Valio is to start co-operation negotiations on production and support functions at its Tampere dairy, due to impacts on production and finance, in order to adapt production capacity to current market conditions. The negotiations concern around 50 people and the goal is to end production operations at the Tampere dairy.
Valio’s share of basic milk sales by volume in Finland has decreased markedly during the past 3 years and production was transferred last year from Tampere to other Valio dairies. The Tampere unit continued to manufacture special milks and fresh white cheese.
Conditions in the milk markets are still very difficult, the Russian embargo on EU food products continues, and due to the global overproduction of milk and modest demand the prices of dairy products are especially low. The abolition of milk quotas in the EU has made the situation even worse. Finland is not a closed market so the low prices directly impact Valio’s dairy imports and exports.