Berglandmilch is to invest in production to target “rapidly growing” parts of Austria’s dairy market.

The company is increasing the capacity of its site in Aschbach in the north of the country.

The co-operative has started building work and the project, which should be finished by January, will mean the facility produces 15,000 tons of quark and 7,000 tons cream cheese a year.

“We see that quark and cream cheese are rapidly growing segments. These products are continuously gaining in importance, especially among young consumers. That's why we are investing specifically in this area and continuously developing our product range,” Berglandmilch MD Josef Braunshofer said.

The Aschbach site is the largest of Berglandmilch’s eight factories in Austria. The facility produces cream cheese, butter, yogurt, sour cream and milk.

Berglandmilch is Austria’s largest dairy group, employing around 1,500 staff.

Its brands include Schärdinger, Desserta and Tirol Milch. In 2024, the co-op generated revenue of €1.3bn ($1.6bn).

Last month, Lactalis announced plans to invest in quark production at a site in Germany.