Europe’s Oil Market Flashes Price Weakness on Refinery Halts

By Sherry Su and Alex Longley, 

Bloomberg News

February 06, 2025 


(Bloomberg) -- European crude prices have slumped to multimonth lows as the continent’s refineries start to take plants offline for regular maintenance, another cloud hanging over an oil market that’s largely wiped out its year-to-date gains.

Values are falling from the North Sea to the Mediterranean. A grade of Kazakh oil sank to the lowest in more than two years last week, while the UK’s Forties crude that helps to set the benchmark price for barrels around the globe traded at its weakest since May. US oil delivered to Europe is also the softest in several months.

The price weakness reflects a mix of unplanned disruptions at refineries and the scheduled maintenance season that usually starts in March and dents crude consumption. Already about 720,000 barrels a day of refinery capacity is offline in northwest Europe, according to data compiled by Bloomberg. Permanent plant closures in the region, including in Scotland and Germany, are also looming.

“Physical light crude in northwest Europe is weak,” said Neil Crosby, an analyst at Sparta Commodities SA. The move is likely a result of forthcoming refinery maintenance, he added.

The weakness in markets for real barrels comes as benchmark Brent crude futures have all but given up their gains for the year in recent days, after topping $80 a barrel last month. But while supply concerns centered on Russia and Iran linger, there have been no such worries in Europe and the surrounding Atlantic Basin region.

Oil produced in those areas is typically lighter and less sulfurous than crudes from the Middle East and Russia. Just as demand is slipping, supply of these so-called sweeter grades — which help to underpin global benchmark prices — is set to increase in both the North Sea and the Mediterranean.

Production of Kazakh crude is expected to gain by 300,000 barrels a day after the completion of expansion at the Tengiz field, led by Chevron Corp. Meanwhile, Norwegian oil giant Equinor ASA’s new field Johan Castberg will start pumping soon, potentially adding another 100,000 barrels a day or more.

The spate of weakness is also showing up in key gauges of the derivatives market that reflect the health of crude trading. The nearest Brent futures contract is registering its smallest premium to the next month in five weeks, a sign of a softer outlook. This week, weekly swaps contracts tied to North Sea crude were in the least bullish structure since the early days of the year.

The moves are being compounded by a long-term reduction in refining capacity. Petroineos is set to close its Grangemouth site in the second quarter of this year. Shell Plc is also reducing crude processing capacity at a German refinery.

“Light-sweet barrels have made up the majority of the production growth, while the conventional customer base in the Atlantic Basin is shrinking,” said Brian Leisen, an analyst at RBC Capital Markets. “We expect continued pressure on light sweets heading into maintenance.”

--With assistance from Jack Wittels.

©2025 Bloomberg L.P.

Suncor touts Canadian refining capacity as way to weather tariffs

By The Canadian Press

February 06, 2025

The Suncor Energy Centre is pictured in Calgary

THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Suncor chief executive Rich Kruger says that while all Canadian businesses will feel a hit from tariffs, his company is fairly well-positioned to limit the impact.The information you need to know, sent directly to you: Download the CTV News App

He says the company’s large Canadian refining footprint and higher capacity than peers to export crude from the coast makes it less exposed to tariffs compared with some companies more reliant on shipping unrefined heavy crude south of the border.

Kruger says that while he thinks the U.S. needs Suncor just as it needs the U.S. market, the company’s integrated asset base gives it a natural hedge to tariff impacts.

His comments on an earnings call came as Suncor reported a profit of $818 million in the fourth quarter of 2024, down from $2.82 billion a year earlier.

Adjusted operating earnings were $1.57 billion, down from $1.64 billion a year earlier.

Desjardins analyst Chris MacCulloch said in a note that earnings beat expectations even though the company had pre-released most key operational metrics in January.

He says Suncor looks to be a safe harbour in the event of a North American energy trade war given it refines nearly half of corporate production within Canada.

This report by The Canadian Press was first published Feb. 6, 2024.

