To insure the combined company against lower than expected grain production in South Australia
Viterra and ABB Grain have introduced grain volume insurance and eliminated the volume variation fee. It was intended to reduce weather related exposure in the Australian marketplace, subject to implementation of the scheme of arrangements previously announced by both the company.
Viterra has forayed into a grain volume insurance program, to insure the combined entity against lower than expected grain production in South Australia. The insurance program would permit the combined operation to eliminate the ABB grain volume variation charge in South Australia, removing grower’s exposure to the charge during difficult crop years.
Mayo Schmidt, President and CEO, Viterra, said: Viterra’s ability to extend its Canadian grain volume insurance program to include the operations of ABB Grain is a creative solution that reduces the risk profile of the combined company.”
Michael Iwaniw, Managing Director, ABB, said: “If the combination of ABB and Viterra proceeds, and based on the financial strength of the combined company, the company will be able to put in place a program that addresses the needs of growers.