Arla Foods, a Danish dairy cooperative headquartered in Viby, Denmark, has announced a significant expansion at its Holstebro Dairy in Central Jutland, Denmark. On July 1, 2025, the company revealed an investment of €59.4 million ($70.1 million) to boost its cream cheese production capacity by 16,000 tonnes annually. This expansion is in response to the growing global demand for cream cheese and includes two new filling lines scheduled for completion by January 2028.
Arla Foods, a global dairy cooperative based in Viby, Denmark, has announced a €59.4 million ($70.1 million) investment to expand its cream cheese production capacity at the Holstebro Dairy in Central Jutland, Denmark. The expansion, revealed on July 1, 2025, aims to meet the rapidly rising global demand for cream cheese.
Currently, the Holstebro Dairy produces 119,000 tonnes of cream cheese annually and 155,000 tonnes of butter and spreadable products. This new investment will increase cream cheese production by an additional 16,000 tonnes per year. It follows a recent expansion earlier in the year that boosted capacity by 27,000 tonnes.
The project will involve the installation of two new filling lines dedicated to both retail and foodservice formats. The development is expected to be completed by January 2028.
We are experiencing growing global demand for our cream cheese products. This investment ensures that we can continue to supply high-quality dairy products to our international customers.”
David Boulanger, Chief Supply Chain Officer at Arla Foods
This initiative is part of Arla’s broader strategy to strengthen its position in the global dairy market. The company also recently invested €34.5 million in expanding skyr production at its Jönköping site in Sweden.
The Holstebro expansion reinforces Arla’s commitment to enhancing its production capabilities and underlines Denmark’s central role in the cooperative’s global operations.
