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Arla Foods is investing €34.5 million in a new skyr production line in Linköping, Sweden, to meet rising demand for the high-protein product.

The new line will primarily supply the Swedish market, where skyr consumption has grown rapidly in recent years. In a 2024 survey by the Swedish Food Federation, Swedish consumers named skyr (known locally as quark) the year’s trendiest food.

The new production line is scheduled to be operational in early 2028. It will expand Arla’s skyr capacity, complementing existing production in Denmark, Finland and Germany.

Arla's EVP for supply chain, David Boulanger, said: "Consumer demand on skyr is high and growing, our Swedish farmer owners are dedicated to producing with lower carbon footprint and Arla has a specific expertise in turning their milk into high protein, tasty Skyr products. With this investment, we are setting ourselves up to secure future growth on this category."

He added: “We are constantly evaluating our supply chain and the flow of our milk pool to make sure we produce the most efficiently and in accordance with consumer demand. We are now placing the investment in Linköping due to milk availability and the infrastructure at the dairy but also to meet Swedish demand and create a strong production network of skyr that is spread out over several markets across Europe."

The site, which employs around 290 people, is Sweden’s largest specialist dairy and produces more than 280 products including yogurt, sour cream, crème fraîche and lactose-free options.