“We’re heading into the merger with tailwinds”  

In this interview, CEO Ingo Müller discusses what characterised 2025 at DMK, where the company currently stands and the direction in which it intends to develop.

Mr Müller, what were the defining features of 2025 at DMK? 

2025 was a very eventful year. In a dairy market that was anything but linear – characterised by periods of stability, rising milk production and increasing uncertainties – we demonstrated our ability to act. We increased our turnover by around 4 per cent compared with 2024 to 5.3 billion euros and raised our payment price by 4 cents compared with the previous year. At 51.4 cents per kilogramme of milk, our payment price was highly competitive by industry standards. The planned merger with Arla was a major driving force behind the year’s developments. The decisive milestone came in June 2025, when our cooperative members overwhelmingly approved of this merger. This paved the way for us to merge on 1 June this year, following the European Commission’s approval. As a result, we are no longer competitors, but one dairy company that aims to shape the industry´s future with combined strength. 

What are Arla and DMK’s objectives under one roof?

We combine shared values, complementary strengths and in-depth expertise to build a resilient and trustworthy food production system for the future of our cooperative. Together, we are even better equipped to tackle structural challenges, market volatility, sustainability requirements and investments. Our aim is to secure a competitive milk price in the long term and to create a solid home for European farmers today and tomorrow. Last but not least, as an industry leader, we want to play an active role in facing the most pressing societal challenges, particularly in the areas of food security, health, climate and nature. 

Where does DMK stand as it embarks on the merger with Arla?

We are entering the merger from a position of market strength. Equally important is the fact that we are doing so with a dedicated team and based on our cooperative spirit. The fact that we were able to attract a noticeably growing number of farmers in 2025 once again underlines our position as a reliable and operationally strong partner. 

In what market environment was DMK operating in 2025?

In the first half of the year, the market remained relatively stable despite ongoing geopolitical and trade policy uncertainties. Although milk volumes in Germany were initially lower than in the previous year, prices on the raw material and product markets remained at a healthy level. From July onwards, milk volumes rose sharply, whilst at the same time the milk contained more fat – a trend observed almost worldwide. Consequently, more cheese and butter came to the market in the second half of the year and competitive pressure increased. This development was accompanied by a fall in prices in autumn and winter, which naturally also affected DMK’s costs and sales revenue. On balance, however, we were nevertheless able to achieve an increase in sales, particularly through higher revenues in the whey products segment and from the sale of butter and milk powder. 

What priorities has DMK set for 2025 – also against the backdrop of the market environment?

Our development continued to be backed by our Strategy 2030, with a focus on growth, efficiency, measurable climate targets and a value-adding product portfolio. In the market environment of 2025, this strategy has once again proved to be a strong foundation for tackling current challenges. Through targeted investments, we have further strengthened our value creation, our market position and our international competitiveness. For example, one important project aimed at expanding our value creation has been the construction of the new maturing facility for natural cheese in Hoogeveen in the Netherlands. 

The DMK Group has also invested in the Altentreptow and Edewecht sites. What are its objectives?

In Altentreptow, a new production facility for lactoferrin – a high-quality, bioactive milk protein used e.g. in the nutrition, health and pharmaceutical sectors – was set up in 2025. By developing this new business area, we are purposefully continuing our diversification and the development of future-proof products with high market and innovation relevance. We have also made significant investments at the Edewecht site and have taken the first steps there to tap into further markets and make our production more energy efficient.

What specific projects are planned in Edewecht?

The focus is on building a plant to produce whey protein concentrate (WPC80) and expanding our packaging facilities. The targeted processing of cheese whey enables us to focus even more strongly on high-growth international markets for high-quality milk proteins. We will also implement extensive measures to increase energy and resource efficiency. These include, for example, the use of renewable heat pump technologies and the utilisation of waste heat.

The planned measures aim to reduce CO₂ emissions. What role does climate protection play in the 2030 Strategy?

Alongside many other challenges, increasing global warming caused by climate change poses massive risks to agriculture: from periods of drought and heavy rainfall to crop failures. We regard it as our duty to address this with innovative solutions. As a dairy cooperative and food manufacturer, our aim is to gradually reduce our emissions and thereby contribute to the transformation process within our industry. 

Following the merger with Arla, what exactly will happen in the coming weeks and months?

The task now is to bring together the 11,200 farmers and 28,800 employees under one roof. This takes time, and we are taking the time to do it properly. As Executive Vice President and Chief Integration Officer, I am leading the integration process. For me, it is essential to take people with us on this journey. Ultimately, it is they who are transforming the company through their courage and ideas. As for the structures: our agricultural cooperatives, DMK eG and DOC Kaas U.A., are being merged into a single European co-operative, which will then merge with Arla Foods a.m.b.a. over the course of a two-year transition phase. DMK GmbH and its subsidiaries, on the other hand, will become a subsidiary of Arla Foods and will thus retain their legal status. 

Thank you very much for the interview.