Arla Foods has come a step closer to acquiring the Southern German dairy, Allgäuland Käsereien.

Late Monday, the members of Allgäuer Bergbauern-Milch eG (the last of the six cooperatives that own Allgäuland-Käserien) voted in favour of joining Arla Foods.

”We welcome the decision,” Torben Olsen, Head of Arla Germany, said.

If Arla Foods acquires Allgäuland-Käsereien, the German dairy will avert the threat of bankruptcy.

Over the coming days and weeks, the final part of the process is expected to fall into place. Arla's target is that the deal will include contracts of a minimum of 250 million kg milk. The acquisition is subject to approval by the EU competition authority.

Arla: Important potential in cheese
Against a background of a financially difficult situation within the southern German cooperative company, Arla Foods and Allgäuland-Käsereien have been engaged in discussions and negotiations for some months now.

“We see important potential in Allgäuland-Käsereien’s cheese production. They produce excellent speciality cheeses for which there is important international potential and it is for this reason that the dairy is of interest to Arla Foods. Some of their products will supplement the cheeses Arla already makes, among them the cheeses marketed under the House of Castello® quality brand. We see great potential in Allgäuland’s products and not only in Germany,” says Executive Vice President in Arla Foods, Tim Ørting Jørgensen, who is responsible for Arla's international markets.

Earlier this year, Arla Foods merged with the northern German dairy, Hansa-Milch, which produces only fresh dairy products. Arla’s aim is to become one of the largest dairies in Germany and the Arla’s strategy also focuses on growth within cheese, including the global House of Castello® brand.

Read more about the Allgäuland acquisition