Companies in this story: (TSX:SU)

The Canadian Press

POGG

Canadian egg prices safe from skyrocketing seen in U.S., experts say

By Allison Bamford

February 07, 2025

Eggs are seen for sale at a Safeway, Monday, Jan. 27, 2025, in Seattle. (AP Photo/Lindsey Wasson)

Soaring egg prices in the United States aren’t expected to stop any time soon, but Canadians likely won’t feel the same sting, according to industry experts.

A relentless avian influenza outbreak has forced U.S. farmers to kill more than 150 million birds in the last three years. The devastating losses have put cracks in American egg production, resulting in a shortage and subsequent egg price hikes at U.S. grocery stores.

A dozen eggs cost Americans US$4.15 (C$6) on average in the month of December, the most recent data available, according to The Associated Press.

But many are paying significantly more, including in California where prices climbed to nearly US$10 in some stores this month.

Canada is not immune to avian influenza outbreaks, but experts say the country is relatively safe from the circumstances that led to these skyrocketing prices.


“(Bird flu) is not going to cripple national egg production the same way it does in the United States,” said Bruce Muirhead, the chair of public policy for Egg Farmers of Canada and a professor at the University of Waterloo, in an interview with CTV National News on Wednesday.

One reason is that Canada’s egg farming operations are much smaller than those in the United States, and dispersed throughout the country, which has helped mitigate avian influenza’s impact on production.

In Canada, the average egg-laying farm has about 25,000 hens, according to Muirhead. In a state like Iowa, the average farm has about 2 million birds.

“We don’t have that kind of scale, which means we don’t suffer the same sorts of issues in these bouts of disease that they do in the U.S.,” he said.

Canada also has a supply management system that regulates dairy, poultry and eggs to ensure supply meets demand. The system allows for greater collaboration among farmers, explained the national organization that represents these farmers.

“Farmers work together to uphold the national supply of eggs. For example, if one region of the country is significantly impacted by an outbreak, eggs from other provinces that are not experiencing avian influenza outbreaks can be shipped to help bolster the local egg supply,” Egg Farmers of Canada said in a statement.

As a result, Canadian egg prices are more stable than those in the U.S., the group said.

Tyler McCann, managing director of the Canadian Agri-Food Policy Institute, further explained in an interview with CTV News: “Supply management is all about balancing off that that supply and demand equation so that producers get a reasonable return for their goods and consumers get a safe, reliable supply of foods.”

The latest government data suggests 47 premises are currently dealing with avian influenza outbreaks across Canada.

If enough farms get infected, supply could be impacted, but “the chances of that happening in Canada are remote,” Muirhead said.

“Prices could go up, yes. But I very much doubt that’s going to happen in any sort of sustained way as we see in the U.S. today,” he said.


And Muirhead said if that happens, it’s not going to happen any time soon.

Statistics Canada shows the average price for a dozen eggs in December was $4.75, down slightly from $4.85 the previous month.

That relatively minor change is in contrast to prices south of the border, where eggs are classified as the “most volatile category” tracked by the U.S. Department of Agriculture. Officials predict prices will continue rising this year as supply remains an issue.

Egg shortages have also forced some U.S. grocers to limit the number of cartons shoppers can purchase and some restaurants are passing down the increased cost onto consumers with what they’re calling an egg surcharge.

Allison Bamford
Videojournalist, 

CTV National News

WE'RE TOO DAMN POLITE

Federal government hosts Canada-U.S. economic summit during tariff threat pause

By The Canadian Press

February 07, 2025

OTTAWA — Prime Minister Justin Trudeau welcomed hundreds of people Friday to a summit about bolstering the economy in the face of Canada’s rapidly changing relationship with its largest trading partner.

“I think we need to do two things in this. We need to both start thinking tactically and strategically,” Trudeau said.

Tactically, he said, Canadians need to be deliberate about how to work with the United States to avoid tariffs. But if the tariffs go ahead, he said, the country needs to be ready to respond and to support Canadians.

