Arla invests £179m to become major supplier of mozzarella

Major dairy co-operative Arla has unveiled plans to invest £179m in its UK business as it aims to grow exports of mozzarella.

The milk processor, which is supplied by more than 2,000 farmer owners in Britain, plans to become a “global mozzarella player” in the next three years.

Arla will invest heavily in its processing site at Taw Valley Creamery in Devon, with mozzarella exports due to begin in 2027.

See also: Arla Foods UK increases revenue to £2.6bn in 2023

Bas Padberg, managing director of Arla Foods UK, said: “Exporting our product helps to increase the value of farmers’ milk, which will therefore benefit our farmer owners here in the UK.

“As one of the biggest food companies in the UK, it is only natural that we look for further opportunities to grow so we can continue to return a fair price back to our farmer owners.”

Arla has reported significant growth in its existing mozzarella business during recent years and hopes by investing in new technologies at its site in Devon, it will be able to compete at a global level.

Arthur Fearnall, Arla Foods UK board director and farmer, said: “We are incredibly proud to see the UK business receive this significant investment.

“We’re excited to see how the plans at Taw Valley Creamery progress over the coming years, as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.”

UK mozzarella producers

There are several competitors that already account for a large proportion of the market in the UK for mozzarella production, such as Leprino Foods and Dairy Partners.

US-owned Leprino Foods purchased Europe’s largest mozzarella manufacturer, Glanbia Cheese, last year and has manufacturing facilities in north-west Wales as well as a site in Northern Ireland.