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Arla Foods has announced plans to close its Falbygdens Ost import and packaging facility in Falköping, Sweden, in February 2027, resulting in the loss of approximately 60 jobs.

The farmer-owned dairy cooperative said the decision follows a prolonged period of profitability challenges and declining demand for large parts of the facility's speciality and dessert cheese range.

Unlike Arla's other dairy operations, Falbygdens Ost does not produce its own cheese or use milk supplied by Arla farmers. Instead, the facility focuses on importing, storing, processing, portioning and packaging cheeses sourced from around the world.

Arla said the closure forms part of its wider strategy to concentrate resources on Swedish dairy production and strengthen the country's food security.

Anna Schreil, head of logistics and production at Arla Sweden and Finland, said: "This is a heavy message for both our employees and the local community in Falköping. We have great respect for Falbygdens Ost's long history and for the people affected by the decision."

She continued: “At the same time, as a farmer-owned cooperative, we need to use our resources where they create the greatest long-term value for our owners. Therefore, we focus our investments and our operations on areas that contribute to more Swedish milk and strengthen Swedish food security.”

The closure will affect the company's import and packaging operations on Göteborgsvägen. Arla said it is working closely with trade unions to provide support and assistance to affected employees, including opportunities both within and outside the company.

However, the cooperative will retain its Osthuset facility on Energigatan, where Swedish-produced hard cheeses are stored and waxed. Approximately ten jobs will remain at the site.

As part of the changes, Arla will discontinue dessert cheeses sold under the Falbygdens brand, with products remaining available to grocery retailers until week seven of 2027.

Some of the range's most popular products will be transferred to Arla's Castello brand, while its aged Swedish cheese varieties will continue to be sold under the Kvibille brand.