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Better Farming Ontario magazine is published 11 times per year. After each edition is published, we share featured articles online.


Saputo makes bid on dairy co-op's fluid milk operations in Atlantic Canada

Thursday, January 16, 2014

by SUSAN MANN

Canada’s largest dairy processor, Saputo Inc. has an agreement with a dairy co-operative in Atlantic Canada to buy its fluid milk business for $61 million.

The transaction is slated to close in March. It will enable Saputo’s dairy division to increase its presence in Atlantic Canada, the company says in a Jan. 17 press release.

Scotsburn Co-Operative Services Limited, a Nova Scotia co-operative, will retain and continue its other activities, such as manufacturing ice cream and frozen novelties.

The deal still has to be approved by Scotsburn’s co-op members, the Canadian Competition Bureau and is subject to usual conditions, the release says.

The Scotsburn co-op’s fluid milk business has two milk processing plants – one in Sydney, Nova Scotia and the other in Mount Pearl, Newfoundland. It employs about 400 people in Atlantic Canada. Scotsburn’s fluid milk business has annual sales of about $160 million.

Saputo, a publicly traded company, produces, markets and distributes a wide variety of dairy products. It is one of the top 10 dairy processors in the world, the third largest in Argentina, and among the top three cheese producers in the United States. Its products are sold in more than 40 countries.

Sandy Vassiadis, Saputo corporate communications director, couldn’t be reached for comment. BF

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