Arla Foods has announced its largest-ever single investment in Swedish food production. A EUR 300 million commitment will transform the Götene dairy into the group’s new powerful engine for cheese production – a decision with direct implications for the Nr. Vium dairy in Denmark.
Arla Foods is accelerating its presence in the Swedish market. With an investment of approximately EUR 300 million, the cooperative will not only expand capacity significantly but also relocate a substantial part of its Nordic cheese production.
When the new facility is completed in 2030, Götene is expected to receive around 1 billion kg of milk per year. This represents a doubling of the current volume. The investment is a direct response to a rising global demand for protein-rich foods and a strong political desire in Sweden for increased self-sufficiency.
A cornerstone in the network
According to Arla Foods’ CEO, Peder Tuborgh, dairy products play a vital role in future food systems:
– 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,” says Peder Tuborgh.
He further points out that the Swedish framework conditions were a key factor:
– The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor for this decision.”
Transferring Danish production to Sweden
The investment also marks a strategic shift in the internal production network. Production of the popular Hushållsost (household cheese) will be transferred from the Nr. Vium dairy in Denmark to Götene once the new facility becomes operational in 2030.
This reallocation allows Nr. Vium to focus on high-demand products for Arla’s International and Europe Zone markets, strengthening the Danish site’s long-term strategic role.
Peder Tuborgh explains the overarching strategy behind the current growth projects:
– 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.
Significant boost to self-sufficiency
For Sweden, the investment is more than just industrial development. It is expected to increase the self-sufficiency rate of Swedish cheese by around 10 percentage points – from approximately 37 to 47 per cent. Cecilia Kocken, Managing Director of Arla Sweden, calls it a milestone:
– 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.
Support from the owners
Arla’s owners also welcome the announcement. Inger-Lise Sjöström, dairy farmer and Vice Chair of Arla’s Board of Directors, emphasises the value for the cooperative’s members:
– 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.
Key facts
By Maja Løvstrup
Photo: Arla Foods
