The price paid for raw milk to producers had to be reduced twice during the year to match Valio’s return on milk equivalent. The average milk profit for the year fell from 44 cents to 39 cents a litre. Nevertheless, Valio paid Valio Group dairy cooperatives 40.4 cents a litre for raw milk (2008: 47.2 cents).
The €67m share issue implemented during the year and the profit for the financial year at €17.7 (2008: €-5m) improved the equity/assets ratio which rose to 43% (2008: 36%). Valio’s investments totalled €79m (2008: €118m).
The milk volume taken in by Valio from its owners totalled 1,899m litres, up 18m litres on the previous year.
The difficult market situation continued in early 2010. Cheap imports have pushed the prices of basic dairy products in Finland to a very low level compared with the rest of Europe. The weakening euro has improved milk profit from exports.
© FoodBev Media Ltd 2019