European dairy co-operatives Arla Foods and Eupener Genossenschaftsmolkerei Walhorn plan to merge their operations.

Belgium-based EMG Walhorn processes 550m kilograms of milk a year produced by its 800 farmer-owners in Belgium, Germany and the Netherlands. Arla is a co-op of 12,600 farmers that manufactures 12.7bn kilos of milk a year.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Arla hopes the deal will expand its milk pool as it works to drive growth in emerging markets, chairman Åke Hantoft said. The dairy giant hopes to double exports of European products to growth markets outside the EU by 2017.

Hantoft said: “This proposed merger will allow Arla to pursue its growth plans together with EGM Walhorn. We are confident EGM Walhorn is the right business with which to deliver our plans. The Walhorn production site complements our production sites in Pronsfeld, in Germany, and Nijkerk, in the Netherlands. In addition, EGM Walhorn would provide us with an opportunity to grow our milk pool across Europe and the merger would be an important step towards achieving our strategic ambitions, which are focused on growth.”

The deal, if approved, would provide EGM Walhorn members with an “unlimited” milk purchase guarantee, with prices calculated on the same basis as Arla’s other members.

See Also:

“For our co-operative, the proposed merger offers clear prospects of secure growth and greater profitability,” Mathieu Dobbelstein, chairman of EGM Walhorn, said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Arla said the proposal will be voted on in May and it hopes to complete the merger by the end of July.