Arla Foods invests US$324M in its new cheese dairy to boost production

SWEDEN – Arla Foods has invested US$324 million (EUR 300 million) in a new cheese dairy at its production site in Götene, Sweden, to expand capacity, strengthen supply resilience and accelerate innovation across the production network.

At the same time, the investment will boost Swedish cheese production, jobs, food security and regional growth.

By building modern, efficient capacity in Sweden, Arla will scale high-quality, nutritious dairy for consumers, enhance food security across its markets, and accelerate innovation in core cheese categories.

“Global demand for reliable, nutritious protein continues to grow, and dairy plays a vital role in healthy diets and resilient food systems. We are investing at scale to build modern, efficient capacity that serves consumers across our markets, strengthens food security and advances innovation. Götene will be a cornerstone in this network,” said Peder Tuborgh, CEO of Arla Foods.

“The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor for this decision.”

Götene is already one of Arla’s largest production sites, with approximately 600 employees and round-the-clock operations producing butter and spreads, milk powder and cheese.

With the new cheese dairy, Götene is expected to receive around 1 billion kg of milk per year, roughly double today’s volume, strengthening skills, jobs and regional development.

The investment is expected to create both new full-time positions at the dairy, and indirectly many more among farmers and suppliers.

The investment complements Arla’s broader programme of growth projects across key markets. In 2025 alone, the cooperative committed to a high investment level of EUR 731 million across markets.

It aligns with the Swedish food strategy and, at approximately EUR 300 million, represents the largest single commitment on record in Swedish food production.

 It will increase the self-sufficiency rate of Swedish cheese by around 10 percentage points, from approximately 37 to 47 percent, strengthening national food security while creating new jobs in agriculture and food production.

“This is a milestone for Arla. Household cheese is one of the country’s most popular cheeses. When the new dairy is completed, all our household cheese will be produced locally using Swedish milk. This gives consumers an everyday favourite with clear Swedish origin, while bolstering national food preparedness and supporting future confidence among Swedish farmers,” said Cecilia Kocken, Managing Director, Arla Sweden.

Household cheese production will be transferred from Arla’s Nr. Vium dairy in Denmark once the new facility becomes operational in 2030.

Reallocating household cheese production allows Nr. Vium to focus on high-demand products for Arla’s International and Europe Zone markets, strengthening the site’s long-term strategic role.

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