Arla Foods and DMK Group have revealed their intention to merge, creating “the strongest dairy cooperative in Europe.”
The merger brings together more than 12,000 farmers and the joint cooperative aims to achieve a combined pro forma revenue of 19 billion euros.
Arla Foods and DMK Group have cooperated on several projects in recent years, among others the joint venture project ArNoCo, which processes whey from DMK’s cheese production into whey protein concentrate and lactose for Arla’s 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.”
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.