STOCKHOLM, SWEDEN — With only 6.5% of its land cultivated and a Nordic climate, Sweden’s agricultural sector features a limited number of crops and a large dairy sector.
Sweden is one of the largest countries in Europe in terms of area but only 2.7 million hectares is cultivated. With a diverse climate, there are significant differences in production conditions and production types between southern and northern Sweden, according to the European Commission’s Agriculture and Rural Development. The growing period is almost 100 days longer in the south than the north.
The key grains grown in Sweden include wheat, oats, rye and corn. Rapeseed is the dominant oilseed.
Drought this spring and summer has lowered the country’s total grain and oilseed harvests, according to the Swedish Agency for Agriculture. Total production is estimated at 4.9 million tonnes for 2023, a drop of 15% from last year’s harvest and 5% lower than the previous five-year average.
Crop production accounts for 40% of the production value of the agriculture sector while dairy and bovine meat accounts for one-third.
“In addition, Sweden is characterized by long transportation distances and sparsely populated areas, with almost 60% of the population living in rural and intermediate regions,” the EC said.
Primary crops in Sweden include wheat, barley and oats, with 40% of the land sown with cereals. Cereals and cereal products are the nation’s largest exports. Exports in the first half of 2023 increased 12.1% to SEK 68 billion ($6.16 billion), with cereal exports increasing 23% to SEK 6.1 billion ($553 million), according to the Swedish Agency for Agriculture.
Sweden’s grain processing sector is highly integrated with many companies milling the flour used in their own bakery operations. The nation has 10 mills with a capacity of 900,000 tonnes.
Overall, the food industry is Sweden’s fourth largest manufacturing industry and plays an important role in raising value by transforming agricultural products into food and drinks, said EIT Food, an EU group looking to make the food system more sustainable.
Most agri-food exports go to other European countries, mostly Nordic. The largest individual markets for Swedish exports are Denmark, Finland, Norway and the United States.
Crop production, trade
Because of the varied climatic conditions, coarse grains and forage are predominantly grown in the north with wheat in the south and central regions. Oilseed production is also mostly in the southern and central areas.
Winter wheat production is estimated at 2.8 million tonnes, a drop of 6% compared to 2022. The cultivated area is larger but yield decreased, the agriculture agency said in its August harvest report. Winter wheat accounts for 57% of the cereal harvest.
Spring barley, which is the second largest share of the grain harvest, is estimated at 1 million tonnes, a drop of 28% from the previous year. Oat production is estimated at 500,000 tonnes, a drop of 33% compared to the previous year.
Oilseed harvest is estimated at 400,000 tonnes, a drop of 4% from last year but 20% higher than the previous five-year average. Summer rape makes up 94% of the total oilseed area.
The agency said lower yields were mainly due to drought in spring and early summer. Rainfall was higher than normal for the whole country in February and in the southern and central portions in March. But in April, rainfall was lower than normal everywhere but the north and then was lower throughout the country in May and June.
For the first two months of the year, it was also warmer than normal throughout the country while in March and April it was colder than usual. May and June were warmer while it became colder in July, the agency said.
“However, the situation is better than the extreme drought year of 2018, thanks to a higher proportion of autumn-sown crops and more favorable temperatures during the early summer,” said Lantmännen, an agriculture cooperative owned by 18,000 Swedish farmers.
Per Germundsson, head of grain sourcing and sales at Lantmännen’s grain unit, said farmers are facing major challenges in 2023 including high costs for fuel and mineral fertilizers and a lower-than-normal harvest.
Although conditions are better than 2018, Germundsson said this year’s harvest shows the long-term need for climate adaptation in Swedish agriculture to “ensure a harvest that meets the needs of the Swedish food supply and preparedness.”
Flour milling
There is a high level of vertical integration between milling and baking and processing in Sweden. The nation has 10 flour mills with a total capacity of 900,000 tonnes (wheat equivalent), according to the European Flour Millers, and flour production estimated at 550,000 tonnes.
Some of the major integrated companies with mills include Lantmännen, Lilla Harrie Valskvarn, Leipurin, and Abdon Foods. Lantmännen Cerealia is the largest supplier of flour and semolina-based products to bakeries, wholesalers and the food industry in the Nordics. Its bakery brand in Sweden is Nord Mills.
Its mill in Malmo, which has a capacity of 775 tonnes per day, produces flour for consumers as well as for bakeries and catering. The Strangnas mill produces flour while the facility in Jaran makes pasta and breakfast products.
Lilla Harrie Valskvarn has been milling flour since 1509. The company uses 120,000 tonnes of wheat and rye from southern Sweden for its mills in Lilla Harrie and Västra Frölunda.
They account for a quarter of Swedish consumption of bakery flour. A large quantity of the flour produced goes to the family bakery, Pågen.
Abdon Food, one of the Nordic region’s largest producers of grain and plant-based products, is known for its Abdon Mills, Finax, Ramlösa kvarn and Björnekulla brands. The company has six production units specializing in breakfast cereals, flour, bread, gluten-free products and other prepared grain mill products.
The company recently constructed a new flour mill in Vasteras, the first in the region. It has a wheat flour capacity of 275 tonnes per day and a rye flour capacity of 25 tpd. It uses locally supplied raw materials to produce flour for domestic consumption.
Leipurin recently purchased Kobia from the Abdon Group, expanding its geographical presence in the northern European market. Kobia has more than 100 years of experience supplying more than 2,000 products to the bakery and confectionery market. It handles 50,000 tonnes of grain per year.
Skane-Mollan operates a mill in Scania, in the middle of a high-producing grain region. It has been producing flour and tailor-made products since 1972. About 90% of the grain processed by the mill comes from farmers within a 10-mile radius. The original mill produces flour of all types while the oat mill refines oats for consumer and industry use.
