Arla Foods is expanding its cheese capacity in Sweden with a €300m ($353.5m) investment to add a new production facility.
The co-operative is setting up a new plant at its existing operations in the town of Götene in the south of the country.
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Once operational in 2030, Arla expects to receive around one billion kilograms of milk per year from the cooperative’s farmers, about “double” the current volumes coming into its facilities in Götene.
Most of the Swedish cheese production will be carried out locally at Götene instead of Arla’s Nr. Vium dairy in Denmark when the additional capacity comes on stream.
The Nr. Vium facility in West Jutland will then focus on Arla’s international and European markets, “strengthening the site’s long-term strategic role”, according to a statement today (25 February).
Arla declined to confirm the impact the investment will have on end production units and volumes coming out of Götene. A spokesperson clarified with Just Food that less than 100 jobs will be created, although no final projections have been made.
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By GlobalDataThere are also no plans to close the Nr. Vium dairy in the longer term with the additions at Götene and instead, the manufacturing switch will “solidify its importance in our strategic network of production sites”, the spokesperson said. It will continue to produce cheese such as the Danish havarti variety.
The Götene dairy employs around 600 workers and, as well as cheese, produces butter, spreads and milk powder.
“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,” it read.
Arla CEO Peder Tuborgh added: “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.
“The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor for this decision.”
Arla said the investment at Götene is part of a broader strategy.
“It will increase the self-sufficiency rate of Swedish cheese by around ten percentage points, from approximately 37% to 47%, strengthening national food security, while creating new jobs in agriculture and food production,” according to the statement.
Cecilia Kocken, the managing director for Arla in Sweden, added: “This is a milestone for Arla. 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.”
Sweden was also the recipient of another recent Arla investment. The Denmark-headquartered co-op said in December it would invest Skr70m ($7.4m) in its Falkenberg cottage cheese factory.
Some €34.5m was also slated for Arla’s facility in Jönköping to kick start production of skyr in Sweden.
Last week, Arla reported “record” group revenues of €15.1bn for last year based on an unprecedented milk intake of 14.3bn kilograms. However, it predicted a rise in raw milk volumes will weigh on sales in 2026.
Arla provided a group sales revenue outlook of €13bn to €14.1bn, “reflecting the lower market prices compared to the highs of early 2025”.
