Milk market in Denmark

Earlier Report Observations

The Danish milk market experienced a substantial decline in physical volume from 470 000 t in 2018 to 316 000 t in 2024, while its monetary value showed greater resilience, peaking at $627 million in 2023. This was largely due to a sustained consumer shift toward organic milk, whose share first exceeded 30% in 2018, and repeated global market pressures that raised prices. Initially, low milk prices reduced farm incomes in 2018, but from 2020 onward, pandemic-related supply chain disruptions and heightened worldwide demand drove production costs and consumer prices steadily higher.

Industry consolidation significantly shaped the market, as the number of dairy farms fell sharply while milk yield per cow increased, enhancing efficiency even as total production drifted downward. The dominant player Arla achieved billion-dollar profits, reflecting the sector's adaptation to a higher-price environment. Concurrently, evolving consumer preferences for health and wellness boosted demand for enriched and specialized milk types, which helped sustain market value despite the contracting volume.

Persistently high prices through 2024 were fueled by ongoing global demand, geopolitical tensions, and rising costs for feed and energy. During this period, the share of organic milk began to decline, indicating a shift in market dynamics. The market's structure, characterized by fewer and larger operations, allowed it to adjust to these cost pressures while imports fluctuated to meet domestic consumption needs.

Production milk in Denmark

In value, 2018-2021, M $ US

Milk production in Denmark has declined for the third consecutive year. In 2021, output was valued at 848.6 million US dollars, down 3.3% from the previous year. Between 2018 and 2021, production fell by 6.8%, which translates to an annualized decline of 2.3%.

Annual dynamics of production in Denmark in value, 2018-2021, M $ US

In kind, 2018-2021, K t

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

Denmark's milk production volume has decreased for the third year in a row. In 2021, the country produced 625.2 thousand tonnes of milk, a slight decline of 2.3% compared to 2020. From 2018 to 2021, production dropped by 10.9%, averaging an annualized decrease of 3.8%.

Annual dynamics of production in Denmark in kind, 2018-2021, K t

Exports milk from Denmark

Exports in kind, K t

In 2021, Denmark's cross-border shipments of milk reached 406.5 thousand tonnes, marking a solid increase of 19.4% from 2020. Between 2018 and 2021, exports grew by 24.3%, with an annualized rate of 7.5%. The largest increase occurred in 2019 at 21.9%, while the largest decline was in 2020 at 14.6%.

Annual dynamics of product's exports from Denmark in kind, 2018-2021, K t

From 2018 to 2021, Germany, Sweden, and Oman were the main destinations for Denmark's milk exports in volume terms. Germany accounted for 67.8% of exports, Sweden for 4.5%, and Oman for 4.3%, together making up 76.6% of total exports.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Denmark in kind, 2018-2021

Exports in value, M $ US

In 2021, Denmark's cross-border shipments of milk in value terms reached 504.8 million US dollars, showing a strong rise of 15.9% compared to the prior year. Over the period from 2018 to 2021, exports increased by 11.8%, with a compound annual growth rate of 3.8%. The minimum value was recorded in 2020 at 435.5 million US dollars, which also saw the largest decline of 6.1%.

Annual dynamics of product's exports from Denmark in value, 2018-2021, M $ US

The partner structure for Denmark's milk exports in value terms from 2018 to 2021 was fragmented. Germany held 27.7% of exports, Oman 11.2%, and Sweden 6.8%, together accounting for only 45.6% of total flows, with no single country dominating.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Denmark in value, 2018-2021

Imports milk to Denmark

Imports in kind, K t

Denmark's imported milk volumes have declined for the second consecutive year. In 2021, the country imported approximately 93.0 thousand tonnes of milk, a decrease of 1.8% year-over-year. Between 2018 and 2021, imports fell by 2.1%, averaging an annualized decline of 0.7%. The maximum volume was recorded in 2019 at 107.6 thousand tonnes, which also saw the largest increase of 13.3%. The largest decline occurred in 2020 at 11.9%.

Annual dynamics of product's imports to Denmark in kind, 2018-2021, K t

From 2018 to 2021, Germany was the dominant market for Denmark's milk imports in volume terms, accounting for 76.1% of total flows, while other countries made up the remaining share.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Denmark in kind, 2018-2021

Imports in value, M $ US

In 2021, Denmark's milk imports totalled 162.6 million US dollars, representing a moderate rise of 9.9% year-over-year. Between 2018 and 2021, imports increased by 24.9%, with an annualized rate of 7.7%. The largest increase was in 2019 at 20.6%, while the largest decline was in 2020 at 5.7%.

Annual dynamics of product's imports to Denmark in value, 2018-2021, M $ US

From 2018 to 2021, Germany, Belgium, and the Netherlands were the main markets for Denmark's milk imports in value terms. Germany accounted for 68.8% of imports, Belgium for 10.5%, and the Netherlands for 9.0%, together representing 88.2% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Denmark in value, 2018-2021