Arla Foods, a Denmark-based dairy cooperative known for sustainable and innovative dairy production, is set to begin skyr yogurt manufacturing in Sweden’s Jönköping County with a $37.5 million investment. The production is expected to start in the first quarter of 2028 at its existing Jönköping facility, which currently handles over 280 dairy products and employs around 290 people. While the investment will not create immediate new jobs, it aims to secure long-term employment and enhance Arla’s high-protein product portfolio. Skyr, previously made only in Denmark, Germany, and Finland, will now be produced in Sweden to meet rising consumer demand. This investment aligns with Arla’s sustainability goals and is part of its broader strategy, including a planned merger with Germany’s DMK Group to form Europe’s largest dairy cooperative. Arla projects revenue between $15.6 billion and $16.5 billion in 2025 despite market volatility.
Arla Foods, a leading Denmark-based dairy cooperative known for its sustainable and health-focused dairy products, has announced a $37.5 million (equivalent to €34.5 million) investment to begin skyr production at its Jönköping facility in Sweden. This strategic move is aimed at addressing the growing consumer demand for high-protein yogurt products in Sweden, with production expected to commence in the first quarter of 2028.
The Jönköping dairy plant, currently producing over 280 types of dairy products and employing around 290 staff, will be upgraded to include skyr production capabilities. While the investment does not immediately create new jobs, Arla’s management emphasized that it secures long-term employment and strengthens its commitment to innovation and quality in dairy offerings.
Skyr, a traditional Icelandic-style yogurt known for its thick texture and high protein content, has until now only been produced by Arla in Denmark, Germany, and Finland. Expanding production to Sweden brings Arla closer to local consumers, enhancing its Nordic market reach.
We are seeing a steady rise in demand for skyr in Sweden, and this investment helps us stay ahead by bringing production closer to our consumers.”
David Boulanger, Executive Vice President of Arla’s Supply Chain
This development also ties into Arla’s broader strategic vision. The cooperative is currently pursuing a merger with Germany’s DMK Group, a move that would create Europe’s largest dairy cooperative. Despite facing volatile market conditions and shifting consumer behavior, Arla remains optimistic, forecasting revenues between $15.6 billion and $16.5 billion in 2025.
Arla’s latest investment reaffirms its commitment to both sustainability and innovation as it continues to adapt to changing market needs and expand its global footprint in the dairy sector.
