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Arla is investing nearly SEK 70 million (€6 million) in its Falkenberg dairy to expand production of Keso cottage cheese.

Arla Falkenberg produces around 60 varieties of cottage cheese for Swedish and international markets, runs fossil-free since December 2024, and handles approximately 130 million kilos of milk annually from local farms. The facility employs about 130 people.

The upgrade will add around 1,500 tonnes of annual output through new filtration, cooling and water technologies.

The investment comes amid record demand for high-protein, low-fat products such as cottage cheese and quark, driven by growing interest in fitness and healthy eating. Falkenberg, Europe’s largest cottage cheese facility, has been operating at full capacity in recent years.

Christian Svensson, site director at Arla Falkenberg, said: “We have broken records two years in a row, and this investment comes at exactly the right time. It helps us keep pace with consumers’ increasing interest while also providing a stable and profitable outlet for the milk from Arla’s farmers.”

Construction will begin early next year, with the new capacity expected to be operational in Q4 2026.