ManageMent’s Discussion anD analysis The credit risk associated with foreign exchange contracts arises from the possibility that counterparties to a foreign  exchange contract in which the Company has an unrealized gain fails to perform according to the terms of the contract.The  credit risk is much less than the notional principal amount, being limited at any time to the change in foreign exchange rates  attributable to the principal amount.  Forward foreign exchange contracts have maturities of less than two years and relate exclusively to U.S. currency. The  counterparties to these contracts are major Canadian financial institutions.The Company does not anticipate any material  adverse effect on its financial position resulting from its involvement in these types of contracts, nor does it anticipate non-performance by the counterparties.  At September 28, 2013, the Company had a net $20.4 million in foreign currency forward contracts with a current contract  value of $20.1 million.  As part of its normal business practice, the Company also enters into multi-year supply agreements with raw sugar  processors for raw cane sugar. Contract terms will state the quantity and estimated delivery schedule of raw sugar.The price  is determined at specified periods of time before such raw sugar is delivered based upon the value of raw sugar as traded on  ICE #11 world raw sugar.At September 28, 2013, the Company had commitments to purchase a total of 1,567,000 metric  tonnes of raw sugar, of which only 94,360 metric tonnes had been priced, for a total dollar commitment of $40.2 million.  The Company has no other off-balance sheet arrangements. CAPITAL RESOURCES  During the year, Lantic entered into a new five-year credit agreement of $150.0 million effective June 28, 2013, replacing  the $200.0 million credit agreement that expired on the same date. The total available credit was reduced by $50.0 million  to better suit the expected financial needs of the Company. In addition, the Company negotiated a five-year interest rate  swap agreement, as at June 28, 2013, at a rate of 2.09% for an initial amount of $50.0 million, declining to $40.0 million  on June 29, 2015 and to $30.0 million on June 28, 2016. The new interest rate swap agreement will allow the Company to benefit from lower finance charges as compared to the former swap agreement that expired on the same date.  At September 28, 2013, $75.0 million had been drawn from the working capital facility and $3.2 million in cash was also available.  The Taber beet operation requires seasonal working capital in the first half of the fiscal year, when inventory levels are high  and a substantial portion of the payments due to the Growers is made. Lantic has sufficient cash and availability under its line  of credit to meet such requirements.  The operating Company has approved for future commitments approximately $3.8 million for completing capital  expenditures presently in progress. With this carry-forward, total maintenance and investment capital expenditures for  fiscal 2014 should be approximately $10.0 million.  Annual Report 2013 25