With the merger between Arla and German dairy cooperative DMK now in place, Arla’s chief executive has signalled a significant increase in the group’s annual investment level. A substantial share of the funds will go to Central Europe.

On 1 June, the merger between Arla and German dairy company DMK officially takes effect, bringing with it a considerable rise in annual investments. Chief executive Peder Tuborgh made the announcement at an online press conference held in connection with the merger.

According to Tuborgh, the two companies currently invest a combined 800 million euros per year. Over the next two years, that figure will gradually be raised to more than one billion euros – an increase of 25 per cent.

“We are going to see a company that invests more in its facilities, and quite a substantial part of that will be in Central Europe, I am quite sure of that,” Tuborgh said.

He did not elaborate on what the investments would specifically target, according to Danish agricultural media AgriWatch, which covers farming, food and agribusiness across the Nordic countries.

The merger between Arla and DMK received final approval from the European Commission on Thursday, as Mejerimedier has previously reported. With the combination, Arla becomes Europe’s largest dairy cooperative, with 11,200 farmer owners and a combined turnover of around 19 billion euros.

By Maja Løvstrup
Source: AgriWatch
Photo: Arla