Arla Foods invests in cheese in Sweden
Credit: Arla Foods
Arla is investing €300 million in new cheese production at its Götene dairy in Sweden. The project will significantly expand capacity and create new jobs while contributing to increased security of supply. “Global demand for nutritious and protein-rich foods continues to increase, and dairy products play an important role in healthy diets and robust food systems. With an investment of this scale, we are strengthening our production network that delivers to consumers across our markets, strengthening food safety and fostering innovation. Götene will be a cornerstone of this network,” says Peder Tuborgh, CEO of Arla Foods. “The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor in this decision.”
Götene is already one of Arla’s largest production facilities, with approximately 600 employees and 24-hour production of butter, milk powder and cheese. With the new cheese production, Götene is expected to receive around one million tonnes of milk per year, approximately double the current volume. The investment is expected to create both new full-time jobs at the dairy and indirectly many more among farmers and suppliers.
This follows several investments in growth projects in key markets, including UHT milk in the UK, cream cheese in Holstebro and a new skyr line in Linköping, Sweden. In 2025 alone, the cooperative has committed to a high level of investment of €731 million across markets. “We are consistently investing across our markets to build the capacity and competencies that matter most: quality, flexibility and efficiency. Projects in the UK, Denmark and Sweden strengthen our portfolio in key categories and ensure that we can continue the high stability of our delivery to customers. Götene is a clear example of this approach; a targeted investment that positions our cooperative strongly in the coming years,” says Peder Tuborgh.
The investment is the largest single investment ever in Swedish food production. It will increase Sweden’s self-sufficiency rate in cheese by around 10 percentage points, from around 37% to 47%, and strengthen national food security, while creating new jobs in agriculture and food, the company says.
Production of household cheese will be moved from Arla’s Nr. Vium dairy in Denmark when the new investment is operational in 2030. The move will allow
Nr. Vium to focus on products in high demand for Arla’s international and European markets, strengthening the dairy’s long-term strategic role.
