT of all Swedish cows move<br />

around freely <strong>in</strong> the cow-house. This solution is also<br />

called non-confi nement and represents the wave of the<br />

future – the method <strong>in</strong> which all new farm developers are<br />

<strong>in</strong>vest<strong>in</strong>g. Basic, un<strong>in</strong>sulated stalls are cheaper and quite<br />

adequate for the cows. Even so, some farmers opt for heated<br />

hous<strong>in</strong>g, for the sake of their own work environment.<br />

There is an emerg<strong>in</strong>g trend for milk production – which<br />

22<br />

used to be relatively evenly distributed throughout the<br />

country – to grow more strongly <strong>in</strong> certa<strong>in</strong> regions. Dairy<br />

farm<strong>in</strong>g is grow<strong>in</strong>g particularly <strong>in</strong> the so-called dairy belt<br />

<strong>in</strong> the south of <strong>Sweden</strong>. Will<strong>in</strong>gness to <strong>in</strong>vest is also <strong>in</strong>crea s<strong>in</strong>g<br />

among farmers along the Northern coast, where there<br />

is a shortage of employment alternatives. On the other<br />

hand, there is an apparent taper<strong>in</strong>g-o� of milk production<br />

<strong>in</strong> the Mälar Valley region and the prov<strong>in</strong>ce of Dalarna.<br />

TO SATISFY CONSUMERS’ PREFERENCES, <strong>Sweden</strong> will<br />

have to produce more organic milk. In 2006, slightly more<br />

than 5 per cent of all milk produced was organic. Above<br />

all, ecological milk production demands more land for feed<br />

production and graz<strong>in</strong>g. It takes a total of two years to convert<br />

a dairy farm <strong>in</strong>to an approved ecological supplier.<br />

The abbreviations of our most common dairy cow breeds<br />

are: srb, slb, skb and sjb. The Nordic breed “Swedish Red<br />

and White Breed” (srb) and the black-and-white “Swedish<br />

Friesian Breed” (slb) are basically equally common, as<br />

they account for 46 per cent and 51 per cent, respectively,<br />

of all milk cows. slb is also called Holste<strong>in</strong>, and orig<strong>in</strong>ates<br />

from the Netherlands and northern Ger many. Cross-breed<strong>in</strong>g<br />

of these two breeds is also common. This results <strong>in</strong><br />

animals with better health and fertility, as well as higher<br />

yield.<br />

The white “Swedish Polled Cattle” (skb) is actually the<br />

most Swedish breed. It accounts for less than 1 per cent of<br />

the dairy cows. The yellowish-brown Swedish Jersey Breed<br />

(sjb), which orig<strong>in</strong>ated on the Isle of Jersey, accounts for<br />

an equally small percentage.<br />

Swedish dairy farmers focus strongly on develop<strong>in</strong>g<br />

their dairy companies. Many ga<strong>in</strong> <strong>in</strong>spiration from abroad.<br />

To succeed <strong>in</strong> an <strong>in</strong>creas<strong>in</strong>gly challeng<strong>in</strong>g market, with<br />

<strong>in</strong>ternational competition, they have to be shrewd bus<strong>in</strong>ess<br />

people. They have to barga<strong>in</strong> at every stage and exert<br />

downward pressure on costs upstream <strong>in</strong> the supply cha<strong>in</strong>.<br />

The milk<strong>in</strong>g robot <strong>in</strong>creases freedom for<br />

cows and humans.


