Austrian Dairy Groups Salzburgmilch, Pinzgau Milch Plan Merger

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Austrian dairy group SalzburgMilch is readying to subordinate forces pinch section adjacent Pinzgau Milch Produktions.

In a associated connection yesterday (24 November), nan companies said they are “deepening their existing collaboration and readying a strategical merger, pinch nan extremity of creating a associated company”.

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SalzburgMilch and Pinzgau person worked together connected nan manufacture of various dairy products. The woody awaits nan support of Austrian title officials.

Markus Buchmayr, managing head of Pinzgau, said: “The merger allows america to optimally utilise synergies, instrumentality future-oriented plans and simultaneously further fortify nan regionality and value of our products successful bid to stay successful successful nan home marketplace arsenic good arsenic successful nan export market, which is truthful important to us.”

The 2 dairies person beverage from astir 3,400 suppliers.

All their sites successful Salzburg, Lamprechtshausen, Maishofen and Kössen successful Tyrol will stay successful cognition and further developed, nan companies said.

SalzburgMilch, Austria’s third-largest dairy group, sources beverage from astir 2,400 farming suppliers. It markets much than 600 products.

The institution has accumulation plants successful Salzburg and Lamprechtshausen and employs astir 450 people. It processes 331 cardinal kilograms of beverage annually.

In 2024, SalzburgMilch generated income of €350m ($405m), much than 40% of which was generated done exports.

Pinzgau, headquartered successful Maishofen, is simply a statement shaper of dairy products including drinking milk, butter, yogurt and cheese. It reported a turnover of €155m successful 2024, pinch exports making up 47% of its sales.

The institution employs astir 250 group and is supplied by astir 1,000 farms Nearly 60% of nan beverage is organic.

Its plants are successful Maishofen, Salzburg, and Kössen, Tyrol.

Andreas Gasteiger, nan managing head of SalzburgMilch, said: “We are pooling our resources to unafraid nan semipermanent viability of nan farming building and to support added worth wrong nan region.”

A woody would travel different mergers successful Europe’s dairy manufacture successful nan past 12 months. In April, Arla Foods and German dairy cooperative DMK Group announced plans to merge.

The brace said successful a associated connection that nan woody will create “the largest dairy cooperative successful Europe”, pinch members successful Denmark, Sweden, nan UK, Germany, Belgium, Luxembourg and nan Netherlands.

Last December, Dutch dairy cooperative FrieslandCampina group retired plans to merge pinch smaller Belgian adjacent Milcobel.

They said that based connected nan companies’ mixed 2023 yearly figures – excluding Milcobel’s Ysco business, which has been divested – nan caller organisation would person a pro-forma gross of much than €14bn.