Agropur is hunkering down for the trade fight with United States President Donald Trump by putting some projects on hold.
Émile Cordeau, the chief executive officer, said Wednesday that the uncertain economic climate means additional risk, which could push back the launch of some projects.
The projects under review include initiatives to reduce the waste of non-fat solids such as infant formula that has recently been short of supplies.
Agropur announced Wednesday that its sales increased by 6.8 per cent in its fiscal year which ended Nov. 2 and its earnings before interest, tax and amortization (EBITDA) increased by 11.7 per cent to $609.6 million.
Agropur will pay $60 million to its 2,700 members in the form of rebates and repurchase of shares and debt securities, which represents an increase of almost 20 per cent compared to 2023.
Cordeau said he hopes supply management will not be used as a bargaining chip in trade negotiations with the U.S.
Quebec Premier François Legault said his support for supply management was “non-negotiable.” Several federal ministers have also recently spoken up to defend the system.
However, Cordeau said Agropur will be able to adapt if things don’t go the industry’s way.
“Will it be simple? Probably not, but the cooperative model was always resilient, and we’ll adapt to what happens in the future,” he said.
