Saputo goes to plant 'milk' as its dairy milk sales fall

In a call with analysts, Saputo chief executive Lino Saputo said the decision to make plant-based dairy alternatives reflected a need to "be where the consumers are".

"Plant-based for us is not that different from the dairy infrastructure we use to process milk and we can leverage the expertise we have, including manufacturing expertise."

Saputo was not planning to exit dairy.

"Dairy is not dead. There is still great life in dairy," Mr Saputo said.

"Anything we do in plant-based is going to be an add-on to be able to leverage some of our expenses."

The factory closures will affect approximately 280 employees, although the production of both sites will be integrated into other Saputo facilities in Canada.