Saputo Inc., one of Canada's largest dairy companies, wants to end a domestic milk ingredient pricing system that has angered the United States, chief executive Lino Saputo Jr. said on Monday, showing a rare crack in solidarity among processors and the country's sheltered dairy farmers.
The Class 7 pricing agreement, struck in 2016 between Canadian dairy processors including Saputo and dairy farmers, allowed processors to pay lower prices for domestic milk ingredients used to make cheese and yogurt, and to export the rest.
"They want their cake and they want to eat it too," Saputo Jr. said in an interview, referring to farmers. "Which doesn't make sense. You can't hold onto your milk supply-managed system and have a class of milk that's competing with world markets at the same time."
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