With Berglandmilch

Upper Styrian Dairy Votes in Favor of Merger

It is now officially confirmed: Obersteirische Molkerei is merging with Berglandmilch.(Bild: Jürgen Fuchs)

After weeks of uncertainty, it’s now official: Obersteirische Molkerei, based in Knittelfeld, is merging with Upper Austrian-based Berglandmilch. At Tuesday’s general meeting, voting members of the cooperative approved the takeover by a clear majority.

It’s official! Obersteirische Molkerei (OM) is merging with Berglandmilch of Upper Austria. As early as mid-August, some 1,200 Styrian farmers who supply milk to OM were informed that the market leader from Wels intended to take over the dairy business of the cooperative based in Knittelfeld. After OM’s supervisory board and executive board had already voted unanimously in favor of the takeover at the end of August, the majority of the cooperative’s members also voted in favor of the merger at a general meeting on Tuesday. 

Of the 791 voting members present at the Zechnerhalle in Kobenz, 714 voted in favor of the merger—equivalent to about 92 percent. Only 60 votes were cast against it. A positive outcome would have required only a two-thirds majority, or 516 votes in favor. The remaining 17 votes turned out to be invalid—four members abstained, and 13 votes were not cast. Nothing should now stand in the way of Berglandmilch’s acquisition of OM. The next step is for the relevant committees in Upper Austria and the Federal Competition Authority to approve the merger.

Locations and Hard Cheese Production Secured
In eight informational meetings on the planned merger, industry representatives succeeded in allaying the farmers’ concerns: “The fact that so many attended the general meeting and voted in favor of the merger is an overwhelming sign. It shows that the farmers in Upper Styria stand united,” says Jakob Karner, chairman of the OM, in an interview with the “Krone.”

This decision is important for the future of our dairy farmers. It’s overwhelming that so many came to the meeting.

Jakob Karner, OM-Obmann

Bild: Sepp Pail

Above all, joining forces is a strong argument in favor of this step: “We believe that together with Berglandmilch, we’ll have more opportunities in the market. As a small dairy, we don’t have the same production capabilities as large operations. That’s changing now,” Karner emphasizes. This argument was particularly well-received by young farmers.

Although the Obersteirische Molkerei is giving up its independence with the merger, the cooperative will continue to exist and will be integrated into Berglandmilch as such: “There is also a location guarantee for the Spielberg and Knittelfeld sites, where hard cheese is produced.”

There will be no major changes for our consumers. Our hard cheese will definitely still be available for purchase in stores.

Michael Riegler, Geschäftsführer OM

Bild: Land Steiermark

Milk pickup will remain as before
And that’s not the only assurance that was secured during negotiations with the dairy giant: “Berglandmilch processes the same four types of milk as we do. It has been guaranteed that milk pickups will continue as before. That was important to us, because none of our farmers should be left behind,” emphasizes the chairman.

The next step is for the governing bodies in Upper Austria to approve the merger at a general meeting, followed by approval from the Federal Competition Authority.

Consumers should not expect any major changes: “Our distribution agreements remain in effect. Our hard cheese is also guaranteed to remain available in stores,” notes OM Managing Director Michael Riegler.

Support for this delicate decision comes from the Styrian farmers’ advocacy group: “The majority of owners have decided; apparently, the farmers’ concerns were addressed in advance—we take note of this and, of course, support it,” says Chamber of Agriculture President Andreas Steinegger in response to a query from “Krone.”