Denmark's competition authorities are looking at a proposal by two major agricultural cooperatives, DLG and Danish Agro, to buy Jutland-based feed manufacturing co-op Aarhusegnens Andel. DLG is considered the largest feed producer in Denmark. It has almost 29,000 farmers as members and covers the whole country. Danish Agro is also a feed manufacturer and, with about 6,800 members, operates more regionally as the second-largest farm supply group. Aarhusegnens Andel, from the port city of Arhus, focuses on the west of the country and has a membership of about 3,600 farmers.
There is speculation in Denmark that a successful acquisition would be followed by DLG and Danish Agro splitting the Arhus co-op's activities, with DLG receiving the grain facilities and Danish Agro gaining the feed manufacturing side. A further suggestion is that Danish Agro, as the leading enterprise in cooperative union Den Lokale Andel, could sell some plants to other members of that group. Local reports say plans have already been made for Danish Agro to move its head office from Fredericia, Denmark, to the headquarters building of Aarhusegnens Andel, which was completed only one year ago.
