Profit Margins

[agstar77]

Viterra expects to realize 33-36 $ per tonne of grain handled in 2011 up from 30-33 of "net profit"last year. No mention that they make more or less from open market grains or CWB grains. Nice increase.

[tmyrfield]

http://www.google.ca/finance?client=ob&q=TSE:VT

it seems shareholders are buying in as well

[parsley]

www.sedar.com

Jan 19 2011 Audited annual financial statements - English

[gregpet]

Viterra 2010 financial statement.

Page 29, item 22 Financing Expenses:

CWB carrying charge recovery
2010 2009
(1,693) (2,932)

Notice these expenses are negative expenses, meaning income.

Description of CWB carrying charge:

"The opportunity cost of unproductive assets; the expense incurred by ownership."

I guess we own the grain and the associated expense, we just can't sell it ourselves. Oh well, at least it helped out Viterra.

[gregpet]

They didn't mention the extra money made on board grains agstar but if you look for it you can find it.

[bucket]

Does anyone think any grain company is going to do the cwb logistics without making a shitload of money. The cwb had to buy back durum from the grain companies because the graincos were smart enough to pay for it off board. And they knew what was going on. The cwb assumed the grain they didn't call last year was still theirs.

[dave4441]

Way, way, way more profit in handling/storing grain (storing grain is how many linen cos make big money) for CWB. I have fairly reliable info that shows margins are 10X higher with CWB grains then canola.

[BTOfarmall]

Davey instead of Quotin' Stats pretendin like you know someting or someone in High Places. Put yer Moneys ware yer mout is & put dee Facts up fer us all to see.....

[haveapulse]

NO need for any stats, just go ask anyone who owns shares in an inland terminal where the money comes from, how fast they paid for the asset and how nice dealing with board grains is, and they do not make margin from the trade, they just handle it.

[BTOfarmall]

I askin' you how much dey make. Still waitin' fer a reply. Continue holdin' my breath????

[gregpet]

Dave answer only questions asked using proper English, why try to understand what someone else is saying if they don't take the time to write it out properly?

[DogPatch]

FOOD for THOUGHT

Remember, if you find the best price for you farm inputs at Viterra, maybe they made their money on you grain.

$10/case / 40 acres = $0.25 savings / acre to us.

if your production is normal @ 1 Tonne of grain / acre, at $30 (earlier mentioned elevation profit), nets Viterra and their investor buddies... a full $30 cost/acre to us! On those 40 acres, they made $1200, and you saved $10. Do the math if you yields are better.

Where does our independent dealer that doesn't buy our grain, make his margin if he must cut his price to "meet Viagra" Rather than the money staying as local as possible, it goes to buying durum plants in the USA and other ventures in Australia.

[DogPatch]

gees, our freight, elevation and other costs to get that grain from our farm to market is a lot more than $30, its more like $60 or better depending on where we live.

[TFLN]

10X Dave 4441? just 10x? I'm surprised none of you caught the yearly results for there processing operations
$10/mt for entire year @ there crush plant.
$320/mt for entire year @ there Durum plant. They must have been able to buy some cheap cheap Durum......wonder from who?

[buzz]

Not much anyone can do about Viterra's ability to
increase prices. I am focussed on making money
in my operation.