Quebec's Exceldor to be sold to Ontario company Sofina Foods—Pascal Thériault comments
The Quebec cooperative Exceldor, known for its chicken breasts, wings, and nuggets, has taken steps to sell its assets to the Ontario company Aliments Sofina.
For the sale to be completed, it must be approved by two-thirds of the cooperative's members and two-thirds of the investment shareholders, as well as the Canadian Competition Bureau.
Agronomist and economist Pascal Thériault of McGill University told La Presse that this transaction was perhaps "the only valid option for the company's sustainability."
He also pointed out that it's quite rare to see a cooperative pass into the hands of a private company: "What we've seen, especially in Quebec, are cases where, for example, La Coop fédérée, now Sollio, bought 100% of Olymel's shares at the time. Agropur bought small cheese factories to expand. Our cooperative model works well in Quebec. And what we're used to seeing are co-ops that grow by buying private companies."
"What we're seeing here is a company that's going to grow by buying a cooperative, which is less common," he said.
Thériault told a reporter with La Presse canadienne that he expects the offer to be unpopular with all members. "When you invest in a co-op, it's because you believe in it. As far as I know, things weren't going badly at Exceldor," he said.
He added that with the Canadian supply management model, however, it remains difficult for a business to grow because of the quota system.
"If I have a fixed market share, if I have low margins, to grow, I have to make value-added products, compete on the shelves. This makes it difficult for many businesses to move to the next level," he explained.