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Arla, the European dairy cooperative, has unveiled plans to invest approximately €300 million ($328 million) to establish a state-of-the-art cheese production facility at its existing site in Gotene, Sweden.
The project represents the cooperative’s largest single investment in Swedish food production to date and is designed to significantly bolster supply chain resilience. Once the facility becomes operational in 2030, the Gotene site will double annual milk processing capacity to roughly 1 billion kilograms. As part of a strategic restructuring of its European manufacturing footprint, Arla intends to relocate production of its popular “household cheese” brand from its Nr. Vium dairy in Denmark back to Sweden, ensuring the product is made entirely from Swedish milk.
Cecilia Kocken, managing director of Arla Sweden, described the investment as a “milestone”, adding: “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”.
The move is expected to increase Sweden’s self-sufficiency rate for cheese by ten percentage points to 47%. This development follows a previous expansion at the Gotene facility in 2021, when Arla invested 300 million SEK to double its organic production capacity.
Source: Arla
