The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Arla Foods has announced a proposal to invest €107.7m into its Lockerbie site in Scotland, to support the farmer-owned cooperative’s future growth ambitions.

The proposal includes turning the site into a 'centre of excellence' for the production of UHT and lactose-free milk.

Speaking about the investment proposals, David Boulanger, executive vice president and head of supply chain at Arla, said: “We have chosen Lockerbie as a future UHT centre of excellence in the UK as it allows us to build scale, drive significant efficiencies and strengthen our resilience".

He added: "Located close to a large milk pool, Lockerbie brings additional sustainability advantages with our recently invested anaerobic digestion plants. The new investment will enable us to increase UK production capabilities in UHT and Lactofree technologies, supporting further growth with our strategic customers in the UK.”

As a result of the investment plans, Arla has also revealed a proposal to close its Settle site in North Yorkshire, UK. Some colleagues based at Arla's Stourton site, and all colleagues at the Settle site, could be impacted. If the proposals go ahead, the anticipated change date will be from the second half of 2026.

Boulanger continued: “This investment for Lockerbie implies that we are proposing to move some production from other sites in the UK and as a result, will potentially impact some of our colleagues in Stourton and Settle. At Arla, we are committed to supporting all colleagues through periods of change and we understand that this will be a time of uncertainty for everyone who works across these sites. We will be entering into a period of consultation with all colleagues affected by these proposals."

The news follows Arla’s announcement in 2024 to invest over €355 million across its UK sites, including €210 million into its mozzarella operations in its Taw Valley creamery in Devon.