Decline in milk consumption hits Wermland’s dairy

The history of Wermland’s dairy, which was re-established in 2015, has so far been a success story, but the decline in milk consumption is worrying at the small dairy in Värmlands Nysäter.

Wermland’s dairy’s sales have gone downhill for the last three years, this year alone sales have decreased by 7.3 percent, corresponding to around 108,000 litres of milk.

– It is not a catastrophe, but if this continues, it will be worrying, Yngve Gustafsson, CEO of Wermland’s dairy says to SVT, who visited the dairy earlier this week.

According to Gustafsson, one reason for the decline may be that consumers are seeking cheaper options in the pursuit of maintaining their food budgets. Another reason is e.g., the competition from plant drinks.

– It is not just us who are losing markets. Our competitors are also losing a large part of their volume. It is the consumers’ behaviour that have changed, he says.

When asked about the consequence of further decline, Yngve Gustafsson answers:

– We must soon start reviewing staffing. I would think that we can handle a reduction close to 30 percent. After that we must start thinking about shutting down, Yngve Gustafsson says.

Wermland’s dairy is owned by Bäcks farm, the Thörner brothers, Haga farm, Yngve Gustafsson and Värmlant AB. The milk comes from 15 farms around the Nysäter area. The dairy have 9 employees.

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