European dairy co-operatives Arla Foods and DMK Group have announced plans to merge, creating what would become the largest dairy cooperative in Europe, with a combined pro forma revenue of €19bn.
The proposed merger will bring together over 12,000 dairy farmers across Europe under a single cooperative, aiming to strengthen innovation, sustainability, and milk price stability for members.
However, the deal remains subject to approval from both cooperatives’ Boards of Representatives and relevant competition authorities, with a vote expected in June 2025.
The merged entity will retain the Arla name, with headquarters in Viby J, Denmark. Arla’s Jan Toft Nørgaard will serve as chairman, and chief executive Peder Tuborgh will remain in his role. DMK Group’s Ingo Müller will join Arla’s executive management team as Executive Vice President for post-merger integration.
Arla currently employs 21,900 people with a 13.7 billion kg milk pool, while DMK Group includes 6,800 staff and 5.3 billion kilos of milk.
“This is a win-win for our cooperatives,” said Arla chairman Jan Toft Nørgaard. “Our shared values and strong track record of cooperation position us well to lead the future of dairy production in Europe and globally.”
DMK chairman Heinz Korte said the merger would “significantly strengthen the competitiveness of our farmers” and expand market reach for both branded and private-label dairy products.
“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,” he said.
The two cooperatives already collaborate through the ArNoCo joint venture, which processes whey into high-quality ingredients for global markets. Executives from both sides say the merger builds on that relationship and leverages their complementary strengths in markets, supply chains, and product portfolios.
Bosses say the new merger cooperative will be more resilient in the face of a shrinking European milk pool, offering diversified revenue streams and access to global customers.
As Europe’s largest dairy cooperative, they say there is a clear ambition to develop stronger partnerships with customers and add value to their business.
