DMK and Arla: Fusion plans for Europe's largest whey cooperative!

DMK and Arla: Fusion plans for Europe's largest whey cooperative!

Bremen, Deutschland - The milk market in Europe could soon reach a completely new dimension: the German milk account (DMK) and the Danish Arla Foods have announced their intention to merge. This project aims to create one of the largest dairy companies in Europe by 2026. The future cooperative should be the headquarters in Viby, Denmark. According to Tagesschau , a sales of about 18.9 billion euros are aimed could significantly strengthen competitive sector.

DMK, which was created in 2011 from the merger of the Nordmilch Group and the Humana Milch Union in Bremen, already has plans to further expand market leadership in Germany by merger with ARLA. Arla also brings a large number of cooperated farmers from several countries on board, which puts the collaboration on a solid basis. The merger would bring together a total of over 12,000 farmers, such as Arla Foods reported.

effects on the market

With more than 7,600 members and 21,900 employees, Arla is already a heavyweight in Europe. The merger would not only move the market shares, but also influence the competitive conditions. Only Danone, Nestlé and Lactalis would be larger dairies on the continent after the merger. However, concerns about possible power structures are also loud, since the antitrust authorities still have to submit their judgment on the fusion stank, which could ultimately delay the process.

The effects on the locations and jobs in Germany are currently still unclear. This development could affect around 700 employees at the administrative seat in Bremen. The changes associated with the merger bring both opportunities and uncertainties.

A look at milk production in Germany

Germany is the largest producer of cow's milk in the European Union. In 2023, around 32.4 million tons of milk were delivered to the dairies, such as the Destatis . These production figures underline the importance of the industry for the national economy and the role of the two merging companies. In comparison, the production figures in other large EU countries such as France or the Netherlands were significantly lower. In addition, there is the decline in dairy farms and milk cow stocks, which can also be felt in Germany.

As part of the merger, DMK and ARLA also want to improve the quality of milk production and promote innovations in order to keep the milk price stable. A good business that places the greatest demands on the cooperation between the two companies.

At the beginning of June 2025, the representative meetings of the two companies are to vote on the merger before the official approval can be obtained by the end of 2025. The process promises to fundamentally change the landscape of the dairy industry.