Viterra Inc.
TSX : VT
ASX : VTA

Viterra Inc.

December 12, 2011 14:42 ET

Viterra Expects Strong Grain Handling and Marketing Volumes for Fiscal 2012

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2011) - Positive harvest conditions in both South Australia and Western Canada should provide strong volumes for Viterra's (TSX:VT) (ASX:VTA) grain handling and marketing operations in fiscal 2012. This is supported by recently released Australian and Canadian federal government crop production reports.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) estimates production for the state of South Australia at 7.9 million tonnes, which exceeds the ten-year average of 6.2 million tonnes by 27%. Given this production estimate, Viterra's management forecasts fiscal 2012 receivals of 6.5 to 7.0 million tonnes into its southern Australian grain handling network. This is in addition to approximately 1.7 million tonnes of carry-in stocks from fiscal 2011.

During fiscal 2011, South Australia produced a record crop, which led to all-time high shipments of 8.0 million tonnes for the Company. This contributed to a year over year increase of 176% in earnings per share for the first nine months of the Company's fiscal year. Given the available volumes predicted for fiscal 2012, Viterra expects shipments to remain strong. The Company continues to build on its program of efficiencies in the bulk handling, logistics and transportation systems of its grain handling operations in Australia as evidenced by investments in infrastructure and equipment throughout the year.

According to Statistics Canada, western Canadian production of the six major grains was 49.3 million tonnes during the 2011 harvest season. This represents a 10% increase over the 2010 production figure of 45.0 million tonnes and is consistent with historical production from this region. Given this production, Viterra's management forecasts western Canadian industry receivals for fiscal 2012 of 31.0 to 33.0 million tonnes, which is in line with historical averages.

"Viterra performed impressively in 2011 in the face of global economic uncertainty and we expect our solid business fundamentals to continue," said Mayo Schmidt, Viterra's President and CEO. "In Western Canada, favourable weather led to impressive yields and good crop quality this fall, while in South Australia, harvest is progressing well and we have already received 5.2 million tonnes into our storage and handling network. For the week ending December 11, we received 1.0 million tonnes, making it one of the biggest weeks of grower receivals for the season. We are optimistic for the year ahead, given solid commodity prices and ample moisture in our key growing regions. Looking beyond 2012, strong global demand fundamentals and new grain marketing opportunities position Viterra favourably to leverage its dual hemisphere sourcing capability and international marketing network."

Viterra will release its fourth quarter and fiscal year end results on January 18, 2012.

Forward-Looking Information

This publication contains forward-looking information relating to Viterra's outlook for grain receivals in 2012(such statements are usually accompanied by words such as "anticipate", "expect" or similar words). All forward-looking statements reflect Viterra's beliefs and assumptions based on information available at the time the statements were made, are given as of the date of this publication, and are subject to important risks and uncertainties. Readers are cautioned not to place undue reliance on this forward-looking information. Viterra accepts no responsibility to update these forecasts, other than as required by applicable securities laws. For additional information on the risk and uncertainties which could cause actual results to differ from anticipated results, please refer to Viterra's Management Discussion and Analysis dated 19 January 2011, which can be found under Viterra's profile on SEDAR at www.sedar.com and other reports filed by Viterra with Canadian and Australian securities regulators.

About Viterra

Viterra provides premium quality ingredients to leading global food manufacturers. Headquartered in Canada, the global agri-business has extensive operations across Canada, the United States, Australia and New Zealand, as well as a growing international presence that extends to offices in Japan, Singapore, China, Vietnam, Switzerland, Italy, Ukraine, Germany, Spain and India. Driven by an entrepreneurial spirit, Viterra operates three distinct business segments: Grain Handling and Marketing, Agri-products and Processing. Viterra's expertise, close relationships with producers and superior logistical assets allow the Company to consistently meet the needs of the most discerning end-use customers, helping to fulfill the nutritional needs of people around the world.

Contact Information

  • Viterra Inc.
    Peter Flengeris
    Media Relations and Communications
    (306) 569-4810
    www.viterra.com