Arla Foods invests US$7.4M to expand cottage cheese production

SWEDEN – Arla Foods has announced an investment of Skr70m (US$7.4 million) in its Falkenberg dairy plant in Sweden as the cooperative seeks to increase production of cottage cheese.

Denmark-headquartered Arla said the investment in its west coast Falkenberg site aims to boost annual output of Keso-branded cottage cheese by 1,500 tonnes. The target for this year is 27,000 tonnes, which, if realised, would represent around a 17% rise over 2024, according to a statement.

Arla clarified that the project will focus on upgrading existing equipment, including filtration and cooling, alongside improving capacity and efficiency.

The Falkenberg dairy, which mainly supplies the Swedish market but also exports to Finland, Denmark, and Spain, currently has six packaging lines, the co-op confirmed.

No additional jobs will be created at the site, with the workforce remaining at around 130 people. However, Arla said staff numbers at Falkenberg have grown by around 20% over the past two years as demand for cottage cheese has increased.

Arla noted Falkenberg is the largest cottage cheese manufacturing plant in Europe that also produces the Cheasy brand. The factory processes around 130 million kilograms of milk a year from its farmer suppliers.

Arla Foods invests US$46.4M in Videbæk facility

The investment comes after the company announced a DKK 300 million (US$46.4 million) investment to retrofit a spray-drying tower at its Arinco dairy facility in Videbæk, Denmark.

The investment comes on the heels of Arla’s decision, made in August 2024, to pivot the Videbæk facility exclusively towards ingredient manufacturing, moving away from its previous focus on Early Life Nutrition products.

This transition underscores Arla’s commitment to meeting the rising global demand for specialised dairy ingredients, particularly in markets where health and nutrition are paramount.

Luis Cubel, managing director of Arla Foods Ingredients, said: “This investment is strategically important for both Arla Foods and Arla Foods Ingredients. It supports our growth plans and enables the commercialisation of more highly refined products.”

The upgrade to the spray-drying tower is expected to facilitate the production of a broader range of specialised ingredients, catering to diverse customer needs across various sectors.

In addition to enhancing production capabilities, the project incorporates a heat-recovery system to improve energy efficiency. By utilising waste heat from exhaust air to preheat intake air, the facility aims to reduce its reliance on steam heating significantly.

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