Dispute over prices

NÖM dairy farmers call a halt to deliveries from Spar

NÖM AG, based in Baden (photo), is the second largest dairy in Austria after Berglandmilch.

(Bild: P. Huber)

Because price negotiations with the Spar food chain had not led to an acceptable result, the farmers of MGN Milchgenossenschaft Niederösterreich, who supply the NÖM dairy, have called a halt to the supply of their milk products. Spar confirmed this on request.

The measure was "unavoidable", MGN Managing Director Leopold Gruber-Doberer was quoted as saying in a press release published on Sunday. The company had already stopped delivering goods to the Spar retail chain last Monday, according to Gruber-Doberer. Spar confirmed on request that no agreement had been reached for the time being.

According to MGN, it is important to show that fairness must be given for the performance and investment of the farms. Behind 2,200 farms in Lower Austria, Eastern Styria and Burgenland are exclusively families who have been dairy farmers for generations and whose livelihoods depend on the fair marketing of their milk.

Spar would inform them that the price increases demanded by NÖM are unacceptable. According to Gruber-Doberer, this is justified by falling raw material and energy prices. "This is an obvious case of misinformation," added the Managing Director of MGN.

No agreement reached in price negotiations
It is true that no agreement was reached in price negotiations with NÖM, said Nicole Berkmann, company spokesperson at Spar, to APA. Because feed and energy prices had fallen, price increases for milk would not be accepted.

However, efforts are being made to find a solution. "We will continue to talk." Berkmann added that nobody need fear that there will be no milk on the shelves at Spar. Other Austrian dairies would take over the supply.

MGN farmers own 35% of NÖM
NÖM AG, based in Baden, is the second largest dairy in Austria after Berglandmilch. It is 65% owned by Raiffeisen-Holding Niederösterreich-Wien and 35% by MGN, whose around 2500 members supply NÖM with raw milk.