Arla Foods, the UK’s largest dairy cooperative, has recently marked 50 years of cheese-making at Lockerbie with a multi-year investment programme of more than £144m.
Overview
- The total investment at the site will reach over £144m
- A £34m upgrade to Lockerbie’s cheddar facilities was completed this year
- A £90m Centre of Excellence for UHT and lacto free milk production will create a UK hub for long-life and speciality milk as well as new local roles
- A £20m anaerobic digestion plant is close to completion, aiding the sites sustainability targets
- Lockerbie has grown since 1975 into one of the UK’s largest cheese-making sites
‘Unlocking’ a new era at Arla
Since its opening in 1975, Arla Lockerbie has grown into one of the UK’s largest cheese-making facilities. Arla has recently invested £34m to upgrade its cheddar facilities and will now expand the site with a Centre of Excellence for the production of UHT and lacto free milk in the UK.
Arla’s Lockerbie site takes in over 600 million litres of milk every year, producing around 200 million litres of fresh bottled milk and 42,000 tonnes of cheese – enough for approximately 840 million cheese sandwiches.
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.”
Growing dairy
To commemorate its 50th anniversary, Mairi Gougeon MSP, Scottish Cabinet Secretary for Rural Affairs, Land Reform and Islands, officially opened the new cheddar facilities building.
She 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 £560m 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.”
Speaking about the investment into Arla Lockerbie and the role dairy plays in our diets, 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.”
Sustainability in mind
Arla has also nearly completed construction of a second anaerobic digestion (AD) plant at its creamery in Lockerbie, which will help to turn waste from whey permeate, a by-product from cheese making, into renewable energy by supplying bio-methane into the gas grid.
The existing AD plant can process up to 36,500 tonnes of whey permeate per year. At full capacity, it can generate around 30,500 MWh of gas annually, enough to heat more than 2,600 average UK homes, equivalent to supplying households across the town of Lockerbie.
Arla Foods UK board director, and Arla farmer, Arthur Fearnall, said: “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.”
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