Saputo Criticized for Executive Remarks on Sustained Lower Milk Prices
Source: DairyNews.today
Saputo Inc. has come under heavy criticism from Victorian dairy leaders following comments by its Chief Financial Officer, Maxime Therrien, who expressed hope that lower Australian farmgate milk prices "will stick." These remarks, made during an investor briefing earlier this month, have sparked significant backlash within the Australian dairy community.
This season, Saputo, alongside other Australian dairy processors, implemented a reduction in farmgate milk prices by 10-16%, bringing the average weighted price down to $8-$8.15 per kilogram of milk solids, a significant drop fr om last season's $9.30/kg MS. The comments from Mr. Therrien have been met with strong disapproval, particularly in Victoria, wh ere local industry leaders and farmers perceive them as indicative of a disconnect between the multinational corporation and the realities faced by Australian dairy producers.
Mark Billing, President of Dairy Farmers Victoria, voiced his concerns, stating, "Here we have a multinational company that treats their dairy farmers almost with disdain. It would be nice to think the local management has a better understanding." He drew parallels to 2016, when Fonterra and the former Murray-Goulburn cooperative faced backlash for clawing back milk payments, suggesting that history may repeat itself with Saputo's milk volumes potentially being impacted in the future. "Who wants to supply a company that has that sort of thinking?" Billing added.
Bernie Free, President of United Dairyfarmers of Victoria, noted that while no farmers had explicitly stated their intention to leave Saputo, the remarks had certainly caused many to reconsider their future contracts. "Trust goes both ways," Free emphasized. "These factories seem to want trust to run one way. At the start of the season, they all spouted that as soon as a step-up would be available, it would be given. These words seem to say Saputo has a different attitude than they had signaled at the start of the year."
Free further suggested that other processors might be quietly observing the situation, gaining insight into Saputo's stance on milk pricing. This sentiment was echoed by Woolsthorpe dairy farmer Brian McLaren, who described the situation as reminiscent of the Murray-Goulburn days. "They are just trying to screw us," he said, reflecting the frustration felt by many in the industry.
McLaren, who operates a 700-head herd, expressed his disillusionment with the industry, despite his loyalty to Saputo. "You have to question whether it is worth doing?" he remarked. The rising costs, particularly with hay priced at $340 a tonne, coupled with persistent dry conditions, have made the situation increasingly untenable for many farmers. "Processors want the cheapest possible milk to make as much money as they can, at the expense of the farmer," McLaren concluded, underscoring the growing disconnect between processors and producers.
Mark Billing, President of Dairy Farmers Victoria, voiced his concerns, stating, "Here we have a multinational company that treats their dairy farmers almost with disdain. It would be nice to think the local management has a better understanding." He drew parallels to 2016, when Fonterra and the former Murray-Goulburn cooperative faced backlash for clawing back milk payments, suggesting that history may repeat itself with Saputo's milk volumes potentially being impacted in the future. "Who wants to supply a company that has that sort of thinking?" Billing added.
Bernie Free, President of United Dairyfarmers of Victoria, noted that while no farmers had explicitly stated their intention to leave Saputo, the remarks had certainly caused many to reconsider their future contracts. "Trust goes both ways," Free emphasized. "These factories seem to want trust to run one way. At the start of the season, they all spouted that as soon as a step-up would be available, it would be given. These words seem to say Saputo has a different attitude than they had signaled at the start of the year."
Free further suggested that other processors might be quietly observing the situation, gaining insight into Saputo's stance on milk pricing. This sentiment was echoed by Woolsthorpe dairy farmer Brian McLaren, who described the situation as reminiscent of the Murray-Goulburn days. "They are just trying to screw us," he said, reflecting the frustration felt by many in the industry.
McLaren, who operates a 700-head herd, expressed his disillusionment with the industry, despite his loyalty to Saputo. "You have to question whether it is worth doing?" he remarked. The rising costs, particularly with hay priced at $340 a tonne, coupled with persistent dry conditions, have made the situation increasingly untenable for many farmers. "Processors want the cheapest possible milk to make as much money as they can, at the expense of the farmer," McLaren concluded, underscoring the growing disconnect between processors and producers.
