UK dairy cooperative Arla Foods has partnered with XPO Logistics to launch a central distribution centre, which will handle all Arla UK’s chilled, palletised products.

Currently under development at the Prologis RFI DIRFT logistics park in Northamptonshire, Arla said the facility would bring its chilled dairy products, such as cheese, butter and yogurts, into a single, centralised location. It claimed that the move would 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.

Arla Foods, XPO Logistics and Prologis marked the official start of construction on-site with representatives of West Northamptonshire Council.

“By partnering with XPO Logistics and Prologis, we are… making meaningful progress on reducing waste and food miles.”

Fran Ball, senior vice president UK supply chain for Arla Foods UK, said: “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.”

Speaking about Arla’s support for British dairy, Bas Padberg, managing director of Arla Foods UK, commented: “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.”

Dan Myers, managing director of UK and Ireland at XPO Logistics, stated: “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.”