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Austrian dairy processors SalzburgMilch and Pinzgau Milch Produktions plan to merge, creating a joint company with a combined annual turnover of €520 million (approximately $563 million).
The consolidation effort aims to leverage synergies across all operational areas, extending their existing production collaboration into milk collection, processing, logistics, sales and administration. The merged entity will be supplied by around 3,400 farming families and is expected to retain all four existing sites in Salzburg, Lamprechtshausen, Maishofen, and Kossen in Tyrol, supporting a total workforce of approximately 700 employees.
SalzburgMilch, Austria’s third-largest dairy group, reported sales of €350 million ($407 million) in 2024, with exports accounting for 41% of its business. Pinzgau Milch, a contract manufacturer specialising in products such as drinking milk and cheese – with nearly 60% of its raw milk being organic – posted turnover of €155 million ($180 million) in the same year, achieving an export rate of 47%.
Markus Buchmayr, managing director of Pinzgau Milch, stated: “The merger allows us to optimally utilise synergies, implement future-oriented plans and simultaneously further strengthen the regionality and quality of our products”.
Andreas Gasteiger, managing director of SalzburgMilch, added: “We are pooling our resources to secure the long-term viability of the farming structure and to keep added value within the region.”
The deal, which remains subject to approval by Austrian competition authorities, reflects a wider trend of consolidation in the European dairy sector.
Source: SalzburgMilch / Pinzgau Milch / Dairy Industries International
