Berglandmilch is in negotiations over a possible “merger” with fellow Austrian dairy group Obersteirische Molkerei.

A spokesperson for Berglandmilch, Austria’s largest dairy business, confirmed the “discussions” are taking place but declined to comment further.

Berglandmilch, which employs around 1,500 staff, markets products under brands include Schärdinger, Desserta and Tirol Milch.

In 2024, the co-op, which is supplied by 8,000 farmers, generated revenue of €1.3bn ($1.6bn). It has nine processing sites.

Obersteirische Molkerei, which, like Berglandmilch, is a co-operative, has three dairy factories: one in each of Knittelfeld, Spielberg and Kapfenberg.

The co-op employs more than 600 staff and booked revenue of €374m in 2024, according to its website.

In July, Berglandmilch outlined plans 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.