Viterra’s expansion into Australia has been a financial success, as evidenced by its most recent financial report showing that Australian operations accounted for 74 percent of first quarter earnings.However, the sailing doesn’t seem to be as smooth on the customer re-lations side, based on reports in the Australian farm media.Viterra has found itself under criticism in recent weeks from Australian industry and farmer groups.First it was complaints from producers about Viterra’s fertilizer contracts, which state that the company is not obliged to make full delivery on contracts. One irate farm leader said such a contract is not worth the paper it’s printed on.Next, wheat growers in New Zealand complained to a federal commerce commission that they were being paid $100 a tonne less by Viterra than the company was paying for wheat imported from Australia.A farm spokesperson said that constituted unfair and restrictive trading.Finally, a story in the Rural Press newspaper in late April quoted grain traders alleging that Viterra has been structuring its port operations to deter other exporters from successfully exporting grain, resulting in wasted shipping capacity and increased costs for producers.The story said Viterra booked its entire shipping program itself and then cancelled each vessel within two weeks of arrival date and offered the space to other traders.Traders said it’s not possible to put together an international sale in two weeks.Those three issues arising over two months could be a coincidence or could indicate that Viterra is having problems fitting in with the Australian way of doing business.Viterra declined to address the specific issues raised in the complaints.Instead, it issued a general statement saying the company continually works “to earn the right to do business with our producers, and we are committed to becoming their partner of choice.”The company also said it looks forward to “the challenges and opportunities ahead” and is committed to expanding its business, working with producers and supplying customers with high quality food ingredients.It added that it has a “dedicated, expert team in Australia” that works closely with farm customers to provide quality products and services.Australian sources could not be reached in time to comment for this story.
Read Also
U.S. loses out on sales of soybean to China
U.S. soybean exporters risk missing out on billions of dollars worth of sales to China this year as trade talks drag on and buyers in the top oilseed importer lock in cargoes from Brazil.
