Tuesday the 8. April, Arla Foods and DMK Group announced their intention to merge, creating the strongest dairy cooperative in Europe.
In a press release from Arla Foods, it is stated that the merger between the two dairies will unite more than 12,000 farmers, with the aim of forming a joint cooperative with a combined pro forma turnover of EUR 19 billion. With this step, the dairies are moving towards creating the dairy of the future, enhancing the production of high-quality, nutritious milk, and driving innovation both in Europe and globally, while also ensuring a strong milk price for their owners. The merger is subject to approval by the Board of Representatives in the cooperatives as well as regulatory approval.
The joint cooperative will have a solid milk supply in the coming years, ensuring the financial capacity to invest in the dairy of the future.
Arla Foods and the DMK Group have successfully collaborated on several projects in recent years, including the joint venture ArNoCo, which processes whey from DMK’s cheese production into high-quality whey protein concentrate and lactose for Arla’s global ingredients business.
Jan Toft Nørgaard, Chair of Arla Foods says: “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, says: “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.
Read the full press HERE
Photo: Arla Foods