U.S. President Donald Trump’s plan to impose sweeping 25 per cent tariffs on Canadian goods, with a 10 per cent tariff on Canadian energy, has been put on hold until March 4.

Trump said in a social media post that the next month will determine “whether or not a final Economic deal with Canada can be structured.”

His administration also has ordered a study of the United States' trading relationship with Canada, due by April 1.

The looming tariff threat and the volatility of the Trump administration have many business and labour leaders urging the federal government to look for other trading partners and ways to strengthen internal trade.

Trudeau said that’s part of the strategic thinking needed to make the economy resilient.

“It’s about time we have genuine free trade in Canada,” he said, adding that trade with the U.S. and the rest of the world is also essential.

The summit is being hosted by the government’s newly created advisory council on Canada-U.S. relations, and includes business and labour leaders, Indigenous leaders and public policy experts. Several federal cabinet ministers are also attending.

“We’d love to have hundreds of people on the council and that’s exactly what this morning is all about,” Trudeau said.

The summit is set to begin with a question-and-answer session with Trudeau and the advisory council before it moves into group discussions.

Flavio Volpe, a member of the advisory council and president of the Automotive Parts Manufacturers Association, said Thursday he hopes the summit is just the start of something bigger.

He said Canada is facing “the most serious industrial threat we’ve ever faced” and the moment calls for a collective effort similar to what happened in the early days of the COVID-19 pandemic.

“It’s important that this isn’t a photo op, that this isn’t a talking-to session, that this isn’t the only time we get together,” he said.

Speaking to reporters before the summit on Friday, Volpe said he’s encouraged by the fact that the group is “very cross-partisan.”


“It’s a very diverse group of leaders from different industries across the country that almost have nothing to do with each other, other than the currency that they trade in and the country that they live in,” he said.

Representatives from the Canadian Chamber of Commerce, the Global Automakers of Canada, the Federation of Canadian Municipalities and Canadian Manufacturing and Exporters are in attendance, as is National Chief of the Assembly of First Nations Cindy Woodhouse Nepinak.

Drew Dilkins, the mayor of Windsor, Ont., said this kind of meeting can help ensure different levels of government and the private sector are “rowing in the same direction.”

“Aligning on the facts is really important because what’s missing in this whole conversation, at least from my perspective on the U.S. side, is fact,” he said.

He and other border community mayors established the Border Mayors Alliance to advocate on behalf of the cities that have the most to lose from U.S. tariffs. He said that kind of grassroots action only works if everyone understands the approach.

Dilkins took part in a meeting of the Federation of Canadian Municipalities' Big City Mayors Caucus in Ottawa on Thursday, where tariffs and trade with the U.S. were the only topics.

Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, said he intends to tell the government that if tariffs are imposed, businesses and workers will need help in the form of direct government relief, tax relief or wage subsidies.

Beyond that, he said, there are “structural problems within the Canadian economy that need to be addressed.”

They include the need to make it easier to move goods between provinces — trade that is undermined by a complicated regulatory environment — and to ensure Canada takes better advantage of its trade deals with other countries.

This report by The Canadian Press was first published Feb. 7, 2025.

Sarah Ritchie and Sammy Hudes, The Canadian Press

Trump claims Canada ‘very tough to do business with,’ trade minister says no  concessions

DURING WWI THE GERMANS CALLED CANADIAN'S; 'STURMTROOPERS'

By Stephanie Ha

February 06, 2025 

International Trade and Economic Development Minister Mary Ng discusses negotiating with the U.S. over trade irritants, such as the digital services tax.

Despite U.S. President Donald Trump’s ongoing tariff threats and concerns over access to Canada’s dairy market, International Trade Minister Mary Ng says the federal government will not be making concessions on supply management.

When asked directly during an interview with CTV’s Power Play on Wednesday if Canada will not concede on the issue, Ng answered simply, saying “correct.”

