Drought Will Hurt SWP Revenue in 2002-03

REGINA - Jul 30/02 - SNS -- This year's drought will hurt earnings at Saskatchewan Wheat Pool (SWP) during the 2002-03 marketing year, admits Chief Executive Officer Mayo Schmidt.

"We all know that volumes drive profitability and the sustained dry conditions on the Prairies will, without question, reduce industry volumes. Early estimates suggest a production decline of 33% throughout western Canada based on the five-year average which will negatively impact our bottom line in Fiscal 2003," he said.

In spite of this, Schmidt expressed confidence that the Pool has the staying power to weather the coming fiscal year. He said the company is already developing a revised three-year plan that considers current conditions, the Pool's financing requirements and its plans to improve its long-term prospects.

"Because of our past actions and solid planning, we enjoy very good relationships with our lenders," he said. "We have met our financial obligations on or ahead of schedule and we look forward to working with our lenders over the coming months to discuss our longer term needs."

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