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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