Arla Foods and DMK Group on 8 April announced their intention to merge, creating the strongest dairy cooperative in Europe. The merger brings together more than 12,000 farmers and the companies aim to become one joint cooperative that will achieve a combined pro forma revenue of 19 billion Euros.
“With this move we progress towards creating 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 Board of Representatives in the cooperatives as well as regulatory approval,” a press release stated.
The merger between Arla Foods and DMK Group represents a union of shared values and complementary strengths, creating the largest dairy cooperative in Europe. The cooperatives have united farmers for many generations, and the merged entity will shape the future of dairy for generations to come. The joint cooperative will have a solid supply of milk in the coming years, ensuring the financial abilities to invest in the future of dairy.
Arla Foods and DMK Group have successfully cooperated on several projects in recent years, among others the joint venture project ArNoCo, which processes whey from DMK’s cheese production into high-quality whey protein concentrate and lactose for Arla’s global ingredients business.
Jan Toft Nørgaard, Chair of Arla Foods says, “The foundation of this partnership is formed by our shared values, and I am immensely proud of this proposed merger, which is a win-win for our cooperatives. 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.”
Heinz Korte, Chair of DMK Group, says: “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.”
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. This merger is a natural continuation of our strong collaboration to the benefit of consumers, our farmers and their milk price.”
Ingo Müller, CEO of DMK Group, says, “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.”
With the proposed merger, the combined entity will stand commercially strong and gain increased 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 is the clear ambition to develop even stronger partnerships with customers, adding value to their business, while also offering an attractive environment for farmers, colleagues and other business partners.
The merged entity will carry the Arla name. The headquarters will be placed in Viby J in Denmark and Jan Toft Nørgaard will be chair. Peder Tuborgh will be CEO, and Ingo Müller will step into the Arla executive management team as EVP of post-merger integration.
Arla Foods has a revenue of 13.8 billion Euros with a milk volume of 13.7 Billion kg. The DMK Group has a revenue of 5.1 billion Euros with a milk volume of 5.3 Billion kg.
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Naresh Khanna – 10 February 2025
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