On Monday, Canada got reprieve for at least 30 days from Trump’s threat to impose a 25 per cent tariff on all Canadian imports – except oil, which would be subject to a 10 per cent tariff – after making new commitments to secure the shared border.

In addition to implementing the $1.3 billion border plan – which includes deploying additional personnel, drones, surveillance equipment and helicopters – Canada will appoint a “fentanyl czar” and list cartels as terrorists.

Trump has often leveraged his concerns about illegal migrants and drug trafficking at the Canada-U.S. border as a reason to impose tariffs. Canada’s trade deficit with the U.S. or its defence spending have been other irritants he’s shifted back and forth on.

The information you need to know, sent directly to you: Download the CTV News App

Meanwhile, a report from the Wall Street Journal in late January says those familiar with Trump’s thinking think he’s using the threat of tariffs to push for an early renegotiation of the Canada-United States-Mexico Agreement (CUSMA), which is due for review next year.

For years, Americans have voiced discontent over access to the Canadian market, despite Canada agreeing to allow U.S. dairy farmers access to about 3.5 per cent of the domestic market as part of CUSMA, which was signed in 2018.

Earlier this week, prior to the tariff reprieve, Trump told reporters that Canada is “very tough to do business with.”

“We don’t need them for agricultural products because we have all the agriculture we need,” Trump said. “They don’t take our agricultural product, for the most part, our milk and dairy. A little bit they do, but not much. We take theirs.”

During his confirmation hearing last week before the U.S. Senate, Trump’s commerce secretary nominee Howard Lutnick also hinted at a looming fight over dairy.

“Our farmers, our ranchers and our fishermen are the best in the world, and they are treated poorly,” Lutnick said at the hearing. “Canada, as we spoke about, treats our dairy farmers horribly. That’s got to end.”
‘We are living up to our obligations’

Back in 2023 during former U.S. president Joe Biden’s administration, a panel of experts convened under CUSMA ruled in Canada’s favour after American dairy farmers argued the way the Canadian government allocates its tariff-free dairy import permits denies them full access of its 3.5 per cent share of Canada’s market.

Speaking to CTV Power Play host Vassy Kapelos on supply management concerns, Ng pointed to that ruling.

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“With respect to supply management, I would also say that the Americans absolutely have taken advantage of the dispute settlement system that is a part of our trade agreement,” Ng said. “And I would like to remind your viewers that the dispute settlement panel in that particular instance actually ruled in Canada’s favour, which is that we are living up to our obligations in the trade agreement, particularly around dairy.”

Canada’s supply management system coordinates production and maintains import controls for dairy, poultry and eggs to set stable prices for both farmers and consumers.

When asked if Canada would have to make any trade compromises to avoid tariffs next month, Ng says she doesn’t think so, adding that Canada doesn’t “know what (those concessions are) at the moment.”
Will Canada scrap the controversial digital services tax?

Canada’s digital services tax (DST), which imposes a three per cent levy on revenues from tech giants earning money off Canadian content and users, has become deeply unpopular and widely criticized by American lawmakers. They argue that the policy disproportionately impacts U.S. companies.

The tax came into effect last June but is retroactive to 2022, and covers companies like Amazon, Google and Facebook. The Parliamentary Budget Officer (PBO) has estimated the tax will bring in $7.2 billion over five years.
Top headlines on Canadian politics, all in one place

Asked by Kapelos whether the federal government would be willing to get rid of the tax to appease the Trump administration, Ng would not answer directly.

“I think we should talk to them about whether or not there is something that we could be doing on that front, DST being an example,” Ng said.

Asked to clarify whether the federal government is open to negotiating the DST, Ng called it “a commitment we made to Canadians,” but emphasized the importance of understanding issues that are “important for Americans.”

On his first day in office on Jan. 20, Trump announced his “America First Trade Policy” in an executive order, calling for a study into trade practices – including extraterritorial taxes – due April 1.

When asked again about the future of the DST, Ng said, “It’s just too early to say.”

