Arla will close Swedish cheese packaging facility in 2027

Arla said the closure concerns the Falbygdens Ost operation on Göteborgsvägen, which imports, stores, processes, portions and packs cheeses made outside Sweden. The site differs from Arla’s other dairy operations because it neither produces cheese itself nor uses milk supplied by farmers in Arla’s cooperative.

The company said demand had fallen for large parts of the facility’s speciality and dessert-cheese range, while the operation had faced profitability difficulties over an extended period. Arla described the shutdown as part of a broader decision to direct resources towards Swedish dairy production and food security in Sweden.

Anna Schreil, Arla’s head of logistics and production for Sweden and Finland, called the announcement “a heavy message” for employees and the Falköping community. She said the cooperative respected Falbygdens Ost’s history and the people affected, while adding that Arla needed to place its resources in areas that created the greatest long-term value for its farmer owners.

Arla said it was working with trade unions on support for employees who will be affected. Assistance will include opportunities both within the company and outside it. The closure is expected to eliminate approximately 60 positions when the Göteborgsvägen operation ends in February 2027.

The cooperative will keep its Osthuset facility on Energigatan. That site stores and waxes hard cheeses produced in Sweden, and about ten jobs will remain there. The changes therefore apply to the import and packaging operation rather than to all of Arla’s activities in Falköping.

Arla will also stop selling dessert cheeses under the Falbygdens name. Grocery retailers are expected to be able to obtain the products until week seven of 2027. Some of the range’s most popular items will move to Arla’s Castello brand, while aged Swedish cheese varieties will continue under the Kvibille brand.