By Dairy Dimension News Desk | June 23, 2025
In a historic vote that could reshape the European dairy landscape, farmer-members of Germany’s DMK Deutsches Milchkontor GmbH and Denmark’s Arla Foods have overwhelmingly approved a merger between the two cooperatives. Once regulatory approval is secured, the combined entity will become one of the world’s largest dairy cooperatives by milk volume, processing nearly 19 billion kilograms of milk annually.
“This is more than a merger. It’s a shared vision for the future of dairy, built on trust, teamwork, and deep commitment to our roots,” said a spokesperson from the communications team involved in the integration.
đźšś Farmer-Driven Decision
The green light from shareholders underscores a rare consensus across borders. As cooperatives owned by farmers, both DMK and Arla required member approval to proceed. The successful vote reflects optimism among dairy producers in Germany, Denmark, and the Netherlands (via DOC Kaas) regarding the potential for a stronger market presence, improved milk prices, and faster innovation.
Heinz Korte, Chairman of DMK Group, remarked:
“I am delighted that my fellow farmers have approved this merger. I firmly believe it is the right decision for a stronger future.”
Jan Toft Nørgaard, Chairman of Arla Foods, added:
“We now have the opportunity to create even more value together — for our farmers, our customers, and for consumers worldwide.”
🔍 What the Merger Means
| Key Metrics | Post-Merger (Est.) |
|---|---|
| Milk Volume | ~19 billion kg/year |
| Farmer Owners | 12,500+ (Germany, Denmark, Netherlands) |
| Employees | ~20,000 |
| Export Markets | 140+ countries |
| Product Range | Cheese, butter, milk powders, nutrition, plant-based, ice cream |
The combined entity will retain the Arla Foods name and be headquartered in Viby J, Denmark, with DMK CEO Ingo MĂĽller taking on a senior executive role to lead integration efforts.
🧪 Driving Scale, Innovation, and Sustainability
Arla brings strong brands like Lurpak®, Castello®, and a global innovation pipeline, while DMK adds manufacturing depth, expertise in infant nutrition, and strong domestic distribution in Germany. Together, the merger is expected to accelerate:
- Innovation in functional and sustainable dairy products
- Competitive global positioning in value-added segments
- Cost efficiencies in procurement, logistics, and processing
- Sustainability goals aligned with the EU Green Deal and farm-level transitions
Peder Tuborgh, CEO of Arla Foods, said:
“By joining forces, we’re strengthening our ability to deliver nutritious food to more people while ensuring sustainable livelihoods for our farmer-owners.”
🏛️ Next Steps: Regulatory Review and Gradual Integration
The transaction now awaits regulatory clearance from antitrust authorities across the EU. Once approved—expected by late 2025 or early 2026—a 24-month transition period will begin, during which operational, financial, and governance systems will be harmonised.
Importantly, both cooperatives have reassured stakeholders that:
- Farmer members will retain their voting rights
- Milk collection, quality premiums, and payments will continue without disruption
- Regional manufacturing sites will be retained to preserve local jobs and supply
✳️ Editorial Summary
This merger marks the most considerable farmer-approved dairy consolidation in modern European history. As the dairy sector grapples with volatile markets, climate regulations, and evolving consumer demands, the union of Arla and DMK signals a proactive step toward resilience, innovation, and long-term competitiveness.
As of June 2025, the merger is awaiting regulatory approval. If cleared, the integrated Arla Foods will begin operations in 2026.
