Viterra Says were on our way to a Average or better crop! HA HA

[ado089]

Wow, you two are either under 40 years old or work for Viterra. Probably both.

[charliep]

Perhaps there is a different audience for these comments - shareholders and customers.

Shareholders are likely smart enough there is a direct link between crop volumes and grain company profitability. Some reassurance that the company will handle enough volumes to maintain operation efficiencies.

On the customer side, Viterra (and other grain companies) will want to be assuring their customers (and yours by the way) that supplies will be enough to meet their needs in the coming within the realities of western Canada weather in 2009. Customers are already likely making the necessary adjustments to their sourcing to reflect the realities of western Canada and generally better crops in the rest of the world. Once a grain producing region losses a customer, it is tough to bring them back.

[charliep]

Interesting times and perhaps a comment on volatility in the future.

2007/08 - the year of the commodity/equity market run up and good prices.

2008/09 - Good crops but lower prices. Slow down in the overall economy allowed better transportation opportunities and larger export volumes.

2009/10 - Yields and from there production down (how much). Quality unknown but likely lower. Export availability way down. Prices unknown but a split between western Canada and the world on production/quality realities. No one in the supply chain will escape financial pain.

[checking]

What Mr. Ado089 also has forgotten is that farmers equity in SWP was converted at $12.00/share prior to going public for those who wished out before trade started, and that it opened at $14.00/share. He had many opportunities to cash out with his equity in its run up to $24.00 before it tanked. No one cheated you out of anything.

[ado089]

You're right and it's all good up until that point. Now my memory is a little fuzzy on this but wasn't there restrictions on trading those shares for a period if you didn't take the initial buyout. It was within that time that they went broke, or at least close enough that a guy had hope of the shares bouncing back. They should have went broke and stayed there. Regardless my point is that why would you want to do buisness with a company that used your money to build it's self up then snuffed out your equity.

[checking]

Ado089, short answer to your question is no, unless you were a SWP employee who was given an opportunity to become a vested shareholder at a discounted rate. They were restricted from cashing out. Look, I wasn't happy with the situation, but farmers had a chance to retrieve their equity and the value of their $25.00 voting share. All I ask of any situation is the opportunity which in this case was provided, and if I fail to act I know who to blame. I'll deal with anyone who is competitive. I have no motherhood issue to grind with Viterra.

[ado089]

Nothing comes for free and price isn't the only factor in being competative. This conversation is turning into buisness ethics and corporate social accountability debate instead of the fact that Viterra is lying to their shareholders again about the status of w. canada crops. I've seen all of Saskatchewan north of the Yellowhead in the last month and I'm sure most guys wish their crop was average.

[checking]

I think there is a distinction that needs to be made between saying a company is screwing its shareholders who were once equity holders and a company is misleading its shareholders over crop conditions. The screwing one didn't happen in this case. Although I didn't like the process that was used to take the co-operative public, I chose to relay my discontent by disposing of my voting share and equity shares at first opportunity. Keeping equity in shares would have represented an approval. What stopped ado089 from getting his equity out after the die was cast? I took the option view that it might be a while before I darkened SWP's doors with my business. I did not take the view that I would never do business with them again, like you apparently have. Your principles on this issue could be costing you money, convenience, and even an invitation to attend a pre-view day at the Farm Progress Show. (lol) Are they lying? All I know is that it is cold here in the deep south, and the flowering flax is loving it. I have not given up hope that it will make it to harvest.

[ado089]

I think most frustrating part of it was that there was very little time to see the new company once they privatized. There was the IPO, a little bit of optmism a brief rally and then 13 new HTP's went up, the Producer and Robin's was sold and the equity was gone. Fortunately I have 6 HTP's, a CO-OP and a hand full of independants in my back yard so I don't think my views have cost me much if anything yet. I do have to say though SWP's poor cash flow management leads to some great deals on inputs, but I'm sure they make it up somewhere.