Arla and DMK Merger Forms Europe's Largest Dairy Cooperative

Arla Foods and DMK Group have successfully merged to create the largest dairy cooperative in Europe. This newly formed entity, which will operate under the Arla name, brings together approximately 11,200 farmer owners and 28,800 employees across seven countries. With headquarters in Viby J, Denmark, the cooperative is set to handle an annual milk pool of 19.4 billion kilograms.

The merger aims to address the growing demands for strengthened supply chains and raw material availability in the face of geopolitical uncertainties and climate challenges. The combined annual revenues of the cooperative are expected to exceed €20 billion.

Peder Tuborgh, CEO of Arla Foods, expressed that the merger creates a 'European champion' capable of investing significantly in long-term resilience and food production. He emphasized the cooperative's role in tackling challenges related to food security, health, climate, and nature.

The cooperative plans to increase investments in dairy innovation, focusing on advanced whey ingredients and branded products. The former CEO of DMK Group, Ingo Müller, has joined Arla’s executive management as Executive Vice President and Chief Integration Officer to oversee the integration process.

Over the next two years, the farmer cooperatives DMK eG and DOC Kaas U.A. will merge into a European cooperative structure before fully integrating into Arla Foods a.m.b.a. DMK GmbH and its subsidiaries will continue operating as Arla subsidiaries while maintaining their legal status.

Müller highlighted the importance of securing a strong future for the farmer community and maintaining dairy's role in a stable food supply amid geopolitical and economic shifts. The merger is seen as a strategic move to foster resilience and sustainability in the dairy industry.