Valio plans to close its facility in Tampere, Finland, as Russia imposes an embargo on European food products.

The firm has begun redundancy negotiations with 50 employees at the facility.

The Tampere facility was established in 1962 and annually processed 74 million kilograms of raw milk, which was collected from 490 farms, reported RT.com.

"Due to global milk overproduction and weak global demand, prices for milk products are at a very low-level."

Valio was quoted by the website as saying: "The milk market remains extremely difficult; Russia continues its trade sanctions against the EU.

"Due to global milk overproduction and weak global demand, prices for milk products are at a very low-level.

The removal of EU milk quotas has worsened the situation."

The firm stated that the sales volume of milk has shrunk drastically in the last three years.

Last year, the Finnish dairy producer shifted milk production from Tampere to its other facility, which led to 70 job cuts. The facility later began processing specialty milk.

In 2014, Valio’s sales dipped in Russia, after Moscow imposed a ban on some food products imported from Europe, in retaliation to sanctions imposed by the EU. As a result of the Moscow ban, Valio had to cut 200 jobs.

Valio currently has an 85% share in Finland’s total milk production. It operates 15 facilities around the country.

Its operates subsidiaries in Sweden, US, China and Russia.