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Bad 2015 for Valio–hope for 2016

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The abolition of EU milk quotas led to overproduction in the large Central European dairy countries resulting in a global excess of supply over demand for dairy products. The decrease in demand was caused by e.g. the Russian embargo and weakening consumer purchasing power in Asia. Oversupply depressed global milk prices which affected Valio in terms of low export prices, and an increase in cheap imports and tough price competition on the Finnish market. Consumer Purchasing power was also low in Finland.

Valio is Finland’s biggest food exporter and sells products to nearly 60 countries. Valio’s share of Finland’s dairy product exports was around 97% in 2015, and the company explored new export markets and started making preparations to enter them. In Denmark, Valio will grow in the lactose free products category.

Valio Group net sales for 2015 decreased by 11.9% on the previous year to stand at 1 718 million euros (2014: MEUR 1 950). Net sales fell by 12.3% in international markets and 11.7% in Finland. Exports and international operations accounted for around 35% of net sales.

The milk volume taken in by Valio from its owners totalled 1 899 million litres (2014: 1 929 million litres).

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Updated: 18 mars, 2016 — 07:09
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