Arla and DMK Join Forces to Form New European Dairy Cooperative

By Sara Sjolin | April 8, 2025

In a significant move for the dairy industry, Denmark’s Arla Foods and Germany’s DMK Group have announced plans to merge into a single cooperative. This partnership aims to unite over 12,000 farmers from both organizations, creating a substantial new entity within the European dairy market.

Formation of a Dairy Giant

The newly formed cooperative will operate under the Arla brand. With a projected annual revenue of €19 billion (approximately $20.7 billion), the collaboration positions the merged entity as one of the largest dairy cooperatives in Europe. This merger reflects a growing trend in the agricultural sector where companies combine resources and operations to bolster their competitive edge.

Headquarters and Leadership

The headquarters of the new cooperative will be located in Viby, Denmark. Peder Tuborgh, the current CEO of Arla, will continue to lead the new organization. Under Tuborgh's leadership, Arla has made significant strides in expanding its footprint in the dairy market, and this merger is expected to enhance operational capacities and market influence.

Impact on the Dairy Industry

This merger is anticipated to reshape the European dairy landscape, providing an opportunity for improved efficiencies and strengthened market presence. By consolidating operations, the new cooperative seeks to better serve the needs of its farmer members while also responding to consumer demand for high-quality dairy products.

As the merger progresses, the companies have committed to keeping stakeholders informed and ensuring a smooth transition for all parties involved. The collaboration between Arla and DMK is set to create a more sustainable and competitive future for the dairy industry in Europe.