Smith stepped down from the role, which he has held since June 2005, by mutual agreement, Arla Food said. He will be replaced by Peter Lauritzen.
Lauritzen has worked at Arla Foods since 1970 and for the past 13 years has been responsible for Arla Foods' ingredients business.
“Peter Lauritzen has a proven ability to bring people together and create results and I very much look forward to seeing the future developments of the UK company,” said Arla Foods CEO Peder Tuborgh.
Nigel Peet has also stepped down as Arla Foods UK's finance director.