Arla Foods makes major investment in Linköping to meet boom in skyr demand

Farmer-owned Arla Foods is investing EUR 34.5 million in a new skyr production line at its dairy in Linköping, Sweden. The investment is part of the cooperative’s long-term strategy and to meet the growing demand for skyr.

The new production line will predominantly produce skyr for the Swedish market where skyr demand has been growing rapidly over the past few years. The massive interest in skyr is driven by the increasing appetite for high-protein, low-fat products and in 2024, Swedish consumers even named skyr (locally known as quark) the year’s trendiest food in a survey by the Swedish Food Federation (Livsmedelsföretagen).

“I am very happy to announce this great investment that truly ticks all the boxes. 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”, says Executive Vice President, Supply Chain, David Boulanger.

The new skyr line is expected to be operational in the first quarter of 2028, further reinforcing the dairy’s role as a strategic hub in Arla’s Swedish operations. With this investment, Arla increases its capacity to meet growing global demand for skyr – complementing existing skyr production in Denmark, Finland, and Germany.

“We are constantly evaluating our supply chain and the flow of our milk pool to make sure we produce the most efficiently and in accordance with consumer demand. We are now placing the investment in Linköping due to milk availability and the infrastructure at the dairy but also to meet Swedish demand and create a strong production network of skyr that is spread out over several markets across Europe”, says David Boulanger.

The Linköping dairy, which employs around 290 people, is Sweden’s largest specialist dairy and has a long tradition of innovative and efficient production. The dairy currently produces just over 280 different dairy products, including yogurt, sour cream, crème fraîche, as well as lactose-free and organic options. And from 2028, now also skyr.