DMK Group and Arla Foods Move Towards Creating Europe’s Largest Dairy Cooperative

BERLIN, June 25, 2025 — The German DMK Group and Danish-based Arla Foods, which is a cooperative of several hundred Belgian farmers, have taken initial steps towards merging into what could be Europe’s largest cooperative dairy company.

A large majority of farmers from both organisations have approved the merger. The new entity will represent over 12,000 dairy farmers, as it combines approximately 4,600 DMK-affiliated farmers from Germany and the Netherlands with Arla’s existing 7,600 members spread across Denmark, Sweden, the United Kingdom, Germany, Belgium, Luxembourg, and the Netherlands. Jointly, the companies generate an annual turnover nearing €19 billion and employ around 28,700 people.

The merger seeks to blend Arla’s expansive international reach with DMK’s strong product portfolio and expertise. However, the merger awaits the go-ahead from the European Commission, a verdict expected by March of the following year. Until then, both companies will maintain separate operations.

Irish Dairy Farm incomes surge by 113 percent in 2024

In another development, Dairy farm incomes in Ireland have experienced a dramatic increase in 2024, more than doubling with a 113 percent rise to an average of €108,189. This surge was largely driven by recovering milk prices and favorable grazing conditions from mid-year onwards, as highlighted by Teagasc’s National Farm Survey.

According to Teagasc, the slight easing of input costs, such as feed and fertiliser, also contributed to the increase in incomes. “The strength of the income recovery is a reminder that Irish dairy farm incomes are highly sensitive to milk price movements in successive years, a factor over which dairy farmers have no control,” stated Teagasc.

The survey covered approximately 88,000 farms in Ireland, with 15,131 dairy farms included in the 2024 data. More farms moved to higher income categories with a significant decrease in those reporting a family farm income [FFI] below €30,000, dropping from 38 percent to 13 percent, while those in the highest income category grew from 16 percent to 46 percent.

Despite a 0.4 percent decline in total milk production, the increase in milk prices compensated for this, leading to a 15 percent rise in gross output per hectare. Production costs decreased by 4 percent, and direct costs decreased by 7 percent, bringing the average dairy gross margin per hectare up by 34 percent to €3,649.

Expenditure on fertilisers fell by 29 percent, while hired machinery and labour costs rose. Land rental expenses increased by 13 percent with nearly 80 percent of dairy farmers engaged in land rental. The Irish dairy sector continues to adapt and evolve a decade after the EU milk quota abolition, as detailed in the report.

https://thecooperator.news/category/cooperatives-communities/

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