Inside_Arla_Special_UK

Overview: What happens next

A warm welcome to Arla – our united, farmer owned cooperative

You are now part of Europe’s leading farmer owned dairy cooperative, and 11,200 fellow dairy farmers are standing together with you to create and secure our shared future.

As one cooperative, our mission remains to secure the highest value for your milk and provide a resilient home for your production.

Our combined scale gives us a stronger product portfolio and broader reach, enabling us to invest in our own future and respond even better to the needs of our customers and consumers.

In this brochure, you can find relevant information about the merger, our business and brands and

not least the transition period and what this means for you as a farmer.

Online you will find more stories and latest news about our cooperative and relevant information for you.

Arla’s farmer owners are the backbone of our cooperative. You supply high quality milk and guide our direction through the democratic system. This cooperative mindset lies at the heart of how we work together.

As Arla, our dairy products feed life worldwide –supporting food security and helping to address society’s key challenges in health, food and sustainability.

Heinz Korte, Chairman of the Supervisory Board of DMK eG

Thomas Stürtz, Chairman of the Board of DMK eG

Guus Mensink, Chairman of the Board DOC Kaas U.A.

Marlon Schlienkamp, DMK is completing an apprenticeship on a conventional dairy farm with 70 cows in Halle (Westfalen), Germany: “To me, it is important that we treat each other as equals. If that works, we can all become stronger and grow through the merger.”

Meet your new farmer colleagues!

We have asked a few farmers from DMK, DOC Kaas and Arla to tell us a little bit about their expectations of the merger.

Claudia Pott, DMK runs a family-owned conventional dairy farm with 250 cows in Griemshorst, Harsefeld, county Stade, Germany: “For the dairy industry, the merger means that we will become one of the largest dairies in Europe and that we will be very broadly positioned, that we will be able to better serve international and local trade. And I hope there is a good network for us as farmers and that we will all benefit from it.”

Cristie Hegeman, DOC Kaas from Luttenberg, Netherlands, is a conventional farmer with 140 dairy cows:

“I think that the merger will make it easier for us as a larger cooperative to bring new innovations to the markets.”

Preben Madsen, Arla is an organic farmer in Vildbjerg, Denmark:

“I think it’s important that we establish a sense of togetherness as soon as possible, and that we all embark on this journey together so that we can work together to drive the growth of our dairy.”

Robert Goulding, Arla is a conventional farmer from Yorkshire, United Kingdom with 320 cows:

“As we go through the transition period, I think it’s important that we don’t get distracted and lose focus on our markets and the service levels to farmers and customers – but we’ve got a fantastic team of employees and I’m sure they are not going to let that happen.”

Kevin Nijkamp, DOC Kaas is a conventional dairy farmer in the Netherlands with 160 cows:

“As a livestock farmer, I think that the merger means future-proofing our cooperative. We will soon be a major global player with an above average milk price. And with that, I hope that we can continue to steer both our farms and our cooperative in the right direction.”

Susanne Just, Arla is a conventional farmer in Thy, Denmark with 225 cows:

“It is important that our new colleagues are thoroughly introduced to our FarmAhead™ model because I think it’s a good model that ensures that we focus on environment and animal welfare.”

Peter Larsson, Arla is a dairy farmer from Kvicksund in Sweden with 300 cows: “I think the merger will strengthen milk production, so that there will be a safer market where more people dare to invest in milk production.”

Johan Ocklind, Arla is a dairy farmer near Götene in Sweden with 600 cows: “We must all have an open mind during the merger process. It can mean changes for some of us, but it’s important that we see the common goal; that this strengthens all of us.”

Andrew Metcalfe, Arla is a conventional dairy farmer from the United Kingdom: “As a farmer, I’m really excited about this merger. I think the future and potential prospects it brings are going to benefit us as a company.”

Marilyn Mullender, Arla is a dairy farmer from Belgium: “During the merger process, I think communication to us as farmer owners is very important, so we feel informed, involved and supported in the changes that may come.”

Katrin Hartjes, Arla manages two dairy farms on the Lower Rhine in Germany: “During the merger process, it will benefit us all as farmers if we meet each other at eye level and do our best to work well together.”

