- Arla Foods has announced a big investment in the UK cheese market.
- This €210 million investment is the largest they have ever made in the UK.
- The factory, when it starts operation in 2027, will use state-of-the-art technology to meet customers’ mozzarella demands.
In March 2024, Arla Foods, one of the world’s top-10 dairy processors, announced it would spend €210m to develop a new Mozzarella facility at its Taw Valley creamery in Devon, UK.
Arla Foods says the new facilities will make them more prepared to meet the special needs of its customers. With this upgrade, Arla can keep up with the latest demands and stay ahead of the competition.
In his words, executive vice-president and chief operations office (COO), Peter Peter Giørtz-Carlsen said: “Taw Valley will become a state-of-the-art cheese production site with this investment and combined with our strong channel understanding in the global mozzarella category, we are further strengthening our business.”
“This investment allows us to stay among the leaders within mozzarella, serve our customers even better, and at the same time improve profitability for our farmer owners’ milk.” He added.
Strategic Significance
According to the company, the new technology enables better flexibility. It also provides innovation opportunities to meet customer demands for mozzarella that browns, melts, or stretches in specific ways. The technology, which includes several patents, reduces the maturing process from 14 days to just one day.
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Notably, this is the largest investment Arla Foods has ever made in the UK. This initiative is part of Arla Foods’ big plan for the future, called “Future26.”
Furthermore, the capital will be used to introduce “highly advanced production technology” at the dairy site.
The Impact
This investment will help Arla Foods serve their customers better while making the business more profitable for the farmers who own the company.
However, as Peter Giørtz-Carlsen, a high-ranking executive at Arla Foods, says, “we have to work hard to maintain that position in the category and deliver on our strategy.”
Moreover, the majority of the cheese produced at this new facility will be exported, going to food service customers around the world. Taw Valley Creamery is just one of Arla’s many UK facilities.
The new mozzarella facility is expected to be up and running by 2027, and it won’t affect Arla’s other mozzarella production sites in Denmark.
About Arla Foods
Arla Foods is the fifth-largest dairy company in the world and a cooperative owned by more than 12,500 dairy farmers across seven European countries. The company is committed to responsible business practices. This includes supporting sustainable farming methods, using natural ingredients in their products, and acting ethically throughout the supply chain. Their most well-known brand is Arla Dano® milk powder, which is the second-largest brand in Bangladesh.
