Danish dairy Arla Foods has agreed to merge with German rival DMK.
European dairies agree to mega-merger
Illustration: Sarah Grillo/Axios

Danish dairy Arla Foods has agreed to merge with German rival DMK.

Why it matters: This would create Europe’s largest dairy cooperative, with more than 12,000 farmers and combined annual revenue of around €19 billion.

  • It also comes as the U.S. is expected to impose 20% tariffs on EU dairy imports, while the EU for now has removed dairy from its list of proposed tariffs on U.S. imports.

The bottom line: The companies said that the deal will provide “resilience … despite the anticipated decline” in European milk production.

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