Saputo Inc. Business Analysis

Saputo Inc. produces and manufactures dairy products, such as cheese and milk. The company operates in the Canada, USA, and International Sectors, with the USA Sector making up most of the total revenue at 49.5%, the Canada Sector with 36.0%, and the International Sector with 14.5%. The company has 51 manufacturing facilities that operate throughout Canada, US, Argentina, and Australia, and sells its products in over 40 countries.
The milk Saputo uses for its products is subject to a variety of pricing policies in accordance with where it was produced. As the corporation operates internationally, it would be affected by any changes in the milk supply system in the countries it operates in, such as whether there is a change in pricing or in the amount
operates in generated about 14.5% of total revenue in the fiscal year 2015. The corporation produces and sells dairy products and ingredients in Argentina, Australia, Canada, and US, and additionally sells to the international market. Raw materials, such as a milk supply, come from some producers in in Argentina and Australia, while the others come from suppliers. Saputo owns two manufacturing facilities in Argentina, as well as two in Australia. In the International Sector, Saputo sells to three different markets: retail, foodservice, and industrial. Based on revenues from the past two years, the company tends to have higher percentages of total revenue in the Industrial market, 56.2% of total sales this year. The next highest market segment with a percentage of total revenue is the Retail market with 31.6%. Finally is the Foodservice market, with the lowest percentage of total revenue out of the three, coming with 12.2%. Although the Industrial market tends to have a higher percentage of total revenue, data on the past two years shows that revenue from the Retail market has actually increased, while the other two