MONTREAL – Canada’s second-largest dairy producer, the farmer-owned Agropur Cooperative, says it sees the company’s growth not here in the nation, where it has defended the protectionist supply-management system when threatened with free-trade deals, but in the U.S. where it may import to international markets including north of the border.
“It’s certain that development for all of us will come primarily from the Usa,” said Agropur CEO Robert Coallier throughout a news conference following a company’s annual general meeting in Montreal on Wednesday.
“This year we became among the five largest makers of cheese and dairy ingredients in the United States. We have achieved the critical mass to become major player.”
The Longueuil, Que.-based company reported a 26 percent revenue increase in yesteryear year, totalling $5.9 billion. Of this, 44 percent of revenue originated from U.S. operations.
Related
- $4.3 billion TPP compensation for Canada’s dairy industry is not a done deal: Trade Minister Chrystia FreelandButter shortage forces Canada’s dairy commission to import 8.8-million pounds of butter as cream supply dries up
-
-
-
Agropur continues to be an outspoken defender of Canada’s supply management system, which sets a quota for how much milk could be imported tariff free in order to protect farmers including the co-op’s 3,367 members from foreign competition.
It spoke out from the Trans-Pacific Partnership trade deal allowing countries including New Zealand and also the U.S. greater use of Canada’s dairy market amid slow-growing domestic consumption.
Dairy from Europe, New Zealand, the United States and other countries will gain access to 5.5 per cent more of the Canadian market when the TPP and are ratified and fully work.
Critics say Agropur is hedging its bets by advocating for a system that protects its members while setting up shop within the U.S. and taking advantage of having the ability to import foreign dairy protein.
But the company says it’s only checking up on other two major Canadian dairy players, Saputo Inc. and Parmalat, that also have U.S. operations.
“Agropur is creating a case based on how supply management isn’t working,” said Sylvain Charlebois, a professor within the Food Institute at the University of Guelph. “Agropur feels compelled to compete against Saputo along with other companies, so this is exactly why they need to bring in cheaper protein from abroad,”
The company says it creates 30 percent of Canadian dairy while importing 12 percent of milk protein – proportionally less than its competitors.
In August 2014, Agropur acquired Davisco Foods International operations, doubling its U.S. operations and increasing total milk supply by Half.
For 2015, Agropur reported a ten.2 percent rise in EBITDA to $306 million and processed more than 5.7 billion litres of milk at its plants across The united states.
“Agropur is really a well-managed business, but politically they’re stuck between a rock along with a hard place at this time because of supply management,” Charlebois said.
Along with its dairy farmer ownership, Agropur also has high-powered backers in Quebec, including the Caisse de dp?t et placement du Qubec.
Last December, the co-operative received $300 million from the team investors led by Quebec’s public pension fund manager, putting the group’s total contribution at $770 million.
dvanderlinde@nationalpost.com
Twitter.com/DamonVDL
