Arla Foods and DMK Group Merge to Form Europe’s Largest Dairy Cooperative

Arla Foods and DMK Group complete their merger on June 1, uniting two major farmer-owned dairy cooperatives under the Arla Foods brand. This strategic union creates Europe’s largest dairy cooperative, combining the strengths of approximately 11,200 farmers and 28,800 employees across seven countries.

The merged entity operates with a combined milk pool of 19.4 billion kilograms annually and generates pro forma revenues exceeding €20 billion. The headquarters remain in Viby J, Denmark, with DMK GmbH and its subsidiaries continuing as legal subsidiaries during a planned two-year integration period.

Arla Foods, headquartered in Denmark, is a leading international dairy company owned by over 7,600 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg, and the Netherlands. Known for brands such as Arla®, Lurpak®, Puck®, and Castello®, Arla is the world’s largest manufacturer of organic dairy products and focuses on sustainable farming and operations.

DMK Group, based in Germany, is a prominent dairy cooperative with a strong presence in European markets. The merger brings together complementary strengths, shared values, and deep expertise from both organizations.

According to Peder Tuborgh, CEO of Arla Foods, “The time is right to create the future of dairy together. By uniting as one farmer-owned cooperative, we are creating a European champion, strengthening our ability to invest at scale and ensure long-term resilience.” Ingo Müller, Chief Integration Officer, adds, “This merger is about more than scale; it is about driving change to reduce our impact on climate and nature while expanding our market presence.”

The merger aims to deliver significant synergies, including expanded product portfolios, enhanced global reach, and improved pricing power. Operational efficiencies are expected through consolidation of production facilities, streamlined procurement, and unified IT systems. The combined cooperative will leverage shared R&D capabilities to accelerate innovation in sustainable dairy products.

Market context highlights increasing demand for stable, nutritious food supplies amid geopolitical and economic uncertainties. The merger positions Arla Foods as a dominant player in the European dairy sector, intensifying competition and prompting potential strategic responses from rivals.

Financial details such as deal value remain undisclosed, but the combined entity’s pro forma revenue surpasses €20 billion annually. The integration process will focus on merging farmer cooperatives and harmonizing operations over the next two years, with DMK GmbH retaining its legal status as a subsidiary.

Looking ahead, Arla Foods plans to strengthen partnerships with customers and stakeholders to address challenges in food security, health, climate, and nature. The company emphasizes the importance of its people, culture, and innovation in driving future success.

Day One celebrations took place across multiple locations, including Denmark, Germany, the UK, Sweden, and the Netherlands, featuring live webcasts and interactive events to engage employees and farmers.

With Jan Toft Nørgaard as Chair, Inger-Lise Sjöström as Vice-Chair, and Peder Tuborgh as CEO, the leadership team is committed to a disciplined integration process. Ingo Müller will lead the integration as Executive Vice President and Chief Integration Officer.

This merger marks a significant milestone in European dairy consolidation, creating a cooperative with strong local roots and a global reach, poised to invest boldly in sustainable dairy production and innovation.