Prohibition of measures not granted to Valio

Valio Ltd was not granted the prohibition of measures it had sought from the Market Court, which would have allowed the company to price its basic milks at a competitive level at least until the Market Court hands down its final decision on the case, which is expected around the end of 2013 at the earliest.

According to the decision issued by the Finnish Competition Authority (now Finnish Competition and Consumer Authority) in December 2012, Valio is claimed to be open to the charge of predatory pricing because it has allegedly sold basic milks at a loss-making price. Valio entirely rejects the veracity of the grounds on which the decision was made. Valio has not sold basic milks at a wholesale price that generates a loss.

It is regrettable from the perspective of Valio’s business operations that the only nationwide Finnish player is not permitted to participate in the competition for basic milks on market terms. Since the price increase of basic milks caused by the decision of the Finnish Competition and Consumer Authority, Valio’s basic milk sales volumes have fallen. In May 2013, Valio’s basic milks market share in the province of Uusimaa was just 23% of the total sales volume, and in Finland as a whole 39%. (Source: Nielsen Homescan, moving 12 month average to 19 May 2013)