Dairy company Saputo has announced plans to close two plants in Canada is it looks to improve its operational efficiency.
The dairy company will shutter its facilities in Trenton, Ontario, and Saint John, New Brunswick, in September 2020 and January 2021 respectively.
The current production of both these sites will be integrated into other Saputo facilities across Canada. Approximately 280 employees will be impacted.
“In Canada, the landscape remains competitive,” said Saputo CEO Lino Saputo in a conference call after the company released its fiscal third-quarter results.
In the quarter ended 31 December 2019, the company posted revenues of CAD 3.89 billion ($2.93 billion), up 8.8%, and net earnings of CAD 197.8 million ($148.8 million), down 42.2%.
The results were boosted by Saputo’s acquisitions last year of Cathedral City maker Dairy Crest and the specialty cheese business of Lion Dairy & Drinks.
Saputo has revealed plans to diversify its product portfolio by pursuing more plant-based opportunities. It will look to increase its presence in this category through a series of investments in manufacturing, sales and distribution.
For fiscal 2020, Saputo expects to continue facing competitive market conditions in the US, unsettled economic conditions in Argentina, volatility in international selling prices of cheese and dairy ingredients, and reduced availability of raw milk due to extreme weather in Australia.
© FoodBev Media Ltd 2019