Arla to invest £5m at its Leeds dairy plant

The farmer-owned dairy company said it is investing approximately £37.5m across its 13 UK production, packing and distribution sites, as well as its logistics operation, including at its dairy in Stourton.

Overall, 51 per cent more money is being invested in developing the business this year than in 2016, amounting to the highest ever single-year supply chain investment in its history, Arla said.

A new packing facility will be added at Stourton which will enable the company to produce more of its own-label flavoured milk.

Tomas Pietrangeli, Arla Food UK managing director said: “Last year, I unveiled the most ambitious UK business strategy to date to make Arla a household brand by 2020 and grow its revenue by nearly a third. This ambition is part of the company’s global strategy for growth and will position Arla as the champion of British dairy.

“By continually investing and improving our sites, we can ensure we grow capacity, maintain high quality of our products and ultimately return the best possible price to our farmer owners.”

At Arla’s creamery in Devon, £5m will be used to increase capacity and product quality of its hard cheeses; some of the £3.5m at its fresh milk processing site in Aylesbury will be used to start production of fat-free skimmed milk; and £3m will be spent on its Westbury operation in Wiltshire, home to Anchor butter.

Globally, Arla is spending £285m across its sites around the world.