Arla Foods, the largest dairy cooperative in the UK, is proudly celebrating 50 years of cheese production at its Lockerbie facility. As part of this milestone, the company plans to invest a substantial £144 million over the coming years.
Since its inception in 1975, Arla Lockerbie has evolved into one of the UK’s most significant cheese-making plants. Currently, the site processes over 600 million liters of milk annually, yielding approximately 200 million liters of fresh bottled milk and 42,000 tonnes of cheese—enough to create around 840 million cheese sandwiches!
This £144 million investment encompasses multiple initiatives, including an immediate £34 million allocation for enhancing cheddar production facilities.
Furthermore, Lockerbie will receive an additional £90 million for the construction of a new Centre of Excellence. This facility will focus on producing UHT and lactose-free milk specifically for the UK market.
Additionally, £20 million is being directed towards an anaerobic digestion (AD) plant, which is nearing its completion. This facility will convert waste from whey permeate—a by-product of cheese production—into renewable energy, supplying bio-methane to the gas grid.
The existing AD plant has the capacity to process up to 36,500 tonnes of whey permeate annually. At full operational capacity, it can generate approximately 30,500 MWh of gas each year, enough to heat more than 2,600 average UK homes.
“This is a landmark moment for Lockerbie. As we celebrate 50 years of production, we’re also unlocking the site’s next era with significant investment to power future growth,” stated Fran Ball, SVP of UK Supply Chain at Arla Foods.
“This month, we’ve already implemented major technology upgrades as part of our £34 million enhancement of cheddar production, and we’re excited to announce the commencement of construction for the new Centre of Excellence for UHT and LactoFREE milk at Lockerbie—creating 90 new jobs and opportunities in the local community.”
This investment coincides with Arla Lockerbie’s 50th anniversary, marked by an official opening of the new cheddar production facility by Mairi Gougeon MSP, Scottish Cabinet Secretary for Rural Affairs, Land Reform, and Islands.
Gougeon remarked: “This is not just a proud moment for Arla, but for the Lockerbie community and the wider South of Scotland region. Our food and drink industry is uniquely positioned to enhance the economy, with the Scottish dairy sector valued at over £560 million in 2024. This project exemplifies how growth can occur while also reducing emissions.”
“The scale of investment here delivers a tangible boost to the local economy, fortifies vital partnerships with Scottish farmers and suppliers, and conveys a clear message of confidence in the future of Scotland’s dairy sector. It underscores a shared vision for long-term sustainability, innovation, and growth, which is warmly welcomed by the Scottish Government.”
