Valio – Transparent supply chain

The most important areas of responsible sourcing are food safety, supply chain transparency, social responsibility, and environmental responsibility. Together with the various functions, we verify the quality, safety, and origin of the raw materials, as well as the regulatory compliance of packaging. We require our suppliers and subcontractors to also commit to our responsible way of operating.

Measured in kilograms, milk accounts for about 95 per cent of the raw materials used in the products we make in Finland. The other raw materials include, for example, berries, grains, sugar, and rapeseed oil. In this section we address the sourcing of non-milk ingredients in particular. You can read more about milk sourcing from the ‘Cooperative foundation’ section.

ONLY APPROVED SUPPLIERS

Valio’s sourcing policy and principles guide our raw material procurements. We ensure the food safety and responsibility of the supply chain through a supplier approval and management process.

Suppliers must commit to Valio’s Supplier and Distributor Code of Conduct.

Additionally, the suppliers who supply food- or food safety-related products or services to Valio must commit to compliance with the related requirements and guidelines.

The management measures targeting suppliers are based on the classification of suppliers in terms of food safety and responsibility. Suppliers must meet the requirements of the product and supplier surveys defined for their own supplier category as well as the audit requirements in an acceptable manner.

At the start of cooperation, we inspect the most significant suppliers on site. Additionally, we audit our suppliers on the basis of risk assessments. Our own audits are focused on ensuring food safety and quality; in addition, we utilise globally recognised responsibility audits (Smeta, BSCI).

We encourage our raw material producers, particularly in risk countries, to become members of the Sedex organisation. Sedex (Supplier Ethical Data Exchange) is a non-profit organisation that helps its members to promote responsible supply chains. We use the Sedex risk assessment tools to monitor the results of the responsibility assessments and audits of our suppliers.

RESPONSIBLY PRODUCED RAW MATERIALS

There are always responsibility risks related to the production of raw materials because the risks may impact the surrounding environment and people. We have identified the responsibility risks of our supply chain as part of the human rights impact assessment and the supply chain risk assessment. The most serious risks target countries where the protection of human rights is inadequate and the labour force largely consists of migrant workers.

We strive to manage supply chain responsibility risks through supplier management processes. However, it doesn’t always extend deep enough into the supply chain. Therefore, we have separately identified the raw materials requiring special attention, as their production involves a particularly high number of globally known responsibility risks. We pay special attention to these raw materials in line with our global policies.

Read more about our policies on cocoa, palm oil and soy .

RAPESEED OIL AND SUGAR FROM FINLAND

The rapeseed oil we use in Finland is one hundred per cent of domestic origin. The sugar has the Hyvää Suomesta [Produced in Finland] label, i.e. it is at least 75 per cent of domestic origin.

FINLAND’S LARGEST BERRY PROCESSOR

Our yoghurts, for example, are flavoured with jams from the Suonenjoki jam plant. The Pitäjänmäki juice plant makes berry soups and juices. We favour Finnish berries, based on their quality, availability, and price. To ensure availability, we also buy berries, berry mashes, and concentrates from elsewhere in Europe. We use a lot of Finnish blueberries, but Finnish strawberries, e.g., are sold almost entirely directly to households and there isn’t enough for use as an industrial raw material.

We buy tropical fruit mashes, pieces, and concentrates from, e.g., South America and Asia, orange concentrates from Brazil, and Mexico, and pineapple concentrates from Indonesia and Thailand.

RESPONSIBLE SERVICES AND MATERIALS

The sourcing of materials and services that support production and operations, i.e. indirect sourcing, accounts for a big part of our procurements. We have thousands of suppliers, so close cooperation with key suppliers is necessary. We want to develop the efficiency and competitiveness of the supply chain, and we emphasise responsibility already in the tendering phase.

RESPONSIBLE PRODUCTS FOR PROFESSIONAL KITCHENS AND THE FOOD INDUSTRY

Valio Food Solutions serves professional kitchens and the food industry. The dairy products and the juice and berry products we sell to these customers are made by us in-house. We purchase other products, such as frozen foods, from our approved sub-suppliers. The beef, pork, and chicken products we sell under the Valio brand are 100 per cent Finnish.

All our products containing fish help customers to make responsible fish choices: we use Finnish or MSC- or ASC-certified fish that is sustainably caught or raised in accordance with the green-lighted fish in the WWF’s sustainable seafood guide.