As the farm grows, new personnel are needed. A farm<br />

requires about one employee per 50 cows. While the role<br />

of employer is demand<strong>in</strong>g, many also perceive it as a step<br />

up the social ladder. Cooperation among dairy farms is<br />

<strong>in</strong>creas<strong>in</strong>gly common, as is jo<strong>in</strong>t ownership of mach<strong>in</strong>ery<br />

or several smaller farms collaborat<strong>in</strong>g on a jo<strong>in</strong>tly owned<br />

cow-house. Apart from <strong>in</strong>creas<strong>in</strong>g profi tability, such cooperation<br />

puts dairy farmers <strong>in</strong> contact with their colleagues<br />

and gives them more free time.<br />

ANOTHER TREND IS FOR SOME farmers to specialize <strong>in</strong><br />

keep<strong>in</strong>g recruitment animals or <strong>in</strong> receiv<strong>in</strong>g bull calves<br />

from the dairy farms. It is more usual that dairy farmers<br />

purchase feed from nearby farms <strong>in</strong>stead of grow<strong>in</strong>g as<br />

much as possible themselves.<br />

Did you know…<br />

One <strong>in</strong> five Swedes can envisage<br />

becom<strong>in</strong>g a dairy farmer. The<br />

prospect is most attractive<br />

among persons aged 32 to 43.<br />

Advisers are <strong>in</strong>creas<strong>in</strong>gly signifi cant <strong>in</strong> the support they<br />

provide to dairy farmers, help<strong>in</strong>g them comb<strong>in</strong>e biology,<br />

technology and fi nance to the best e� ect, and keep<strong>in</strong>g the<br />

farms up to date with the latest research fi nd<strong>in</strong>gs, advan ced<br />

computer systems, etc. This also applies to advice on<br />

environmental management on the farm. Most of the<br />

en vironmental focus concerns reduc<strong>in</strong>g the use of nitrogen<br />

fertilizer.<br />

The fact that the number of applications to agricultural<br />

colleges is record-high <strong>in</strong>dicates that confi dence <strong>in</strong> the<br />

future is <strong>in</strong>creas<strong>in</strong>g <strong>in</strong> the <strong>in</strong>dustry. There are both large<br />

and small dairy farms that are profi table. For those with<br />

the desire and the ability to <strong>in</strong>vest the necessary e� ort,<br />

there are excellent opportunities for successful entrepreneurship.<br />

23


Healthy cows and<br />

favourable climate<br />

24<br />

MOOING CONTENTEDLY, SWEDISH COWS bound out<br />

to the pasture. It is a legal right they have enjoyed s<strong>in</strong>ce<br />

1988, uniquely <strong>in</strong> the world except for F<strong>in</strong>nish cows. The<br />

barn door stays open for at least two months. The cows<br />

come <strong>in</strong> when it’s time for them to be milked. Strong and<br />

healthy from all the exercise and fresh air.<br />

Add to that the benefi ts they reap from graz<strong>in</strong>g on seaside<br />

meadows, pastureland and fi elds that the farmer has<br />

planted with grass and clover. All that tramp<strong>in</strong>g and eat<strong>in</strong>g,<br />

and every dollop of manure, promotes biological<br />

diversity. Some natural Swedish pasturelands are <strong>in</strong> fact<br />

among the most species-rich plant communities <strong>in</strong> the<br />

world. Many <strong>in</strong>sects, plants and birds would have been<br />

lost if these open landscapes had been allowed to become<br />

overgrown.<br />

Swedish dairy farmers can say with pride that <strong>Sweden</strong><br />

has a world-class standard of animal health.<br />

The secret beh<strong>in</strong>d this success is careful disease-prevention<br />

measures, focus<strong>in</strong>g on a comfortable stall environment,<br />

the best possible feed and proper animal care.


