Mr Saputo said the company was hungry for more deals in the Oceania region and South America.
It comes almost 18 months after Saputo trumped local rivals, Murray Goulburn and Bega Cheese, with a $450 million all cash bid to take over Australia’s oldest listed milk processor, Warrnambool Cheese and Butter.
Global milk powder prices have more than halved since Saputo won the battle for WCB, as an abundance of milk from New Zealand and Europe drives global dairy costs to a five-year low.
But the plummeting prices have not dimmed Mr Saputo’s optimism for dairy.
«I’m still bullish about the industry,» he told Fairfax Media.
«If you look at the long term … there are going to be more consumers than supply to feed them, so there is still growth there, and Australia is a strong platform.»
WCB was Saputo’s entry into the Australia-Pacific region and it plans to use the south-west Victorian company as a springboard to capitalise on Asia’s fast-growing middle class.
It has already strengthened its Australian operations. In March, Warrnambool Cheese and Butter bought Lion Dairy & Drinks’ cheese business – which cuts, wraps and distributes cheeses under the Coon, Cracker Barrel and Mil Lel brands – for $138 million.
Mr Saputo said the company was looking for other acquisitions in Australia and New Zealand, which is dominated by the world’s largest dairy exporter Fonterra.
«But there are some smaller operators in New Zealand that are doing wonderful things that we would be interested in.»
Echoing comments from mining giants BHP and Rio Tinto over tumbling iron ore prices, Mr Saputo said the souring global dairy market would «weed out those companies that are not quite as effective or efficient».
«We have to capitalise on those opportunities. There may be smaller companies that want to relinquish their assets because they do not have the desire or the capacity to grow.»
Saputo listed on the Toronto Stock Exchange in 1997. In that time, Mr Saputo said the company has completed 24 acquisitions, with a total value of about $C5 billion ($5.29 billion).
Although it has a strong presence in Argentina, he said Brazil was ripe for investment because «it has a very fragmented dairy system».
«Asia is not the only emerging market. Although China plays an important role in the world market, we are not putting all our eggs in the China basket.
«In terms of mouths to feed, South America is a big market».
Mr Saputo was in Australia for Warrnambool Cheese and Butter’s annual meeting. Although plunging global dairy prices has seen Fonterra slash the price its pays its New Zealand suppliers, Australian farm gate prices are expected to remain at about $6 a kilogram for milk solids in the year ahead.
Industry insiders have pointed to Australia’s biggest milk processor, Murray Goulburn, which listed its $500 million dairy trust this month, as keeping the Australian price high.
But Mr Saputo said he did not believe Australia’s farm gate price was artificially elevated.
«It’s a reflection of where the markets are,» he said.
«Our opening price is $5.60. We are hopeful that there will be step-ups.»
He expected softness in global dairy markets to remain until the end of this year and into the first quarter of 2016, putting «downward pressure» on WCB’s profitability.
But Mr Saputo said «WCB intends to continue to improve its efficiencies, while remaining committed to producing quality products, innovation and growth.»
«The company intends to accelerate its growth activities, invest in capital projects, increase manufacturing capacity, grow milk intake and create new opportunities.»
Source: SMH