Food Demand to Stay ‘Strong’ Amid Global Slowdown, Viterra Says
Global demand for agricultural commodities is likely to remain “strong” even as economic growth slows as rising populations and emerging markets drive consumption, according to Canada’s largest grain handler.
“We’re confident that strong, long-term global market fundamentals will continue to support the agriculture industry as the nutritional needs of the world continue to grow,” Viterra Inc. (VT) Chief Executive Officer Mayo Schmidt said.
The World Bank cut its global growth forecast this week by the most in three years, saying that a recession in the euro region may exacerbate a slowdown in emerging markets such as India. The world’s population is estimated to climb to 9 billion in 2050 from 7 billion now, and production of most food commodities will have to rise to meet expected demand, according to the United Nations’ Food and Agriculture Organization.
“Despite the recent global economic slowdown, agriculture has been resilient,” Schmidt said on a conference call today. “Our industry should continue to experience growth in coming years as the world’s population continues to increase and living standards improve in developing and emerging countries.”
Viterra reported net income advanced to C$265.4 million ($262.7 million) in the 12 months ended Oct. 31, from C$145.3 million a year earlier, according to a statement. The Regina, Saskatchewan-based company plans to pay a dividend of 15 Canadian cents per share, it said in the statement.
The shares fell 2.8 percent to A$10.20 on the Australian Stock Exchange at 1:36 p.m. in Sydney.
To contact the reporter for this story: Phoebe Sedgman in Melbourne at psedgman2@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
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