Diary giants agree merger deal

Campina and Arla Foods yesterday agreed to merge to become the world’s largest farmer-owned dairy cooperative.

Terms of the accord weren’t disclosed.

The new company, Campina Arla, will have annual sales of about €10 billion, employ 28,000 people and have about 21,000 member farmers, Campina said in a statement yesterday.

European dairy producers are consolidating amid pressure from their customers, which are cutting costs to ensure their prices stay in line with rivals.