Although both companies speak of a merger, the details show that Arla will gain actual control. The central management will be based in Denmark, and Arla will receive the majority of the board seats. As a result, DMK loses much of its autonomy, which some German farmers view as a takeover.
At the European level, Arla rises to second place among dairy producers through the takeover, after the French Lactalis. In doing so, it surpasses FrieslandCampina. The scaling up fits within a broader trend of consolidation in the European food sector.
The merger creates a dairy giant with a combined annual turnover of 19 billion euros. This makes the new company by far the largest in the German market. Smaller German dairy companies and cooperatives fear they will find it even harder to compete against this scale increase.
For consumers, the takeover could lead to changes in the supermarket offerings. Due to the new group's market power, price negotiations with supermarkets may change. Regulators in Germany and the EU are therefore investigating possible effects on fair competition.
Arla originally is a Danish-Swedish company active in more than 140 countries. The company is especially strong in Northern Europe, the United Kingdom, and the Middle East. DMK, Germany’s largest dairy cooperative, primarily supplies within Germany itself.
In Germany, the merger has caused concern among farmer organizations and regional politicians. They warn of a loss of DMK’s regional roots and fear that decisions will be made outside Germany from now on. The merger considerations also point to possible pressure on milk prices for farmers.
Critics warn that increasing concentration of power could come at the expense of diversity and regional products. The negotiating position of dairy farmers in various EU countries could also weaken further. Still, Arla and DMK emphasize that scale advantages are necessary to remain internationally competitive.
The new group will have a significant share in both milk production and processing in Europe. With factories spread across Northern and Central Europe and a strong distribution network, it will become a decisive player in pricing, sustainability, and innovation within the sector. Possible pressure on milk prices for farmers is also noted.