Arla Foods has committed approximately €300 million to a new cheese dairy at its production site in Gotene, Sweden.
It stated that the project will expand capacity, strengthen supply resilience and accelerate innovation across Arla’s production network, while boosting Swedish cheese production, jobs, food security, and regional growth.
By building modern, efficient capacity in Sweden, Arla said it will scale high‑quality, nutritious dairy for consumers, enhance food security across its markets, and accelerate innovation in core cheese categories.
CEO of Arla Foods, Peder Tuborgh said: “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.
“Gotene 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.”
Swedish facility
Gotene 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, Gotene is expected to receive around one billion kilogrammes of milk per year, roughly double today’s volume.
The investment is expected to create both new full-time positions at the dairy, and indirectly many more among farmers and suppliers.
In 2025 the cooperative committed to a high investment level of €731 million across markets.
“We are investing consistently across our markets to build the capacity and capabilities that matter most: quality, flexibility and efficiency,” Tuborgh continued.
“Projects in our key markets strengthen our portfolio in important categories and help us serve customers reliably.
“Gotene is a clear example of that approach, a focused investment that positions our cooperative strongly for the years ahead.”
Swedish cheese
The investment aligns with the Swedish food strategy and, at approximately €300 million, represents the largest single commitment on record in Swedish food production, according to Arla.
It will increase the self-sufficiency rate of Swedish cheese by around 10 percentage points, from approximately 37% to 47%, aimed at strengthening national food security while creating new jobs in agriculture and food production.
Managing director, Arla Sweden, Cecilia Kocken said: “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.”
Arla’s owners have also welcomed the announcement.
Dairy farmer and vice-chair of Arla’s board of directors, Inger-Lise Sjostrom said: “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.”
Household cheese production will be transferred from Arla’s Nr. Vium dairy in Denmark once the new facility becomes operational in 2030.
