Saputo will halve plants

by | Oct 4, 2023 | Australia, Volume trends

Saputo Dairy Australia has outlined plans to cut the number of processing plants to five as it right sizes it network to focus on value creation from every drop of milk collected. Speaking at the annual CIBC Eastern Institutional Investor Conference in Montreal, Saputo chief executive Lino Saputo Jr said the company is currently processing 1.8bn litres of milk in 11 plants, but with the sale of two plants to Coles (pending ACCC approval), the closure of another in Victoria and streamlining of a further two, milk will be processed in five plants.

Saputo Jr said the Australian operation has better control of prices received in the domestic market than in the international market as Saputo Dairy Australia has a 60:40 split in supplying domestic versus international markets.