In the 1880s, dairy farmers in Sweden and Denmark formed small cooperatives to invest in common dairy production facilities.
The first cooperative dairy was established in Sweden at Stora Arla Gård in Västmanland in 1881 under the name of Arla Mejeriförening, and the first Danish cooperative dairy was established in Hjedding, outside Ølgod, Southern Jutland in 1882.

On 26 April 1915, dairy farmers in Stockholm and adjoining counties created Sweden's largest cooperative dairy organisation, Lantmännens mjölkförsäljningsförening (The Farmers' Milk Retail Association), which operated dairies as well as a chain of shops selling dairy products.

In 1927, the company registered the name Mjölkcentralen (The Milk Central, shortened MC) and from the 1950s a growing number of cooperative dairies in other parts of Sweden began joining MC.
In 1975, MC changed its name to Arla, a name previously used not only by Sweden's first cooperative dairy, but also by the largest dairy retailer in Gothenburg between 1909 and 1965.

By the end of the 20th century, Arla had a 65% market share in Sweden.

On 1 October 1970, Mejeriselskabet Danmark (MD) was established by four dairy companies and three individual dairies.
In 1988, the company changed name to MD Foods.
In 1992, MD Foods and Denmark's second largest dairy company, Kløver Mælk, signed a financially binding co operation agreement, and in 1999, the two companies merged to become MD Foods, gaining 90% of the Danish milk production.

In April 2000, MD Foods merged with Swedish Arla and formed Arla Foods A.m.b.
A with headquarters in Aarhus, Denmark, and became Arla Foods as it is known today.
In the 1880s, dairy farmers in Sweden and Denmark formed small cooperatives to invest in common dairy production facilities. The first cooperative dairy was established in Sweden at Stora Arla Gård in Västmanland in 1881 under the name of Arla Mejeriförening, and the first Danish cooperative dairy was established in Hjedding, outside Ølgod, Southern Jutland in 1882.
On 26 April 1915, dairy farmers in Stockholm and adjoining counties created Sweden's largest cooperative dairy organisation, Lantmännens mjölkförsäljningsförening (The Farmers' Milk Retail Association), which operated dairies as well as a chain of shops selling dairy products.
In 1927, the company registered the name Mjölkcentralen (The Milk Central, shortened MC) and from the 1950s a growing number of cooperative dairies in other parts of Sweden began joining MC. In 1975, MC changed its name to Arla, a name previously used not only by Sweden's first cooperative dairy, but also by the largest dairy retailer in Gothenburg between 1909 and 1965.
By the end of the 20th century, Arla had a 65% market share in Sweden.
On 1 October 1970, Mejeriselskabet Danmark (MD) was established by four dairy companies and three individual dairies. In 1988, the company changed name to MD Foods. In 1992, MD Foods and Denmark's second largest dairy company, Kløver Mælk, signed a financially binding co operation agreement, and in 1999, the two companies merged to become MD Foods, gaining 90% of the Danish milk production.
In April 2000, MD Foods merged with Swedish Arla and formed Arla Foods A.m.b.A with headquarters in Aarhus, Denmark, and became Arla Foods as it is known today.
Arla Foods