OM members to decide whether Berglandmilch will take over dairy business

Nearly 2,800 members of the Obersteirische Molkerei cooperative will vote on Tuesday on whether its operating dairy business should be transferred to Berglandmilch or remain independent, ORF reported. The outcome of the vote is considered difficult to predict.

The Obersteirische Molkerei, known as OM, has 664 employees and almost 400 million in revenue, making it one of the most important employers in the Murtal region. Investments in its Kapfenberg location, changing customer demand such as protein products and the need for further specialisation have made cooperation with a large partner necessary, according to the company.

Under the proposal, the dairy business and around 180 employees would be integrated into Berglandmilch. In return, OM would receive an 8.8 percent stake in Berglandmilch.

OM management held eight information events in recent weeks to persuade the cooperative members, who are the farmers supplying the milk, that the integration is necessary. Managing director Michael Riegler described it as “leaving the comfort zone” but said it was “a decision for the future.”

OM chairman Jakob Karner, who represents the farmers, also said it would be difficult to remain competitive without joining Berglandmilch. The aim, he said, was to continue paying farmers a competitive and above average milk price and to give younger farmers a future in the dairy industry in the region.

A two-thirds majority at the general assembly is required for the transfer to Berglandmilch. In addition to the dairy business, OM includes Landforst, ÖFORST and Steyr-Center-Murtal.