**Europe**: Arla Foods and DMK Group plan a merger to form Europe’s strongest dairy cooperative, uniting over 12,000 farmers with projected revenues of 19 billion euros. The collaboration aims to secure milk prices, drive innovation, and strengthen the European dairy sector under the Arla name.
Arla Foods and DMK Group have announced a significant merger that will result in the formation of what they describe as “the strongest dairy cooperative in Europe.” This new joint cooperative unites more than 12,000 farmers and is projected to generate a combined pro forma revenue of 19 billion euros.
The merger aims to create a single, unified cooperative that enhances the production of nutritious, high-quality dairy products while driving innovation both within Europe and globally. A spokesperson for Arla Foods and DMK Group explained that the union will secure strong milk prices for the cooperative’s farmer members. They emphasised that the merger is a union of shared values and complementary strengths, forming the largest dairy cooperative in Europe. The merged cooperative will ensure a solid milk supply in the coming years, underpinning the financial stability needed to invest in the future development of the dairy sector.
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.”
Similarly, Heinz Korte, chair of DMK Group, remarked: “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 merger, which is subject to approval by the Board of Representatives of both cooperatives and regulatory authorities, will see the new entity operate under the Arla name. This development marks a major step in the dairy industry, promising enhanced collaboration between farmers and a potentially greater presence in the European and global markets.
Source: Noah Wire Services
