Arla Foods, the UK’s largest dairy cooperative, is celebrating 50 years of cheese-making at its Lockerbie creamery with plans for a multi-year investment programme worth more than £144 million, designed to expand production capacity, boost innovation, and support sustainability goals.
Opened in 1975, the Lockerbie site has grown into one of the country’s largest cheese-making facilities. The site currently takes in more than 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.
Arla has already completed £34 million of upgrades to its cheddar facilities and will now begin construction of a new Centre of Excellence for UHT and LactoFREE milk, set to bring 90 new jobs to the local area.
“This is a landmark moment for Lockerbie,” Fran Ball, SVP of UK Supply Chain at Arla Foods, said.
“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.”
The site’s anniversary was marked by Mairi Gougeon, Scottish cabinet secretary for rural affairs, land reform and islands, who officially opened the new cheddar facilities. She described the project as a “real boost to the local economy” and a reflection of confidence in the future of Scotland’s £560 million dairy sector.
“Our food and drink industry is uniquely placed to grow the economy … and this project shows this can be done, whilst also reducing emissions,” Gougeon said.
“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.”
The investment also includes sustainability measures, with Arla nearing completion of a second anaerobic digestion (AD) plant at the Lockerbie creamery. The new facility will convert whey permeate, a by-product of cheese-making, into bio-methane for the gas grid. Once operational, the combined plants will generate renewable gas equivalent to the heating needs of over 2,600 homes – roughly matching the size of Lockerbie itself.
Bas Padberg, managing director of Arla Foods UK, said the investment “strengthens the backbone of British dairy,” adding: “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 said the investment underscored the cooperative’s dual commitment to its members and to the future of British dairy.
“We’re immensely proud of the future vision for Lockerbie and the continued commitment to its cheddar heritage. Our focus remains the same: working together to build a stronger site and secure the best possible milk price for all Arla farmer owners,” Fearnall said.