Arla Foods and DMK Group have secured all required regulatory approvals for their planned merger, paving the way for the creation of Europe’s leading farmer-owned dairy cooperative.

The deal, which is expected to take effect on 1 June 2026, will bring together 11,200 dairy farmers across seven European countries and 28,800 employees globally.

Until completion, both businesses will continue to operate independently.

The combined business will trade under the Arla name and will have a milk pool of 19.4 billion kg a year, alongside pro forma revenues of more than €20bn.

Arla said the merger would help strengthen the resilience of European dairy production at a time of geopolitical and economic volatility, while improving food security and creating a more stable foundation for farmer owners.

The deal brings together two long-term partners with complementary strengths across brands, production, innovation and supply.

The enlarged business will serve customers across retail, foodservice and ingredients, offering a broader range of dairy products and increased support across branded, private label and industry solutions.

Arla Foods chair Jan Toft Nørgaard 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.

“Our cooperatives have united farmers for generations and collaboration across borders has never been more important to help feed life across the planet.”

DMK Group chair Heinz Korte added: “We, the farmers, are looking forward to joining forces.

“The strong farmer support shown in the June 2025 votes reflects our commitment to stand together across borders, driven by our shared values and a clear vision for the future of dairy.

“We are building one of the largest communities of farmers in Europe, and from our local roots we can strengthen our global reach and further grow the value of our milk.”

Arla Foods chief executive Peder Tuborgh will lead the merged business, which will be headquartered in Viby J, Denmark.

Nørgaard will serve as chair, Inger-Lise Sjöström will become vice chair, while DMK Group chief executive Ingo Müller will join Arla’s executive management team as executive vice president of post-merger integration.

Tuborgh said: “Together, we will become one of the continent’s best dairy producers for the future.

“We aim to be among the most trusted partners in safeguarding European food production and in supporting farming practices that reduce our impact on climate and nature.

“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.”

Müller said the merger would sharpen the group’s technology, accelerate innovation and create new growth opportunities.

He added that the combined business would become “a pillar of strength” in securing food supply for consumers in Europe and globally.

Arla Foods currently generates revenues of €15.1bn and is owned by 7,300 farmers, with 22,000 employees and annual milk volumes of 14.3 billion kg.

DMK Group, Germany’s largest farmer-owned dairy cooperative, has revenues of €5.3bn, 3,900 owners, 6,800 employees and milk volumes of 5.1 billion kg.

Arla’s brands include Arla, Lurpak, Puck and Castello, while DMK’s portfolio includes MILRAM, Oldenburger, Uniekaas, Alete and Humana.