Calgary, Alberta, Canada
July 8, 2009
Viterra Inc. said today it expects average grain marketings
in the 2009/10 crop year based on current crop conditions and a
significant carryout of production from 2008/09. Its current
estimates assume continued timely rains and a frost free fall
harvest period.
Viterra anticipates average yields in most areas of Western
Canada this year. The Company noted that crop development was
aided by precipitation that was received over most of the
prairie region this week. However, an area of west central
Saskatchewan and east central Alberta is expected to experience
significantly reduced yields due to dry conditions.
Viterra concurs with recent industry estimates of production of
the six major grains in Western Canada in the 44-46 million
metric tonne range, slightly below the ten-year average of 48
million tonnes. However, on-farm carryout from a record crop in
2008 is expected to be 7 million tonnes, up from 3 million
tonnes last year. As a result, it is the company’s current
expectation that deliveries (6 major grains) into the western
Canadian grain handling system for 2009/10 will be 30-31 million
metric tonnes, consistent with the 10-year average.
“It is important to keep in mind that Western Canada is an
extremely large and diverse producing region. While an area
experiencing drought conditions has received significant media
attention, overall crop prospects are in the normal range,” said
Mayo Schmidt, President and CEO of Viterra.
Viterra also confirmed today that its acquisition of
ABB Grain Ltd. (ABB) remains on track, following a revision
by ABB to their earnings guidance for their fiscal 2009.
“Our offer was not based on one year of earnings, but rather the
long-term cycle of earnings beginning in 2010 and beyond,”
Schmidt said. “The strategic rationale remains compelling. In
addition, crop prospects in South
Australia have been supported by good rainfall and growing
conditions. As such, Viterra remains committed to its
acquisition of ABB and strongly believes that the combination of
ABB and Viterra will create a global leader
in agri-business that will deliver significant benefits to the
shareholders of both companies.”
Viterra Inc. is Canada's leading agribusiness, with extensive
operations and distribution capabilities across Western Canada,
and with operations in the United States, Japan, Singapore and
Geneva. The Company is diversified into sales and services of
crop inputs and equipment, grain handling and marketing,
livestock feed, agri-food processing and financial products.
These operations are complemented by value-added businesses and
strategic alliances, which allow Viterra to leverage its pivotal
position between Prairie farmers and destination customers. The
Company’s common shares are listed on the Toronto Stock Exchange
under the symbol VT. |
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