Arla Foods is embarking on a significant expansion with a new cheese dairy located at its Götene site in Sweden. This development aims to enhance capacity, bolster supply resilience, and accelerate innovation within the food manufacturing landscape.
Götene, already one of Arla’s largest production facilities, produces butters, spreads, milk powder, and cheese, employing approximately 600 staff while operating around the clock. The addition of the new dairy is expected to double current production volumes, processing around 1 billion kg of milk annually.
This investment is likely to create new full-time positions at the dairy and is projected to support additional local job opportunities among farmers and suppliers in the food distribution sector.
The initiative aligns with Sweden’s updated food strategy, which emphasizes enhancing food supply resilience. With an estimated cost of €300 million, this investment marks the largest single financial commitment in Swedish food production history.
Once operational, the new plant is anticipated to increase the self-sufficiency rate of Swedish cheese from 37% to 47%. Furthermore, all household cheese produced by Arla will utilize Swedish milk, highlighting a dedication to food and drink sustainability.
“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,” stated 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.”
Production at the new dairy is slated to commence in 2030, with household cheese production transitioning from Arla’s Nr. Vium dairy in Denmark. While the new facility will initially focus solely on household cheese, additional product varieties will be confirmed later.
Meanwhile, Nr Vium will concentrate on high-demand products for Arla’s International and Europe Zone markets, thus reinforcing its long-term strategic significance within food manufacturing trends.
This investment complements Arla’s extensive program of growth initiatives across key markets. In 2025, the cooperative has committed to investing €731 million across various sectors.
“We are investing consistently across our markets to build the capacity and capabilities that matter most: quality, flexibility and efficiency. Projects in our key markets strengthen our portfolio in important categories and help us serve customers reliably. Götene is a clear example of that approach, a focused investment that positions our cooperative strongly for the years ahead,” Tuborgh added.
