Arla Foods delivers $15b revenue as Co-op turns 25
European dairy giant Arla Foods celebrated its 25th anniversary as a cross-border, farmer-owned co-operative with a solid half-year result.
The merged entity will be called Arla Foods and comprises 2200 farmers who are currently part of two co-operatives Arla Foods and DMK Group.
Last month, the decision making bodies of both co-ops voted in favour of a planned merger, which now only has to clear regulatory hurdles.
The statement says this marks a significant milestone in bringing together two companies with shared values and complementary strengths, setting the stage for "a new era in European dairy".
It says the merger unites Arla's international reach and innovation expertise with DMK Group's strong and diversified product portfolio and know-how. By supplementing each other's capabilities, the joint cooperative will "deliver even greater value through a broader range of high-quality dairy products, enhanced product innovation, and resilient market presence".
Since the announcement of the intended merger, both Arla and DMK Group have held a series of meetings across the companies' regions, encouraging open debate and giving members the opportunity to share their views and questions.
Arla chair Jan Toft Nørgaard thanked the co-op farmers for their active participation.
"The approval of the decision-making bodies confirms our shared belief that Arla and DMK Group are stronger together. By combining our complementary strengths, we can secure a more sustainable and innovative dairy sector for the future, while continuing to deliver value to owners and partners."
DMK chair Heinz Korte commented on the synergies between the two co-ops.
"At DMK we share the same values as Arla, have the same approach to our work, and a common vision for the future of the dairy industry.
"I am delighted that my fellow farmers today have approved the merger and thus support our approach. I would therefore like to thank all members who have shown their belief in the strength of this idea as I firmly believe that this will prove to be a good decision."
The new entity will be headquartered in Viby J, Denmark. Nørgaard will serve as chair, Arla chief executive Peder Tuborgh as CEO, and DMK chief executive Ingo Muller will join the Arla executive management team as EVP of post-merger integration.
The partnership between Arla Foods and DMK Group is already proven through successful joint ventures such as ArNoCo, which combines DMK's strength in cheese production with Arla's global expertise in ingredients. The two companies say the merger will build on this foundation, driving further advances in dairy technology, sustainable production, and nutritional excellence.
"The approval of our cooperative members is a strong sign. It shows that we live the cooperative idea and believe in joining forces to become even stronger," Muller says.
Arla Foods is owned by 7600 farmers from Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands. It has annual revenue of 13.8 billion euros and milk volume of 13.7 billion kgMS. DMK, Germany's largest dairy co-op, is owned by 4600 farmers and has 20 manufacturing sites in Germany and Netherlands.
