Extremely low milk prices do Lely no good

Lely, known for its feeding systems and milking robots, announces that it has been severely hindered by the extremely low milk prices. As a result, purchases from dairy farming declined. The company sees a slightly positive outlook for 2017.   

From 2015 to 2016, Lely recorded a turnover of 502 million euros, a decrease of approximately 10 percent. This is due to lower sales numbers. A logical consequence of the extremely low milk prices. 'On average they were far below cost price.' Lely therefore calls 2016 a 'tumultuous year'. 

'2016 was a difficult year for our customers and therefore also for us. The market conditions were particularly bad, we were visibly affected by this last year', says Alexander van der Lely. Innovation, sustainability and customer focus will be the keywords in the coming years.  

However, there are also bright spots. For example, growth in new markets Japan, Turkey and Russia continued steadily. 'Dairy XL projects at livestock farmers with more than 500 cows also showed positive growth.'

For 2017, the company is once again counting on an uncertain market, in which milk prices will continue to fluctuate. Nevertheless, the dairy segment does see a slightly positive outlook, 'although many customers will also experience difficult economic times in the coming year.'

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