May 21, 2024

Arla Foods to invest over US$381 million in UK sites to boost dairy production

Arla Foods has announced a major investment of over GBP 300 million (US$381 million) across five of its UK sites, as part of the company's mission to enhance UK dairy production and support the nation's food security, FoodBev Media reported.

The investment will benefit Arla's facilities in Lockerbie, Stourton, Aylesbury, Westbury, and Taw Valley. These upgrades aim to modernize and expand the company's production capabilities, ensuring the continued production of high-quality dairy products and strengthening the UK's position in the global food market.

Bas Padberg, managing director of Arla Foods UK, said dairy plays a significant role in the UK economy, with sales of dairy products exceeding GBP 8 billion (US$10 million).

The cooperative, owned by thousands of European dairy farmers, including approximately 2,000 in the UK, operates nine production sites nationwide. The planned upgrades will secure the future of these sites, enabling them to produce world-class products and add maximum value to the milk supplied by its farmer owners. The investment in Taw Valley, for example, aims to capitalize on global export opportunities.

The Lockerbie Creamery will see new technology and significant upgrades, allowing it to expand its cheddar production. In Stourton, the investment will enhance Arla's capabilities in extended shelf-life milk production, particularly for the Cravendale and BoB brands, and introduce milk in cardboard cartons, resulting in enough additional milk to fill 560 million bowls of cereal.

Aylesbury, the UK's largest fresh milk site, will receive new automated box packing capabilities, providing customers with greater packaging flexibility. Meanwhile, the Westbury site will focus on turning milk into powder for global consumption.

These investments follow the March announcement of a GBP 179 million (US$227 million) upgrade at the Taw Valley creamery, which will create 100 new jobs and enable mozzarella exports for pizza toppings worldwide.

-      FoodBev Media