26<br />

“For dairy farmers, the aim is to serve up the optimal mix of<br />

prote<strong>in</strong> and rough feed, vitam<strong>in</strong>s and m<strong>in</strong>erals. Because cows<br />

are like athletes.”<br />

<strong>Sweden</strong> has the world’s most str<strong>in</strong>gent animal-protection<br />

legislation. On top of that, the <strong>in</strong>dustry has created its<br />

own, voluntary animal-care programs.<br />

Enormous patience and years of research lie beh<strong>in</strong>d<br />

<strong>Sweden</strong>’s breed<strong>in</strong>g success, which takes <strong>in</strong>to consideration<br />

not only how much milk the cow produces but also its<br />

well-be<strong>in</strong>g. This has made <strong>Sweden</strong> a world leader at breed<strong>in</strong>g<br />

healthy, robust livestock. Consequently, Swedish bull<br />

sperm is a hot export product. Swedish dairy farmers’<br />

excellent knowledge about their animals is partly due to<br />

the Swedish Dairy Association’s cattle database, which has<br />

existed s<strong>in</strong>ce the 1960s. Everyth<strong>in</strong>g worth know<strong>in</strong>g can be<br />

found <strong>in</strong> the database.<br />

SWEDISH DAIRY FARMERS have traditionally been<br />

extre mely conservative <strong>in</strong> regards to giv<strong>in</strong>g antibiotics to<br />

the animals and it has never been done as a preventive<br />

measure. By law, any treatment must be preceded by a<br />

veter<strong>in</strong>arian’s diagnosis. The veter<strong>in</strong>arian is <strong>in</strong> turn required<br />

to declare the reason for adm<strong>in</strong>ister<strong>in</strong>g antibiotics<br />

to the Swedish Board of Agriculture. Many other countries<br />

now have problems with antibiotic-resistant bacteria and<br />

diseases that can be transferred from animals to humans<br />

through food.<br />

When the eu reviews its animal-health legislation, the<br />

Swedish model serves as an example <strong>in</strong> many respects.<br />

<strong>Sweden</strong> prohibited growth antibiotics <strong>in</strong> animal feed back<br />

<strong>in</strong> 1986 – to name one example. Twenty years later, the eu<br />

<strong>in</strong>troduced a correspond<strong>in</strong>g prohibition and it will probably<br />

soon <strong>in</strong>troduce pasture-graz<strong>in</strong>g regulations similar to<br />

<strong>Sweden</strong>’s.<br />

<strong>Sweden</strong> also has the most str<strong>in</strong>gent regulations <strong>in</strong> the<br />

entire eu regard<strong>in</strong>g salmonella control. Now, because of<br />

its unusually favourable salmonella situation, <strong>Sweden</strong> has


eceived special permission to <strong>in</strong>spect food imported <strong>in</strong>to<br />

the country. Similarly, <strong>Sweden</strong> has extensive monitor<strong>in</strong>g of<br />

bse (mad cow disease), and has only had one case to date<br />

– as compared with the uk, which has had more than<br />

184,000 cases.<br />

THE SWEDISH DAIRY ASSOCIATION’S feed experts cont<strong>in</strong>uously<br />

update the advisers on the latest fi nd<strong>in</strong>gs. For<br />

dairy farmers, the aim is to serve up the optimal mix of<br />

prote<strong>in</strong> and rough feed, vitam<strong>in</strong>s and m<strong>in</strong>erals. Because<br />

cows are like athletes. Without nutritious food, proper<br />

care and good health, they cannot perform their best.<br />

Did you know…<br />

Mov<strong>in</strong>g out to pasture <strong>in</strong> the spr<strong>in</strong>g<br />

is also popular among humans.<br />

Swedish cows are among the best milk cows <strong>in</strong> the world.<br />

Healthy animals and well-blended top-quality feed are<br />

key success factors. Add to them a favourable climate.<br />

Favourable, because our cold w<strong>in</strong>ters wipe out many disease-caus<strong>in</strong>g<br />

fungi, parasites, viruses, bacteria and <strong>in</strong>sects.<br />

<strong>Sweden</strong>’s geography, with relatively small fi elds and croplands,<br />

also <strong>in</strong>hibits the spread of pests. The country’s long<br />

water boundary also protects it from diseases found <strong>in</strong><br />

many other countries.<br />

A favourable climate and advantageous geography have<br />

also given <strong>Sweden</strong> a lead regard<strong>in</strong>g the use of herbicides<br />

