Canadian dairy company Saputo said it expects U.S. dairy markets to progressively improve throughout the year, while global demand for dairy products is expected to remain moderate.
On international dairy-market prices:
The company said it sees global subdued international dairy market prices due to macroeconomic conditions. “Inflationary pressures are anticipated to moderate versus the prior fiscal year. However, labor costs may remain elevated in addition to increases in marketing and advertising investments to support new product launches and our brands,” Saputo said. It added it expects to see steady improvements and remains on course to deliver on long-term goals.
The Europe Sector “is expected to benefit from the cycle through of high-cost inventory, an improved product mix from higher retail sales volume, and a lower cost base following cost-out initiatives and site consolidation,” Saputo said.
The company also said “the International Sector should benefit from lower overall milk prices in Australia, while Argentina will be operating under macroeconomic volatility.”
Some factors affecting fiscal year 2025 performance in FY25 include the economic health of consumers, the rate of input cost inflation, commodity-market and foreign-exchange volatility, the supply-chain environment, and benefits from the company’s Global Strategic Plan, Saputo said. It added that “inflationary pressures are anticipated to moderate versus the prior fiscal year.”
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