Arla Foods Leeds €20bn Merger Creates Europe's Largest Co-op

Arla Foods Leeds marks Day One of the DMK Group merger, creating a €20 billion cooperative of 11,200 farmers as the UK head office at Leeds Valley Park and Stourton dairy become part of Europe’s largest dairy business

Arla Foods Leeds has today become part of Europe’s largest dairy cooperative after the merger between Arla Foods and Germany’s DMK Group officially completed on 1 June. The combined business unites 11,200 farmers across seven countries, employs 28,800 people worldwide, processes 19.4 billion kg of milk annually, and generates pro forma revenue of more than €20 billion. Arla Foods Leeds — headquartered at Arla House on Leeds Valley Park — is the UK head office for the group, which employs more than 1,300 people across Yorkshire at its headquarters, its Stourton dairy and national distribution centre, and its Settle site in North Yorkshire.

Why This Matters For Leeds

Leeds is the UK headquarters of what is now the largest dairy cooperative in Europe, with more than 1,300 jobs across Yorkshire and over 650 of Arla’s farmer owners based in the North, 185 of which are in Yorkshire. For Leeds’ food and manufacturing economy, this merger means the city hosts the UK arm of a €20 billion business with the scale to invest in production, distribution, and brands for the long term.

What the Merger Means for Arla Foods Leeds

The merged entity carries the Arla name, with global headquarters in Viby J, Denmark. Peder Tuborgh continues as CEO, with DMK’s Ingo Müller joining the executive team as chief integration officer. The UK operation, which includes sites at Leeds, Stourton, Settle, Aylesbury, Lockerbie, Westbury, and others, will continue under the Arla Foods UK structure. The merger brings together Arla’s consumer brands including Lurpak, Cravendale, and Castello with DMK’s strength in whey ingredients and German dairy markets. Arla’s chair Jan Toft Nørgaard described it as a landmark day, saying the cooperatives have united farmers for generations and collaboration across borders has never been more important.

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“The time is right to create the future of dairy together. In a more uncertain world Europe needs food companies that can invest at scale and take responsibility for long-term resilience. By uniting as one farmer-owned cooperative we are creating a European champion.”

— Peder Tuborgh, CEO, Arla Foods

Yorkshire’s Dairy Footprint

Arla’s Yorkshire operations are substantial. The Stourton site received a £65 million investment to upgrade and expand its extended shelf life milk production, particularly for the Cravendale and BoB brands, and to introduce cardboard carton capacity. The company invested over £100 million into the Stourton campus. Around 500 people work at the Leeds Valley Park headquarters and a further 450 at the Stourton dairy. Day One celebrations today took place at sites worldwide including Leeds, marking the start of integration work that will unfold over the coming months.