Thursday, 7 August 2025
Domestic net sales increased by half a percent and international net sales by about 7 percent.The work that began in 2018 to improve business profitability advanced as planned and was reflected in the improvement in the milk return.
Valio pays all profit to dairy farms
Valio is a company owned by 4,700 Finnish milk producers, and Valio pays its operating profit to the dairy farms through the co-operatives. Valio’s financial success is measured with a milk margin and a milk return. The milk margin** in 2019 amounted to EUR 838 million (800 million), and the milk return* was 41.2 cents per litre (38.4 c/l).
Valio’s Board of Directors determines the raw milk price based on the market situation and Valio’s financial standing. Board members are milk producers. In 2019, the average price Valio paid for milk was 39.9 cents per litre (39.2 c/l). After-payments for 2019 amounted to 1 cent per litre. The sustainability bonus to encourage the continuous improvement of animal welfare was raised to two cents per litre in July.
Throughout the 2000s, Valio has been able to pay Finnish milk producers a higher price than the European average.
Growth in Finland from snacks and plant-based products
Growth in Finland was generated especially in snacks and plant-based products. Valio PROfeel® products continued their strong growth, and the new protein puddings launched in February were a success. The portfolio of plant-based products expanded with Valio Oddlygood® Veggie slices and shreds. The Valio Oddlygood® Barista oat drink developed in collaboration with coffee professionals found its way into the hearts of people in Finland and Sweden. In the traditional categories, milks continued to decline in line with the market trend.
Increase in exports of powders generating customer value
Net sales of international operations were EUR 715 million (669 million). Net sales growth was moderate in the nearby markets of Sweden, Estonia and Russia, while net sales in China grew by close to 40 percent compared to the previous year. We see potential in China especially in special ingredients for the food industry, which we call value-added powders. Profitability improvement in the USA advanced as planned.
Valio’s share of Finland’s total food exports is about 25 percent. A significant share of our exports is destined for places beyond the nearby countries. Our primary exports to countries around the world are milk powders, cheese and butter. The global market price of butter decreased compared to the high level in 2018, but milk powder prices developed favourably after the depletion of the EU intervention stocks.
The so-called value-added powders have attributes that bring Valio’s industrial customers various benefits: for example, a bakery or confectioner can reduce sugar, or a maker of energy snacks for athletes can add protein to their products. Sales of value-added ingredients grew by about 30 percent in 2019.
“We see international growth potential especially in value-added ingredients. The growth is currently limited by the drying capacity of powders because it takes longer to produce value-added powders than ordinary milk powders. In the years ahead, we will be upgrading the production lines to increase plant capacity,” says Valio’s CEO Annikka Hurme.
