Arla Foods commits €59.4m to expand Danish cream cheese production capacity
Arla Foods has announced a substantial investment of €59.4m to increase cream cheese production capacity at its Holstebro Dairy facility in Denmark, responding to accelerating global demand in the category.
The cooperative’s latest expansion will add 16,000 tonnes of annual cream cheese production capacity to the existing 119,000 tonnes already manufactured at the Danish site. The facility currently processes approximately 155,000 tonnes of butter and spreads annually alongside its cream cheese operations.
Process optimisation drives capacity expansion
The investment follows an earlier 2025 expansion that added 27,000 tonnes of cream cheese capacity through process facility improvements. The new funding will focus on installing two additional filling lines designed to serve both retail and foodservice channels, effectively utilising the full process capacity created by the earlier investment.
“We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products. As a result, we experience significant demand acceleration in this category in the various markets we operate. With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category,” explained David Boulanger, Executive Vice President & Chief Supply Chain Officer at Arla Foods.
Infrastructure improvements support workforce
Beyond production enhancements, the investment package includes facility upgrades for the dairy’s workforce, incorporating a new office building
and upgraded changing rooms. These improvements reflect the company’s commitment to maintaining operational standards as production scales increase.
