Arla Foods reveals largest-ever investment in Swedish cheese dairy as protein demand surges

Arla Foods has made its largest-ever investment in Swedish cheese dairy, citing rising global demand for protein and the country’s commitment to increasing food production as key factors. The Danish-Swedish multinational dairy cooperative has committed approximately €300 million (~US$354 million) to a new production site in Götene, intended to boost capacity and supply chain resilience, and accelerate product innovation.

Innova Market Insights identified “Powerhouse Protein” as its top F&B industry trend this year, finding that nearly 60% of global consumers say they are actively pursuing protein for overall health. The growing demand for nutrient-dense products, spurred by GLP-1 usage, is creating new opportunities for dairy ingredient manufacturers.

“Global demand for reliable, nutritious protein continues to grow, and dairy plays a vital role in healthy diets and resilient food systems,” says Arla Foods CEO Peder Tuborgh. “We are investing at scale to build modern, efficient capacity that serves consumers across our markets. Götene will be a cornerstone in this network.”

“The clear political commitment in Sweden to increase food production and self-sufficiency has been a key factor for this decision,” he adds. The Götene site is expected to boost Swedish cheese production, jobs, food security, and regional growth.

At Fi Europe 2025, we sat down with Jeppe Sand Laursen, global head of sales – SBU Food at Arla Foods Ingredients, to explore the company’s new high-protein concepts that tap into demand for functional dairy snacks and beverages.

Arla’s Götene production site

Götene is already one of Arla’s largest production sites, with approximately 600 employees and round-the-clock operations producing butter and spreads, milk powder, and cheese. With the new cheese dairy, Götene is expected to receive around 1 billion kg of milk per year, roughly double today’s volume.

The investment complements Arla’s other growth projects. In 2025, the cooperative committed to investing €731 million (US$862 million) across markets.Rising global protein demand drives Arla Foods’ investment in expanding cheese production in Sweden.

“We are investing consistently across our markets to build the capacity and capabilities that matter most: quality, flexibility, and efficiency,” says Tuborgh. “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.”

The Götene investment aligns with the Swedish food strategy and is said to represent the largest single commitment to the country’s food production. Arla says it will increase the self-sufficiency rate of Swedish cheese from approximately 37–47%, strengthening national food security while creating new jobs in agriculture and food production.

“Household cheese is one of the country’s most popular cheeses,” adds Cecilia Kocken, managing director for Arla Sweden. “When the new dairy is completed, all our household cheese will be produced locally using Swedish milk. This gives consumers an everyday favorite with clear Swedish origin, while bolstering national food preparedness and supporting future confidence among Swedish farmers.”

Production at the new dairy is expected to start in 2030. Household cheese will move from Nr. Vium in Denmark to Götene.

Last month, Arla announced that its European sites have been powered exclusively by renewable electricity since the end of last year. Around 93% of Arla’s total electricity consumption is in Europe, where the dairy company operates 46 sites across seven countries.