Saputo’s co-operative call too simplistic, say farmers

16 February 2018

Andrew Miller, Stock & Land
16 February 2018

Claims by the head of Canadian dairy giant, Saputo, European and New Zealand co-operatives were responsible for ongoing volatility in the sector have been dismissed as too simple, by Victorian farmers.

Saputo chief executive Lino Saputo has called on co-operatives to “right size” (adapt to market conditions) the amount of milk they produced, to help iron out fluctuations in supply and demand.

He said milk production should not outpace market growth of one and a half to two per cent a year.

But Fonterra’s Australia milk supply general manager Matt Watt said while Mr Saputo was entitled to his views, co-operatives helped create sustainable growth, right across the value chain.

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