Danish dairy cooperative ArIa Foods has merged with German cooperative Milch-Union Hocheifel (MUH), following approvals from the European Commission.
The merged business is called Arla Foods Deutschland.
Arla is a dairy cooperative owned by Danish, Swedish and German dairy farmers. Its core markets include Scandinavia, Germany and the UK.
The merger with MUH is expected to significantly increase Arla's activities in the German market as it is considered to be the eighth-largest dairy company in the country.
Arla's executive vice president and director of the company's operations in Germany, Tim ?rting J?rgensen, said the merger will provide Arla with new opportunities in the German market not only in terms of an increased supply of raw milk and access to a strong product portfolio, but also as a platform for increased export to growth markets such as China.
MUH produces long life milk and fresh liquid milk at Pronsfeld, southwest of Cologne near the border of Belgium and Luxembourg.
The cooperative has about 800 employees and over 2,700 owners who are dairy farmers in Germany, Belgium and Luxembourg.
In 2011, the German dairy cooperative generated revenue of approximately €680m, of which approximately 40% was contributed by exports.