Both dairies are cooperatives, therefore owned by thousands of dairy farmers who have to agree to this merger. By merging the two companies – currently number three and number four on the market – it would leave Niederösterreichische Molkerei (NÖM) behind.
The BWB had previously raised objections and feared poorer conditions for the milk suppliers. These concerns were allayed by the contractual promise of a purchase guarantee for the next six years. Cooperative members receive priority delivery rights and a purchase guarantee. In addition, farmers may also market their products directly or sell them directly from the farm. In addition, the synergy effects achieved through the merger are to be passed on to the dairy farmers.
Salzburg Milch Marketing Manager Schwap told the APA that the application had been submitted to the BWB parallel to the negotiations. The negotiations themselves have not yet been completed, and the bodies of the two cooperatives have not yet given their approval. In any case, the aim is to process the merger retrospectively from the beginning of 2022. “Legally, everything must be completed by September.”
The merger would make the new company the second largest milk processor in the country. Number one is Berglandmilch with annual sales of 941 million euros, followed by NÖM with 346 million euros. Ranks 3 and 4 are currently occupied by Salzburg Milch with 229 and Gmundner Molkerei with 205 million euros.
