Arla Foods Expands Cream Cheese Production in Denmark to Meet Global Demand
Sourse: dairynews.today
Danish dairy giant Arla invests €59.4m to increase cream cheese capacity at its Holstebro Dairy, aiming to address rising global demand.
Arla Foods is set to enhance its cream cheese production capabilities by investing €59.4m ($70.1m) at its Holstebro Dairy site in Denmark. This initiative aims to accommodate the rapidly growing global demand for cream cheese. Located in western Denmark, Holstebro Dairy currently manufactures 119,000 tonnes of cream cheese annually, along with 155,000 tonnes of butter and spreadable products.
The expansion will augment cream cheese production by 16,000 tonnes annually, serving international markets. Previously, the site underwent a project earlier this year that increased its capacity by 27,000 tonnes. As part of this latest development, two new filling lines for retail and foodservice will be installed, enhancing the dairy's operational capacity.
Scheduled for completion by January 2028, this investment underlines Arla's strategic move to strengthen its market position. The expansion follows a recent commitment by Arla Foods to invest €34.5m in skyr production at its Jönköping site in Sweden. David Boulanger, Arla's chief supply chain officer, remarked on the company's strong market presence and emphasized the necessity of this investment to meet surging product demand.
The expansion will augment cream cheese production by 16,000 tonnes annually, serving international markets. Previously, the site underwent a project earlier this year that increased its capacity by 27,000 tonnes. As part of this latest development, two new filling lines for retail and foodservice will be installed, enhancing the dairy's operational capacity.
Scheduled for completion by January 2028, this investment underlines Arla's strategic move to strengthen its market position. The expansion follows a recent commitment by Arla Foods to invest €34.5m in skyr production at its Jönköping site in Sweden. David Boulanger, Arla's chief supply chain officer, remarked on the company's strong market presence and emphasized the necessity of this investment to meet surging product demand.
