08/12/2025

Multi-million investment in Europe’s largest cottage cheese dairy

Arla is investing 6 million euros in Falkenberg dairy in Sweden to meet the growing consumer demand for cottage cheese.

The Falkenberg site supplies cottage cheese to large parts of Europe – including the well-known KESO brand in Sweden and the Cheasy brand in Denmark. The investment will enable the dairy to increase annual production by around 1,500 tons, supported by upgrades to filtration, cooling and water-management technologies.

Demand for high-protein, low-fat products such as cottage cheese and quark is higher than ever, both in Sweden and internationally. The trend is being fueled by rising interest in fitness and healthy eating, amplified further by social media. According to Arla Sweden, this surge has been clearly felt in Falkenberg, where strong demand for the curd-style fresh cheese has kept production running at full capacity in recent years.

  • We’ve set production records for two years in a row, so this investment comes at exactly the right time. It allows us to keep pace with growing consumer interest while ensuring stable, profitable sales for Arla’s farmers, says Christian Svensson, dairy manager at Arla in Falkenberg in a press release from Arla Sweden.

Construction is expected to begin early next year, with the additional capacity scheduled to come online in the fourth quarter of 2026. Beyond supporting growth at Europe’s largest cottage cheese facility, the investment also strengthens Swedish food production and contributes to greater national food security, the press release adds.

by LWM

Photo: Arla Foods

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