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Employees across the globe celebrated the merger

After the merger, Arla Foods will employ 28,800 people worldwide. On June 1, employees marked the occasion and were invited to a live webcast hosted by Ingo Müller and Peder Tuborgh, broadcast from the head office in Viby, Denmark.

WHAT YOU NEED TO KNOW

Member democracy during the Merger

As Arla, DMK, and DOC Kaas come together, our strong cooperative democracy continues to be central to our business. This article explains how our cooperative democracy will work during the merger and what is in place from day one.

Cooperative democracy is a core principle in both Arla Foods and DMK Group. As farmer owned cooperatives, farmers elect representatives, influence strategic decisions, and help shape the direction of the business. These principles will remain unchanged.

Over a two-year transition period, democratic structures, milk payment systems, and farm standards and programmes will be integrated in a smooth and structured way. This also provides clarity for all farmer owners as the two cooperatives align their governance mechanisms and operational practices.

Within the cooperative democratic structure, the merger will be implemented through a three-step process:

1. Corporate membership of Arla Foods: DMK GmbH and its subsidiaries will become subsidiaries of Arla Foods. In parallel, DMK eG and DOC Kaas U.A. become corporate members of Arla Foods. Timing: June 1, 2026

2. New European Cooperative: DMK eG and DOC Kaas U.A. merge into a single European cooperative (SCE) to align governance and ownership structures for the transition phase. Expected timing: Q3, 2026

3. Direct Membership of Arla Foods: The European cooperative is merged into Arla Foods. At that point, former DMK and DOC Kaas farmer owners become direct members of Arla Foods. Expected timing: Q4, 2026

Note: The steps above are sequenced to safeguard business continuity and legal compliance. Detailed timelines and any required approvals will be communicated in due course.

Key milestones in the merger process

What is in place from June 1

From day one, DMK and DOC Kaas farmers are included in Arla’s highest governing bodies:

• 25 farmer representatives from DMK and DOC Kaas join Arla’s Board of Representatives

• 3 farmer representatives from DMK and DOC Kaas join Arla’s Board of Directors

At the same time, local democratic structures for both Arla and DMK Group remain unchanged, with local meetings continuing exactly as they do today.

Further information about the steps of the merger will be communicated as the transition period progresses.

Two companies, one shared vision

The merger between Arla Foods and DMK Group is far more than the combination of two strong dairy companies. It is the unification of two farmer owned cooperatives with a long history of partnership, shared values, and complementary strengths. With overwhelming support from both owner communities, more than 11,000 European dairy farmers have chosen to come together to secure the best possible value for their milk and build a solid home for dairy farmers today and for generations to come.

SHARED ROOTS, STRONGER TOGETHER

This merger is built on a shared commitment to cooperative responsibility and long term value creation. By uniting our farmer owners, colleagues, capabilities, and brands, we form a stronger and more resilient European cooperative. This scale better positions us to meet evolving consumer needs, unlock new growth, and invest in a sustainable future for dairy. Together, we increase our relevance to customers, accelerate innovation, and strengthen our presence in key markets.

DMK GROUP: A heritage of excellence

DMK Group is Germany’s largest dairy cooperative and has always been shaped by farmers working together. The cooperative is built on strong regional roots and a long tradition of shared responsibility. Today, DMK Group is founded on two cooperatives: Deutsches Milchkontor eG (DMK eG) and the Dutch cooperative DOC Kaas U.A.

The group took its current form in 2011 through the merger of Humana and NORDMILCH, bringing together more than 150 years of dairy history. In 2016, DOC Kaas joined, strengthening cross border cooperation. Through mergers and change, the cooperative principle has remained central − offering farmers stability, continuity, and a strong collective voice.

DMK Group is owned by its farmers and rooted in the regions where milk is produced. 3.900 DMK and DOC farmers work together with 6,800 employees to develop the business and secure long term value from milk. Decisions are guided by cooperation, self management, and shared interests.

The group turns milk into a wide range of quality products, from cheese and quark to ingredients and baby food. With strong positions in cheese, ingredients, food service and private label, DMK Group helps bring farmers’ milk to markets in Germany and around the world. Brands such as MILRAM, Uniekaas®, Oldenburger, Humana, and Alete connect farmers’ work with consumers every day.

