Arla and DMK to Create Europe’s Largest Dairy Cooperative in Landmark Merger
In a major consolidation move within the European dairy industry, Denmark’s Arla Foods and Germany’s DMK Group have announced plans to merge, forming what will become Europe’s largest farmer-owned dairy cooperative. The proposed merger, revealed in a joint statement by both companies on Tuesday, is set to reshape the landscape of the dairy sector across the continent.
The merged entity, which will retain the Arla name, will be jointly owned by more than 12,000 dairy farmers from Denmark and Germany. It will operate under the leadership of Peder Tuborgh, Arla’s current Chief Executive Officer, and be headquartered in Denmark. Ingo Müller, CEO of DMK Group, will join Arla’s executive management team, further integrating the two organizations at the top level.
€19 Billion in Combined Revenues
On a pro forma basis, the newly formed cooperative is expected to generate annual revenues of €19 billion (approximately $20.79 billion), based on the most recent financial results. The combination will unite Arla’s global footprint and innovation capabilities with DMK’s strong domestic position in Germany, enhancing operational scale, market access, and product diversification.
“This merger is a natural continuation of our strong collaboration to the benefit of consumers, our farmers and their milk price,” said Tuborgh in the joint release. He added that the integration will help stabilize milk prices in the face of fluctuating market conditions.
Ingo Müller echoed these sentiments: “Through Arla's global reach we can access consumers and customers beyond our current geographical reach as well as strengthening our business resilience.”
Strategic Positioning Amid Declining Milk Volumes
The move comes at a time when European milk volumes are projected to decline due to environmental regulations, shifting consumption patterns, and demographic trends. According to the European Commission’s EU Agricultural Outlook 2023–2033, milk production in the EU is expected to gradually decrease over the next decade.
The merger aims to counterbalance this trend by leveraging a more diversified product portfolio and expanding global reach, which is especially vital as demand continues to grow in regions such as Asia and Africa.
Regulatory Hurdles and Timeline
The proposed merger is subject to approval by both companies’ boards of representatives, with voting scheduled for June 2025. The deal will also require clearance from European regulatory authorities, which the companies expect to secure by the end of 2025.
If approved, the merger would mark one of the most significant consolidations in the European agri-food industry in recent years, further cementing Arla’s leadership in the global dairy market.
About Arla Foods and DMK Group
Arla Foods is an international cooperative based in Aarhus, Denmark, and one of the world’s largest dairy companies. Owned by around 8,500 farmers across Denmark, Sweden, the UK, and other countries, Arla exports to over 100 markets globally.
DMK Group, headquartered in Bremen, Germany, is the country's largest dairy cooperative, owned by around 4,000 farmers. It operates a broad portfolio of dairy products under brands such as Milram, Humana, and Oldenburger.
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