Arla makes €300m investment in Swedish cheese dairy

Arla Foods will invest approximately €300 million in a new cheese dairy at its production site in Götene, marking the largest single investment on record in Swedish food production.

The facility, due to open in 2030, will double milk intake at Götene to around one billion kilograms annually and increase Sweden’s cheese self-sufficiency rate from 37 percent to 47 percent. Production of household cheese will transfer from Arla’s Nr. Vium dairy in Denmark once the site becomes operational, sharpening the strategic focus of both plants.

For food manufacturers and retailers, the scale of the investment underlines Arla’s intent to secure reliable protein supply, expand efficient European capacity and accelerate innovation in core cheese categories as global demand for dairy continues to rise.

Peder Tuborgh, CEO of Arla Foods, 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. 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.”

Scaling capacity and resilience

Götene is already one of Arla’s largest production hubs, employing around 600 people and operating around the clock across butter, spreads, milk powder and cheese. The new dairy will significantly expand its cheese capacity while strengthening supply resilience across Arla’s wider production network.

The project sits within a broader investment drive. In 2025 alone, the cooperative committed €731 million across key markets to enhance quality, flexibility and efficiency, reinforcing its long-term growth ambitions.

Tuborgh added:

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.”

National impact and farmer confidence

Beyond operational gains, the Götene development aligns with Sweden’s national food strategy and is expected to create new full-time roles at the dairy, alongside additional demand for farmers and suppliers. By lifting domestic cheese self-sufficiency by around 10 percentage points, from approximately 37 to 47 percent, the investment is positioned as a tangible boost to national food security.

Cecilia Kocken, Managing Director, Arla Sweden, commented:

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.”

Inger-Lise Sjöström, dairy farmer and Vice Chair of Arla’s Board of Directors, added:

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.”

Once the new dairy is operational, Nr. Vium will refocus on high-demand products for Arla’s International and Europe Zone markets, strengthening its strategic role while allowing Götene to anchor Arla’s Swedish cheese production for the decade ahead.