Arla Foods and DMK Group to merge to create €19 billion dairy co-operative
Arla Foods and DMK Group have announced their intention to merge, creating the strongest dairy co-operative in Europe. The proposed merger brings together more than 12,000 farmers with the aim to become one joint co-operative that will achieve a combined pro forma revenue of €19 billion.
With annual revenue of €13.8 billiion, Arla Foods is an international dairy company owned by more than 7,600 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. Arla Foods is one of the leading players in the international dairy arena with well-known brands like Arla®, Lurpak®, Puck® and Castello®. Arla Foods is focused on providing good dairy nourishment from sustainable farming and operations and is also the world’s largest manufacturer of organic dairy products.
Employing around 6,800 people at more than 20 locations in Germany, the Netherlands and other international hubs, Germany’s largest dairy co-operative DMK Group processes milk into foodstuffs of the highest quality. The product portfolio ranges from cheese, dairy products and ingredients to baby food, ice cream, whey products and vegan products. Brands such as MILRAM, Oldenburger, Uniekaas, Alete bewusst and Humana have earned the trust of consumers at home and abroad, making the company an established player in its home markets and selected target markets around the globe. As one of the largest suppliers to the German food retail industry with a total revenue of €5.1 billion, DMK Group is one of Europe’s leading dairy companies.
The proposed joint co-operative 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 co-operated 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 co-operatives. 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 co-operative 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 co-operative 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.”
The merged entity will carry the Arla name. 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.
The merger is subject to approval from the Board of Representatives in the co-operatives as well as regulatory approval. The detailed merger proposal will be discussed with members of the co-operatives as well as relevant employee representatives and Works Councils in the coming months, and subsequently the merger agreement will be submitted for approval to the co-operative’s Board of Representatives in June 2025.
