DMK and Arla: merger plans for Europe's largest dairy cooperative!

DMK and Arla: merger plans for Europe's largest dairy cooperative!

The milk market in Europe could soon reach a whole new dimension: Deutsche Milchkontor (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 headquarters of the future cooperative will be in Viby, Denmark. Loud daily news The merger aims to achieve sales of around 18.9 billion euros, which could significantly strengthen the market position in a highly competitive sector.

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

Impact 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 shift market shares, but also influence the conditions of competition. Only Danone, Nestlé and Lactalis would be larger dairies on the continent after the merger. However, concerns about possible power structures are also being raised as the antitrust authorities have yet to give their verdict on the merger tank, which could ultimately delay the process.

The effects on locations and jobs in Germany are currently unclear. This development could directly affect around 700 employees at the administrative headquarters in Bremen. The changes associated with the merger bring with it 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 dairies, such as the Destatis reported. These production figures underline the importance of the industry to the national economy and the role of the two merging companies. In comparison, production figures in other large EU countries such as France or the Netherlands were significantly lower. Added to this is the decline in dairy farms and dairy herds, which is also being felt in Germany.

As part of the merger, DMK and Arla also want to improve the quality of milk production and promote innovation in order to keep milk prices stable. A good deal that places the highest demands on the cooperation between both companies.

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