“There are many things that the president is looking at his departments to give him advice on before April the first, (the DST) being one of them and we’re going to do that work on this side as well,” Ng said.

In an interview with CTV’s Question Period in December, former finance minister Bill Morneau said Canada should look at scrapping the DST as a way to make headway with the Trump administration.

“I would move away from that and think about the other places that we have a mutual interest in moving forward,” Morneau said.

With files from CTV News’ Spencer Van Dyk


Stephanie Ha

Supervising Producer, Ottawa News Bureau, CTV News

AltaGas and Keyera sign deals to work together at Ridley Island BC and Fort  Saskatchewan, AB.

By The Canadian Press

February 07, 2025 

AltaGas' Ridley Island Propane Export Terminal located on Ridley Island near Prince Rupert B.C.

CALGARY — AltaGas Ltd. and Keyera Corp. have signed a deal to work together in a plan they say will see more Canadian energy products reach Asian markets.

Under the agreement, Keyera has signed a 15-year tolling contract for 12,500 barrels per day of liquefied petroleum gases export capacity at AltaGas' Ridley Island Energy Export Facility (REEF), which is expected to come online near the end of 2026.

The contract is in addition to the existing volumes that Keyera ships through AltaGas' Ridley Island Propane Export Terminal.

AltaGas says combined with earlier announced contracts, it has now reached its base long-term tolling target for the REEF project.

Meanwhile, AltaGas has signed an 18-year agreement for 8,000 barrels per day of fractionation capacity at Keyera’s facility in Fort Saskatchewan, Alta., and secured a services deal for access to Keyera’s rail, storage and logistics infrastructure.

Keyera says the agreement helps support its growth at Fort Saskatchewan including a proposed fractionation unit expansion project.

This report by The Canadian Press was first published Feb. 7, 2025.

CANADA 

Here's a quick glance at unemployment rates for January, by province

By The Canadian Press

February 07, 2025 

Cars park on the streets beside colourful houses in St. John's, Sunday, June 25, 2023. 

THE CANADIAN PRESS/Adrian Wyld

OTTAWA — Canada’s national unemployment rate was 6.6 per cent in January. Here are the jobless rates last month by province (numbers from the previous month in brackets):

Newfoundland and Labrador 10.6 per cent (10.5)

Prince Edward Island 7.2 per cent (8.5)

Nova Scotia 5.9 per cent (6.3)

New Brunswick 6.4 per cent (7.7)

Quebec 5.4 per cent (5.6)

Ontario 7.6 per cent (7.5)

Manitoba 6.1 per cent (6.2)

Saskatchewan 5.4 per cent (6.0)

Alberta 6.7 per cent (6.7)

British Columbia 6.0 per cent (5.9)

This report by The Canadian Press was first published Feb. 7, 2025.

Here's a quick glance at unemployment rates for January, by Canadian city

By The Canadian Press

February 07, 2025 

A sailboat is seen in front of the Halifax skyline 

THE CANADIAN PRESS/Darren Calabrese

OTTAWA — The national unemployment rate was 6.6 per cent in January. Statistics Canada also released seasonally adjusted, three-month moving average unemployment rates for major cities. It cautions, however, that the figures may fluctuate widely because they are based on small statistical samples. Here are the jobless rates last month by city (numbers from the previous month in brackets):

St. John’s, N.L. 6.8 per cent (6.7)

Halifax 5.0 per cent (5.1)

Moncton, N.B. 5.1 per cent (5.4)

Saint John, N.B. 6.9 per cent (6.2)


Fredericton 7.4 per cent (6.8)

Saguenay, Que. 3.3 per cent (4.1)

Quebec City 4.7 per cent (4.6)

Sherbrooke, Que. 5.0 per cent (5.3)

Trois-Rivières, Que. 4.9 per cent (5.3)

Drummondville, Que. 5.9 per cent (6.3)

Montreal 6.5 per cent (6.6)

Gatineau, Que. 5.4 per cent (5.6)

Ottawa 5.8 per cent (5.9)

