content_image/277736.jpg
## Notes to CoNsolidated FiNaNCial statemeNts 

(In thousands of dollars except as noted and per share amounts) 

9. FINANCIAL INSTRUMENTS (CONTINUED): 

Risks (continued): 

(b) Currency risk: 

 Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign exchange rate.The Company’s cash flow exposure to foreign currency is due mainly to the following: 

• sales of refined sugar; 

• sales of refined sugar in U.S. dollars; 

• purchases of natural gas; 

• sales of by-products; 

• Taber refined sugar and U.S. by-products sales; and 

• ocean freight. 

 The Company mitigates its exposure to foreign currency by entering into forward exchange contracts (see note 9 Derivative financial instruments (c) - Foreign exchange contracts). 

The Company had the following exposures at year-end: 

<img src='content_image/277736.jpg'>

As at September 28, 2013, the U.S./Can. exchange rate was $1.0310 (September 29, 2012 - $0.9836). 

