Arla Foods and DMK Group announce their intention to merge to create Europe’s largest dairy cooperative. The combined companies will have combined revenues of €19 billion, which will strengthen dairy production and innovation for over 12,000 farmers and consumers worldwide.
Arla Foods and DMK Group announce their intention to merge to create Europe’s largest dairy cooperative. The new entity will have combined revenues of €19 billion, which will strengthen dairy production and innovation in Europe and around the world. The merger is subject to approval by the Cooperative Representative Committee and regulators.
A brighter future for dairy for Arla Foods and DMK Group
The merger brings together over 12,000 farmers from both cooperatives. Arla Foods and DMK Group share a common vision for the future of dairy, committed to high quality and sustainable development. By joining forces, both parties will ensure a stable milk supply and strong milk prices for their respective farmer-owners.
Jan Toft Nørgaard, Chairman of Arla Foods, said: “This partnership is built on shared values. The merger will create a more resilient Arla and make us a leader in the dairy industry.”
Complementary strengths
The merger perfectly combines Arla’s global reach with the DMK Group’s strong position in Germany. In recent years, the two cooperatives have cooperated fruitfully, including the establishment of the joint venture ArNoCo. The project will process whey from DMK cheese production into high-quality whey protein concentrate for Arla’s global ingredients business.
Heinz Korte, Chairman of DMK Group, said: “We are proud to merge with Arla, a cooperative that shares our commitment to innovation. Together we will deliver greater value to our members and drive the development of innovative products.”
Strengthening market presence
Peder Tuborgh, CEO of Arla Foods, highlighted the strategic fit between the two cooperatives: “DMK Group’s market presence and product portfolio complement ours. This merger will secure the future of dairy production in Europe and beyond, ensuring a stable supply of nutritious products for consumers.”
Ingo Müller, CEO of DMK Group, added: “With Arla’s global reach, we can enter new markets and increase the resilience of our business. Together, we will continue to advance dairy technology and innovation.”
Leadership and next steps
The combined cooperative will operate under the Arla name and will be headquartered in Vibby, Denmark. Jan Toft Nørgaard will continue as Chairman and Peder Tuborgh will continue as CEO. Ingo Müller will join the Executive Management Team as Executive Vice President for Post-Merger Integration.
The merger is subject to approval by the Representative Boards of both cooperatives, with a decision expected in June 2025. Regulatory approval is expected by the end of 2025. Once the merger is complete, the new cooperative will have a stronger market presence, ensuring the continued success and resilience of the European dairy farming industry.
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