Arla Foods plans £90m investment in Lockerbie dairy site

SCOTLAND – Dairy cooperative Arla Foods has announced plans for a £90m investment in its Lockerbie site in southern Scotland.

The proposal includes the creation of a new UHT centre of excellence, which could generate 90 new jobs.

According to Arla, the investment aligns with its commitment to strengthening UK manufacturing and securing the future of British dairy.

The company reported that as part of the proposed changes, some operations currently based in Stourton, Leeds, would move to Lockerbie.

Additionally, the Settle site in North Yorkshire is being considered for closure, with a collective consultation period set to take place for affected employees.

Managing director of Arla Foods UK, Bas Padberg, said the planned investment demonstrates the company’s dedication to driving transformation in the UK dairy sector.

“The proposed investment into Lockerbie showcases our commitment to driving change in the UK and supporting the future of British dairy,” he said.

He also acknowledged the impact on employees in other locations, stating that Arla’s priority is to support staff through the transition.

Arla Foods UK board director and farmer Arthur Fearnall expressed optimism about the initiative, stating he was “incredibly proud” of the proposed investment.

He emphasized that Arla’s farmer owners stand to benefit from the project and that its implementation would support the cooperative’s long-term growth.

Dumfriesshire MP David Mundell described the investment as a significant endorsement of the local workforce.

He noted that the dairy industry plays a crucial role in the regional economy and that the financial injection would help secure vital jobs while strengthening the farmer-owned cooperative.

He added that while the final decision depends on the consultation period, the project appears to be a positive development for the local economy.

Bruce Mackie, chair of NFU Scotland’s milk committee, said the proposal reinforces confidence in Scotland’s dairy sector and its ability to expand milk production.

He noted that the potential expansion of UHT and Lactofree production at Lockerbie could double the site’s milk-processing capacity.

“The sustainability ambitions of Arla are aligned with the capabilities of Scottish dairy farms to produce low-carbon milk in a sustainable manner through efficient and well-invested farms operating in a climate that is ideally suited to milking cows,” he said.

Industry stakeholders view the proposal as a major opportunity to enhance Scotland’s dairy processing capabilities.

Arla’s plans reflect a strategic effort to improve efficiency while reinforcing the UK’s position in the global dairy market.

The cooperative is expected to provide further updates as the consultation process progresses.

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