valio net sales in 2022 were eur 2,236 million, up by 15.6% on the previous year (eur 1,934 million).
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With the business success, during the year Valio was able to raise the milk price paid to cooperatives by 36 percent.
Domestic net sales increased by 17.6 % and international net sales by 12.4%. Some of the growth is attributed to the acquisition of Heinon Tukku in summer 2021. Heinon Tukku was included in the 2021 comparison figures starting from the second half of the year.
Valio is owned by some 3,700 Finnish dairy farms through cooperatives. Valio’s main purpose is to pay the best possible return to its owners, i.e. the dairy farms, through the cooperatives.
Dairy farms faced an extremely tough year with, in some cases, manifold increases in fertiliser, energy and animal feed prices and significant increases in production costs at the farms. Problems also arose regarding the availability of some production inputs. At the same time, Valio’s industrial operations costs increased drastically as a result of, for instance, higher energy prices.
Valio’s financial success is measured with a milk margin* and a milk return**. The milk margin amounted to EUR 1,008 million (EUR 862 million), and the milk return was 52.5 cents per litre (43.7 c/l). The average price paid to the cooperatives for raw milk was 52.1 cents per litre (42.3 c/l). The price includes the after payments made to the cooperatives for 2022.
“Under these difficult circumstances, Valio was able to boost its operational efficiency, achieve cost savings and absorb the higher costs into its product pricing. The global market prices were also favourable. For these reasons, we generated a record milk return and were able to raise the milk price paid to cooperatives by a total of about 36 per cent. This is a major achievement in a very challenging market situation. All production plants operated normally throughout the year, and delivery reliability to customers remained at a good level,†Valio’s CEO Annikka Hurme reflects on the year.
At the end of 2022, there were about 3,700 Valio farms, i.e. some 300 fewer than in 2021. The vitality of dairy farms and their ability to continue operating in different situations is important in securing domestic food production.
“Our goal is to secure the future of Valio dairy farms, both in medium and long term, and to ensure that milk production, which is particularly well suited to Finnish nature, remains in Finland,†Hurme continues.
Net sales from Valio’s international operations totalled EUR 832 million (EUR 740 million). Product exports from Finland to some 50 countries totalled about EUR 553 million. Valio’s exports accounts for about 25 per cent of Finland’s total food exports. ■