Two of Europe’s largest dairy cooperatives are joining forces. Arla Foods and Germany’s DMK Group recently announced plans to merge, forming the continent’s largest farmer-owned dairy cooperative, representing more than 12,000 dairy farmers throughout the European Union.
The merged co-op will operate under the Arla name and be headquartered in Denmark, according to a company press release. Arla CEO, Peder Tuborgh, will lead the new company, which is projected to bring in €19 billion (about $20.8 billion) in annual revenue.
“This merger is a natural continuation of our strong collaboration to the benefit of consumers, our farmers and their milk price,” Tuborgh says. “DMK Group is the largest dairy cooperative in Germany and a very attractive partner that shares our core values. This merger is a natural continuation of our strong collaboration to the benefit of consumers, our farmers and their milk price.”
DMK’s CEO, Ingo Müller, who will join Arla’s executive management team, notes that the merger is a chance for the joint cooperatives to build more market resilience and reach new customers.
“Arla has established itself as a key player in the dairy industry, and by partnering up we will have a strong and attractive branded and private label product portfolio for all our customers,” Müller says. “Through Arla’s global reach we can access consumers and customers beyond our current geographical reach as well as strengthening 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.”
The merger comes at a time when milk volumes across Europe are projected to decline. According to both companies, the proposed merger aims to create a more commercially resilient entity through a diversified product portfolio and broader market presence. The combined cooperative is expected to be positioned to navigate evolving market conditions and consumer demands.
While the business plan was officially announced April 8, approval from both co-ops’ boards is still required with votes scheduled for June. Regulatory clearance is anticipated by the end of 2025.
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