Arla and DMK take first step towards merger to form Europe’s largest dairy cooperative

The German DMK Group and Arla Foods, a dairy cooperative including several hundred Belgian farmers, have taken the first step towards forming Europe’s largest cooperative dairy company. On Wednesday, the companies announced that farmers from both organisations had approved the planned merger by a large majority.

According to a DMK spokesperson, the merged cooperative will represent over 12,000 dairy farmers. In addition to the Belgian members, around 4,600 DMK-affiliated farmers from Germany and the Netherlands will also join the new group. Arla, which is headquartered in Viby, Denmark, currently includes around 7,600 farmers in Denmark, Sweden, the United Kingdom, Germany, Belgium, Luxembourg and the Netherlands.

International reach and expertise

Together, the two companies generate an annual turnover of nearly €19 billion and employ around 28,700 people. The press release states that the merger "combines Arla’s international reach and expertise with DMK Group’s strong and diversified product portfolio and know-how".

However, the merger still requires approval from the European Commission, a process that DMK says could take until March next year. Until then, the two companies will continue to operate separately.

^{© BELGA PHOTO BENOIT DOPPAGNE}

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