Kingston, Ont. 6.2 per cent (6.1)

Belleville-Quinte West, Ont. 8.3 per cent (3.3)


Peterborough, Ont. 6.1 per cent (5.1)

Oshawa, Ont. 8.2 per cent (8.0)

Toronto 8.8 per cent (8.4)

Hamilton, Ont. 7.5 per cent (7.3)

St. Catharines-Niagara, Ont. 6.1 per cent (6.7)

Kitchener-Cambridge-Waterloo, Ont. 8.0 per cent (7.6)

Brantford, Ont. 5.0 per cent (5.1)

Guelph, Ont. 7.8 per cent (7.2)

London, Ont. 7.0 per cent (7.1)

Windsor, Ont. 9.1 per cent (8.9)

Barrie, Ont. 5.8 per cent (6.0)

Greater Sudbury, Ont. 5.9 per cent (5.4)

Thunder Bay, Ont. 5.1 per cent (5.1)

Winnipeg 6.3 per cent (6.2)

Regina 7.0 per cent (6.8)

Saskatoon 4.8 per cent (5.0)

Lethbridge, Alta. 5.2 per cent (5.7)

Calgary 7.7 per cent (8.1)

Red Deer, Alta. 9.7 per cent (10.0)

Edmonton 7.2 per cent (7.5)

Kelowna, B.C. 4.9 per cent (5.2)

Kamloops, B.C. 4.8 per cent (4.3)

Chilliwack, B.C. 6.8 per cent (5.7)

Abbotsford-Mission, B.C. 5.2 per cent (5.3)

Vancouver 6.6 per cent (6.4)

Victoria 3.6 per cent (3.8)

Nanaimo, B.C. 7.1 per cent (6.6)

This report by The Canadian Press was first published

CANADA

Packaged goods entrepreneurs network to 'rise up' and face U.S. protectionism

By The Canadian PressFebruary 07, 2025 at 5:23PM EST

Tara Tomulka, chief executive of Rawcology, is shown in this undated handout photo at her plant. Her company, headquartered in Toronto, makes organic granola bars and snack foods sold at 1,500 location across Canada and the U.S., with about a third of its products shipping to the south. 

THE CANADIAN PRESS/HO-Rawcology *MANDATORY CREDIT*

HALIFAX — Vancouver businesswoman Karen Danudjaja put out a casual social media call on Monday for a “roundtable” on how entrepreneurs could survive the potential hit of 25 per cent U.S. tariffs.

Then the owner of Blume observed with surprise and delight as interest grew, and about 1,000 people accepted her webinar invitation to hear a panel of experts discuss “pivoting” to fresh markets.

U.S. President Donald Trump agreed late Monday to delay by 30 days the imposition of tariffs on Canada, but the Canadian business community is still preparing for the worst. As Prime Minister Justin Trudeau hosted a summit of business, labour and industry leaders in Toronto on Friday, Danudjaja was preparing for her grassroots webinar with guests expected to include investor and television personality Arlene Dickinson, entrepreneur and co-founder of Manitoba Harvest Hemp Foods Mike Fata and B.C. Food and Beverage CEO James Donaldson.

“It’s about diversifying our supply chain as much as we possibly can in order to be ready if the tariffs hit,” said the Vancouver-based businesswoman, who ships about 450,000 packages of her SuperBelly probiotic powder monthly to Canadian and U.S. retailers. “I really see this community rising up to overcome this obstacle,” she said in an interview Thursday.

Tara Tomulka, chief executive of Rawcology, is among those who signed up. Her company, headquartered in Toronto, makes organic granola and snack foods sold at 1,500 location across Canada and the United States, with about a third of its products shipping to the south.


Tomulka relies on getting ingredients such as organic banana purée or tapioca syrup from the U.S. market, but she says that since Monday, the company is “trying to shift and pivot to find local suppliers.”

There are challenges in the details of each potential new relationship. In one case, the firm sourced a potential purchase of Canadian frozen peach purée, but the minimum quantity was simply too large for her to store in her facility, she said.

