Finland's biggest dairy processor, Valio has seen its net sales in 2009 stood at EUR1.79 billion (US$2.43 billion), down 3% on the previous year.

Increased expenses combined with a decrease in sales have resulted in the milk margin falling to EUR863 million (US$1.17 billion), according to the company's statement.

The price paid for raw milk to producers had to be reduced twice during the year to match Valio's return on milk equivalent. The average milk profit for the year fell 44% to EUR0.39 (US$0.53) per litre. Nevertheless, Valio paid Valio Group dairy co-operatives EUR0.40 (US$0.54) per litre for raw milk.

The EUR67-million (US$91-million) share issue implemented during the year and the profit for the financial year at EUR17.7 million (US$24.06 million) improved the equity/assets ratio which rose to 43%. Valio's investments totalled EUR79 million (US$107 million), down 36% on the previous year. 

The milk volume taken in by Valio from its owners totalled 1,899 million litres, up 18 million litres a year ago.

The difficult market situation continued in early 2010. Cheap imports have pushed the prices of basic dairy products in Finland to a very low level compared with the rest of Europe. The weakening euro has improved milk profit from exports.