Post by
0confused0 on May 25, 2009 2:59am
question
I would really appreciate a response from anyone who can help...
If grain harvests are poor, does this mean Viterra's earnings would suffer? It appears that a global food shortage is a distinct possibility this year due to many factors (low sunspot activity, wet weather, extremely late plantings, etc.).
I am very confident investing in fertilizer companies (AGU being my favourite) as many farmers are taking a huge gamble not fertilizing their fields. These nutrients absolutely positively must be replaced for the health of the soil. Silly, silly farmers...a real botch up. Crop yields could be disastrous this year.
Thanks in advance.
Comment by
0confused0 on May 30, 2009 1:47am
My time frame is long-term but that's not really the issue. I'm really interested in knowing whether a poor harvest would be a major detriment to Viterra's earnings. Are good harvests the main contributor to their earnings?Thanks!
Comment by
Sturgeon333 on Jun 18, 2009 12:38pm
A poor harvest is very bad for VT earnings. They make money on the volume of grain shipped. Their other lines of business selling products and services to farmers are also hurt by a poor harvest, because when farmers have less money they stop buying.We have a major drought developing in western Canada right now. I would not want to own this stock.