#Saputo CEO chided for failing to lead dairy industry reform

Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

Company hikes dividend, splits stock as profits continue to climb.

A rare dissenting voice made itself heard Tuesday at the annual meeting in Laval of one of Quebec’s most successful companies, Saputo Inc.

Krista Osborne, executive director of Mercy for Animals Canada, used question period as an opportunity to chide the cheese company’s chief executive officer, Lino Saputo Jr., for failing to take a leadership role in stamping out animal cruelty in the dairy industry.

Saputo was vocal last month in condemning the abuse of dairy cows captured on video in an undercover investigation of a British Columbia farm by Mercy for Animals Canada, and even halted milk shipments to the company’s production facilities in the province for two days.

But that’s been about it for his reaction to a problem the industry must address forcefully, Osborne said.

“Lino, you said you’d do all in your power to reform the dairy industry in Canada. Would you spend an hour with me discussing the kind of reforms you’re making? We have no evidence of reforms taking place,” said Osborne, adding that all her attempts to contact or meet with Saputo before the meeting to discuss the issue had been futile.

Saputo, who agreed Tuesday to speak with her, called cruelty to animals “an issue that needs to be brought to light,” but said his company’s role will be to use “our power and clout” to make others initiate changes. Governments, milk-marketing boards and dairy councils are all more directly concerned, he said.

“It’s an industry issue, not a Saputo issue per se,” he said. “We buy our milk through (provincial) milk-marketing boards.”

Osborne said that’s a cop-out, since Saputo is the country’s largest dairy producer and “their supply chain is cruelty.”

“I can only assume it’s not important to them,” she said. “They’re all just hoping this gets swept under the rug.”

Saputo denied that. “We are following up on it. We won’t let this item go until there is some change in the industry.”

Ongoing inspections and live video streaming from dairy farms are among the reforms that Mercy for Animals Canada wants to see introduced.

“We believe this (abuse) is happening across Canada,” Osborne said. “If no one is inspecting facilities on a random basis, there’s no reason to comply.”

The exchange on animal mistreatment was the only departure from what has become a fairly predictable script at Saputo’s annual meeting: reports of higher revenue, growing profits and increased dividends.

The company, with 55 plants in four countries, had revenue of $9.2 billion in its 2014 fiscal year, up 26 per cent, and net earnings of $567 million, an increase of 11 per cent.

For the latest quarter, ended June 30, the first reflecting its 88-per-cent stake in Australian dairy Warrnambool Cheese and Butter Factory, revenue rose another 20 per cent to $2.6 billion, and net earnings came in six per cent higher at $145.3 million.

The company will increase its quarterly dividend to 26 cents per common share from 23 cents in September, and also plans a stock split.

Saputo shares have been on a tear this year, rising more than 40 per cent on the Toronto Stock Exchange, and reached a new peak of $69.08 in trading Tuesday.

Source: Montreal Gazzette

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar

Notas
Relacionadas