A new dairy in Götene will anchor Arla’s drive to expand Swedish cheese production, underlining the strength of the country’s milk sector, with farmers ready to meet growing demand.
Arla is investing €300 million in the new facility in Götene, marking not only the largest single investment in the company’s history, but also the most extensive standalone initiative ever undertaken within Sweden’s food industry.
According to a company press release, the expansion is intended to meet rising consumer demand for Swedish cheese, create new jobs, stimulate regional growth, and strengthen food resilience in Sweden and across other European markets.
Götene is already one of Arla’s largest production sites worldwide, employing around 600 staff and operating around the clock. Once the new dairy is completed, the site is expected to process roughly one billion kilograms of milk annually — double its current volume — equivalent to the output of an additional 40,000 cows.
According to Inger-Lise Sjöström, a dairy farmer in Östergötland and Vice Chair of Arla, this target is not unrealistic to achieve. In an interview with ATL, she pointed to several reasons why the investment is being made in Sweden, citing both political support and a clear willingness at farm level to expand milk production.
- Now it is Sweden’s turn. We have a safe and stable market here. The situation is not the same as in Denmark or the Netherlands, where efforts are under way to reduce the number of dairy producers, she said.
In 2025, when milk intake rose sharply, Arla Sweden was at times obliged to transport milk to Denmark for processing. With new capacity coming on stream in Falkenberg, Linköping and Götene, that will no longer be necessary.
Finally, Sjöström welcomed the news that Hushållsost — one of Arla’s most popular cheeses — will once again be produced in Sweden, having been made in Denmark since 2013.
- When consumers realise that Hushållsost is once again a fully blue-and-yellow Swedish cheese, sales could increase further,” she added.