A significant development is emerging in the French agri-food sector. Two agricultural cooperatives, Agrial and Terrana, are set to merge. The result will be a new entity comprising 30,000 farms and 180 industrial sites. The experts at AURIS Finance, a consultancy specialising in mergers and acquisitions, give you their analysis.
The project was announced at the end of September. If the transaction goes ahead, it will create a new group that will become one of the leading agricultural cooperatives in France and one of the top 10 in Europe. Specifically, the two groups’ combined sales would total €13 billion: €7.1 billion from Agrial and €5.6 billion from Terrena. The new group’s dairy division alone would account for €3.6 billion. This would make the resulting cooperative France’s third-largest dairy group after Lactalis and Danone.
A French and European giant
For the time being, the project is still in the discussion stage. The merger will have to be the subject of ‘consultation and coordination’ with the 30,000 farmer members, as well as with the two groups’ employees. According to the Confédération paysanne, the merger ‘does not bode well’. The union is particularly critical of Agrial’s international focus and the potential for unfair competition between member farmers. The project will then be submitted to the French Competition Authority for approval. If the merger goes ahead, the two cooperatives will account for 4.5% of French agricultural production and have a presence in a dozen sectors, including milk, beef, poultry, cereals and wine. They are well known to the general public for their Grand Fermage, Soignon, Tipiak, Père Dodue and Florette brands.
A wave of mergers across Europe
In the face of heightened competition, the trend today is towards consolidation to increase resilience. In Europe, several cooperatives have chosen to merge. In April, Arla Foods announced that it was merging with the German group DMK. The two entities now bring together 12,000 farmers and generate sales of €19 billion. A few months earlier, the Dutch dairy group FrieslandCampina and the Belgian cooperative Milcobel announced their intention to merge, with the aim of creating one of the largest cooperatives in Europe, with total sales of €14 billion and a milk production volume of 10 billion kilograms, sourced from farms in the Netherlands, Belgium, Germany and northern France.
Necessary synergies
This new market movement highlights the need for farmers to collaborate in order to overcome various challenges. These include developing production, remaining competitive and adapting to change, all against the backdrop of difficult generational renewal. In France, many companies are currently merging. In March 2025, for example, the Euralis and Maïsadour cooperatives, two agricultural heavyweights in the Nouvelle-Aquitaine region, announced that they were in discussions with a view to joining forces.
Our experts at your service
In 2025, the French agri-food sector is at a crossroads, facing major environmental challenges that require substantial investment. The major players are constantly on the lookout for new opportunities. Meanwhile, smaller companies are looking to join forces in order to implement structural changes and achieve economies of scale. AURIS Finance’s experts specialise by sector. They will support you in your search for financing and assist you with your fundraising, buyout and disposal operations.
