Arla Foods has announced its largest-ever investment in Sweden, committing approximately €300 million to build a new cheese dairy at its Götene production site. The project will expand cheese capacity, strengthen supply resilience and support national food security. Importantly, the investment reflects Arla’s long-term strategy to scale efficient, high-quality dairy production in response to rising global demand for reliable protein.
Expanding Capacity at a Strategic Production Hub
The new cheese dairy will be located in Götene, one of Arla’s largest production sites. The facility currently employs around 600 people and operates around the clock, producing butter, spreads, milk powder and cheese. With the new investment, Götene will process around one billion kilograms of milk per year, almost double its current intake. As a result, the site will play a larger role in Arla’s European production network.
Moreover, the expansion is expected to create new full-time jobs at the dairy. It will also generate indirect employment across farming, transport and supplier services in the Skaraborg region.
Supporting Swedish Cheese Self-Sufficiency
At a national level, the project aligns closely with Sweden’s food strategy. Once operational, the new dairy is expected to increase Swedish cheese self-sufficiency by around 10 percentage points, from approximately 37 per cent to 47 per cent.
Notably, all household cheese sold by Arla in Sweden will be produced domestically using Swedish milk. This shift strengthens consumer trust, improves traceability and enhances food preparedness.
“This investment allows us to meet consumer demand with locally produced cheese,” said Cecilia Kocken, Managing Director of Arla Sweden. She added that domestic production also supports long-term confidence among Swedish dairy farmers.
Part of a Broader Investment Strategy
Meanwhile, Arla continues to invest heavily across its markets. In 2025 alone, the cooperative committed €731 million to growth and efficiency projects.
According to Peder Tuborgh, Chief Executive Officer of Arla Foods, these investments focus on quality, flexibility and operational efficiency. He also highlighted Sweden’s strong political support for increased food production as a key factor behind the decision.
Looking ahead, household cheese production will shift from Arla’s Nr. Vium dairy in Denmark, once the Götene facility becomes operational in 2030. This change will allow the Danish site to focus on high-demand international products.
What This Means for the Dairy Sector
Overall, Arla’s Götene investment signals a wider industry trend towards regionalised production, supply security and cooperative-led growth. It also reinforces cheese as a stable, value-driven category within the European dairy market.
For the dairy industry, the project highlights how large-scale investments can simultaneously support farmers, consumers and national food systems.
