Sweden: Arla invests €34 million to boost skyr production

Arla Foods, the Denmark-based dairy cooperative, has announced it is investing €34.5 million ($39.7 million) in a new skyr production line at its Linkoping dairy in Sweden.

The new production line is set to launch in early 2028 and will primarily serve the Swedish market, where interest in skyr has reportedly surged due to the rising popularity of high-protein, low-fat dairy products.. This investment expands Arla’s global skyr capacity, complementing existing operations in Denmark, Finland and Germany.

Commenting on the investment Arla Foods executive vice president, supply chain David Boulanger said: “I am very happy to announce this great investment that truly ticks all the boxes. Consumer demand on Skyr is high and growing, our Swedish farmer owners are dedicated to producing with lower carbon footprint and Arla has a specific expertise in turning their milk into high protein, tasty Skyr products”.

“We are constantly evaluating our supply chain and the flow of our milk pool to make sure we produce the most efficiently and in accordance with consumer demand”, he added. “We are now placing the investment in Linköping due to milk availability and the infrastructure at the dairy but also to meet Swedish demand and create a strong production network of skyr that is spread out over several markets across Europe”.

Source: Arla Foods