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3 minute read - 20th March 2024

Arla Foods announces major UK investment plan

Arla Foods, the UK’s largest dairy cooperative, has announced plans to invest over £179m in the UK to enable the business to export mozzarella in the next three years.

The announcement underlines the cooperative’s commitment to taking its export ambitions to the next level. As one of the biggest food companies in the UK, Arla says it believes in facilitating the increased demand for dairy products through ambitious exports, as this reflects the cooperative’s commitment to its farmer owners to return the best price for their milk.

As part of the investment, Arla’s Devon based creamery, Taw Valley, will be updated to include state-of-the-art technology – enabling the business to export mozzarella that can be used for the likes of pizza toppings around the world. In addition to benefiting its farmer owners, one of the cooperative’s biggest ever investments in the UK will create over 100 skilled jobs for the Devon region.

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Dairy cooperative Arla Foods has announced plans to invest over £179m in the UK to enable export growth – it will be one of the cooperative’s biggest ever investments in the UK / Picture: Arla Foods

Bas Padberg, managing director of Arla Foods UK, said: “Today is a momentous occasion for our UK business, and we are so proud to be announcing this news to our farmer owners, colleagues and customers. As one of the biggest food companies in the UK, it is only natural that we look for further opportunities to grow so we can continue to return a fair price back to our farmer owners. We want to continue to increase the value of our farmer owners’ milk, which we believe can be achieved through exploring further export opportunities.”

Arla Foods UK board director, and Arla farmer, Arthur Fearnall, added: “We are incredibly proud to see the UK business receive this significant investment. We’re excited to see how the plans at Taw Valley Creamery progress over the coming years, as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.”

Peter Giortz-Carlsen, COO of Arla Foods Europe, concluded: “Our mozzarella business has seen double-digit growth over the past five years and we have strong relationships with key customers, particularly in global foodservice, and it’s from that very solid starting point we are announcing the investment today. But we also know that we have to work hard to maintain that position amongst the global leaders in the category and deliver on our strategy. 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.”

The plans to export mozzarella will start in 2027, but over the next few years, Arla will be making significant changes to Taw Valley Creamery to allow the cooperative to export its products in the near future.

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