Arla Foods to merge with German Cooperative
Dairy giant Arla Foods is merging with DMK Group in a move to create the largest dairy cooperative in Europe.
The merger brings together more than 12,000 farmers, creating a combined group with revenues of around €19bn.
With its UK headquarters in Leeds, Arla has 15 sites across Yorkshire, Shropshire, Wiltshire, Leicester, Devon and the South East.
The companies said the cooperative will ensure a solid milk supply, secure a strong price for its owners and have the financial ability to invest in the future of dairy.
Arla Foods, which is owned by more than 7,600 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands, is also the world’s largest manufacturer of organic dairy products. Its brands include Lurpak, Puck and Castello.
DMK Group employs around 6,800 staff at more than 20 locations. As one of the largest suppliers to the German food retail industry, the group has revenues of 5.1bn euros.
Arla Foods and DMK Group collaborated on several projects in recent years including a 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.
Peder Tuborgh, CEO of Arla Foods, said: “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 strong partnership in recent years has proven that DMK Group is an ideal partner for Arla. Our joint market presence in Europe and globally will enable us to safeguard our production of healthy dairy products, ensuring stable food production in Europe, as well as bringing even more nutritious products to the world and our customers. This merger is a natural continuation of our strong collaboration to the benefit of consumers, our farmers and their milk price.”
Ingo Müller, CEO of DMK Group, added: “Arla has established itself as a key player in the dairy industry, and by partnering up we will have a strong and attractive branded and private label product portfolio for all our customers. Through Arla’s global reach we can access consumers and customers beyond our current geographical reach as well as strengthening our business resilience. Our complementary strengths, both in business and mindset, will enable us to keep advancing in dairy technology and innovation, while also providing a strong home for farmers.”
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 agreement will be submitted for approval to the cooperative’s board in June 2025.
