Dairy Producer Has Invested in Skyr, Cottage Cheese
A major dairy cooperative is expanding production capacity to meet growing consumer demand for high-protein options.
Updated on Oct. 1, 2026 in Organic Food
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Arla Foods has announced a combined investment of more than €63 million into its manufacturing facilities in Germany and Sweden. This funding aims to increase the production of skyr and cottage cheese to accommodate rising consumer interest in protein-rich dairy.
Why it matters
The investment reflects a broader shift toward high-protein diets, with European market volumes for skyr and cottage cheese growing by 33% and 25%, respectively, over the past three years. This expansion is designed to keep pace with sustained demand for these nutrient-dense products.
Official corporate filings confirm a €63 million capital project split between the Upahl, Germany facility and the Falkenberg, Sweden facility. These investments follow significant market volume growth for both skyr and cottage cheese observed over the preceding three-year period.
The players
Arla Foods
A multinational dairy cooperative known for producing protein-rich dairy products including skyr and cottage cheese.
Brancourts
An Australian dairy producer that was acquired by Arla Foods in 2026.
The details
The investment at the Upahl, Germany site will specifically add new production capacity for skyr. Meanwhile, the funding for the Falkenberg, Sweden plant focuses on upgrading manufacturing infrastructure to increase total cottage cheese output. These technical improvements allow the cooperative to scale production volume to match the increased interest in high-protein nutrition observed across European markets.
Timeline
Arla began investing €51 million in skyr capacity in 2023.
Arla began investing €34 million in Swedish cottage cheese production in 2025.
Arla acquired Australian producer Brancourts in 2026.
Commercial production at the Upahl site is scheduled to begin in the second half of 2028.
Work at the Falkenberg facility is expected to be completed gradually through 2028.
Health Landscape
This development follows the established trend of sustained growth within the European high-protein dairy market. It marks a significant capacity increase as manufacturers attempt to keep up with changing dietary preferences across the continent.
If you are interested in high-protein options like skyr or cottage cheese, these investments signal that product availability is likely to remain stable or improve across your local markets. It is always worth checking food labels to monitor sodium and sugar content in these processed dairy items.
The takeaway
The sustained demand for high-protein dairy products has prompted major industry investments to scale manufacturing. As you look for nutrient-dense additions to your diet, keep in mind that checking nutrition labels for added sugar and sodium remains a vital step for your health management.
What happens next
Commercial production is set to begin at the Upahl site in the second half of 2028, with full upgrades at the Falkenberg facility expected to be completed by the end of 2028.
Further reading
For more on the changing market for dairy products, visit the Organic Food section.
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Do you plan to purchase more high-protein dairy products like skyr or cottage cheese this year?
