Arla marks 50 years at Lockerbie with £144 million investment

Arla Lockerbie marks 50 years with over £144m investment and new Centre of Excellence. Credit: Arla

Arla Foods has announced a £144 million multi-year investment to expand its Lockerbie creamery, as the dairy cooperative marks 50 years of cheese-making at the site.

The UK’s largest farmer-owned cooperative has already delivered £34 million of technology upgrades to its cheddar facilities. It will now establish a new Centre of Excellence for UHT and lactose-free milk, creating 90 new jobs in the south of Scotland.

Fran Ball, SVP of UK Supply Chain at Arla Foods, said: “This is a landmark moment for Lockerbie. As we celebrate 50 years of production, we’re also unlocking the site’s next era with significant investment to power future growth. This month we’ve already delivered major technology upgrades as part of our £34 million enhancement of cheddar production, and we’re thrilled to confirm the start of construction for the new Centre of Excellence for UHT and LactoFREE milk at Lockerbie – bringing 90 new roles and fresh opportunities to the local community.”

Since opening in 1975, Lockerbie has grown into one of the UK’s largest cheese-making facilities, processing more than 600 million litres of milk each year. The site produces 200 million litres of bottled milk and 42,000 tonnes of cheese, enough for 840 million cheese sandwiches.

Shared ambition

The new cheddar facilities building was officially launched by Mairi Gougeon MSP, Scottish Cabinet Secretary for Rural Affairs, Land Reform and Islands, who said: “This is not just a proud moment for Arla, but for the Lockerbie community and the wider South of Scotland region. Our food and drink industry is uniquely placed to grow the economy, with the Scottish dairy sector valued at more than £560 million in 2024, and this project shows this can be done, whilst also reducing emissions.

The scale of investment here represents a real boost to the local economy, strengthens vital partnerships with Scottish farmers and suppliers, and sends a clear signal of confidence in the future of Scotland’s dairy sector. It reflects a shared ambition for long-term sustainability, innovation and growth, something the Scottish Government warmly welcomes.”

Arla is also close to completing a second anaerobic digestion plant at Lockerbie, turning whey permeate, a by-product of cheese-making, into renewable energy by supplying bio-methane into the gas grid. At full capacity, the plants will generate annually biomethane equivalent to heating more than 2,600 homes (30,500 MWh), enough to supply the entire town of Lockerbie.

Bas Padberg, managing director of Arla Foods UK, said: “By investing in Lockerbie, we’re strengthening the backbone of British dairy – boosting capacity, innovation and skilled jobs. The UK food sector has a vital role in public health, and we’re committed to delivering nutritious, affordable dairy for more people.”

Arla farmer and UK board director Arthur Fearnall concluded: “We’re immensely proud of the future vision for Lockerbie and the continued commitment to its cheddar heritage. As this programme progresses, our focus remains the same: working together to build a stronger site and secure the best possible milk price for all Arla farmer owners.”