and pesticides. That, and strict regulations on when,<br />

27


“Moreover, locally grown feed is a<br />

matter of profil<strong>in</strong>g for the <strong>in</strong>dustry.<br />

A full 90 per cent of Swedish cows’<br />

feed comes from fields <strong>in</strong> <strong>Sweden</strong>.”<br />

28<br />

where and what dairy farmers may spray, have led to relatively<br />

low use of chemical weed-killers, for example.<br />

Unavoidably, production of animal-based food entails<br />

emissions of pollutants that can have local and regional<br />

environmental e� ects, such as acidifi cation and over fertilization.<br />

However, nature is capable of clean<strong>in</strong>g a large<br />

portion of these emissions by itself. Up to now, Swedish<br />

dairy production has been relatively evenly distributed<br />

throughout the country so the emissions are not especially<br />

concentrated.<br />

ANOTHER ADVANTAGE IS THAT our temperate, moist<br />

climate provides su� cient precipitation to make artifi cial<br />

irrigation of feed crops almost entirely unnecessary.<br />

Moreover, locally grown feed is a matter of profi l<strong>in</strong>g for<br />

the <strong>in</strong>dustry. A full 90 per cent of Swedish cows’ feed


comes from fi elds <strong>in</strong> <strong>Sweden</strong>. By prioritiz<strong>in</strong>g a high percentage<br />

of rough feed (silage, graz<strong>in</strong>g, hay and corn), as<br />

well as short feed transportation distances, Swedish milk<br />

production contributes to local, regional and global environmental<br />

e� orts.<br />

DAY-TO-DAY OPERATIONS <strong>in</strong> the dairy sector must<br />

comply with rigorous monitor<strong>in</strong>g programs. The authorities<br />

also regularly check for the presence of biocides and pharmaceutical<br />

residues <strong>in</strong> milk. The results show that Swedishproduced<br />

milk is well below the applicable limit values.<br />

Altogether, this means that Swedish milk has many<br />

forms of added value that have taken generations to build<br />

up. Swedish milk means healthy, contented and lively<br />

cows, beautiful open landscapes, and safe food that is<br />

nutritious and unique.<br />

29


A cutt<strong>in</strong>g-edge<br />

knowledge company<br />

THE SWEDISH DAIRY ASSOCIATION is the <strong>in</strong>dustry<br />

organisation that monitors, analyzes and lobbies on behalf<br />

of Swedish dairy and livestock cooperatives to serve the<br />

best <strong>in</strong>terests of Swedish milk. The entire gamut of knowledge,<br />

from genetics and cattle-rais<strong>in</strong>g to milk quality and<br />

health, is comb<strong>in</strong>ed <strong>in</strong> this one organisation. From cow to<br />

consumer. The members of the Swedish Dairy Association<br />

are the seven largest dairy cooperatives <strong>in</strong> <strong>Sweden</strong>, eight<br />

livestock cooperatives, two semen-produc<strong>in</strong>g companies<br />

and n<strong>in</strong>e breed societies.<br />

As the dairy sector’s <strong>in</strong>teraction with the rest of the<br />

world grows, new demands are placed on the <strong>in</strong>dustry<br />

organisation. The Swedish Dairy Association is a cutt<strong>in</strong>gedge<br />

knowledge-based enterprise with well-established<br />

networks of researchers, experts, decision-makers and<br />

op<strong>in</strong>ion-makers, both <strong>in</strong> <strong>Sweden</strong> and abroad. Its activities<br />

take place <strong>in</strong> consultation with a number of stakeholders,<br />

such as <strong>Sweden</strong>’s representation <strong>in</strong> Brussels, the European<br />

