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Mega merger: Arla and DMK unite 12,000 dairy farmers in Lower Saxony!
Arla Foods and DMK plan to merge to form Europe's largest dairy cooperative, approval expected by the end of 2026.
Mega merger: Arla and DMK unite 12,000 dairy farmers in Lower Saxony!
June 18, 2025 is a significant day for dairy farmers in Europe: Arla Foods and the DMK Group have decided at separate meetings to merge, which will result in the largest dairy cooperative on the continent. Dairy farmers from both cooperatives approved the plans by a large majority, which could pave the way for a new chapter in milk production. Over 200 dairy farmers met in Hanover to take part in the vote, as az-online.de reports.
The merger, announced back in April 2025, is expected to create a company called Arla that includes more than 12,000 farmers. This number is made up of around 4,600 dairy farmers from the DMK Group and around 7,600 from Arla. DMK is based in Zeven, Lower Saxony, while Arla is based in Viby, Denmark. The latter will also be the headquarters of the merged company.
Strong partnership basis
The new partners rely on a solid milk supply chain and a strong financial basis for future investments. Beyond the merger announcement, Arla and DMK have worked together in the past, for example on the ArNoCo project, which converts whey into high-quality products. The merger is hailed by both Jan Toft Nørgaard, CEO of Arla, and Heinz Korte, CEO of DMK Group, as an exciting opportunity that brings benefits for consumers and farmers, such as arla.com notes.
With an annual turnover of almost 19 billion euros, the two cooperatives will develop market strength that should not be underestimated. This robust position will expand both production capabilities and product reach. Peder Tuborgh, CEO of Arla, highlights how complementary the strengths of both cooperatives are.
Future prospects
The merger still needs to be approved by the EU competition authority, a process that could take until the end of March 2026. Until then, Arla and DMK will work independently. In the votes, the dairy farmers were optimistic: the merger of the two dairy groups promises a better position in the market and greater security reserves for the future.
The DMK Group is considered the largest dairy cooperative in Germany, while Arla has roots in Denmark. This combination could permanently change the face of European dairy production, as with a total workforce of over 28,700, a significant amount of knowledge and experience will flow into the new organization. Those involved are determined to actively shape the dairy world of tomorrow, which is also clear in the press release from digitalmagazin.de.
The next steps have already been scheduled: the decision-making process by the meeting of representatives of the two cooperatives took place on June 17th and 18th, and the final approval from the regulatory authorities is expected by the end of 2025. The anticipation of the dairy farmers' new shared future is palpable, and the coming months will show how cooperation between farmers gains momentum.