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Arla invests 300 million in new cheese factory

25 February 2026 - Klaas van der Horst

Arla Foods is investing approximately €300 million in cheese and whey production in Götene, Sweden. One of the cooperative's largest Arla factories is already located there. The investment is one of Arla's largest ever and is being made partly to expand Swedish cheese production, create jobs, food security, and foster regional growth.

When the investment is completed in four years, approximately one billion kilos of milk can be processed there. Initially, the new factory will produce 'Household Cheese' (Hushållsost) is being made, and other varieties may be added later. This cheese is currently being made in Vium, Denmark, but production there will be transferred to the new cheese factory in Götene. 

CEO Peter Tuborgh emphasizes that the investment serves a dual purpose. It aligns with Sweden's national strategy. This increases Sweden's cheese self-sufficiency rate by 10 percentage points, from 37% to 47%, thus strengthening national food security while creating more jobs in agriculture and food production. At the same time, it also supports Arla's global dairy ambitions. Whey is not explicitly mentioned, but it undoubtedly plays a role.

Currently, Götene primarily produces butter, spreads, milk powder, and cheese. The cheese is still produced in an older factory. The new investment will roughly double the milk volume processed and significantly increase cheese production in particular. The facility currently employs around 600 people. 

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Klaas van der Horst

He is a dairy market specialist at DCA Market Intelligence. He researches market news and trends and interprets developments.
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