Claude Carles, president of the Weyburn Inland Terminal, recently announced that the company had an after-tax consolidated loss of $246,000 in Fiscal 2011, primarily the result of reduced seeded acres due to significant flooding in most of southeast Saskatchewan last year. The flooding impacted all business units last year, with only 20 to 30% of the normal acres being seeded. Both grain handling and crop input sales were down significantly. While grain volumes will be lower in 2012 until the new crop comes off, expectations are for a strong spring in the crop inputs business, as farmers look to maximize production after two consecutive years of reduced seeded acres.
"Our staff worked hard throughout the year to help our customers manage these conditions. The continuing strong support of our customers has allowed Weyburn Inland Terminal to be a profitable, farmer owned and directed Company for many years" said Carles. "This is the first time since 1985 that we have not been profitable, and clearly the weather events last year were insurmountable both for farmers and WIT."
The company paid dividends of $1,354,000 to shareholders in 2011.
"Our oilseed program and our commitment to cleaning and blending our customer's grain to improve the grade, especially on grain held over from previous years' production resulted in our ability to maintain our grain shipping program at 70 % of the previous year, even with a 75% smaller crop in our trading area" noted CEO Rob Davies. "Our ethanol business at NorAmera was also affected by the flooding and other operational issues; however production stability has improved significantly over the past several months, and improving oil prices are a positive sign for 2012.
There are still improvements to be made, but we are optimistic about this year for NorAmera. Our many diversification efforts have given us the ability to balance good and bad years, with average WIT profitability over the previous 10 years of $3,460,000," said Davies. "2011 affected us the same way it affected our farm customers. Very little crop, very little opportunity. Together, we recognize that these years can happen, and together we have built enduring operations that will move forward into 2012, recognizing 2011 for the year that it was."
WIT continues to work towards a positive future in agriculture, and supports students, customers and local communities and organizations in southeast Saskatchewan.
Donations to these various items exceeded $70,000 in 2011. WIT believes there is a solid foundation for the business going forward as the world population continues to grow and demand more, better quality food.
WIT is a shareholder-owned, farmer-directed grain company located on CP Rail's Soo Line near Weyburn, Saskatchewan. Since its start in 1976, 'The Terminal' has been at the forefront of change in the industry, leading the way to help improve the overall efficiency of Canada's grain-handling system. The philosophy and goals of the company are summed up in its mission statement: Profitability through Service, Innovation and Integrity.