The Plan B that companies like hers are considering also involves creating fresh products tied to what can be found within the country.

“(Canadian) oats are definitely going to be one of the main ingredients in a new product, and we’re also looking at other unique Canadian-grown ingredients such as hemp protein powders,” she explained.

The positive side of the tariff threat is that Canadian retailers are now also looking for healthy, locally sourced Canadian packaged goods, she added. Over the last week, she counted five new retailers in Canada making inquiries about selling her family’s products.

Sheena Russell, president of Made With Local Snack Foods Inc., said her firm’s online sales of the organic snack bars made at its Windsor, N.S., plant rocketed after Trump’s tariff declarations.

“The last couple of days, the volume of sales has tripled online compared to what it typically would be this time of year,” she said Wednesday.

Still, there are some mixed emotions. Just weeks ago, the Nova Scotia company had been contemplating launching a separate line of products into the U.S. northeast. Russell says that is “on hold” due to the uncertainties created by Trump.

Linda Best, founder of a community economic development investment fund in Nova Scotia that aims to encourage farming startups, said packagers seeking suppliers face a decline in smaller Canadian farms over the past 60 years.

Best cites Nova Scotia Federation of Agriculture research estimating that in her province, less than 10 per cent of the average household’s food budget is spent on locally grown agriculture, a sharp drop from decades earlier.

Statistics Canada indicates that as a result of industry consolidation and the aging of farm operators, the number of farms in the country dropped from about 193,000 in 2016 to about 190,000 farms in 2021.


“We need more farmers, we need more processors and we need them now,” Best said in an interview Thursday.

“In Nova Scotia, (suppliers) aren’t there at this point. That’s what has been driving me nuts for so many years. Yes, we export fish, blueberries and cranberries .... I can think of all kinds of people in Nova Scotia who could be making great products,” she said.

This report by The Canadian Press was first published Feb. 7, 2025.

Michael Tutton, The Canadian Press

CANADA

Saputo CEO doesn't see supply management at risk in trade talks

By Rosa Saba, 

The Canadian Press

February 07, 2025 

Dairy cows stand in a field outside of a milking barn at the U.S. Department of Agriculture's National Animal Disease Center research facility in Ames, Iowa, on Tuesday, Aug. 6, 2024. (AP Photo/Charlie Neibergall,File)


Saputo president and CEO Carl Colizza says he doesn’t think Canada’s dairy supply management system will be up for negotiation despite the tense trade talks with the U.S.

“I think we’ve heard now two ministers come out publicly and state that supply management is not a negotiating component and is not on the table at this point,” said Colizza on a conference call discussing Saputo’s third-quarter fiscal 2025 results.


Market chart of sap:ct
sap:ct
$23.81+0.15+0.63%

As of:February 8, 2025 at 12:06 AM

“We believe the Canadian government understands the importance of supply management in the Canadian landscape, and we don’t think it’s going to be a negotiating element here as we move forward.”

Canada’s supply managed dairy sector is a sore spot for U.S. President Donald Trump, who says the American industry should have more access to the Canadian market.

Some experts have said the issue is likely to come up in trade negotiations between the two countries. The Canada-United States-Mexico Agreement, which was signed in 2018 under the last Trump administration, is up for review next year.

That deal saw Canada agree to let U.S. dairy farmers have access to about 3.5 per cent of the domestic market, but the U.S. has accused Canada of breaking that pact.

However, Canadian politicians have said they will defend dairy producers and protect the decades-old system that regulates production, farm-level prices and trade.

Supply management — which covers not only dairy but also poultry and eggs — isn’t only contentious in international relations.

Its homegrown critics argue it leads to higher prices for Canadians while stifling innovation and export opportunities. Proponents, including industry leaders, say it protects the sector from volatility and keeps retail prices stable.

Though Colizza doesn’t think Canada will give up supply management in trade talks with the U.S., he didn’t appear overly concerned with how Saputo would adapt if the system were to be dismantled.

