Austrian dairy farmers, represented by their umbrella organization NÖM, decided last week to temporarily stop supplying milk to Spar. Supplies are expected to run out soon. The reason for this boycott is stalled price negotiations.
With a market share of over 30 percent, Spar holds considerable market power in the Austrian grocery retail sector. The second largest dairy processor and the largest supermarket chain still cannot agree on a higher milk price. Other Austrian supermarkets have agreed to the increase.
NÖM represents the interests of over 2,000 dairy farmers who are demanding compensation for their increased costs. The retail group, on the other hand, maintains that it does not understand the requested increase and therefore refuses to pay it.
According to Austrian dairy farmers, current rates no longer cover the rising costs of production, such as energy and feed. NÖM therefore demands an increase, while Spar has indicated that this would lead to unacceptable price hikes for consumers.
It is estimated that hundreds of dairy farmers are involved in the boycott. Together they normally supply a large portion of their milk production to Spar. The Austrian Farmers' Association (LKÖ) has expressed solidarity with the farmers, stating they cannot survive without fair compensation.
While Spar stands firm, other supermarket chains in Austria have agreed to the new prices. This means that farmers' dairy products still reach store shelves elsewhere, making Spar the only supermarket affected by the supply stoppage.
Although Spar is trying to find alternatives for the missing milk products, the chain is affected by the action. Both the farmers and supermarket chain are keeping the door open for further negotiations.