Arla Foods and DMK Group have announced plans to merge, creating Europe’s largest dairy cooperative with a combined pro forma revenue of €19 billion.
The new entity, which will bring together over 12,000 farmers, will operate under the Arla name.
The proposed merger aims to advance dairy production by boosting innovation and ensuring the supply of nutritious, high-quality products across Europe and beyond, while supporting stable milk prices for farmer-owners. It is also expected to strengthen the combined entity’s commercial position and resilience through a more diverse product range and broader market presence, even as the European milk supply declines.
Arla Foods and DMK Group have previously collaborated on several initiatives, including the ArNoCo joint venture, which processes whey from DMK’s cheese production into whey protein concentrate and lactose for Arla’s global ingredients business.
Headquartered in Viby J, Denmark, the merged cooperative will be chaired by Jan Toft Nørgaard, with Arla CEO Peder Tuborgh continuing in his role. DMK CEO Ingo Müller will join Arla’s executive management team as EVP of post-merger integration.
Heinz Korte, chair of DMK Group, said: “We are proud of the planned merger with Arla, a cooperative that shares our commitment to innovation and optimal value creation. This partnership strengthens the resilience of our 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.”
Tuborgh commented: “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. This merger is a natural continuation of our strong collaboration to the benefit of consumers, our farmers and their milk price.”
Müller added: “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”.
“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 is subject to approval by the cooperatives’ boards of representatives and regulatory authorities. A final decision is expected in June 2025 following discussions with cooperative members, employee representatives, and Works Councils.
