Fusion of the dairy giants: DMK and Arla strive for European market leadership!

Fusion of the dairy giants: DMK and Arla strive for European market leadership!

Bremen, Deutschland - In the German dairy industry, an exciting development is based: the German milk contain (DMK) is planning a fusion with the Danish Arla foods. The aim of this merger is to create one of the largest dairy companies in Europe by 2026. The administrative seat of DMK is located in Bremen, where around 700 employees are employed. The company itself was created in 2011 from the merger of the Nordmilch Group and the Humana Milch Union. According to Tagesschau would be the turnover of the merged companies on about 18.9 billion euros.

This merger would further expand the market leadership of DMK in the home market in Germany. By merging resources and skills, companies could optimize their services and increase the quality of milk production. However, critics express concerns about possible new power structures that could arise from the merger. Finally, the responsible antitrust authorities still have to agree.

The details of the merger plans

The merger brings together more than 12,000 farmers, including around 7,600 cooperative organized farmers who are active in Denmark, Sweden, Great Britain, Germany, Belgium, Luxembourg and the Netherlands. With sales of 13.8 billion euros and 21,900 employees, Arla Foods has a strong market position, while DMK has a turnover and 6,800 employees with 5.1 billion euros. Together these two actors would achieve an even greater range and strengthen the competitiveness of farmers.

Jan Toft Nørgaard will act as chairman of the new cooperative, while Peder Tuborgh remains and Ingo Müller is supposed to lead the integration as an executive Vice President. The approval of the representative meetings is to be granted in June 2025, and the official approval will be sought by the end of 2025, reported arla foods .

milk production in Germany

Germany is considered the largest producer of cow's milk in the European Union. In 2023, around 32.4 million tons of milk were delivered to the dairies. In comparison, France produce around 23.5 million, the Netherlands around 13.9 million and Poland around 13 million tons of milk. These figures reflect the strong position of Germany in the European milk market, where the quota system canceled in 2015 that dairy farmers can determine their production volume themselves. A positive trend: Milk production in Germany rose by 1.5 % in 2023, while the EU-wide production has decreased by 0.04 %, as Destatis

The merger of the DMK and Arla could help consolidate this course of success and to secure competitiveness in a changing market. The coming months will show whether the planned compilations are approved and what effects they will have on milk production and farms.