Austrian Dairy Groups SalzburgMilch and Pinzgau Milch Announce Strategic Merger

SalzburgMilch, Austria’s third-largest dairy group, and Pinzgau Milch Produktions have announced a strategic merger to form a joint company. Announced on November 24, the merger aims to bolster their collaboration in areas such as milk collection, processing, logistics, sales, and administration.

The merger is pending approval from Austrian competition authorities. The companies have a history of collaboration in dairy product manufacturing, with SalzburgMilch processing 331 million kilograms of milk annually and marketing over 600 products. In 2024, it reported sales of €350 million, with exports accounting for more than 40% of this figure.

Pinzgau Milch, headquartered in Maishofen, is known for producing drinking milk, butter, yogurt, and cheese, with nearly 60% of its milk being organic. It reported a turnover of €155 million in 2024, with exports making up 47% of its sales.

According to Markus Buchmayr, managing director of Pinzgau, the merger will allow the companies to better utilize synergies and implement future-oriented plans while strengthening product regionality and quality. Andreas Gasteiger, managing director of SalzburgMilch, emphasized the merger's role in securing the long-term viability of regional farming structures.

The merger will maintain all existing sites in Salzburg, Lamprechtshausen, Maishofen, and Kössen in Tyrol. This move follows other recent mergers within Europe’s dairy industry, such as Arla Foods' merger with DMK Group and FrieslandCampina's planned merger with Milcobel.