h Viterra Sells 4 Million Tonnes Of Capacity Until 2021

Viterra Sells 4 Million Tonnes Of Capacity Until 2021

Viterra Sells 4 Million Tonnes Of Capacity Until 2021

Article #96

Cereal, oilseed and pulse supply chain company Viterra has announced the sale of 4 million tonnes of shipping capacity each year until 2021, thanks to the rising certainty in Australian grain. Long Term Agreements for the 2019/20 and 2020/21 seasons have been put in place to release the shipping capacity for exports this month.

The 4 million tonnes capacity has been spread among nine different exporters, committed to exporting grain out of the state in the foreseeable future. General Manager Logistics and Commercial Relations, Jonathan Wilson said that the entire industry would feel the benefits, in particular end-use customers and service providers.

"The eagerness of exporters to book capacity within Viterra's supply chain is great news, particularly for growers... these bookings should bring confidence [to them], knowing they will continue to have a competitive environment in which to sell their grain, with multiple buyers committed over the long term."

The 2018/19 season, secured last year, booked just under 4 million tonnes, however the 2019/20 and 2020/21 seasons have both pushed well above the 4 million tonne part.

Last week Viterra announced they have placed a further 2 million tonne of short-term capacity available each year. The addition was in response to their previous 1.5million tonne booking prior to the 4 million tonne deal for the 2017/2018, running the following season at 5.5million.

"The fact we have this much committed so early in the season is excellent news for growers, with the amount secured for the harvest moths of October, November and December particularly pleasing across all our ports."

Source: http://viterra.com.au/