Arla Foods and the DMK Group have officially completed their merger. The merged company will operate under the name Arla and brings together approximately 11,200 farmers and 28,800 employees. With a combined milk supply of 19.4 billion kilograms per year and pro forma revenue of more than €20 billion, this creates Europe’s largest dairy cooperative. The goal of the merger is to strengthen long-term competitiveness and secure the supply of high-quality food in an increasingly challenging market environment.
The merger takes place against a backdrop of geopolitical uncertainties, rising sustainability demands, and the growing importance of resilient supply chains. Both companies aim to combine their strengths to invest in food production and the further development of their value chains over the long term. “The time is right to create the future of dairy together. Today is the result of a long‑standing partnership and shared values between Arla and DMK. In a more uncertain world, Europe needs food companies that can invest at scale and take responsibility for long‑term resilience. By uniting as one farmer‑owned cooperative, we are creating a European champion, strengthening our ability to do exactly that,” emphasizes Peder Tuborgh, CEO of Arla Foods.
Arla and DMK join forces for the future of the dairy industry
The merger will create a cooperative with local roots in seven countries and a global market presence. Both companies aim to strengthen the long-term economic foundation of their members while addressing the challenges of international food markets. The joint organization is intended not only to create economies of scale but also to enable investments in new products, technologies, and markets. For the farmer-owners, the focus is particularly on securing their long-term competitiveness.
Greater reach and more stability for Arla
Through the merger, Arla is significantly expanding its international reach. At the same time, the larger corporate structure is intended to help better balance market and demand fluctuations. Those in charge see this as an important prerequisite for continuing to operate successfully in a volatile economic environment. “Today marks the beginning of a new chapter for our colleagues and farmer owners, one that brings together two frontrunners in our industry, each strong in its own right and united by shared values, complementary strengths and deep expertise,” explains Ingo Müller, Chief Integration Officer at Arla Foods.
Shared responsibility for food security and sustainability
In addition to economic goals, both companies emphasize their responsibility for a safe and sustainable food supply. The merger is intended to create the conditions to reduce the impact on the climate and environment while simultaneously strengthening supply security. The focus is on investments in high-quality dairy products, whey-based ingredients, and established brands. Furthermore, the partners aim to expand their collaboration with customers, retailers, and other stakeholders along the value chain.
Arla creates a cooperative with a global presence
The new organization has a significantly greater international reach. In addition to its core European markets, Arla is active in numerous other regions. Management sees this as an important foundation for tapping into growth potential while simultaneously expanding its position in existing markets. Employees are also expected to benefit from the expanded development opportunities. To mark the official launch of the joint venture, events and information sessions were held at numerous locations worldwide to foster exchange between the teams.
Integration of DMK is a priority for Arla
Following the formal completion of the merger, the focus is now on integrating the organizations. As part of a multi-year transition phase, the cooperatives behind the DMK Group - DMK eG and “DOC Kaas U.A.” - will be merged with Arla Foods. DMK GmbH and its subsidiaries will initially remain as separate legal entities and will be managed as subsidiaries of Arla in the future. The integration phase will be used to gradually merge processes, structures, and organizations.
Next steps after the merger of Arla and DMK
Peder Tuborgh will continue to lead the merged company as CEO. Jan Toft Nørgaard serves as Chairman, and Inger-Lise Sjöström as Vice Chair. Ingo Müller has joined the Executive Board as Executive Vice President and, as Chief Integration Officer, is responsible for the further integration of the organizations. The focus for the coming months will be on integrating the companies and implementing joint growth and investment strategies. Both partners view the merger as a foundation for jointly addressing the challenges of the global food markets in the future and for strengthening Arla’s position in the long term.
