Arla Foods is investing EUR 34.5 million in a new skyr production line at its dairy in Linköping, Sweden.
The new production line will predominantly produce skyr for the Swedish market where skyr demand has been growing rapidly over the past few years. The interest in skyr is driven by the increasing appetite for high-protein, low-fat products.
Executive vice president, supply chain, David Boulanger, said: “I am very happy to announce this great investment that truly ticks all the boxes.
“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.”
The new skyr line is expected to be operational in the first quarter of 2028.
David Boulanger 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 Linköping dairy, which employs around 290 people, currently produces just over 280 different dairy products, including yogurt, sour cream, crème fraîche, as well as lactose-free and organic options.