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Viterra Inc.: Viterra Provides Update on Crop Conditions and ABB Acquisition

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^{Published in Business and Finance on Wednesday, July 8th 2009 at 10:20 GMT, Last Modified on 2009-07-08 10:20:24 by Market Wire}  

CALGARY, ALBERTA--(Marketwire - July 8, 2009) - Viterra Inc. (TSX:VT) 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.