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Arla invests €63 million in skyr and cottage cheese as demand for protein grows

The Danish-Swedish dairy cooperative will spend €35 million on skyr in Upahl, Germany, and €28.3 million on cottage cheese in Falkenberg, Sweden, after volumes of both rose sharply in three years.

Arla invests €63 million in skyr and cottage cheese as demand for protein grows
Agribusiness

Danish-Swedish dairy cooperative Arla will invest €63 million to expand production of skyr and cottage cheese as consumers seek protein-rich foods, Agriland reports. The investment is meant to meet growing demand and create more value from the milk Arla takes from its farmer owners.

It includes €35 million for skyr production in Upahl, Germany, and €28.3 million for cottage cheese in Falkenberg, Sweden. Arla has already spent €51 million on skyr since 2023, not counting the new investment.

Over the past three years skyr volumes grew by more than 33 percent across Arla's European markets and cottage cheese by 25 percent across its markets. "Demand for both categories has grown so rapidly in recent years that producers across the dairy industry are investing to expand capacity," the cooperative said.

"Consumer preferences continue to evolve, and we see growing demand for products with high-protein combined with convenience and great taste," said chief executive Peder Tuborgh, adding that the investments create "long-term value from our farmer owners' milk".

Photo: Xfigpower / Wikimedia Commons (CC BY-SA 3.0)

Source: Agriland

AgrilandSource

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