Oldenburger is DMK’s global export brand, rooted in the dairy heritage of Germany’s Oldenburg region and officially trademarked in 1964. Standing for German Dairy Excellence, the brand blends deep farming and dairy expertise with modern technology, earning trust in more than 60 countries across Asia, the Middle East and Europe. Its core portfolio spans cheese, UHT cream, UHT milk and butter, complemented by Oldenburger Professional – chef-developed, kitchentested products designed to deliver outstanding whipping, cooking and baking performance. Produced primarily at DMK sites in Edewecht, Georgsmarienhütte, Waren and Zeven, Oldenburger continues to innovate, recently launching Barista Milk in Asia and the Middle East for superior foam quality and stability.

Uniekaas® is the Netherlands’ oldest cheese brand, built on authentic Dutch craftsmanship. Managing the entire supply chain, the brand naturally ages its cheeses with patience and care, using Dutch milk and no artificial preservatives or additives. With expertise reaching back to 1895 and a founding story that began in 1956 with a collective of passionate cheese traders, Uniekaas® crafts honest, delicious cheeses in blocks, slices, grated and cubes. While primarily available in the Netherlands, Uniekaas® also features in Germany alongside the MILRAM brands, with MILRAM Holländer proudly using its recipe.

Alete is one of Germany’s best-known baby food brands, trusted by families for more than 90 years. Built around real, everyday moments, Alete offers a broad portfolio of safe, tasty and practical meals and snacks – from family favorites like Alete Kinder-Keks, Germany’s number one baby biscuit, to innovations such as Kinder Teller, a pouch-based ready meal with homestyle texture. More than baby and toddler food, Alete stands for pragmatic support built on trust, making everyday family life a little easier.

MILRAM is a leading German dairy brand enjoyed by 48 million consumers, ranking among the country’s top 16 FMCG brands and recognized internally as a strong driver of profitability and value. Its success rests on three strategic pillars: cheese – Germany’s number one by revenue and a culturally confident category leader; fresh quark – where MILRAM has led from the start, co-creating with its community and creators to shape design and storytelling; and beverages – growing in a competitive field with innovations like MILRAM Zero buttermilk. From trendsetting launches such as MILRAM Hotties, which reimagine cheese for grilling and new consumption moments, to sustained activation across TV and social, MILRAM grows by relevance – staying present in everyday life as a brand that evolves, connects and delivers real impact.

Humana is an infant, toddler and child nutrition brand with more than 70 years of expertise supporting families worldwide. Its portfolio spans infant milks, special milks and a broad range of food supplements, addressing a long range of needs while engaging both healthcare professionals and parents to build awareness and trust. Trusted in over 22 countries with strong European presence – including longstanding market leadership in Italy – Humana helps nurture natural, healthy development from the very beginning and gives parents confidence in one of life’s most important phases.

MILRAM Food-Service is a brand built for professional kitchens – standing for trust, consistency and real partnership. Shaped by the needs of chefs, it focuses on products that truly perform in foodservice, recognizing that retail and kitchen expectations differ. Strong across key European markets and the leading foodservice dairy brand in Germany, MILRAM Food-Service offers a clear, focused portfolio – from cheese and cream to desserts, convenience and plant-based solutions. Backed by the strength of the company to ensure daily quality and reliability, the brand’s ambition is to grow not just as a supplier, but as a trusted partner.

ARLA FOODS: Tradition for innovation

Arla Foods is one of Europe’s leading dairy cooperatives, built on cooperation across borders and owned by farmers. The cooperative is known for its strong brands as well as its commitment to quality, innovation, and sustainability, with a clear focus on creating long term value from farmers’ milk.

Arla has grown from local farmer cooperatives into a global farmer owned business, building on cooperative traditions that date back to the 1880s. 25 years ago, farmers in Sweden and Denmark founded Arla Foods, pioneering cross border cooperation to strengthen their position in the market. Since then, farmers from the UK, Germany, the Netherlands, Belgium, and Luxembourg have joined. Today, Arla Foods is owned by around 7,300 farmers across seven European countries.

