Valio

Valio Ltd (Finnish: Valio Oy) is a Finnish dairy and food company founded in 1905. Valio is a significant participant in the global dairy ingredients market^[1] and Finland’s largest milk processor, with Valio dairy farmers producing about 80% of the country’s milk^[2]. Valio’s product development is based on the work of Nobel Prize–winning chemist A. I. Virtanen, and the company holds more than 300 patents in 50 countries^[1].

Valio manufactures milk‑ and plant‑based food products and operates in both consumer and wholesale markets. The company holds a joint ownership stake in Suomen Lantakaasu Oy, which produces biogas from dairy farm manure as part of circular economy initiatives^[1].

Valio reported net sales of EUR 2.3 billion and exports food products for consumers and the food industry to around 50 countries. Its exports include butter and milk powders for industrial use, as well as snack products, cheeses, and plant‑based products for consumers. Around one quarter of Finland’s food exports consist of Valio products, and nearly all milk product exports originate from Valio^[3].

Valio is owned by 13 dairy cooperatives and sources its milk through procurement agreements with five of them, representing approximately 3,200 dairy farms^[4]. Valio employs approximately 25,000 people at dairy farms and around 4,200 professionals at Valio^[1].

Valio was founded in 1905 by 17 co-operative dairies. The original name of the company was Voivienti-osuusliike Valio r.l, or 'Butter Export Cooperative Valio'. The company was originally based in Hanko and the most important market was England.

Valio's activities expanded from butter to other dairy products in 1909, and by the 1920s Valio's marketing in Finland was bigger than abroad. In 1933, Valio started production of Koskenlaskija Finnish brand of processed cheese in Helsinki.^[5] In the United States, Valio sold Pasteurized Process Gruyere Cheese in a wooden box, with graphics on 2 sides.

Artturi Ilmari Virtanen, who received the Nobel Prize in Chemistry, was an employee of Valio. The prize was given "for his research and inventions in agricultural and nutrition chemistry, especially for his fodder preservation method". Virtanen's work preserved nutrients in hay, which lead cows to produce more nutritious milk.^[6]

In 2001, Valio launched a lactose-free milk drink which is not sweet like HYLA milk but has the fresh taste of ordinary milk. Valio patented the chromatographic separation method to remove lactose. Valio also markets these products in Sweden, Estonia, and the United States, where the company says ultrafiltration is used.^[7]

In Belgium the products were present under the Valio brand until 2013, but the name changed after Valio sold their Belgian subsidiary in 2012. The brand is now called Dilea,^[8] and the drink is still made using the Valio process.

Valio sold its ice cream activity to overseas company Nestlé in 2004. Nestlé also received the right to use the Valiojäätelö name for 10 years, ending in 2014.^[9] It was soon transferred into the Nestle/R&R Ice Cream joint venture Froneri Finland.^[10]

In 2005, Valion Jäätelöbaari (Valio Ice Cream Bar), designed by Paola Suhonen, was opened in Kamppi Center, Helsinki.

In 2007, Valio invested approx. €60 million in a factory near Moscow for the packaging of cheese and butter for the Russian market, as well as for logistics operations from Moscow up to the Pacific Ocean. The products were mostly imported from the mother company in Finland. The production capacity of the plant was 8,000 Mt per year with 400 employees and could be expanded up to 20,000 Mt. The turnover of Valio in Russia was €283 million in 2010, making it the biggest Finnish consumer business on the Russian market after Nokia. After Russia imposed sanctions on the EU, butter made by Valio appeared in supermarkets in the USA under the FINLANDIA brand.

Valio is owned by dairy cooperatives comprising 3,200 dairy farms. Through this ownership structure, Valio distributes its operating profits to Finnish dairy farmers.^[2]

Valio dairy farms produce around 80 percent of Finnish milk. In Finland, Valio sources its milk from its owner farms, while in Estonia milk is sourced from local producers in accordance with defined quality requirements^[2].

Valio operates production plants in Finland and Estonia. All products manufactured for sale in Finland and for export are produced using Finnish milk at the company's 13 production plants. In Finland, the milk used in production is sourced from Valio’s Finnish owner‑entrepreneur farms, while in Estonia milk is sourced from partner producers whose quality is subject to ongoing monitoring. Valio subsidiaries operate in Sweden, China, and the United States. Valio exports its products to around 50 countries. Its exports include milk and whey powders and butter for the food and baby food industries, as well as consumer products^[3].

Valio’s innovation activity has been influenced by scientific research, including the work of Nobel Prize–winning chemist Artturi Ilmari Virtanen, who previously led the company’s laboratory. The company continues to emphasize product development and technological innovation and holds more than 300 patents worldwide^[1].

Valio states that responsibility for the environment, the economy, people, and society is integrated into its operations. According to the company, the cornerstones of its sustainability approach include the cooperative ownership model, animal welfare, and sustainable milk production. Valio has outlined efforts aimed at reducing the environmental and climate impacts of food production, including emission reductions, the expansion of carbon sinks, the promotion of biodiversity, and the development of circular economy solutions^[11].

Animal welfare is described by the company as a central element of its operations. Valio has indicated a focus on animal health, living conditions, and nutrition at Valio dairy farms. Responsible operations at Valio also include food safety, resource‑efficient production, and packaging development. According to the company, packaging is designed to protect product safety and shelf life while keeping environmental impacts as low as possible. Valio publishes an annual sustainability report covering environmental, social, and animal‑welfare‑related topics^[11].

Media related to Valio at Wikimedia Commons

• Official site