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Arla Foods and DMK Group have received all required regulatory approvals for their planned merger, paving the way for the creation of what the companies describe as Europe’s leading farmer-owned dairy cooperative.
First announced last year, the merger is expected to take effect on 1 June 2026. It will unite approximately 11,200 dairy farmers across seven European countries and create a combined business with annual revenues exceeding €20bn and a milk pool of 19.4 billion kilograms.
The merged entity will operate under the Arla name and maintain its headquarters in Viby J, Denmark.
The deal brings together two of Europe’s largest dairy cooperatives at a time of increasing pressure on food security, agricultural resilience and sustainability across the region. Together, the companies said they aim to strengthen dairy production capabilities while accelerating innovation and operational scale.
Jan Toft Nørgaard, chair of Arla Foods, said: “This is a landmark day for our cooperatives, for the next generation of dairy farmers and for European food production. We can move forward together to secure the necessary scale, long-term economic resilience and investment capability required to contribute to shaping a food sector with a reduced impact on climate and nature.”
The merger follows years of collaboration between the two dairy businesses and reflects a broader trend toward consolidation within the European dairy sector as companies seek greater efficiencies, stronger supply chains and expanded international reach.
Combined, the new organisation will employ around 28,800 people globally and strengthen its position across retail, foodservice and ingredients channels. The companies also highlighted opportunities to expand private label capabilities and category innovation through the enlarged production network.
Peder Tuborgh, CEO of Arla Foods, said: “With a growing global population, dairy nutrition has much to offer, and by bringing together our milk, brands, production network and strengths, we reinforce our promise to Feed Life."
DMK Group CEO Ingo Müller added: “The merger will sharpen our technological edge, accelerate innovation, and open new opportunities for growth and collaboration. With a strengthened position in our markets, we will be even more a pillar of strength in ensuring the secure supply of food for people in Europe and globally.”
Under the new leadership structure, Jan Toft Nørgaard will serve as chair, Inger-Lise Sjöström as vice chair and Peder Tuborgh as CEO. Müller will join Arla’s executive management team as executive vice president of post-merger integration.
Arla Foods currently generates revenues of €15.1bn and processes 14.3 billion kilograms of milk annually, while DMK Group reports revenues of €5.3bn and milk volumes of 5.1 billion kilograms.
The merger further strengthens Arla’s portfolio of dairy brands, which includes Arla, Lurpak, Puck and Castello, while adding DMK-owned brands such as Milram, Oldenburger, Uniekaas, Alete and Humana.