The new cheese dairy is based at Arla’s site in Götene, Sweden and is set to significantly expand its capacity, whilst also strengthening supply resilience and accelerating innovation across the business’s production network.
Götene, which produces butters, spreads, milk powder and cheese, is already one of Arla’s largest production sites, with approximately 600 employees and a 24/7 operation. With the new dairy, the plant is expected to see current volumes roughly double, receiving around 1 billion kg of milk annually.
This will open up new full-time roles at the dairy, but Arla also expects the investment to help support additional local jobs among farmers and suppliers.
The move follows an update to the Swedish food strategy, which is focused on improving food supply resilience. At approximately €300 million, this investment represents the largest single commitment on record in Swedish food production.
Once operational, the new plant will see the self-sufficiency rate of Swedish cheese increase from 37% to 47%, with all Arla’s household cheese to be produced locally using Swedish milk.
“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,” said Peder Tuborgh, CEO of Arla Foods.
“The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor for this decision.”
Production at the new dairy is set to start in 2030 with household cheese production to be transferred from Arla’s Nr. Vium dairy in Denmark. The new dairy will focus just on household cheese, but other varieties are to be confirmed at a later date.
Meanwhile, Nr Vium will focus on high-demand products for Arla’s International and Europe Zone markets, strengthening the site’s long-term strategic role.
The investment complements Arla’s broader programme of growth projects across key markets. 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. 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,” added Tuborgh.
