Arla and DMK complete merger to create Europe’s largest dairy cooperative

Arla Foods and DMK Group have completed their merger, creating Europe’s largest dairy cooperative and a dairy business with annual revenues exceeding €20bn.

The combined company brings together around 11,200 farmer owners and 28,800 employees across seven countries under the Arla name. Headquartered in Viby J, Denmark, it will manage an annual milk pool of 19.4 billion kg, significantly expanding its scale across dairy production, ingredients and branded products.

The time is right to create the future of dairy together. In a more uncertain world, Europe needs food companies that can invest at scale and take responsibility for long term resilience.”

Peder Tuborgh, CEO of Arla Foods

The deal comes as food manufacturers face growing pressure to strengthen supply chains, secure raw material availability and accelerate sustainability efforts amid geopolitical uncertainty and climate challenges. Arla and DMK said the enlarged cooperative will increase investment in dairy innovation, advanced whey ingredients and branded products while supporting long-term returns for farmers.

Peder Tuborgh, CEO of Arla Foods, described the merger as the creation of a “European champion”, arguing that greater scale will enable the cooperative to invest more heavily in long-term resilience and food production.

“The time is right to create the future of dairy together,” Tuborgh said. “In a more uncertain world, Europe needs food companies that can invest at scale and take responsibility for long term resilience.”

Investing for growth and resilience

Beyond expanding its market presence, Arla said the merger will strengthen its ability to tackle challenges linked to food security, health, climate and nature. The cooperative also plans to increase investment in high-value dairy categories, including advanced whey ingredients, alongside its branded portfolio.

Former DMK Group CEO Ingo Müller has joined Arla’s executive management team as Executive Vice President and Chief Integration Officer, overseeing the integration of the two businesses.

“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,” Müller said.

The focus now shifts to integration. Over the next two years, the farmer cooperatives behind DMK Group – DMK eG and DOC Kaas U.A. – will merge into a European cooperative structure before joining Arla Foods a.m.b.a. DMK GmbH and its subsidiaries will continue operating as Arla subsidiaries while retaining their legal status.

“The task ahead of us is significant. Together, we must secure a strong future for our farmer community and continue to be a reliable, trusted partner in society, safeguarding dairy’s role in a stable food supply during times of geopolitical and economic shifts,” Müller said.