Arla Foods and DMK Group announce merger to create Europe’s largest dairy cooperative

Arla and DMK Group announce intentions to merge. Credit: Arla Foods

Arla Foods and DMK Group have announced plans to merge, creating the largest dairy cooperative in Europe. The new entity will have a combined revenue of €19 billion, strengthening dairy production and innovation across Europe and globally. The merger is subject to approval by the cooperatives’ Boards of Representatives and regulatory bodies.

A stronger dairy future for Arla Foods and DMK Group

The merger brings together over 12,000 farmers from both cooperatives. Arla Foods and DMK Group share a vision for the future of dairy, with a commitment to high-quality products and sustainable growth. By joining forces, they will ensure a steady supply of milk and secure a strong milk price for their farmer-owners.

Jan Toft Nørgaard, Chair of Arla Foods, commented, “This partnership is built on shared values. The merger will create a more resilient Arla, positioning us as leaders in the dairy industry.”

Complementary strengths

The merger combines Arla’s global presence with DMK Group’s strong position in Germany. The two cooperatives have collaborated successfully in recent years, including the ArNoCo joint venture. This project processes whey from DMK’s cheese production into high-quality whey protein concentrate for Arla’s global ingredients business.

Heinz Korte, Chair of DMK Group, explained, “We’re proud to merge with Arla, a cooperative that shares our commitment to innovation. Together, we will offer greater value to our members and drive the development of new, innovative products.”

Enhanced market presence

Peder Tuborgh, CEO of Arla Foods, emphasized 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 steady supply of nutritious products for consumers.”

Ingo Müller, CEO of DMK Group, added, “With Arla’s global reach, we can enter new markets and strengthen our business resilience. Together, we will continue advancing dairy technology and innovation.”

Leadership and next steps

The merged cooperative will operate under the Arla name, with its headquarters in Viby J, Denmark. Jan Toft Nørgaard will remain Chair, while Peder Tuborgh will continue as CEO. Ingo Müller will join the executive management team as EVP of post-merger integration.

The merger requires approval from both cooperatives’ Boards of Representatives, with a decision expected by June 2025. Regulatory approval is anticipated by the end of 2025. Once complete, the new cooperative will have an even stronger market presence, ensuring the continued success and resilience of European dairy farming.

For more information visit Arla’s website.