Commission, the European Parliament, the European<br />

Dairy Association (eda), the International Dairy Federation<br />

(idf), the Swedish Food Federation (Li), the Swedish<br />

National Food Adm<strong>in</strong>istration, the Swedish Agri cultural<br />

Board and the Swedish Board of Agriculture and the<br />

M<strong>in</strong>istry of Enterprise, Energy and Commu nica tions and<br />

many, many others.<br />

Nordic dairy-related cooperation is steadily <strong>in</strong>creas<strong>in</strong>g.<br />

The aim is not only to avoid duplication and obta<strong>in</strong> more<br />

knowledge for the money <strong>in</strong>vested, but also to put the<br />

Nordic region on the eu map – to become a stronger player<br />

<strong>in</strong> other words.<br />

Defi n<strong>in</strong>g the issues <strong>in</strong> the process as early as possible is<br />

30<br />

essential to our ability to keep up <strong>in</strong> an <strong>in</strong>dustry <strong>in</strong> constant<br />

change. Chang<strong>in</strong>g consumer patterns are tackled<br />

through communications aimed at specifi c target groups<br />

and sem<strong>in</strong>ars on the benefi ts of milk for people of all ages.<br />

The latest research fi nd<strong>in</strong>gs concern<strong>in</strong>g diet and nutrition<br />

are presented regularly to professional groups that have<br />

an impact on eat<strong>in</strong>g and dr<strong>in</strong>k<strong>in</strong>g habits.<br />

To support the skilled dairy entrepreneurs of the future,<br />

the Swedish Dairy Association is review<strong>in</strong>g the need for<br />

modern it solutions and the need for the <strong>in</strong>dustry as a<br />

whole to take responsibility for ensur<strong>in</strong>g that its systems<br />

are cost-e� ective. On behalf of the livestock associations,<br />

the Swedish Dairy Association develops advisory concepts<br />

and tra<strong>in</strong><strong>in</strong>g programs to promote and support dairy-related<br />

entrepreneurship. Larger herds at dairy farms are lead<strong>in</strong>g<br />

to new projects concern<strong>in</strong>g preventive animal healthcare<br />

and related areas.<br />

FOR THE DAIRY COOPERATIVES, the Swedish Dairy<br />

Asso ciation is a key player <strong>in</strong> competition-neutral issues.<br />

There is a consensus that an <strong>in</strong>dustry organisation can be<br />

much more e� ective <strong>in</strong> <strong>in</strong>fl uenc<strong>in</strong>g politicians than <strong>in</strong>dividual<br />

companies alone. The organisation has experts who<br />

can monitor, analyze and obstruct unfavourable proposals.<br />

They can also promote issues relat<strong>in</strong>g to susta<strong>in</strong>able and<br />

profi table Swedish dairy production.<br />

The comb<strong>in</strong>ed e� orts of the organisation are aimed at<br />

mak<strong>in</strong>g consumers aware of the added value of Swedish<br />

milk. There should ultimately be no doubt that <strong>Sweden</strong> is<br />

a natural and fi rst-rate dairy country – perhaps the best <strong>in</strong><br />

the world.


Read more<br />

about the Swedish Dairy Association<br />

at www.svenskmjolk.se<br />

31


Visit<strong>in</strong>g address: Vattugatan 17, Postal address: P.O. Box 210, SE-101 24 Stockholm www.svenskmjolk.se<br />

Text: Amelie E Cardell Production manager: Anita Häll L<strong>in</strong>dström /Ord & Handl<strong>in</strong>g Design & layout: Kajsen Burell / X4<br />

Cover photo: Jann Lipka and U� e Andersson Photo: Magnus Fond, Joel Wåreus, Tomas Södergren, Helen Rubnell Engström, Agneta Thorsén,<br />

Abrakadabra, Per Mannberg, Jann Lipka, Jan Petersson, Christ<strong>in</strong>a Bengtsson, Susanne Kronholm, Lars Ardarve, U� e Andersson and Jens Olof Lasthe<strong>in</strong>.<br />

Illustrations: Annika Huett Pr<strong>in</strong>t & repro: Rolf tryckeri, Skövde 2007

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