Gerhard Bley, chief executive of Norrmejerier, says stronger milk prices are essential if dairy farmers in northern Sweden are to regain the confidence to invest.
In an interview with ATL, Bley said recent milk price cuts — led by Arla — have weakened profitability at a critical time for producers.
“When we had reached a historically high milk price, we would have preferred to remain at that level,” he said. “Given that food VAT was reduced on 1 April, there was no reason to lower consumer prices further. Instead, farmers ended up carrying that cost through lower milk returns.”
Norrmejerier cut its milk price by SEK 0.90/kg earlier this year in response to wider market pressure. For producers in support area 3, higher Norrland support payments reduced the effective cut to SEK 0.60/kg. Prices continued to fall through spring before stabilising in May.
According to Bley, restoring milk prices is now the co-operative’s top priority.
He also highlighted internal efficiency measures aimed at improving profitability. Following the closure of the Luleå dairy, Norrmejerier expects restructuring benefits to become visible in 2026. The business plans to reduce staffing by up to 35 employees, bringing headcount to around 400, while also cutting agency labour.
“We are also working to reduce water and energy consumption,” Bley said. “Today, we utilise 100% of the whey, compared with 60–70% previously, which will improve earnings.”
Bley also argued that the cost of supplying dairy products to sparsely populated inland areas in northern Sweden should not fall solely on farmers.
“We will not stop ensuring that our products reach consumers across the north,” he said. “But this comes at a cost, and it means we are taking on a regional responsibility that our dairy farmers are effectively paying for.”
He believes the Swedish state should help fund that infrastructure, citing its importance for food supply and regional access.
In addition, Bley called for simpler regulation, saying current environmental assessment rules for farms exceeding 400 livestock units are making expansion more difficult. He also said northern Swedish dairy farmers need better access to investment finance, arguing that increased grant support alone is not sufficient to unlock growth.