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Arla Foods & DMK Group announce intention to merge
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Thursday, 10 April, 2025, 08 : 00 AM [IST]
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Denmark
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Arla Foods and DMK Group have announced an intention to merge, creating the strongest dairy cooperative in Europe. The merger brings together more than 12,000 farmers and the aim is to become one joint cooperative that will achieve a combined pro forma revenue of €19 billion. With this move both companies progress towards creating the future of dairy, enhancing nutritious, high-quality dairy production and innovation in Europe and globally, while securing a strong milk price for owners. The merger is subject to approval from the board of representatives in the cooperatives as well as regulatory approval.
The merger 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.
Both companies have successfully cooperated on several projects in recent years, among others the joint venture project ArNoCo, which processes whey from its cheese production into high-quality whey protein concentrate and lactose for its global ingredients business.
Jan Toft Nørgaard, chair of Arla Foods, said, "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, said, “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."
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, said, "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
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