Arla Foods and DMK Group secure board approval for dairy merger

DAIRY cooperatives Arla Foods and DMK Group have had their proposed merger approved by both boards of representatives.

The new merged company will continue trading as Arla Foods and will be wholly owned by over 12,000 dairy farmers across northern Europe.

Peter Tuborgh, CEO of Arla Foods, said he hopes the merger will lead to a “strong milk price for our farmer owners”.

The new merged company will be based in Arla Foods’ existing headquarters in Viby, Denmark, taking on Arla’s existing chair, Jan Toft Nørgaard, while Tuborgh will continue as CEO. The new company will produce consumer dairy products including cheese, ice cream and baby food. Arla Foods, which produces a range of dairy products such as the Lurpak brand, is already the fifth biggest dairy company in the world, owned by 7,600 farmers across Germany, the Netherlands, Denmark, Sweden, the UK, Belgium and Luxembourg. DMK Group is Germany’s largest dairy cooperative, owned by 4,600 farmers.

The merger is now subject to regulatory approval, expected to be completed by March 2026.

Nørgaard said: “The approval of the decision-making bodies confirms our shared belief that Arla and DMK Group are stronger together.

“By combining our complementary strengths, we can secure a more sustainable and innovative dairy sector for the future, while continuing to deliver value to owners and partners.”

DMK and Arla Foods had previously formed the ArNoCo joint venture to make whey protein concentrate using byproducts from DMK’s cheese manufacturing. Tuborgh said: “We know from experience that our organisations work well together. By joining forces, we will be able to accelerate innovation and deliver nutritious products to more people.”

Ingo Müller, CEO of DMK Group, who will continue in the merged company as executive vice-president, said the merger approval “shows that we live the cooperative idea and believe in joining forces to become even stronger”.