Arla Foods launches central distribution centre in UK

Arla Foods, the UK’s largest dairy cooperative, and XPO Logistics, a provider of end-to-end supply chain solutions across Europe, announced a further extension of their partnership, with a new central distribution centre (CDC) that will handle all Arla’s UK chilled palletised products by late 2027.

Currently under development at Prologis RFI DIRFT in Northamptonshire, the new facility will bring Arla’s chilled dairy products, such as cheese, butter and yogurts, into a single, centralised location. The move will strengthen the resilience of Arla’s supply chain, reduce road miles, and support more efficient distribution across the UK, the firms say. XPO Logistics is project managing delivery of the CDC and will operate the site from late 2027, when it becomes operational.

The automated and temperature-controlled facility will underpin a chilled network designed to keep fresh dairy moving safely and efficiently. The distribution centre will be BREEAM Outstanding and EPC A+ ratings.

Arla Foods, XPO Logistics and Prologis marked the official start of construction on-site with representatives from West Northamptonshire Council.

Fran Ball, SVP UK supply chain for Arla Foods UK, comments:,“Consolidating our chilled pallet operations into a single, advanced facility in Northamptonshire is a strategic leap forward for Arla. By partnering with XPO Logistics and Prologis, we are improving the resilience of a critical part of our supply chain and making meaningful progress on reducing waste and road miles.”

The announcement follows the €107.7m investment at Arla Lockerbie to create a UHT and lactose-free milk centre of excellence. This builds on more than €355m of UK investments announced in 2024 across five sites, underpinning Arla’s growth and continued support for UK manufacturing and the future of British dairy, the dairy giant says. Speaking about Arla’s support for British dairy, Bas Padberg, managing director, Arla Foods UK, said, “This further signals our commitment to driving change in the UK, and supporting the future of British dairy. The UK food sector has a vital role in public health, and we’re committed to delivering nutritious, affordable dairy for more people – this is another important step forward.”