Viterra is consolidating its presence in the booming markets of Asia.
The Regina-based grain company is opening an office in Singapore that will serve as the company’s Asian headquarters and manage trading activity and possible investment in the region.
Until now, trading into Asia had been handled by people working in Viterra’s Regina or Winnipeg offices, with occasional visits to meet with customers through trading partners.
“Asia is the single most important market for us and western Canadian farmers,” said chief operating officer Fran Malecha, referring specifically to canola, wheat, peas and malting barley.
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“Being on the ground there will allow us to do a better job of developing customer relationships, not only from the trading standpoint but down the road looking at making direct investments in those emerging markets.”
This will be Viterra’s second overseas office, joining one in Tokyo that employs eight people and is dedicated solely to the Japanese market.
The Singapore office will be bigger and responsible for the rest of Asia.
The man in charge will be Stephen Yu, recently hired as vice-president and managing director for Asia. He joined Viterra in July after serving in a similar position with Archer Daniels Midland.
Viterra’s dominant position in the Canadian grain handling business, with a 45 percent market share, makes it imperative that the company work hard to develop demand and find customers for all that grain.
“This is a logical progression that will serve us well in competing in that market,” Malecha said.
It also puts the company in a good position in the Asian market in the event the Canadian Wheat Board loses its single desk marketing authority.
Malecha said the company is looking at establishing a third overseas office, probably in Europe, and after that perhaps in South America.
