Farmers question Berglandmilch merger plans

Some dairy farmers in Styria are concerned about Berglandmilch’s planned merger with an Upper Styria dairy, ORF reported. They fear the deal could disadvantage smaller farms, while the companies’ managing directors reject those concerns.

Several farmers worry that smaller producers could come under economic pressure or “be left behind”, one farmer told ORF Radio Upper Austria. They are also questioning whether milk collection from smaller farms will remain financially viable.

Berglandmilch is already one of the country’s largest dairies. The merger would expand the company further. Its brands include Schärdinger and Latella.

Berglandmilch managing director Josef Braunshofer said Styrian farmers would not face financial disadvantages. Michael Riegler, managing director of the Upper Styria dairy, also pointed to safeguards for suppliers and said all types of milk would continue to be processed and collected.

Berglandmilch said the geographical proximity of the two collection areas would benefit the merged company. Because the dairies’ collection routes border each other, transport distances and collection trips could be reduced.

The owners of both companies are due to vote on the merger in two weeks. If both sides approve it, the Federal Competition Authority will examine the deal. The authority said the dairies had already made an inquiry, but had not yet formally registered the merger.