DMK Group reports strong year and details merger with Arla

Following a strong performance in 2024, Germany’s largest dairy cooperative DMK Group, once again demonstrated operational and economic strength in 2025, it says. The 2025 financial year saw construction of a new natural cheese warehouse in Hoogeveen, along with investments to expand capacities at its Edewecht and Altentreptow sites. At the same time, DMK sharpened its climate targets with an estimate that by 2030, Scope 3 emissions are to be reduced by 25%, FLAG emissions by 30.3%, and combined Scope 1 and 2 emissions by a total of 42%. DMK also took a clear stand on the public debate surrounding Milram cheese packaging with transparency and consistency, and emerged from it stronger, the company notes.

DMK ranked among the top payers in the competitive landscape in 2025 for milk payouts. The cooperative (DMK eG) paid its farmer members an average milk price including bonuses of €0.514 per kilogram. (previous year: €0.4731 cents per kg).

Both the equity ratio (37.9%; previous year: 35.4%) and net result (€24 million; previous year: €24.6 million) exceeded planned figures in 2025. Revenue of Germany’s largest dairy cooperative increased to €5.3 billion (previous year: €5.1 billion).

“We have further strengthened our market position, achieved a competitive milk payout price for our farmers, and taken important steps to enhance our future viability and ensure a reliable supply of dairy products,” said Ingo Müller, CEO of the DMK Group. “Especially with regard to our planned merger with Arla, these results reflect an impressive spirit of collaboration and a clear shared objective: to keep our cooperative community strong over the long term.”

For the 2026 financial year, DMK initially expects a persistently challenging market environment. High milk volumes in key producing regions are leading to strong utilisation of processing capacities and, particularly at the beginning of the year, continued pressure on raw material markets. At the same time, initial signs of stabilisation are emerging for core dairy products, supported by demand in the European internal market and international competitiveness.

Against this backdrop, DMK anticipates that supply and demand will gradually rebalance over the course of the year, even though geopolitical uncertainties and high production volumes may continue to cause volatility. Nevertheless, the company considers itself well positioned overall and looks positively toward the current year, it says.

Alongside the implementation of ongoing projects, the planned merger with Arla will be the central focus in 2026. The plans were approved by both companies in June 2025, and aim to bring together two of Europe’s leading dairy cooperatives with highly complementary portfolios. The objective is to further strengthen long-term resilience and jointly advance innovation within the industry, the firms say.

“Looking ahead, we are now focusing on consistently continuing the steps we have already initiated. The planned merger with Arla will be one of our key topics in 2026, which we are approaching with responsibility, foresight and great confidence. At the same time, it is crucial for us that our operational business remains stable at all times and continues to run smoothly”, said Müller.

The merger is currently undergoing regulatory review, which is expected to be completed in the first half of 2026.