Arla Foods and DMK Group plan to merge
Credit: Arla Foods
Arla Foods and DMK Group are set to bring together more than 12,000 farmers in one joint cooperative that will achieve a combined pro forma revenue of €19 billion, the companies have announced.
“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’s press release said.
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
The merger is subject to approval from the board of representatives in the cooperatives, as well as regulatory approval.
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.”
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. 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 cooperatives as well as regulatory approval. The detailed merger proposal will be discussed with members of the cooperatives 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 cooperative’s Board of Representatives in June 2025.
