As reported by Bloomberg, the Danish cooperative Arla Foods has announced an investment of approximately €300 million ($350 million) to expand cheese production in Sweden.
The company will construct a new dairy processing facility at its existing site in Götene, Sweden. Once operational in 2030, the plant will be capable of processing around 1 billion kilograms of milk annually, effectively doubling the site’s capacity. The investment is aimed at increasing production of high value-added cheeses and expanding output of whey ingredients, for which demand is rising in the nutrition and protein product segments.
The decision comes amid expectations of lower revenues due to declining dairy prices. However, the cooperative — which brings together around 7,600 farmers across Europe — anticipates that more moderate price levels will stimulate demand for branded, higher-margin products. According to the company’s estimates, this segment could grow by up to 3%.
The new capacity will focus on the production of Household cheese, one of Arla’s key retail brands in Sweden. The project is expected to increase Sweden’s cheese self-sufficiency from 37% to approximately 47%, reducing dependence on imports.
Source: Bloomberg
