Lino Saputo Jr, the chief executive of Canadian dairy giant, Saputo, which this year took control of 88 per cent of Warrnambool Cheese and Butter is hoping to see 10 percent more milk every year, ABC News reports.
Saputo met with suppliers in South Australia and Victoria to answer the question of: “How can we come up with programs that would encourage the current dairy farmer to invest in the business and the next generation to think about dairy farming as an industry and as a business for their future?”
Saputo said Warrnambool Cheese and Butter (WCB) would readily invest in infrastructure should suppliers provide more product, but acknowledges cashflow problems stem back to the farm gate.
“I understand dairy farmers have had a tough run over the course of the last 10 years,” he said.
“I think there were a lot of promises made with respect to the growing international demands, specifically coming from China, which hasn’t really materialised.
“I believe that demand will come. I believe the next 10 years will be much more prosperous than the past 10 years.”
Part of WCB’s push is an incentive scheme that would provide incremental payment increases for milk produced beyond what a farmer is already supplying.
“It’s not an upfront payment, it’s an allocation for incremental volumes of milk where we can take a percentage and show them we’re prepared to invest for the future,” he said.
