Shaping the future of the dairy industry together: Arla Foods and DMK Group announce intention to merge
DMK Group and Arla Foods are pleased to announce their intention to merge today. The two companies aim to create the most efficient dairy cooperative in Europe. The merger will bring together more than 12,000 farmers. The aim is to form a joint cooperative with a pro-forma turnover of 19 billion euros. This step will further advance the future of the Dairy Industry, promote high-quality milk production, drive innovation and at the same time secure a strong milk price for the farmer owners. The merger is subject to approval by the cooperatives' representative meetings and the authorities.
Shaping the future of the dairy industry together: Arla Foods and DMK Group announce intention to merge
Arla Foods
The merger of Arla Foods and DMK Group represents shared values and complementary strengths that will create the largest dairy cooperative in Europe. Our cooperatives have united farmers for many generations and the merged company will shape the future of dairy farming for generations to come. The joint cooperative will have a solid milk supply in the coming years and thus secure the financial means to invest in the future of the dairy industry.
Arla and DMK have already collaborated successfully on several projects in recent years, including 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, Chairman of the Board of Arla Foods, says: "This partnership is based on our shared values and I am very proud of this planned merger, which is a win-win situation for our cooperatives. The strength of Arla and DMK Group lies in our shared commitment to quality and innovation. I see DMK Group as the perfect partner in shaping a new and stronger Arla, ready to take a leading role in the dairy industry."
Heinz Korte, Chairman of the Supervisory Board of DMK Group, adds: "We are proud of the planned merger with Arla, a cooperative that shares our commitment to innovation and value creation. This partnership strengthens the resilience of our cooperatives and contributes significantly to strengthening the competitiveness of our farmers. Together we can extend the reach of our dairy products, improve our offering and drive 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 proven cooperation over the past years has shown that DMK Group is an ideal partner for Arla. Through our combined market presence in Europe and globally, we can ensure the production of the highest quality dairy products, guarantee a stable food supply in Europe and offer even more nutritious products to the world and our customers. This merger is a natural continuation of our strong collaboration and will benefit consumers, our farmers and their milk price."
Ingo Müller, CEO of DMK Group, emphasizes: "Arla has established itself as a major player in the dairy industry and through our combination we will be able to offer a strong and attractive product portfolio for all our customers. Arla's global reach will enable us to reach consumers and customers beyond our current geographic reach while strengthening our resilience. Our complementary strengths, both in business and mindset, will enable us to continue to drive technology and innovation in the dairy industry while providing a strong home for our farmers."
With the planned merger, the combined company will be economically strong and gain resilience through more diversified product portfolios and market positions - despite an expected decline in the overall European milk pool. As Europe's largest dairy cooperative, our clear goal is to build even stronger partnerships with customers to strengthen their business while creating an attractive environment for farmers, employees and our business partners.
The merged company would be called Arla. The head office would be in Viby, Denmark, and Jan Toft Nørgaard would take over as Chairman of the Board. Peder Tuborgh would remain CEO and Ingo Müller would join Arla's management team as EVP (Executive Vice President) to lead the post-merger integration.
Process
The merger is subject to the approval of the cooperatives' Board of Representatives and regulatory approval. The detailed merger proposal will be discussed with the members of the cooperatives and the relevant employee representatives and works councils in the coming months. The merger agreement will then be submitted to the Cooperative Representatives' Meeting for approval in June 2025.
Facts (figures for financial year 2024):
Arla Foods
Turnover: 13.8 billion euros
Cooperative members/owners: 7,600
Employees: 21,900
Milk volume: 13.7 billion kg
DMK Group
Turnover: 5.1 billion euros
Cooperative members/owners: 4,600
Employees: 6,800
Milk volume: 5.3 billion kg
Important dates:
June 17/18: Representative meetings of the cooperative members of Arla Group and DMK Group vote on the merger agreement.
End of 2025: Official approval
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.
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