News

Arla Foods and DMK Group merge in big-dairy development

International dairy company Arla Foods and German farmer-owned business DMK Group are to merge, creating one of Europe’s biggest dairy cooperatives.

Arla Foods and the DMK Group (DMK) officially began the integration process for their merger on 1 June 2026, becoming a leading name in European dairy after receiving regulatory approval from the European Commission.

The companies said they hoped the merger will create Europe’s leading farmer-owned dairy cooperative and become a European champion to advance dairy farming and food production.

“This is a landmark day for our cooperatives, for the next generation of dairy farmers and for European food production,” said Jan Toft Nørgaard, chair of Arla Foods.

“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,” said Ingo Müller, chief integration officer in Arla Foods.

Arla and DMK: Unifying two farmer-owned cooperatives

Arla Foods is around three times the size of DMK, with a revenue of €15.1 billion and milk volume of 14.3 billion kg, compared to DMK’s €5.3 billion in revenue and 5.1 billion kg milk volume.

The merger will unite around 11,200 farmer-owners across seven countries and 28,800 employees, globally. It will also produce a combined projected revenue exceeding €20 billion and annual milk pool of 19.4 billion kilos.

“This is the unification of two farmer-owned cooperatives built on shared values, complementary strengths and a proven partnership,” an Arla Foods spokesperson told Ingredients Network.

At the practical organisation level, DMK will become a subsidiary of Arla Foods. It will remain so for the next two years, during the transition period, until Arla Foods has fully integrated and aligned all business processes, IT systems, and functions. It will then become one business under the Arla Foods name.

Arla Foods and DMK’s partnership seeks to combine scale, reach, and capabilities. By bringing these resources together, Arla Foods plans to invest more in new developments and high-quality dairy production, strengthen customer relevance through a broader and more resilient portfolio, and create new long-term opportunities.

“The merger is designed to increase the value of our farmers’ milk and to contribute to shaping the future of dairy for generations to come,” said Arla’s spokesperson.

The company said that resilience in this context refers to strengthening operational stability, ensuring a strong economic foundation for farmers, and supporting a reliable food supply.

Benefits for manufacturers, farmers, and consumers

Under the merger, farmers will become part of one farmer‑owned cooperative.

Part of the merger offering is to provide greater stability and unite shared values, with the cooperative culture reflecting these. “This scale strengthens the cooperative’s ability to secure the highest possible value for members’ milk while ensuring a resilient home for their milk,” said Arla’s spokesperson.

By bringing together complementary capabilities, global distribution, and a resilient product mix, the joined cooperative believes it is well-positioned to meet customer and market demands, invest in the future of dairy farming, and navigate market volatility and geopolitical uncertainty, according to Arla.

The business merger in practice

“With greater scale, technology and expertise, we can offer more relevant solutions for customers and a wider range of high-quality dairy products for consumers, improving resilience and driving long‑term growth across markets,” the Arla spokesperson said.