The force awakens in Europe
Credit: Arla
As the global situation continues to be uncertain, there has been the beginning of the joint future of two dairy companies owned by milk producers, Arla Foods and DMK Group. The companies will merge under the name Arla to form Europe’s leading dairy cooperative, the companies say. To say it is quite a merger is an understatement.
The merger of Arla Foods and DMK Group brings together two cooperatives at a time when stable access to nutritious food is no longer a given in Europe, the cooperatives note. The companies have a shared responsibility to strengthen sustainable and reliable food production and to ensure a stable operating environment and a strong financial foundation for milk producers in the long term.
The merger will bring together 11,500 milk producers and 28,800 employees. The combined company will form Europe’s leading dairy cooperative with producer owners in seven European countries and contract producers in Finland, as well as a global market reach. It receives a total of 19.4 billion kilograms of milk per year and has a combined turnover of more than €20 billion.
So, a big European player is formed, to compete on a global scale. As Peder Tuborgh, CEO of Arla Foods, says, “This is the right time to build the future of the dairy industry together. Today is the result of a long-term collaboration and shared values between Arla and DMK. In an increasingly uncertain world, Europe needs food companies that can invest heavily and take responsibility for long-term sustainability work. By merging into a single cooperative owned by dairy farmers, we are strengthening our ability to lead the way in Europe.”
Stability continues to be a key ingredient in a successful venture, no matter where you are in the world. Keeping the food chain safe and secure, as well as viable, is the hope behind joining forces, it seems.
- Suzanne Christiansen, editor, Dairy Industries International. Keep in touch via email: [email protected] Twitter: @dairyindustries Linkedin: @dairyindustriesinternational
