The Danish-Swedish co-op will split the investment between skyr production in Germany and cottage cheese in Sweden to meet rising consumer demand for protein-rich, convenient dairy products.
Arla is investing €63 million to expand production of skyr and cottage cheese across two European sites.
Arla says the investments will help convert more farmer milk into higher‑value protein products and meet rising consumer demand for convenient, protein-rich foods.
Arla, the Danish‑Swedish dairy co‑operative, announced a €63 million investment aimed at expanding production of skyr and cottage cheese. The company frames the move as a response to growing consumer demand for accessible, protein‑rich foods that fit active lifestyles and balanced diets.
Arla said the skyr investment builds on a multi‑year effort: the co‑op has already spent €51 million since 2023 (excluding this new allocation) to scale skyr capacity. The cottage cheese funding is intended to increase output of a category Arla describes as a clear beneficiary of the global nutrition trend.
Over the past three years in Arla's markets across Europe, skyr volumes rose by more than 33% and cottage cheese volumes grew by 25%. Arla interprets those gains as sustained consumer preference shifts toward high‑protein, ready‑to‑eat dairy.
Arla's CEO Peder Tuborgh is quoted in the original report stating that consumer preferences keep evolving toward products that combine protein, convenience and taste. The co‑op expects the investments to:
The decision sits alongside similar industry moves to expand protein and ingredient capacity. Other dairy cooperatives and processors have announced investments in protein manufacturing to capture growing demand for protein‑rich consumer foods and ingredients.
What this means for farmers and markets
Arla positions the investment as beneficial to its farmer owners because higher‑value products can increase returns on milk. For retailers and food service, the investment aims to reduce risk of supply constraints and enable broader distribution of skyr and cottage cheese.
Arla will carry out capital works at the Upahl and Falkenberg sites. The company did not publish a detailed construction or ramp‑up timeline in the report summarized here. Observers tracking protein category growth should watch Arla's capacity announcements and product availability in key European markets.
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