That gives us confidence

DMK is a good partner for ARLA, believes farmer Katrin Güldenpfennig-Herrmann from Saxony-Anhalt. She believes the farms will be strengthened.

"For me, the merger proposal came at the right time. I have long been concerned about the decline in milk volumes and the abandonment of milk production on many farms, as this development is having an increasing impact on the milk price. If a dairy can no longer operate with a milk volume that is sufficient to utilise its capacity, this is an unfavourable situation for both the company and the farmer.

We more than doubled our herd 15 years ago: 380 cows each produce 12,000 litres of milk per year, nine employees look after the farm. We have invested a lot in animal welfare with new barns for dairy cows, reproduction and calves, and we are nowhere near the end of our ideas. It's easier to visualise all this when we have a strong partner like ARLA at our side, who can pay a higher milk price. DMK is again the perfect counterpart: for some farmers, DMK may not always have got everything right in the past, but for the most part DMK has brought us many advantages: including surcharges in collection for larger farms, extra remuneration for good fat-protein values, surcharges for animal welfare measures thanks to the Milkmaster and farming system 3, a fixed-price model for financially uncertain times. This, in turn, has temporarily led to a better milk price, which has made it possible to invest in animal welfare. This helps agriculture to gain more acceptance among the population.

There will be equivalent programmes with ARLA. We will therefore not lose the advantageous strategies and structures as a result of a merger, but will be able to utilise them even more. Another major advantage is that two large companies will no longer be competing with each other on the dairy market. Shaping the future together today gives us confidence for tomorrow - and for the next generation."

We would have even more influence as a voice

Farmer Andreas Lünzmann from the Elbe-Weser region believes that more farmers in a cooperative can also have a greater impact.

‘I was briefly surprised - then I thought: What a good decision that would be! A merger with ARLA would mean a lot. Apart from the fact that the company shares DMK's Vision 2030 in terms of sustainability, climate protection and expanding the brand portfolio, among other things, we also have common ideas about corporate governance and democratic decision-making processes. As a cooperative, we would be considerably larger, but the democratic right to have a say would still apply to all ARLA and DMK farmers involved.

We will ultimately benefit from a higher milk price, but we will also broaden our horizons in general: in future, ARLA would bring together co-operatives from different European countries, as the company is structurally divided into Denmark, the UK, Sweden and Central Europe, i.e. Germany and Benelux. Every farmer, whether in Germany or Denmark, is currently facing similar challenges in terms of regulations, dwindling milk volumes, a lack of young talent and uncertain supply chains. We would have even more influence as a voice if everyone across Europe stood up for one cause.

With around 4,000 farmers at DMK, we would have the highest number of dairy farms that would produce for ARLA in the future. In my opinion, this harbours the great opportunity that a merger will not change the existing structures in Germany and the Netherlands, in terms of language and business, very much for us.’

We can only benefit from each other

 More milk, more clout in volatile markets - uncertainties or supply chain problems can be better absorbed by a large player, believes farmer Carsten Schnakenberg from Bremen.

 ‘Of course, we have always benefited from having a direct line to the management in Bremen. DMK has always been quick to listen to urgent questions, and as a farmer you feel well taken care of in this area. 

In the event of a merger with ARLA, the management would eventually be based in Denmark. That will be a change, but I believe that ARLA is keen to ensure that farmers in Germany can continue to have their concerns dealt with quickly. The company location in Bremen will certainly continue to exist after the merger. The contact persons are in close contact with the future management and are committed to the interests of the farmers there. Nevertheless, there is naturally scepticism among us farmers, as mergers have not always gone well in the past, with the exception of the one with DOC Kaas.

Nevertheless, I am in favour of a merger because it will strengthen us in the battle for the precious raw material of milk. There will be less milk in the future. If farms have to give up for economic reasons or can no longer find successors, labour remains scarce and expensive and uncertainty continues to prevail with regard to environmental regulations, the desire for planning security will become ever greater. The dairy farmers at ARLA will feel the same way, so we can only benefit from each other. Together we can achieve significantly better added value with a disproportionately higher volume of milk. I also see the great advantage of a merger in the fact that difficulties in the supply chain can be absorbed more easily with combined strength. 

