milk products,
prices
The Supreme administrative court of Finland confirmed the fine of €70 million for Valio
On 29 December 2016 the Supreme administrative court of Finland made a decision on the case of basic prices for milk in Finland in 2010-2012. It was agreed that Valio had used its dominant market position to lower the prices for the purchase of raw milk, noted in the report of the Finnish press service of the company. The court confirmed the fine of € 70 million.
Vesa Kaunisto, the Chairman of the Board of Directors of Valio, says that this decision will not affect the price paid for raw milk to farmers. The decision means that the competitors of Valio will be able to claim damages in the district court of Helsinki. The trial is likely to last for several years.
— Up to a certain time strong equity and cash of Valio will serve as a buffer. In the next 10 years we will have to reconsider our investment projects in Finland, says Kaunisto.
The price that Valio pays to farmers for raw milk depends on the success of Valio products in Finland, Sweden and other markets, from global prices for dairy ingredients (whey and butter for the food industry) and economic efficiency of company’s activity.
— We are disappointed by the decision, but the matter is now closed. We will continue to develop further, focus on our strengths: on responsible production of dairy products, creating world-class innovations, such as lactic salt Valio ValSa®, on development and sales of attractive for the consumer products — snacks with reduced sugar content and high protein content, which benefit the inhabitants of Finland and other countries, — said Annika Hurme, general director of Valio.