Arla to shut down Falbygdens cheese operation, cutting about 60 jobs

Arla revealed plans to wind down its Falbygdens cheese business, citing reduced market demand and ongoing profitability challenges. The Falköping site, which imports, stores and packages cheeses but does not process milk from Arla’s own farmers, will be shut down in February 2027. The closure will result in the loss of approximately 60 jobs, while the cheese house that handles Swedish cheese storage and waxing will retain about ten staff members.

Anna Schreil, head of Arla’s logistics and production in Sweden and Finland, said the company’s priority is to support affected colleagues throughout the transition. The Falbygdens dessert cheese line will be discontinued, but several best-selling varieties will be transferred to the Castello brand, and Swedish blue cheeses will continue under the Kvibille label.