The Danish-Swedish multinational corporation has announced a significant investment of £29.5 million to establish a new skyr production line at its dairy facility in Linköping, Sweden.
This initiative is part of Arla’s strategic long-term vision, aimed at addressing the increasing consumer interest in skyr, a traditional Icelandic cultured dairy item.
According to Arla’s findings, skyr experienced an impressive average annual growth rate of 8% across Europe from 2022 to 2024, with forecasts suggesting this trend will persist through to 2030.
The forthcoming production line will primarily cater to the Swedish market, where demand for skyr has surged in recent years. This uptick is largely attributed to consumers’ rising preference for high-protein, low-fat options—a trend observable across Europe, particularly in the UK.
Expected to begin operations in the first quarter of 2028, the new skyr line will further bolster Linköping’s significance as a key operational hub within Arla’s Swedish business framework.
This investment will not only expand the skyr production capacity but will also supplement the existing facilities located in Denmark, Finland, and Germany.
The Linköping dairy, which employs around 290 individuals, stands as the largest specialized dairy in Sweden. Currently, it produces over 280 dairy items—including yogurt, sour cream, crème fraîche, in addition to lactose-free and organic offerings. From 2028, the site will also manufacture skyr.
David Boulanger, Executive Vice-President of Supply Chain, expressed enthusiasm about the investment, stating, “I am very happy to announce this great investment that truly ticks all the boxes.”
He further added, “Consumer demand on Skyr is high and growing, our Swedish farmer owners are dedicated to producing with 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.”