At the core of Arla Foods is a dedication to producing high quality dairy products such as milk, cheese, yoghurt, and butter, meeting consumer needs in many markets. Through Arla Foods Ingredients, the cooperative also creates added value from whey, delivering highly specialised proteins.

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Strong brands such as Arla®, Lurpak®, Puck®, Castello®, and Starbucks® help bring farmers’ milk to consumers worldwide, ensuring trust, relevance, and market access. More than 22,000 colleagues work alongside farmers to support the cooperative and help deliver long term value.

TOGETHER, SHAPING THE FUTURE OF DAIRY

Together, Arla Foods and DMK Group are creating a stronger European farmer owned cooperative, a European champion, at a time when scale, resilience, and shared responsibility matter more than ever.

By coming together, we strengthen our ability to invest in the cooperative, develop markets for milk, and support innovation and sustainability on farm and beyond. This merger is driven by farmers and for farmers, with one clear purpose: to secure strong and stable value for your milk and to build a reliable home for dairy farming.

Through your daily work on farm, you enable the cooperative to create real-life impact: delivering good food, supporting healthy lives, and contributing to a more sustainable future. Together, we have a great opportunity to Feed Life™ for current generations and those to come.

In a partnership with Starbucks®, Arla brings the iconic global coffee brand to consumers across Europe, the Middle East and Africa. Since the partnership began in 2010, Arla has manufactured and supplied a diverse range of chilled coffee formats – from Chilled Classics cups and indulgent Frappuccino bottles to energizing Double Shot and Triple Shot cans, and the latest Protein bottles with 20g of added protein. Available in convenient single-serve and multi-serve options for on-the-go and at-home moments, the range has driven rapid growth across 58 EMEA markets, translating into significant volumes of finished goods. With nearly half of consumers in mature markets yet to try the ready-to-drink coffee, Starbucks®’ brand strength and Arla’s scale position the portfolio for substantial future expansion.

Lurpak® is one of Arla’s most iconic brands – a Danishborn premium butter crafted from natural, high-quality ingredients. Made exclusively with Danish cream, every product is produced and packed in Denmark and passes a rigorous multi-step quality control to deliver Lurpak®’s uniquely fresh taste. Celebrating 125 years of heritage, Lurpak® has grown into a global favourite, leading the BSM category in the UK, Denmark, the UAE and Greece, and loved in over 100 countries. With a brand philosophy focused on what consumers care about – Good Food – Lurpak® positions itself as a must-have ingredient, showcasing food in bold, distinctive ways. Recognised with multiple awards for taste, quality, creativity and performance, the brand achieved its highest ever net revenue of €930 million in 2025 and is ambitiously tracking towards becoming a €1 billion brand in Arla’s portfolio.

Puck® offers a wide range of dairy products and delivered strong growth in 2025 with revenue rising 2.6% to EUR 528 million. Present across 14 MENA Markets, currently expanding worldwide. Puck® is a leading dairy brand in the Middle East, where volume-driven growth in the MENA region landed 6.7%. A key contributor was the strong demand in the cooking category, particularly for creams and shredded cheese, with further support from the spreadable segment, including processed cream cheese and labneh. While the portfolio continues to expand and win across categories, the iconic Puck® Blue Jar remains the heartland of the brand, reaching almost 70% national penetration and continuing to be the star product that built – and still anchors – the success of Puck today.

Castello® is Arla’s global speciality cheese brand with more than a century of Danish heritage and two decades within the Arla family. Sold in over 50 markets, Castello® has evolved from a mould-cheese classic into a broad portfolio spanning Havarti and Cheddar as core yellow cheeses, alongside cream cheese, white cheese and more – each promising outstanding quality and taste, affirmed by multiple awards. Sourcing around 25 million kilos annually from Arla dairies, the brand generates approximately €250 million in revenue, with its largest markets in Canada, the US, Denmark, Australia and Germany. While awareness is strongest in Scandinavia and Australia, Castello® is building its presence in big markets like the US and Germany.

