In a landmark move for the European dairy industry, Denmark’s Arla Foods and Germany’s DMK Group have announced their intention to merge, forming what will become the largest dairy cooperative in Europe. The combined entity will unite over 12,000 dairy farmers and is projected to generate an annual revenue of €19 billion.
Headquarters in Denmark, global reach
The merged cooperative will retain the Arla name and base its headquarters in Viby J in Denmark, where Arla is currently headquartered. Pending approval from the boards of representatives of both cooperatives and relevant competition authorities, the merger is expected to be finalized by the end of 2025.
“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 companies.” stated Jan Toft Nørgaard, Chair of Arla Foods.
The management team will also reflect the union of the two cooperatives: Arla CEO Peder Tuborgh will continue as CEO, while DMK Group CEO Ingo Müller will join Arla’s executive management team as Executive Vice President for post-merger integration.
A strategic response to changing market dynamics
The merger comes at a critical time for the European dairy sector, which is facing a projected decline in milk production. By joining forces, Arla and DMK aim to strengthen their position in the global market, diversify their product portfolios, and ensure economic stability for their farmer-owners.
Together, the cooperatives bring a combined milk volume of nearly 19 billion kilograms and a workforce of over 28,000 employees. Arla currently generates €13.8 billion in revenue annually, while DMK contributes €5.1 billion. Their product portfolios include well-known brands such as Arla®, Lurpak®, Puck®, Castello®, MILRAM, and Oldenburger.
Innovation and sustainability at the core
Beyond size, the merger also represents a convergence of shared commitments to quality, innovation, and sustainability. The two cooperatives have previously collaborated through ventures like ArNoCo, which converts whey from cheese production into high-quality protein and lactose ingredients for global markets.
“Our strong market positions and product portfolios complement each other very well,” said Tuborgh. “This merger is a natural continuation of our collaboration to the benefit of consumers, our farmers, and their milk price.”
Heinz Korte, Chair of DMK Group, emphasized that the partnership “strengthens the resilience of our cooperatives and significantly contributes to the competitiveness of our farmers.”
Next steps and regulatory path
The merger proposal will be discussed with cooperative members, employee representatives, and works councils over the coming months. Final votes by both boards of representatives are scheduled for June 17th and 18th, 2025.
If approved, the deal will usher in a new era for the European dairy industry, securing better returns for farmers, expanding the global presence of European dairy products, and reinforcing Europe’s role as a leader in sustainable and innovative food production.
