Dairy cooperative merger plan faces scrutiny from Styrian farmers

Concerns among dairy farmers in Styria are driving a series of information meetings over a proposed merger between the Obersteirische Molkerei dairy cooperative and the much larger Berglandmilch cooperative, ORF reported.

At a meeting in Murau on Thursday, farmers voiced uncertainty about the plan, particularly smaller producers concerned about whether their operations would remain economically viable. Information events are being held daily across Upper Styria.

The Obersteirische Molkerei, which has annual revenue of around 400 million euros, says the merger would bring several advantages. It would avoid necessary investments, allow the cooperative to use Berglandmilch’s spare capacity and give it access to a broader product range. It also expects to strengthen its specialisation in natural cheese.

Obersteirische Molkerei managing director Michael Riegler said the meetings were intended to address farmers’ concerns about losing independence, their share capital and the collection of different types of milk.

He said the cooperation would gradually reduce the risk capital farmers have invested and that all types of milk would continue to be collected and processed. The site in Kapfenberg, which needs renovation, is also expected to remain in operation for the time being.

The Obersteirische Molkerei’s 2,700 cooperative members are due to vote on the merger at a general meeting on September 15. Berglandmilch and the competition authority would then have to take action.