Arla Foods invests US$ 39.33M in its new skyr production line 

SWEDEN – Arla Foods, a dairy manufacturer, has invested EUR 34.5 million (US$ 39.33 million) in a new skyr production line at its dairy in Linköping, Sweden, to meet the growing demand for skyr.

The company stated that this strategic move aims to respond to Sweden’s increasing demand for Icelandic-style yoghurt, with production slated to commence in the first quarter of 2028.

According to a survey by the Swedish Food Federation, the significant interest in skyr is driven by the growing demand for high-protein, low-fat products. In 2024, Swedish consumers even named skyr the year’s trendiest food.

Executive Vice President, Supply Chain, David Boulanger, said, “I am very happy to announce this great investment that truly ticks all the boxes. Consumer demand for Skyr is high and growing, our Swedish farmer owners are dedicated to producing with a lower carbon footprint, and Arla has a specific expertise in turning their milk into high-protein, tasty Skyr products. With this investment, we are setting ourselves up to secure future growth on this category.”

The Linköping dairy, which employs around 290 people, is Sweden’s largest specialist dairy and has a long tradition of innovative and efficient production.

The dairy currently produces just over 280 different dairy products, including yoghurt, sour cream, crème fraîche, as well as lactose-free and organic options.

David Boulanger stated that Arla Foods continuously assesses its supply chain and milk pool distribution to ensure optimal efficiency and alignment with consumer demand.

He explained that the company’s decision to invest in Linköping was influenced by the region’s milk availability, the existing dairy infrastructure, and the need to meet Swedish market demand.

Arla invests US$378M in five UK sites to boost dairy production

Early last year, the company unveiled plans to inject over US$378 million into its operations across the UK, aimed at enhancing dairy production and improving food security measures.

According to the company, the investment will be distributed across four key sites: Lockerbie, Stourton, Aylesbury, and Westbury, supplementing the previously announced US$225.54 million injection into the Taw Valley site.

This strategic move also solififies the company’s commitment to expanding opportunities for British milk and cheese production.

Bas Padberg, Managing Director of Arla Foods UK, emphasized that these investments underscore the cooperative’s dedication to bolstering UK food security and supporting its farmer owners.

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