At the plant in Nordhackstedt, where we already produce whey protein together with ARLA, we have been able to observe for many years how the alliance with the Danes works on a small scale. Over the years, we have exchanged values and strategies in company management and realised that we tick in a similar way - and that is actually the true core of good cooperation.’

A guarantee for comprehensive supply  

Trust and confidence - for farmer Christian Sancken from Debstedt, these are terms that epitomise the entire merger. He believes in ARLA's international orientation. 
‘I am absolutely in favour of a merger with ARLA. On the one hand, of course, it's about securing a good milk price. But that's not the only reason.  ARLA is an established player in the dairy industry, which makes it much easier for us and our products to access sales markets worldwide. The expertise from abroad helps us to adapt product ranges even better to the respective eating habits and to recognise regional characteristics - simply because ARLA has been gathering a lot of knowledge in these markets for a long time and continues to expand its networks.

I was a young advisory board member at ARLA around fifteen years ago and was already fascinated by the professional approach to processes back then. They already had something like the Milkmaster back then, the committee structures were carefully selected and an international focus was emphasised.  

We at DMK have similar structures and are the right partner because we are constantly working on good performance in the markets with MILRAM, further development and the acquisition of branded products. In the event of a merger, ARLA would have the advantage that the company would not have to develop something like a new spring quark in a complex process. From one day to the next, Europe's largest dairy co-operative would be a full-range supplier. An accelerator and guarantor for a comprehensive supply to the population.  

Of course I understand the farmers' fears, as many details about the next merger steps have already been explained at the information events: Will the milk money be able to compensate for increased requirements in the future due to additional Danish standards? Will we still have enough say if a company is suddenly no longer home to 4,000 but 12,000 farmers from different nations? What about communication? Will all communication be in English?  

It is clear that a company must remain innovative and try things out in order to remain future-proof and competitive. But not every type of merger has gone like clockwork at DMK in the past and farmers see figures first and foremost and these are reflected in the milk price. Nevertheless, all these steps were right and important. 

It must be made even clearer to us farmers that we will retain our democratic right to have a say. We want to feel seen and heard and need communication that answers our questions. How do our colleagues behind the borders work, what are their concerns and how can we learn from each other? Especially with a sensitive merger, you lose trust if you don't provide information in the local language. But I firmly believe that this will not be the case.’ 

An engine for lasting success

A merger is a great opportunity, says farmer Bernd Pils from Sittensen. He believes in the exchange of ideas and innovations across borders. 

For me, one thought is central to the merger of our company with ARLA: I don't have to change as a farmer. Of course, some things change - but that's the case everywhere and I can adapt. This realisation is crucial for me in terms of how I feel about such a merger. Apart from the fact that we are creating a size that would also secure a good milk price, I also have great confidence in ARLA's corporate philosophy because it is similar to our DMK principles. I think I will therefore also be able to work independently under ARLA.

I love my farm, my business, the way I work and the opportunities I see for the future. I am someone who can manage a relatively small farm with 120 cows well and I am not the type of person who likes to delegate many employees. Instead, I coordinate and decide things in a small family team, with short lines of communication. In difficult times, you also need a lot of freestyle and the desire to be innovative. I need this freedom. Personally, I also like the fact that there are so many branded products in ARLA's portfolio and that we would be the perfect addition with MILRAM, among others. It is important to be able to operate with a wealth of ideas and great clout, not just in Germany but worldwide. My family and I are open-minded people, we like to exchange ideas across borders and that inspires us. Other cultures enrich our lives and give us new, good ideas.

An international player in the dairy market will also encourage and demand exchange across borders. The many networks that ARLA has been able to draw on for so long will also help me as a farmer. I see finding and developing new sales markets for the products that contain our milk as a key factor when it comes to performing well on the global markets. The philosophy of opening up rather than closing down, as is happening in so many economic systems at the moment, fits in perfectly with my own: For me, the drive and conviction that opening up pays off more than closing off is an engine for lasting success.