Arla Foods will invest around €300 million in a new cheese dairy in Götene, Sweden, marking the largest single investment in Swedish food production on record and the biggest capital commitment in the cooperative’s history in the country.

The facility, scheduled to begin operations in 2030, will double milk intake at the Götene site to around 1 billion kg per year and increase Sweden’s cheese self-sufficiency rate from approximately 37% to 47%, according to the company.

For retailers, foodservice operators and ingredient buyers, the move signals a significant uplift in regional production capacity for household cheese, alongside a broader restructuring of Arla’s Nordic manufacturing footprint.

Household cheese production will be transferred from Arla’s Nr. Vium dairy in Denmark to Götene once the new plant becomes operational. The Danish site will instead focus on high-demand products for Arla’s International and Europe Zone markets, reflecting a category-led optimisation of assets.

Chief executive Peder Tuborgh said the investment responds to rising global demand for protein and the need for resilient, modernised food systems.

He added: “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. 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 sites, employing about 600 staff and operating around the clock across butter, spreads, milk powder and cheese. The expansion is expected to create new direct and indirect jobs across the supply chain, including among farmers and local suppliers.

The €300 million commitment forms part of a broader capital expenditure programme. In 2025, Arla allocated €731 million across its markets, underscoring sustained investment despite ongoing volatility in dairy commodity markets.

For business customers, the Götene project highlights three key themes:

• Domestic supply resilience: Concentrating Swedish household cheese production locally reduces reliance on imports and cross-border logistics.

• Capacity reallocation: Freeing up production in Denmark allows Arla to prioritise export-oriented and higher-growth segments.

• Farmer value creation: Expanded processing capacity strengthens long-term demand for milk from the cooperative’s 7,600 farmer-owners across Northern Europe.

Cecilia Kocken, managing director of Arla Sweden, commented: “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.”

With European governments placing renewed emphasis on food security and self-sufficiency, Arla’s record investment underscores how major dairy processors are aligning capital deployment with national production strategies while positioning themselves for long-term category growth.