Viterra sees rain cutting revenues

Calgary-based Viterra said Thursday heavy rains in Western Canada this spring will likely cut into its sales.

The global grain handler and agribusiness company estimated seeded acreage in the region will be between 20 million and 21 million hectares, well below the average of 24 million over the last five years.

It said that will likely result in a 15 to 17 per cent decline in its sales of products such as fertilizer and herbicide to farmers in fiscal 2010. Viterra estimated product sales by all companies in the region typically total about $4.6 billion annually.

 "The estimated decline in acreage is a result of weather-related planting constraints due to unprecedented rainfall in May and June, the primary seeding period for Prairie growers," Viterra said in a statement.

"Approximately eight million acres went unseeded, and additionally, about two million seeded acres were lost to excess rains," it said.

Statistics Canada is scheduled to release its seeded acreage estimates Aug. 20.

Viterra shares closed down seven cents at $7.11 on the Toronto Stock Exchange Thursday.