Upper Styrian farmers question planned dairy merger

Upper Styrian dairy farmers have raised questions about the planned merger between Obersteirische Molkerei and Berglandmilch, ORF reported. The Independent Farmers’ Association has set out those concerns in an open letter to Obersteirische Molkerei’s management.

The farmers are due to vote on the merger on September 15. The association said farmers had asked why the process was suddenly moving with such urgency and questioned whether there were undisclosed economic problems.

The letter refers to reported debts of between 30 million and 35 million euros. It also questions the milk price, describing the current producer price of around 45 to 47 cents per litre as unacceptable. In view of rising production costs, the association is calling for a long-term price of about 1.10 euros per kilogram of milk.

The association called for answers, saying the merger concerned a “core part of Styrian food processing”. It said farmers needed good solutions but that nothing should be rushed.

According to a report by Der Standard, Obersteirische Molkerei’s supervisory and executive boards approved negotiations with Berglandmilch at the end of August. Several information events for farmers have reportedly been held since then. A two-thirds majority is required for approval at next week’s vote.