NÖM faces losses

Lower Austrian Dairies (NÖM), the country’s second largest milk processor with a total 330 m kg per year, reports a trading loss of €7.3 million during 2011  and the management in Baden, Austria, lays much of the blame on its British branch’s performance. When NÖM opened its UK plant in Telford three years ago, Britain was one of Europe’s most promising milk markets, reports Michaela Stefan, spokesperson for major NÖM shareholder, the Lower Austria-Vienna Raiffeisen Bank. She adds, “since the general financial crisis conditions have changed radically” total investment for entry into the UK market was €125 m and the running-in losses since 2009 now top €51 m.  The bank has promised another €25 m to the dairy and NÖM is searching for a partner to help support the Telford business.

There is a more optimistic outlook for the present year, however. A stronger Austrian market and rising export returns mean that it can at least expect a positive turnover by the end of 2012.