Saputo Inc. CEO Lino Saputo Jr. weighed in on USMCA’s dairy provisions this week—expressing surprise about the extent to which U.S. companies will be able to access the Canadian dairy market and warning against the potentially disruptive effect of giving import quotas to “the wrong people.”
“What was a little bit of a surprise was the amount of access Canada granted to the U.S. into our market,” said Saputo, in the company’s Q2 earnings call. He added: “All collected, we’re looking at over 10 percent of our market was given to these trading partners.”
Saputo claimed that domestic cheeses could lose shelf space to cheaper items produced abroad and suggested Canada had “made a mistake” in granting similar concessions in previous trade agreements with the European Union, accord to a report from the Toronto Star.
While Saputo lamented the potentially disruptive effect of greater access to the Canadian market for U.S. dairy producers and processors, critics in the U.S. have, conversely, noted that the trade agreement’s dairy provisions were trivial in scope and disappointing to the U.S. dairy industry—particularly to long-beleaguered U.S. dairy farmers suffering from chronic oversupply.
Saputo Inc. also reported the fiscal results of its second quarter 2019. The company noted the following highlights from the 12-week period ending September 30, 2018:
Despite significant growth in the way of revenue, Saputo missed the analyst’s expectation with its net earnings, according to a The Globe and Mail report. The company’s stock had plunged from $30.65 on November 1 to $28.26 as of noon, Friday, November 2.