WINNIPEG (Reuters) — Agropur Co-operative is looking to expand in the United States in the face of an expected erosion of its market share in Canada because of recent trade deals.
Agropur, which is Canada’s second-biggest dairy behind Saputo Inc., has already bought U.S. businesses and recently raised $300 million for acquisitions.
Its brands include Iogo yogurt and Oka cheese.
The Trans-Pacific Partnership trade deal and the Canada-European Union trade agreement have provided extra incentive for dairies to expand outside Canada’s supply management system.
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Other countries will gain access to 5.5 percent more of the Canadian market once the deals take effect.
The fragmented U.S. dairy industry looks inviting for Quebec-based Agropur, which earned 44 percent of its $5.9 billion in revenue last year south of the border.
“Our focus should be to participate in the American consolidation of the dairy industry,” chief executive Robert Coallier said.
Buying opportunities are “substantial,” he added.
Family-owned U.S. dairies are of particular interest because they may mesh well with Agropur’s culture, he said.
The United States is the second-largest consumer of cheese after the European Union and third-biggest fluid milk consumer, according to U.S. Department of Agriculture.