“At the end of the day, it works for Canadians, and it works for Canada, and we work well within that system,” he said.

“Should the decision be made to move away from that, we’ll also adapt our platform accordingly.”

Trade is generally top of mind for businesses and investors right now, so Colizza was predictably asked what possible tariffs from the U.S. could mean for Saputo. Canada and the U.S. are in a month-long pause from tariffs and retaliation, but uncertainty over what comes after remains.

Colizza assured investors that Saputo’s American business is “very autonomous,” with few links between the two arms on a daily basis.

“So when I take a look at the potential tariff applications that are still lingering, from a direct perspective, there’s not a lot of impact, and that is because of the limited amount of movement we have between Canada and the U.S. and vice versa,” he said.

He added that some business inputs, like packaging materials or chemicals, could be affected but not in a way that drastically affects the overall company.

Saputo reported a loss of $518 million during the quarter ended Dec. 31, compared with a loss of $124 million a year earlier.


On an adjusted basis, earnings rose slightly to $167 million from $163 million.

Revenues were $5.0 billion, up 17 per cent from $4.3 billion a year earlier. It reported its diluted loss per share was $1.22, compared with a loss of 29 cents, while adjusted earnings per share were 39 cents, up from 38 cents.

— With files from Maura Forrest

This report by The Canadian Press was first published Feb. 7, 2025.

Boeing to Lay Off About 400 Workers on Moon Rocket Program

By Eric Johnson and Julie Johnsson

February 07, 2025 

NASA's Space Launch System (SLS) rocket with the Orion spacecraft attached rests on launch pad 39B as final preparations are made for the Artemis I mission at NASA's Kennedy Space Center on November 15, 2022 in Cape Canaveral, Florida.

 (Kevin Dietsch/Getty Images)

(Bloomberg) -- Boeing Co. expects to lay off hundreds of workers on its SLS moon rocket program, fueling speculation that NASA’s marquee space exploration initiative is poised for a shake-up under a second Donald Trump administration.

The US aerospace company cited revisions to NASA’s Artemis program and cost expectations in a brief statement that cited the potential for roughly 400 fewer positions by April 2025.

“We are working with our customer and seeking opportunities to redeploy employees across our company to minimize job losses and retain our talented teammates,” a Boeing spokesperson said by email on Friday.

The exact number of jobs impacted hasn’t been determined, though 400 positions amounts to more than one-third of the staff assigned to the Space Launch System program.

Boeing’s future in space has been in question as NASA undergoes a leadership change under President Trump and close advisor Elon Musk, the SpaceX chief who’s been given unprecedented oversight power. The aerospace manufacturer is culling thousands of jobs and paring its holdings under new Chief Executive Officer Kelly Ortberg.

The Artemis program was officially formed under Trump’s first administration, after he signed a policy directive to send humans back to the moon for the first time since the Apollo program ended more than a half century ago. The program has been beset for years by cost overruns, technical problems and a complicated mission plan, though it supports thousands of jobs across the US.

In November 2022, the SLS rocket made its launch debut after more than a decade of development, sending an uncrewed capsule around the moon as part of the first major test flight for the Artemis campaign. The rocket has come under repeated criticism for its delays and ballooning budget, which is expected to cost as much as $23.8 billion through 2025.

A NASA spokesperson didn’t immediately respond to a request for comment.

Trump has hinted at his desire to send astronauts to Mars in recent years. He has also forged a close relationship with Musk, who founded SpaceX with the goal of starting a settlement on the Red Planet and is developing a powerful new rocket to get there.

“We will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars,” Trump said at his inauguration.

The SLS layoff announcement comes about a week after Boeing unveiled a leadership change on its Starliner astronaut capsule. The program has racked up more than $2 billion in cost overruns after a string of setbacks, including a botched June test flight that left two US astronauts stuck at the International Space Station.

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(Updates with details on the SLS rocket in sixth paragraph, Boeing’s space business in ninth.)

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