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Arla Foods commits £300m to boost UK dairy production
FoodBev Media

FoodBev Media

14 May 2024

Arla Foods commits £300m to boost UK dairy production

Arla Foods has announced that it will invest over £300 million across five of its UK sites. This commitment, revealed during the UK Farm to Fork Summit at Downing Street, underscores Arla's mission to enhance British dairy production and support the nation's food security. The investment will benefit Arla's facilities in Lockerbie, Stourton, Aylesbury, Westbury and Taw Valley. These upgrades aim to modernise and expand the company's production capabilities, ensuring the continued production of high-quality dairy products and bolstering the UK's position in the global food market. Bas Padberg, managing director of Arla Foods UK, said: “What this means is that our farmer owners are investing in UK food security – as they are not only producing our milk, but they are backing this investment in our production sites”. He continued: “Dairy plays a significant role in the UK economy, with sales of dairy products exceeding £8 billion. On the day of the Farm to Fork Summit we are delighted to set out plans for continued vital investment in our business worth tens of millions of pounds, ensuring the UK remains at the forefront of food production and keeping the nation’s favourite dairy products on our supermarket shelves.” The cooperative, owned by thousands of European dairy farmers, including approximately 2,000 in the UK, operates nine production sites nationwide. The planned upgrades will secure the future of these sites, enabling them to produce world-class products and add maximum value to the milk supplied by its farmer owners. The investment in Taw Valley, for example, aims to capitalise on global export opportunities. Fran Ball, vice president for production at Arla Foods, commented: “We are wholly committed to UK manufacturing to ensure we continue to produce the nutritious dairy products that are a staple in millions of fridges across the country. The investments will allow us to make significant upgrades across our portfolio, making our facilities fit for the future of dairy production here in the UK.” Arthur Fearnall, Arla Foods UK board director and an Arla farmer, added: “We are incredibly proud of today’s announcement, which helps to futureproof the production of British dairy. We’re excited to see how the plans across our sites progress over the coming years, as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.” The Lockerbie Creamery will see new technology and significant upgrades, allowing it to expand its cheddar production. In Stourton, the investment will enhance Arla's capabilities in extended shelf life milk production, particularly for the Cravendale and BoB brands, and introduce milk in cardboard cartons. This will result in enough additional milk to fill 560 million bowls of cereal. Aylesbury, the UK's largest fresh milk site, will receive new automated box packing capabilities, providing customers with greater packaging flexibility. Meanwhile, the Westbury site will focus on turning milk into powder for global consumption. These investments follow the March announcement of a £179 million upgrade at the Taw Valley creamery, which will create 100 new jobs and enable mozzarella exports for pizza toppings worldwide. With the latest commitments, Arla has pledged over £300 million in 2024 to enhance its UK production sites. Padberg concluded: “We must also ensure we have a robust food supply chain for the UK market – and this starts with ensuring we can continue to return a fair price back to our farmer owners. As one of the biggest food companies in the UK, it is only natural that we look for further opportunities to grow, which includes strengthening our export opportunities.”

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