Cartel authorities approve milk merger

Cartel authorities approve milk merger

In the past, the mergers among the domestic dairies were sometimes subject to strict conditions. The introduction of the Gmundner Milch into the Salzburg Milch can be carried out as planned. The only conditions relate to the contractual relationships with the farmers. There are no restrictions on retailers – after all, the most important sales channel is the food trade. And there the suppliers face a few chains with a significant negotiating position, as insiders put it.

The most important requirements relate to a minimum guarantee package. The contract farmers receive the assurance that their surplus milk must be taken from the merged dairy. There should be no price reductions. Surcharges – such as for hay milk – should continue to be paid.

Salzburg Milch and Gmundner Milch collect some of their milk in the same areas as the Mühlviertel or the border area between Upper Austria and Salzburg. According to a requirement of the Federal Competition Authority, conventional milk, organic milk and hay milk should be collected separately where this is economically viable. The BWB writes that it is about “fair play in the supply chain”.

Source: Nachrichten

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