The Danish-Swedish multinational has unveiled plans to invest £29.5 million in a new skyr production line at its dairy in Linköping, Sweden.
Arla said the investment forms part of its long-term strategy and is designed to meet growing demand for skyr, a traditional Icelandic cultured dairy product.
According to Arla, skyr grew by an average of 8% a year in Europe between 2022 and 2024 and is expected to continue growing at a similar rate until 2030.
The new line will predominantly produce skyr for the Swedish market, where demand has increased significantly in recent years, driven by consumers’ growing appetite for high-protein, low-fat products seen across much of Europe, including the UK.
The new skyr line is expected to be operational in the first quarter of 2028 and will further reinforce Linköping’s role as a strategic hub within Arla’s Swedish operations.
This latest investment will increase overall skyr production capacity and complement the company’s existing facilities in Denmark, Finland and Germany.
The Linköping dairy, which employs around 290 people, is Sweden’s largest specialist dairy. It currently produces more than 280 dairy products, including yoghurt, sour cream, crème fraîche, as well as lactose-free and organic products. The site will also produce skyr from 2028.
Executive vice-president of 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. With this investment, we are setting ourselves up to secure future growth on this category.”