Arla® is Europe’s largest dairy brand and Arla’s flagship consumer brand, available across 160 countries and generating €4 billion in global net revenue. With portfolios spanning every dairy category – varying by market from iconic mainstay in Sweden to challenger in newer regions – the brand grows by meeting modern food culture through strengths in health, foodservice and cooking. Guided by a single North Star, Arla’s vision is to become the household name loved and trusted to help people eat well – present in as many fridges and on as many tables as possible. Our promise, Feed Life™ captures the brand’s role in nourishing people, communities and the planet, reconnecting food with everyday life through both its products and actions. United as both company and brand behind this commitment, Arla® aims to shape a stronger future connection to food.

Your milk price and transition payments

Learn more about Arla’s milk price model and what this means for your milk price and payments during the 2-year transition phase.

One of the fundamental principles in Arla is that there is one milk price and that all farmer owners are paid for their milk according to the common payment model. This also means that after the two-year transition period, all farmer owners will be paid using the Arla Foods milk price model (See illustration)

For DMK Group farmer owners:

During the transition period, DMK Group receives a milk price based on Arla’s pre-paid milk price (defined as the pre-paid value) which is then distributed to you as DMK & DOC farmer owner.

The pre-paid value allocated from Arla Foods to DMK Group reflects the actual fat, protein, and quality of the supplied milk, and the additions of an average conventional Arla farmer owner in Central Europe.

The payment you receive will be based on the milk price model that you are used to from DMK & DOC Kaas.

In Arla, farmer owners receive a prepaid price twice a month for the milk they supply. On top of the prepaid milk price, there is a minimum supplementary payment1 of 1.5 EURc per kilogram of milk based on the full volume of milk delivered during the year.

In addition, during the transition period, you will, as a former DMK/DOC Kaas farmer owner, be entitled to an annual transition payment of 2.2 EURc per kg of raw milk supplied yearly in the transition period. The annual transition payment will be paid out in 6 transactions, and the expected timings are: September 2026, March 2027, September 2027, March 2028, September 2028 and March 2029 pending the merger progress. (See illustration for details)

Following the transition period, you will be entitled to receive the supplementary payment as part of the Arla milk price model.

For Arla Foods farmer owners:

As a current Arla farmer owner, you will continue to receive the milk payments as you know it. In addition, you will receive an annual transition payment – subject to yearly approval by the Board of Representatives –corresponding to 1 EURc per kg milk in the transition period.

This transition payment will be paid out in addition to the supplementary payment in March 2027 and March 2028, subject to approval by the Board of Representatives. The transition payment for you as an individual farmer owner will be based on the average annual volume of milk supplied during the calendar years 2021-2025 and during the period from January 1st 2026 to May 31st 2026. (See illustration for details)

• The timing for your milk payment will follow Arla’s approach

• In Arla, Milk payment takes place twice a month: Prepayment happens on the 27th of the current month and main payment on the 12th of the following month.

• If these dates fall on a weekend and/or a bank holiday, payment will happen on the next working day.

WHAT YOU NEED TO KNOW

FarmAhead™ Technology: reducing carbon emissions

Arla’s FarmAhead™ programme aims to reduce farmer owners’ carbon footprint and to ensure a commercial benefit from the efforts.

The FarmAhead™ Check has been developed with a toolbox of datadriven and science-based technologies for Arla farmer owners to measure, understand and move ahead in their individual sustainability transition on farm.

The data collected in the FarmAhead™ Check provides a unique overview of all aspects of milk production and is actively used as a management tool to develop the individual farm in a more sustainable direction.

No changes to programmes and standards for DMK and Doc Kaas farmers

Throughout the 2-year transition period, DMK and DOC Kaas farmer owners will continue operating under existing quality standards and associated programmes.

We will provide support and training to you as a new farmer owner in a timely manner to ensure future alignment with Arla’s farm standards and programmes; Arlagården® and FarmAhead™ .

FarmAhead™ Check

The FarmAhead™ Check is the foundation of Arla’s sustainability programme, built around the individual farms’ unique needs and efforts.

HOW IT WORKS:

Annual survey: Each year, farmers are invited to complete a sustainability survey, followed by a visit from a FarmAhead™ Check advisor. Participation is optional, but highly encouraged.

Comprehensive overview: The Check gathers science-based data on all aspects of milk production, giving farmer owners a clear picture of the farm’s strengths and opportunities for improvement.

Insights: The results provide farmer owners with actionable insights, helping them make informed decisions that move their farm forward on its sustainability journey.

