Valio CEO Announces Strategic Progress and Challenges Amidst Global Market Dynamics
Source: The DairyNews
Valio, a finnish player in the dairy and food industry, continues to navigate the complexities of the global market in 2024. Annikka Hurme, CEO of Valio, acknowledges the challenging business environment but remains optimistic about the long-term prospects of the food industry, The Dairynews.today reports, reporting on Valio's materials.
"Increasing consumption of dairy products in emerging markets like Asia and the rising popularity of plant-based products in the western world are positive indicators for our industry," says Hurme.
Amidst these market dynamics, Valio remains committed to its strategic objectives. "We are focused on driving growth, enhancing operational efficiency, and improving profitability through strategic initiatives," explains Hurme.
Key among these initiatives is the development of expertise in research and development, sales, and production of value-added powders. Valio Aimo®, the company's wholesale unit, aims to lead the Food Service market in Finland.
The joint venture with energy company St1 Oy, Suomen Lantakaasu Oy, continues its operations according to plan. "We are on track to make the final investment decision on the hybrid facility in Northern Savo by autumn 2024, with operations expected to commence by 2026," says Hurme.
Furthermore, Valio is implementing a comprehensive programme to improve financial results, focusing on efficiency enhancement and cost reduction measures.
A significant milestone for Valio in early 2024 is the launch of Food 2.0, a five-year research, development, and innovation project aimed at creating an environmentally sustainable food system in Finland.
"Securing EUR 10 million funding from Business Finland's challenge competition is a testament to the importance of this project," notes Hurme. "Additionally, we aim to generate additional investments of EUR 100 million in research and development activities and increase exports by over one billion euros in the years following the project."
However, Valio faces challenges on multiple fronts. Change negotiations affecting over a thousand employees were initiated in January to adapt to shifting market dynamics and rising costs.
Moreover, political strikes in Finland and disruptions in sea container transports have impacted Valio's operations, leading to delays in deliveries and significant logistical challenges.
"While we navigate these challenges, we remain committed to ensuring Valio's profitability and ability to support dairy cooperatives," concludes Hurme.
As the spring unfolds, Valio remains vigilant, adapting to market dynamics and striving for continued success in the global food industry.
Amidst these market dynamics, Valio remains committed to its strategic objectives. "We are focused on driving growth, enhancing operational efficiency, and improving profitability through strategic initiatives," explains Hurme.
Key among these initiatives is the development of expertise in research and development, sales, and production of value-added powders. Valio Aimo®, the company's wholesale unit, aims to lead the Food Service market in Finland.
The joint venture with energy company St1 Oy, Suomen Lantakaasu Oy, continues its operations according to plan. "We are on track to make the final investment decision on the hybrid facility in Northern Savo by autumn 2024, with operations expected to commence by 2026," says Hurme.
Furthermore, Valio is implementing a comprehensive programme to improve financial results, focusing on efficiency enhancement and cost reduction measures.
A significant milestone for Valio in early 2024 is the launch of Food 2.0, a five-year research, development, and innovation project aimed at creating an environmentally sustainable food system in Finland.
"Securing EUR 10 million funding from Business Finland's challenge competition is a testament to the importance of this project," notes Hurme. "Additionally, we aim to generate additional investments of EUR 100 million in research and development activities and increase exports by over one billion euros in the years following the project."
However, Valio faces challenges on multiple fronts. Change negotiations affecting over a thousand employees were initiated in January to adapt to shifting market dynamics and rising costs.
Moreover, political strikes in Finland and disruptions in sea container transports have impacted Valio's operations, leading to delays in deliveries and significant logistical challenges.
"While we navigate these challenges, we remain committed to ensuring Valio's profitability and ability to support dairy cooperatives," concludes Hurme.
As the spring unfolds, Valio remains vigilant, adapting to market dynamics and striving for continued success in the global food industry.
