Viterra reported first quarter profit of $77.69 million today, down from the record $100.68 million in the same period last year.
The lower results for the quarter ending Jan. 31 were due to reduced volume of grain handled in the company’s Australian operations.
Grain results also noted costs associated with improved service to farmers and new operations and marketing offices.
Results were also down at the company’s malt and oat processing operations, the company said in a news release.
However, canola processing was enhanced by the opening of the company’s new crushing plant in China and by increased sales into the high margin specialty oil market.
Results in the agri-production sector were up thanks to favourable fall weather that supported fertilizer buying and higher margins on fertilizer sales.
The company is predicting strong results in future quarters with large crops expected in Canada and Australia.
Viterra expects western Canadian farmers to seed 57 to 59 million acres this spring, up about nine percent from last year when excess moisture created problems.
However, that is still below the 10-year average of 60 million acres.
It expects 18.5 to 19.5 million acres of canola.
