Austrian dairy groups SalzburgMilch, Pinzgau Milch plan merger

Core Viewpoint - Austrian dairy group SalzburgMilch is planning a strategic merger with local peer Pinzgau Milch, aiming to create a joint company and enhance collaboration in dairy product manufacturing [1][5]. Company Overview - SalzburgMilch is Austria's third-largest dairy group, sourcing milk from approximately 2,400 farming suppliers and marketing over 600 products. It processes 331 million kilograms of milk annually and employs around 450 people [3]. - Pinzgau Milch, a contract manufacturer of dairy products, reported a turnover of €155 million in 2024, with 47% of its sales coming from exports. The company employs around 250 people and sources milk from about 1,000 farms, with nearly 60% being organic [4]. Financial Performance - In 2024, SalzburgMilch generated sales of €350 million ($405 million), with more than 40% derived from exports [4]. - Pinzgau Milch's turnover for 2024 was €155 million, with exports constituting 47% of its sales [4]. Strategic Intent - The merger is intended to optimize synergies, strengthen regionality and product quality, and ensure long-term viability of the farming structure while retaining added value within the region [2][5]. - The deal is part of a broader trend of mergers in the European dairy industry, following recent announcements by other major players [5][6].