Agropur completed the merger with Farmers Dairy in April

Agropur completed the merger with Farmers Dairy in April

Canadian dairy group Agropur has announced it will cut 45 jobs as it integrates the activities of Farmers Co-operative Dairy after the merger between the two companies.

The company said that, while all three of the former Farmers Dairy plants will remain operational, it will cease cheese production at the group's facility in Truro in Nova Scotia. The site will instead focus on producing milk powder and butter, Agropur revealed.

Canadian reports last week suggested the group would look to shed 15 jobs at the facility. In total, Agropur revealed in a statement, it will cut 45 positions in the region - including the 15 positions previously flagged. 

The company emphasised the cuts were necessary in order to "remain competitive" and stressed it will continue to employ more than 450 people in Atlantic Canada.

Agropur and Farmers Dairy first announced plans to merge in February. At the time Agropur unveiled the merger plan, the group argued that consolidation in the Canadian dairy sector would help build a "sustainable future" for Canadian dairy farmers. The deal went through in April.

In a separate announcement last week, Agropur revealed it had acquired Nova Scotia-based milk processor Cook's Dairy for an undisclosed sum.

Show the press release

Agropur Cooperative - Agropur Cooperative announces the consolidation of its activities following the merger with Farmers Cooperative Dairy Limited

LONGUEUIL, QC, June 21, 2013 /CNW Telbec/ - Agropur Cooperative announces the consolidation of its activities after the merger with Farmers Dairy. The new organisation has completed its analysis of all of its activities, including the administration and plant operations. As a result, Agropur confirms that it maintains over 450 jobs in Atlantic Canada and will continue the operation of the three plants previously operated by Farmers Dairy.

In order to remain competitive in the increasingly complex Canadian milk industry market, it is decided that its Truro plant, in Nova Scotia, would specialize in powder/butter, and that the cheese cutting and cheese production/operations will end over the next two months. As a result, Agropur will be eliminating 45 positions in Atlantic Canada over the course of the next six months, including the ones published last week.

"Employees were informed of the decision. As per our commitment at the time of the merger, we are maintaining our production facilities and securing the milk processed by our members in the Atlantic Provinces and we remain committed to our 10 M$ investment program in the region," concluded Robert Coallier.

About Agropur Founded in 1938, Agropur is an important player in the North American dairy industry. With sales of $3.8 billion, the Cooperative is a source of pride for its 3,404 dairy producer owners in Québec, Nova Scotia and Newfoundland and Labrador, and 6,000 employees. Agropur processes more than 3.3 billion litres of milk per year in its 28 plants across Canada and the United States, and boasts an impressive line of products that includes such prestigious brands as Natrel, Québon, OKA, Farmers, Central Dairies, Sealtest, Island Farms, Agropur Grand Cheddar and iögo. Visit www.agropur.com

Original source: Agropur