FarmAhead™ Incentive

The FarmAhead™ Incentive is an opportunity to be rewarded even further for sustainability actions, building on the foundation of the FarmAhead™ Check.

HOW IT WORKS:

Earn points, increase earnings: Farmer owners can collect points for a wide range of sustainable practices – like feed efficiency, fertilizer use, and renewable energy. Each point

earned adds 0.03 EURc/kg milk to the milk price for the farmer owner.

Flexible participation: Most points come from the annual FarmAhead™ Check, but farmer owners can also gain extra points by submitting additional documentation on specific sustainability actions.

Documentation: Some actions require quarterly uploads of

FarmAhead™ Customer Partnerships

Through FarmAhead™ Customer Partnerships, customers can invest in on-farm sustainability efforts and directly contribute to the milk price, which also helps them reduce the emissions from their own value chain.

For some of Arla’s main customers, the dairy category is responsible for between 6-18% of their total carbon footprint. So naturally, customers who (like Arla) have

committed to Science Based Targets are very interested in dairy products with continuously lower carbon footprint, to fulfil their own targets.

When joining a partnership with Arla, customers get access to claimable CO2e data – generated by FarmAhead™ Technology – and storytelling about how Arla farmers work to accelerate sustainable dairy farming. Customers can also co-

Financial incentive: By completing the FarmAhead™ Check, farmer owners receive an extra 1 EURc/kg milk. In 2025, more than 95% of Arla farmer owners took part.

documentation, with feedback and an opportunity to correct if needed. Depending on the action, points can be valid for 1, 2, or 7 years – as long as you continue to participate in the annual Check.

Commercial benefit: The more points a farmer owner collects, the higher the milk price. In total, Arla has set aside up to 500 million EUR each year to reward sustainability efforts in the incentive.

fund specific projects on selected farms to help us explore and apply methods or new technologies that could potentially be scaled across Arla farms.

When Arla farmers participate in a FarmAhead™ Customer Partnerships project, they help build a sustainable future for dairy –where every action on farm counts, and where farmer efforts are recognised and rewarded.

Arlagården®: Arla’s quality program

Arlagården® focuses on ensuring high standards in milk quality and animal welfare. It includes the criteria from national standards such as QM-Milch e.V. and KKM and compliance levels among farmer owners are almost 100%.

From day 1 of the merger, farmer owners from DMK and DOC Kaas will continue to comply with local quality standards as QM-milch e.V. from Germany, KKM from the Netherlands, and DMK Group’s Milkmaster Programme.

Arlagården® includes a series of guidelines and requirements that Arla’s farmer owners must follow. Farmer owners must ensure animal

GERMANY/ LUXEMBURG

• QM-Milch

NETHERLANDS

• Keten Kwaliteit Melk (KKM)

BELGIUM

• Qualité Filière Lait (QFL)

• Qualität der Milckette (QMK)

• Integrale Kwaliteitszorg Melk (IKM)

welfare and that the milk is of high quality, free from contamination, and produced under hygienic conditions. This is to secure that the milk produced lives up to the requirements of local standards, customers and consumers and can be sold across more than 140 markets.

There is a big overlap between Arlagården and the following local industry standards:

UNITED KINGDOM

• Red Tractor

SWEDEN

• Branschriktlinjer – Hygienisk mjölkproduktion

• Branschriktlinjer för hygienisk intransport av obehandlad mjölk från gård

• Branschriktlinjer för kontroll av obehandlad mjölk

DENMARK

• Branchekode for egenkontrol i mælkeleverende besætninger

Key facts

Member Service: No changes for you

Did you know, that from day 1 of the merger, there are no changes to how you engage with your cooperative.

• You can call the same number if you have questions.

• You can reach out via the same email that you already have

• Your personal contact in Member Service is also the same

We will ensure that all owners are informed about any changes in a timely manner. If you have any questions about the merger, please visit our merger section, check out our Frequently Asked Questions section, or reach out to Member Service.

Milk collection

• From day 1, milk collection will continue as you know it.

• Over time, gradual optimisation may take place, considering collection routes and costs.

• Our highest priority is to ensure delivery reliability in Central Europe.

• Any adjustments to collection routes and timings will be communicated in a timely manner

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