Saputo Dairy Australia

OVERALL
Owned	CAN
Rating

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.

Company Ownership

Saputo Dairy Australia Pty Ltd	AUS	website	email	facebook	twitter
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.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
Saputo Dairy Australia Pty Ltd
4/5 for packaging performance This company received a packaging performance level of 4 (Leading) in its 2022 APCO Annual Report. Australian Packaging Covenant Organisation (APCO) is a not-for-profit organisation leading the development of a circular economy for packaging in Australia. Each year, APCO Members are required to submit an APCO Annual Report and Action Plan, which includes an overall performance level from 1 (Getting Started) to 5 (Beyond Best Practice). Source: APCO (2022)		Renewable energy use Greenpeace's Reenergise campaign ranks Australia's biggest electricity using companies on their commitments and actions regarding renewable energy use. This company has signed a power purchase agreement (PPA) to buy power from a wind or solar project; but they have not committed to powering their operations by 100% renewable electricity by 2030; and they have not invested in on-site solar. Source: Greenpeace (2021) 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) 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) 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) 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) 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) Organic products Some of this company's products are certified organic by NASAA. Source: NASAA (2022) 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) 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)
Saputo Inc
CDP Climate Change Score of B In 2022, 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 (2022) CDP Water Security Score of B In 2022, 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 B. Source: CDP (2022)	Unsustainable palm oil use This company scores Ethical Consumer's worst rating for their use of palm oil, signifying they are using no or minimal certified palm products, and with no or minimal positive commitments. Source: Ethical Consumer (2022) 8% in methane scorecard The livestock sector is the single largest contributor to man-made methane emissions. Even though rapid reductions of methane emissions are needed to slow the rate of global warming, the largest meat and dairy corporations are oblivious to the problem. Changing Markets' 2021 report 'Blindspot' investigated the policies and actions of 20 meat and dairy giants to reduce their methane emissions. This company scored 8/100 for their methane policy and actions. Source: Changing Markets (2021) 27/100 S&P Global ESG Score This company received an S&P Global ESG Score of 27/100 in the Food Products category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 18 Nov 2022). 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 (2022) 18.2% in Food and Agriculture Benchmark The 2021 Food and Agriculture Benchmark assessed 350 keystone companies across the entirety of the food system, from farm to fork. It covers three dimensions where transformation is needed: nutrition, environment and social inclusion. This company ranked #172/350, with a total score of 18.2/100. Source: World Benchmarking Alliance (2021)	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) 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) 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) CDP Forests Score of C In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Forests Score of C. Source: CDP (2022) Tier 4 in farm animal welfare rankings The 2021 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 (2021) 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)

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Company Details

Type	Wholly-owned subsidiary
Revenue	2.5 billion AUD (2017)
Employees	2,100 (2017)
Aus Manufacturing	Yes
Subsidiaries	Warrnambool Cheese and Butter Factory Company Holdings Ltd  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. Danone Murray Goulburn (50% owned)  Dairy joint venture Murray Goulburn Co-operative and Danone announced their Australian yoghurt joint-venture in March 2010. Manufacturing is at Kiewa (VIC).

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