The operating environment in 2023 has been highly challenging for Valio and the entire food industry. With economic uncertainty being a significant issue, there has been a drastic decline in the global market prices of industrial dairy products coupled with an increase in inflation.
There has also been a 30% increase in the costs of farm ownership and maintenance compared to 2021, so this has made the industry a challenging operating environment during recent months.
However, during this time, Valio's net sales stood at EUR €2.27 million, which is up 2% on 2022.
The growth in net sales stemmed largely from the price rises implemented in 2022. Weakening consumer purchasing power and the drastic decline in the global market prices of butter and milk powder together with cost inflation resulted in a fall in the milk return, which is used to measure Valio’s profitability. Domestic net sales increased by 6.8%, and international net sales decreased by 6.5%.
International product exports from Finland totalled around €507 million. In export markets, Valio’s profitability was challenged by the fall in global market prices of industrial products, as well as the poor global economic conditions, which was reflected in the demand for value-added ingredients and solutions for international industrial customers.
In line with its strategy, Valio continued investments in value-added ingredients.