Valio plans to close Oulu dairy plant as Finns drink less milk

Finnish dairy company Valio intends to shut down its production plant in Oulu due to declining milk consumption, public broadcaster Yle reports. The company will begin co-determination negotiations on May 25, with operations set to be transferred to Riihimäki, Jyväskylä, and Joensuu by mid-2028.

The Oulu plant primarily produces fresh milk products, including drinking milk, fermented dairy, and snack items. Valio’s Operations Director Juha Penttilä cited a decades-long decline in basic milk consumption as a key factor behind the decision.

“Finns are drinking less regular milk. This is a trend that has continued for decades,” Penttilä said, noting that consumer habits have shifted toward other product categories. Rising production costs have also contributed to the planned closure.

Around 300 employees currently work in production at the Oulu facility. The upcoming negotiations will involve 264 staff members, with an estimated 140 jobs at risk. Valio employs approximately 4,600 people in total, with around 4,000 based in Finland.

The company stated that consolidating production aims to improve efficiency, profitability, and competitiveness. A distribution warehouse and other functions will remain in Oulu after production ends.