n dairy cooperatives have announced their intention to merge. The boards of directors at Eupener Genossenschaftsmolkerei Walhorn (EGM Walhorn) and Arla Foods have circulated a proposal to their members and the boards of representatives in both companies are expected to vote on the matter in mid May.
Both cooperatives are owned by farmers across different countries. Arla Foods amba has about 12,600 cooperative farmer members with some of those in the UK as well as Sweden, Denmark, Germany, Belgium and Luxembourg. Arla is the world's sixth largest dairy company and has ambitious growth plans in and beyond the EU. In 2013 it processed 12.7 billion kilograms of milk. The 800 or so members of EGM Walhorn are in Belgium, Germany, and the Netherlands and they produce about 550 million kilograms of milk per year.
For the merger to complete, approval by at least 75% of the representatives in each of the two cooperatives is required. Subject to member approval and the approval of the competition authorities, the merger is set to complete at the end of July.
"We are confident that 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,” said Arla Chairman Åke Hantoft.
