Arla announces largest-ever investment in new Swedish cheese dairy

Arla Foods commits approximately EUR 300 million to a new cheese dairy at its production site in Götene, Sweden. The project will expand capacity, strengthen supply resilience and accelerate innovation across Arla’s production network. At the same time, the investment will boost Swedish cheese production, jobs, food security and regional growth.

The investment reflects Arla’s long‑term commitment to healthy living and resilient food systems. By building modern, efficient capacity in Sweden, Arla will scale high‑quality, nutritious dairy for consumers, enhance food security across its markets, and accelerate innovation in core cheese categories.

“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,” says Peder Tuborgh, CEO of Arla Foods and adds:

“The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor for this decision.”

Götene is already one of Arla’s largest production sites, with approximately 600 employees and round-the-clock operations producing butter and spreads, milk powder and cheese. With the new cheese dairy, Götene is expected to receive around 1 billion kg of milk per year, roughly double today’s volume, strengthening skills, jobs and regional development. The investment is expected to create both new full-time positions at the dairy, and indirectly many more among farmers and suppliers.

The investment complements Arla’s broader programme of growth projects across key markets. In 2025 alone, the cooperative committed to a high investment level of EUR 731 million across markets.

“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,” says Peder Tuborgh.

Götene initiative boosts Swedish cheese and jobs

The investment aligns with the Swedish food strategy and, at approximately EUR 300 million, represents the largest single commitment on record in Swedish food production. It will increase the self-sufficiency rate of Swedish cheese by around 10 percentage points, from approximately 37 to 47 percent, strengthening national food security while creating new jobs in agriculture and food production.

“This is a milestone for Arla. Household cheese is one of the country’s most popular cheeses. When the new dairy is completed, all our household cheese will be produced locally using Swedish milk. This gives consumers an everyday favourite with clear Swedish origin, while bolstering national food preparedness and supporting future confidence among Swedish farmers,” says Cecilia Kocken, Managing Director, Arla Sweden.

Arla’s owners also welcome the announcement.

“Producing more Swedish cheese is good for food security, agriculture and jobs. At the same time, investments like this increase the value of the milk we produce, creating long-term demand and stronger returns for farmer owners across our cooperative,” says Inger-Lise Sjöström, dairy farmer and Vice Chair of Arla’s Board of Directors.

The new cheese dairy strengthens Götene’s role as a hub in Arla’s operations and reinforces Skaraborg’s position as a key agricultural and food-producing region.

Household cheese production will be transferred from Arla’s Nr. Vium dairy in Denmark once the new facility becomes operational in 2030. Reallocating household cheese production allows Nr. Vium to focus on high-demand products for Arla’s International and Europe Zone markets, strengthening the site’s long-term strategic role.