Calling himself a “frustrated farmer”, the president of Lactalis Canada which is the country’s largest milk processor, said the company is all about defending dairy farmers against negative comments because the milk Canadians produce is of the highest quality in the world.

Processing milk in 55 countries with commercial operations in over 70 countries, Lactalis is a big deal in the milk processing industry but Mark Taylor came to the Southwestern Ontario Dairy Symposium held February 22 at the Woodstock Fairgrounds in jeans, with a humble attitude and lots of praise for dairy farmers.

The symposium often features processor leaders as their keynote speakers, perhaps to create understanding between farmers and processors which historically have been keen partners or at odds back in the pre-quota days when processors had all the control. 

None of that was evident during this presentation where it almost seemed like Taylor was “selling” the company with two promotional videos, a hefty bout of praise for farmers and leading questions from the question and answer format he chose for this day. However, since joining Lactalis Canada as president and CEO in 2018, he has been instrumental in driving the company’s growth including leading the $1.62 billion acquisition of Kraft Heinz’s natural cheese business, which was the biggest acquisition of its kind in Canadian dairy history. He was also named the Most Influential CEO 2023 by the Toronto Food and Beverage Industry via the international publication, CEO Monthly magazine.

He’s a very accomplished leader and perhaps farmers, who spend too much time in isolation, need to hear that they are a “big deal” from someone so successful.

“I sometimes wonder if consumers really understand the care and attention that farmers put into producing the milk that goes into our products,” he asked the crowd at the symposium. “That is something we need to talk about more because it is data-based and scientifically-grounded and enables us to promote the positive impacts of the dairy industry.”

Taylor said he milked cows for years in the United Kingdom. “In fact, I still milked cows until the year I came to Canada, which was five years ago. I did it at least once a year to remind myself how tough it is and because I really enjoy it. I feel most at home when I am on a farm … not in the office,” he said.

Being a CEO of a company behind iconic brands such as Cracker Barrel, Black Diamond, Balderson, Astro and Lactantia, Taylor clearly spends a lot of time in his office. Lactalis is a family company started in 1944 in Laval, Normandy where the current president’s grandfather made 20 Camembert a day in the front room of his house. “It is the largest dairy business in the world if turnover is any measure,” said Taylor, who now lives in Toronto with his wife Angela and two sons. 

Compared to the UK, Taylor says there are more similarities than differences between the dairy industry there and in Canada. “Supply management is the biggest difference and is envied by farmers the world over,” he said. “I see it as a positive but like any formulaic approach, it’s something that needs to evolve to maintain its relevance.” He believes the biggest threats to supply management are “some of the practices” between retailers and suppliers that have potential to damage the sustainability of the industry, though he did not get into specifics. 

Taylor also encouraged farmers to speak louder against government legislation that deprioritized dairy, such as the recent revision of the Canada Food Guide. “If access to dairy is reduced in the supermarket because of the food guide, which is used by retailers to plan their stores, and perhaps reduce dairy on shelves, that is not good because it leaks into human health with such things as osteoporosis.”

Speaking specifically about Ontario, Taylor said Lactalis continues to invest in the province and will spend $150 million plus in 2024. “The challenge now is to get enough engineers for our plans,” said Taylor. “The demand is there and we want more milk and we have to make sure the infrastructure is there to keep up with it, certainly.” Over half the milk Lactalis Canada buys is from Ontario, which amounts to over one billion litres.

Taylor also touched on the environmental, social and government movement (ESG) saying Lactalis is working on its fourth ESG report. Looking at three main pillars – animal welfare and climate; circular and recycling packaging; and people in communities. “We take a good look at energy production in our larger facilities which are charged with the carbon tax, which is north of $14 million per year. It’s important for us to figure out alternative sources of energy, such as hydrogen which looks feasible and acceptable,” he said. In terms of animal welfare, Lactalis does not directly influence that but “wants to support farmers to further develop good practices,” he said.

Taylor addressed the need for Grocery Code of Conduct saying, firstly, retailers are  “doing a great job for our consumers to improve the overall shopping experience which should be recognized.” However, the issue of listing fees (where a retailer charges a supplier to “list” a new product and will take products off the shelves in order to list the new products) is not a “healthy thing”, said Taylor. “Listing fees do not support innovation because if you have to pass the hurdle of paying millions to get your product in a store, then some manufacturers will decide not to innovate.”

Taylor said he lived through the introduction of a grocery code of practice in the UK in 2013 and “we saw improvement in problematic practices. It also provided certainty for income, reduced risk and helped companies make longer term investment decisions. We need to see this in the Canadian industry,” he said. He also believes Canada needs to move away from its “combative approach” among the top five retailers. “We need to move to a more collaborative approach to increase efficiency, reduce costs, increase resilience and sustainability.”

Other points Taylor touched on included:

● Synthetic milk: “I think they are a long way from being able to scale that technology and consumers have to like it. From what we have seen so far, it is very variable.The question is consumer acceptance of the new styles of technology as well as the other inputs required to make it.”

● How is Lactalis dealing with solids non-fat (SNF): “I probably have this conversation in France and America once a week and I had it again yesterday with a push to have more support and infrastructure to deal with it. We are up for it in Ontario for sure if we can persuade the government to get behind it. We are ready to  move with a range of products.”

● Products for new immigrants: “Multicultural products are big for us because it is a growing space and with immigration, the Canadian population will continue to grow. It is very much on our minds. The great thing from our perspective is, because we are in 70 countries, we do not have to guess what the trends are in other areas of the world.”

●  Is supply management positive or a hindrance for Lactalis Canada?: “On the balance it is very positive and it has positive impacts. It’s not a problem as long as we can manufacture from home. But supply management needs to evolve to remain relevant.”

● Where do you see the dairy industry in 10 years?: “I don’t have a crystal ball but the dairy category is big. In the UK we used to say it was second only to alcohol because it touches every consumer every day. The metrics are good; the population is growing so the market will continue to get bigger. Yes, the mix will change as more South Asian people come into Canada and lactose intolerance may be more of a thing but we have the tools to deal with that. For instance, someone told me that cheese which is aged over six months naturally doesn’t have lactose in it…we just don’t do enough to educate the consumer.” ◊