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Finnish dairy giants settle “milk war”

The biggest dairy firms in Finland have settled a long-running dispute over unfair competition, but they are keeping mum over the details.

Arlan ja Valion tlkeistä kaadetaan maitoa samaan lasiin.
Valio and Arla on Thursday settled a long-running dispute over price dumping. Image: Sari Gustafsson / Lehtikuva

Arla and Valio, the two companies that dominate Finland’s milk market, have settled a dispute over price dumping.

The case started in 2014 when Arla filed suit demanding compensation for Valio selling milk on the wholesale market at below the cost of production.

The row had been ruled on by the Market Court and the highest administrative court in the land, with compensation of 70 million euros due to be paid to Arla.

The courts took the view that Valio, which is a co-operative owned by producers and collects some 80 percent of Finland’s raw milk from farms, had underpriced its milk in an effort to force out Denmark-headquartered Arla from the Finnish market.

Arla and Valio announced on Thursday that they have reached an agreement on the compensation but will not publish details of the deal.

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