AMSTERDAM (Reuters) - Dutch farmers of Friesland Foods and Campina, the Netherlands' two largest dairy groups, approved on Wednesday their merger to create one of the world's biggest dairy companies, with combined sales of 9.1 billion euros ($14.09 billion).

FrieslandCampina, the name of the new company, will rank either third or fourth in the world by dairy sales after Switzerland's Nestle (NESN.VX: Quote, Profile, Research) and French Danone (DANO.PA: Quote, Profile, Research), the groups have said.

Unlisted Friesland, maker of Dutch Lady and Frisian Flag branded products, and Campina, known for its Milner cheese and Optimel yoghurts and dairy drinks, together produced 8.3 billion kilos of milk last year.

"The members supported the view that the new company would be better able to respond to developments in the dairy market and thus create more value for the member dairy farmers," the groups said in a joint statement.

The merged group would have 17,000 member farmers, 22,000 employees and more than 100 production and distribution facilities worldwide. Annual synergies are seen at 175 million euros by 2012, with 500 job cuts targeted by 2011.

The merger is conditional on approval by the European Commission, expected to be in the final quarter of 2008.

(Reporting by Foo Yun Chee, editing by Will Waterman)