The negotiations between the largest domestic dairy, Berglandmilch based in Wels, and the supermarket chains are currently “in different phases and are certainly challenging,” it said on Monday in response to an APA query. Discussions are ongoing, depending on contract periods and the different product categories.
Delivery stop for products with NÖM logo
The stalled price negotiations between the Lower Austrian dairy NÖM and the supermarket chain Spar have caused a stir in recent weeks. The farmers of the MGN Milk Cooperative Lower Austria, suppliers and co-owners of NÖM, want to maintain the partial supply stop to Spar until an agreement is reached in the price negotiations. However, the delivery stop only applies to products with the NÖM logo. NÖM certainly delivers for the Spar own brand. Spar does not want to accept a general price increase in the double-digit percentage range on the entire range in the interests of consumers. NÖM AG, based in Baden, is the second largest dairy in Austria after Berglandmilch.
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**Interview with Lisa Müller, Dairy Industry Expert**
**Editor:** Thank you for joining us today, Lisa. There’s been a lot of buzz regarding the negotiations between Berglandmilch and the supermarket chains, as well as the delivery stop by NÖM for Spar. Can you shed some light on these developments?
**Lisa Müller:** Absolutely, it’s quite an interesting situation. The negotiations between Berglandmilch and the supermarkets are characterized as “challenging,” which suggests that both parties are really trying to find common ground. With the uncertainty around contract periods and product categories, there’s a lot at stake for both sides.
**Editor:** Right, and we’re seeing the situation with NÖM and Spar escalate. Why is the MGN Milk Cooperative so insistent on maintaining the delivery stop for NÖM products?
**Lisa Müller:** The farmers at MGN Milk Cooperative are under a lot of pressure. They want to ensure fair pricing for their products, especially given rising costs in production. The delivery stop is a strategy to leverage the negotiations and push for a price that reflects their expenses and ensures their livelihoods.
**Editor:** That makes sense. However, I understand that NÖM is still supplying Spar’s own brand products. How does that impact the negotiations?
**Lisa Müller:** It creates a complex dynamic. While NÖM is maintaining a partial supply stop, they are still fulfilling orders for their own brand, which can drive tension. Spar is clearly trying to balance their pricing strategy for consumers while navigating the increased costs from their suppliers. This split can complicate the negotiations, as it potentially weakens the cooperative’s bargaining position.
**Editor:** Spar is concerned about passing on a double-digit percentage price increase to consumers. How realistic is it for them to resist such increases in the current market?
**Lisa Müller:** It is a tough balancing act. Retailers always want to maintain customer loyalty and keep prices competitive. However, with inflation and rising costs in the dairy sector, some price increases may be unavoidable. Ultimately, it will depend on how long the negotiations last and whether both sides can come to a mutually beneficial agreement.
**Editor:** Thank you, Lisa, for your insights. It’s certainly an evolving situation that will impact many stakeholders in the dairy industry and beyond.
**Lisa Müller:** Thank you for having me! It’s an important topic, and I look forward to seeing how it unfolds.
