Carinthian Milk

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Helmut Petschar, Managing Director of Kärntnermilch, and Chairman Albert Petschar: "2023 was a challenging year, but we can still look forward to a positive result."

(Bild: Christina Natascha Kogler)

Helmut Petschar, Managing Director of Kärntnermilch, describes the previous year as economically challenging but successful. In line with the sad trend, the number of dairy farmers is also falling among Kärntnermilch suppliers. The "Animal Husbandry Plus" program and a plan for future investment are new.

Kärntnermilch had 984 milk suppliers in the 2023 financial year. "In 1995, we still had 2,400 farmers supplying us with milk," says Kärntnermilch Chairman Albert Petschar, looking back. And the forecast shows: This year, the number of milk suppliers will fall to 903, which is definitely in line with the sad trend: according to the Carinthian Chamber of Agriculture, 60 dairy farms closed their barn doors for good last year alone. Over the past 20 years, a decline of a good 55 percent has been recorded.

New rules - fewer farmers
"Some have now had to stop because there are no longer any exceptions to the ban on tethering. Farmers in the village who don't have pasture simply have no choice," explains Albert Petschar, who, after evaluating a survey questionnaire, knows that 70 percent of farms have combined husbandry, tethering the cows in the barn in winter and driving them this way in summer. These 70 percent of farms supply 30 percent of the milk volume. "The other 70 percent of our milk comes from loose housing farms," says Petschar.

When organic doesn't pay off for the farmer...
Of the 984 Kärntnermilch suppliers, 249 were organic milk suppliers last year. "We started in 1994 with six organic farmers," recalls the chairman. The number of 249 organic dairy farmers will be reduced to 230 this year. "Some of them are stopping completely, one is switching from organic to conventional, because although we pay a good organic meadow milk supplement, this cannot cover the additional costs for protein and concentrated feed," says Managing Director Helmut Petschar. 

Now 23 percent of Kärntnermilch products are organic. "Our target is 30 percent," says Albert Petschar. But can that be achieved?

Balance sheet 2023

The net turnover reported in the profit and loss account amounted to 120.7 million euros in 2023, which represents a slight drop in turnover of 0.6 percent.

Export ratio: 27.4% (down 5.2% compared to 2022. Exports are mainly to Germany, Italy and the Netherlands.

116.4 million kilos of raw milk were processed at Kärntnermilch in the previous year (an increase of 2.91% compared to 2022); an average of 319,000 kilos per day.

Milk price: The average farm-gate price per kilo of milk across all classes was 56.76 cents, an increase of 2.11% compared to 2022.

An average of 48.03 cents net per kilo was paid for conventional, GMO-free milk.

The organic meadow milk premium was 8.893 cents net per kilo.

Investments: 2.86 million euros were invested in the previous year, for example in the finished milk storage tank in the machine room, the cheese smoking system, the low-voltage distributor and the air compressor.

213 employees are among the key figures for the 2023 financial year.

Helmut Petschar: "It is clear that a small company cannot become the price leader, but it can become the quality leader." Investments in quality and changes for high quality include GMO-free, glyphosate-free, organic and now "Animal Husbandry Plus". This new AMA quality seal module, which will be emblazoned on all Kärntnermilch products in future, means that the cows have access to the outdoors for at least 120 days a year, they are provided with scrubbing facilities, i.e. scratching brushes, and there is animal health monitoring and annual inspections. Only feed without palm oil or palm kernel oil may be used. 

The share of organic milk decreased by 0.6 percent to 18 percent of the total milk volume in Austria, in concrete figures to 584,000 tons.

The sculpture of a cheesemaker stands at the beginning of a long wall of awards at Kärntnermilch in Spittal.

(Bild: Christina Natascha Kogler)

The cost increases have also affected Kärntnermilch. Production requires 15 million kilowatt hours of electricity and 10 million kilowatt hours of gas per year. Kärntnermilch's photovoltaic system, which has been in operation since last fall, produces 10 percent of the electricity required. "A planned biomass power plant should be up and running by 2026 or 2027 at the latest," says Helmut Petschar, looking ahead.

Good things with a tradition

Kärntnermilch was founded in1928. "Out of necessity, because it was clear: marketing together is easier," says Managing Director Helmut Petschar. Since then, a lot has been invested in quality. "It's clear that a small company can't become the price leader, but it can become the quality leader."

This is proven every year by numerous awards, such as this year's "Käsekaiser" for Kärntnermilch Drautaler as the best semi-hard cheese in Austria. The German Agricultural Society has awarded Kärntnermilch the prize for long-term product quality for the 20th time. The "International Food Standard" (IFS), which was developed by the German and French retail trade to audit private label suppliers, also certifies that Kärntnermilch is of the highest quality: Kärntnermilch passed the IFS with 97.37 percent. Numerous precious metals at the "Käsiade" and "World Cheese Awards" are added to the display cases full of awards on the second floor of the Kärntnermilch headquarters in Spittal.

"Our farmers have also suffered from the enormous price increases," says the Managing Director. Energy, diesel and animal feed prices had risen. Regulations and bureaucracy made the farmers' work even more difficult.

The average household in Austria spends 27.70 euros a month on milk, yoghurt and butter and 18.60 euros on cheese. An Austrian eats 23.2 kilos of cheese a year.

Christina Natascha Kogler