Arla Foods is investing in expanding cream cheese production in Denmark to meet global demand.

From Yahoo Finance: 2025-07-01 09:12:00

Arla Foods is investing €59.4m to expand cream cheese production at its Holstebro Dairy in Denmark, responding to growing global demand. The site currently produces 119,000 tonnes of cream cheese annually, with plans to increase production capacity by 16,000 tonnes per year to supply global markets by 2028.

The investment also includes two new filling lines for retail and foodservice to boost process capacity. Arla Foods Chief Supply Chain Officer, David Boulanger, cited strong demand for their cream cheese products globally. This expansion follows a previous project adding 27,000 tonnes of cream cheese capacity earlier this year.

In addition to the expansion in Denmark, Arla Foods is committing €34.5m to start skyr production in Sweden for the first time at its Jönköping dairy. The Swedish market will primarily receive 1kg “buckets” of skyr, with the new production line expected to be operational by the first quarter of 2028. The Jönköping dairy produces over 280 products and is Sweden’s largest specialist dairy with around 290 employees.

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