Arla Foods opens new Northamptonshire distribution centre

Dairy cooperative Arla Foods and XPO Logistics have extended their strategic partnership to transform Arla’s chilled network.

This creates a new 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 is set to achieve BREEAM Outstanding and EPC A+ ratings.

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

Fran Ball, SVP 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.”

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.”