Arla Foods builds central cold chain distribution center for all UK dairy products
New logistics strategy to transform Arla's UK cold chain network
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Arla Foods, the UK’s largest dairy cooperative, and XPO logistics, a leading provider of innovative and sustainable end-to-end supply chain solutions across Europe, announce a further extension of their strategic partnership. This new chapter will transform Arla’s chilled network – creating a future-ready, more efficient, resilient, safe and sustainable operation - through a new leading central distribution centre (CDC) that will handle all Arla’s UK chilled palletised products.
Currently under development at Prologis RFI DIRFT in Northamptonshire, the new facility will bring Arla’s chilled dairy products, such as cheese, butter and yogurts, into a single, centralised location. The move will strengthen the resilience of Arla’s supply chain, reduce road miles, and support more efficient distribution across the UK. XPO Logistics is project managing delivery of the CDC and will operate the site from late 2027, when it becomes operational.
The next-generation automated and temperature-controlled facility will underpin a reliable, high-performance chilled network designed to keep fresh dairy moving safely and efficiently. The distribution centre will be BREEAM Outstanding and EPC A+ ratings.
Arla Foods, XPO Logistics and Prologis marked the official start of construction this week on-site with representatives West Northamptonshire Council.
Fran Ball, SVP UK Supply Chain for Arla Foods UK, comments: “Consolidating our chilled pallet operations into a single, advanced facility in Northamptonshire is a strategic leap forward for Arla. By partnering with XPO Logistics and Prologis, we are improving the resilience of a critical part of our supply chain and making meaningful progress on reducing waste and road miles.”
Dan Myers, Managing Director – UK and Ireland, XPO Logistics, said: “Arla stands for quality, their products are loved and trusted by every household in the UK. This future ready CDC will play a key role in ensuring that Arla continues to deliver great products whilst improving the resilience, sustainability, and efficiency of Arla’s supply chain. Working together, we’re driving positive strategic change which will support Arla’s business to continue to prosper today and tomorrow.”
Phil Oakley, SVP, Prologis UK, said: “Partnerships and developments like this play an important role in creating long term economic value for West Northamptonshire, helping to attract investment and underpin jobs across the region. At Prologis RFI DIRFT, we’ve built a community with the capacity and skills to support high-performing logistics operations like this one and we look forward to supporting Arla and XPO as the project moves forward.”
Today’s announcement follows the €107.7m (£90m) investment at Arla Lockerbie to create a UHT and lactose-free milk centre of excellence. This builds on more than €355m of UK investments announced in 2024 across five sites, underpinning Arla’s growth and continued support for UK manufacturing and the future of British dairy.
Speaking about Arla’s support for British dairy, Bas Padberg, managing director, Arla Foods UK, said: “Today’s announcement further signals our commitment to driving change in the UK, and supporting the future of British dairy. The UK food sector has a vital role in public health, and we’re committed to delivering nutritious, affordable dairy for more people – this is another important step forward.”
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