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Warrnambool Cheese & Butter

OVERALL

Owned
CAN
Rating
Praises, some criticism

Dairy producer

One of Australia's biggest dairy companies. Established in 1888. Canadian dairy giant Saputo acquired an 88% stake in Jan 2014, and the remaining shares in Mar 2017. Saputo also bought Murray Goulburn in 2018 and has begun to integrate the two companies under the name Saputo Dairy Australia.

Company Ownership

Warrnambool Cheese and Butter Factory Company Holdings Ltd   AUS     website   email      
  Saputo Dairy Australia Pty Ltd   
   owns 100% of Warrnambool Cheese and Butter Factory Company Holdings Ltd  
AUS     website   email   facebook   twitter

Dairy product manufacturing

Saputo Dairy Australia was formed in 2018 when Canadian dairy giant Saputo bought Murray Goulburn Co-operative for $1.3 billion. Murray Goulburn Co-operative was previously owned by Australian dairy farmers and formed by farmers in the state of Victoria, Australia in 1950. Saputo also bought Warrnambool Cheese and Butter Factory Company in 2014 and has begun to integrate the two companies under Saputo Dairy Australia.

      Saputo Inc   
       owns 100% of Saputo Dairy Australia Pty Ltd  
CAN     website   email      

Dairy processor

Largest dairy processor in Canada, and the twelfth largest in the world. Majority owned by the founding Saputo family. Founded in Canada in 1954, the company has expanded by mergers and acquisitions, particularly the USA, UK, Germany and Argentina. Acquired Australian dairy companies Warrnambool Cheese & Butter in 2014 and Murray Goulburn in 2018, and has begun to integrate the two companies under the name Saputo Dairy Australia.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Warrnambool Cheese and Butter Factory Company Holdings Ltd
Environment Fined by the EPA
In Aug 2018 the VIC Environment Protection Authority (EPA) issued a $7,929 penalty notice to this company for expanding its Allansford operations without a works approval.
Source: EPA (2018)
Saputo Dairy Australia Pty Ltd
Environment Australian Packaging Covenant signatory
Signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation.
Source: Australian Packaging Covenant (2020)
Social Breaching advertising codes
This company has been criticised for offensive advertising. In 2013/14 the Advertising Standards Bureau upheld complaints about five ads by this company on the grounds that they breached advertising codes. The ads were subsequently discontinued or modified.
Source: Advertising Standards Bureau (2014)
Business Ethics Cuts to farm-gate price
In April 2016 Murray Goulburn reduced its farm-gate price for raw milk from an average of $5.60 to $4.75-$5. This was criticised as below the cost of production.
Source: news article (2016)
Business Ethics Excessive executive pay
Former Murray Goulburn boss Gary Helou pocketed $10 million as farmers struggle to break even after reduced farm-gate prices for milk. Now Mr Helou, who owns a $3.2 million luxury NSW home, has been named in a shareholder class action lodged in the Supreme Court which claims Murray Goulburn knowingly made misleading statements about forecast profits and production.
Source: news article (2016)
Business Ethics Pending class action
This company and its eleven directors has been named in a shareholder class action lodged in the Supreme Court in May 2016 which claims Murray Goulburn knowingly made misleading statements about forecast profits and production as it embarked on its $500 million pre float raising.
Source: news article (2016)
Business Ethics Murray Goulburn fined for disclosure breach
In 2017 the Australian Securities and Investments Commission (ASIC) fined Murray Goulburn $650,000 over an alleged breach of its disclosure obligations in the lead-up to a dramatic price cut paid to its farm suppliers in April 2016. Company ownership has since changed.
Source: news article (2017)
Environment Packaging Award 2014/5
Murray Goulburn won awards in 2014 and 2015 from the Australian Packaging Covenant, for demonstrating their commitment to environmental sustainability by performing 'above and beyond' in their efforts to minimise waste. This company achieved the highest overall score in their category, most improved.
Source: Australian Packaging Covenant (2015)
Social MAIF signatory
This company is a signatory to the Manufacturers and Importers Agreement 1992 (MAIF), a voluntary self-regulatory code of conduct between the manufacturers and importers of infant formula in Australia. The MAIF Agreement aims to contribute to the provision of safe and adequate nutrition for infants, by the protection and promotion of breastfeeding and by ensuring the proper use of breast milk substitutes, when they are necessary, on the basis of adequate information through appropriate marketing and distribution.
Source: Australian Govt Dept of Health (2019)
Business Ethics Corporate citizenship claims
This company has corporate citizenship claims on its website, under the headings responsible sourcing, environment, community, food safety and business ethics.
Source: company website (2020)
Business Ethics No tax paid in 2016/7
According to data released by the Australian Tax Office in Dec 2018, this company was one of 2,159 local and foreign-based companies that paid no tax in Australia in 2016-17. Please note however that companies pay income tax on profits, not revenue (total income). While some companies use tax havens and loopholes to avoid paying their fair share of tax in Australia, other companies that paid no tax have perfectly legitimate reasons.
Source: ATO (2018)
Saputo Inc
Environment CDP Climate Change Score of B
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of B.
Source: CDP (2020)
Business Ethics 17/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 17/100 in the Food Products category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 7 Feb 2021). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2021)
Social Fined for worker death in Canada
This company was fined C$187,500 after a worker was killed by a cheese cutting machine. The Ontario Court of Justice levied the fine on May 1, 2018 after the company pleaded guilty to failing to ensure a pinch point was guarded resulting in the worker's death in December 2016.
Source: Bloomberg (2018)
Business Ethics Possible GE in Canada brands
This company has products rated RED in Greenpeace Canada's "How to Avoid Genetically Engineered Foods" Shoppers Guide. Products on the RED list are likely to contain GE or GE-derived ingredients from the most widely grown GE crops, usually corn, soy, canola or cotton. Companies on this list have confirmed that their products may or are likely to be made with GE ingredients, or have not denied using GE foods when given the opportunity to do so.
Source: Greenpeace Canada (2013)
Business Ethics Corporate citizenship claims
This company has corporate citizenship claims on its website, under the headings responsible sourcing, environment, community, food safety and business ethics.
Source: company website (2020)
Social CDP Water Security Score of C
In 2020, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of C.
Source: CDP (2020)
Animals Tier 4 in farm animal welfare rankings
The 2020 Business Benchmark on Farm Animal Welfare (BBFAW) report ranks global food companies on how they are managing and reporting their farm animal welfare policies and practices. This company appeared in tier 4, "Making progress on implementation", with tier 1 being the best, and tier 6 the worst.
Source: BBFAW (2020)
Animals Response to cow abuse video
A 2015 Mercy For Animals Canada investigation revealed animal abuse at Chilliwack Cattle Company - a major Saputo dairy supplier. Saputo responded by releasing a new animal welfare policy and saying it will refuse to buy milk from farmers that don't treat their animals humanely. The policy also commits to eliminating the practice of cutting or docking the cow's tail, administering pain control when dehorning cattle and reducing stress on cows through low-energy animal handling methods.
Source: news article (2015)

> About the Icons

Company Details

Type Wholly-owned subsidiary
Employees 330+

Contact Details

Address 5331 Great Ocean Rd, Allansford, VIC, 3277, Australia
Phone 03 5565 3200
Email wcbf@wcbf.com.au
Website www.wcbf.com.au

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