Arla Foods and DMK Group announce mega-merger to form Europe’s biggest dairy co-op
Arla Foods and Germany’s DMK Group will merge, creating a new dairy cooperative in Europe. The cooperative will bring together more than 12,000 farmers and have a combined pro forma revenue of €19 billion (US$20 billion).
The companies say the move helps create “the future of dairy, enhancing nutritious, high-quality dairy production and innovation in Europe and globally while securing a strong milk price for our owners.” The merger is subject to approval from the cooperatives’ Board of Representatives and regulatory approval.
The joint cooperative will ensure a reliable milk supply in the coming years, ensuring the financial capacity to invest in the future of dairy. The move comes amid global trade tensions as the US government is levying tariffs against the EU, and causing market volatility.
The combined company, which will carry the Arla name, will aim to boost commercial strength and resilience through more diversified product portfolios and market positions despite the anticipated decline in the overall European milk pool.
As Europe’s largest dairy cooperative, it will strengthen customer partnerships and offer a more attractive environment for farmers, colleagues, and other business partners.
Combining key players
Arla Foods and DMK Group have cooperated on several projects in recent years, including the joint venture project ArNoCo, which processes whey from DMK’s cheese production into whey protein concentrate and lactose for Arla’s global ingredients business.
Jan Toft Nørgaard, chair of Arla Foods, says: “The strength of both Arla and DMK Group lies in our shared commitment to quality and innovation, and I see DMK Group as the perfect partner in shaping a new and strengthened Arla, poised to lead in the dairy industry.”
For Heinz Korte, Chair of DMK Group, the partnership strengthens the resilience of the cooperatives and “significantly contributes to strengthening the competitiveness of our farmers.”
“Together, we can expand our reach for our dairy products, thus improving our offering and jointly driving the further development of innovative products for the benefit of our members.”
Peder Tuborgh, CEO of Arla Foods, says: “DMK Group is the largest dairy cooperative in Germany and a very attractive partner that shares our core values. Our strong market positions and product portfolios complement each other very well, and our strong partnership in recent years has proven that DMK Group is an ideal partner for Arla. Our joint market presence in Europe and globally will enable us to safeguard our production of healthy dairy products, ensuring stable food production in Europe, as well as bringing even more nutritious products to the world and our customers.”
Meanwhile, Ingo Müller, CEO of DMK Group, believes Arla has established itself as a key player in the dairy industry, and by partnering up, the companies will have a strong and attractive branded and private label product portfolio for its customers.
“Through Arla’s global reach, we can access consumers and customers beyond our current geographical reach and strengthen our business resilience. Our complementary strengths, both in business and mindset, will enable us to keep advancing in dairy technology and innovation while also providing a strong home for farmers.”
