Farmers worry decreased crop promoting choices and costs
16 January 2025
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Farmers warn Canada’s approval of US grain dealer Bunge’s $34-billion takeover of Glencore-backed Viterra will scale back their choices to promote crops at aggressive costs, and say the federal government didn’t require sufficient concessions.
Canada’s approval with situations on Tuesday was one of many last steps wanted to shut the largest-ever world agriculture merger by greenback worth. Specialists had anticipated asset gross sales can be required in a rustic the place the businesses’ companies overlap.
Farmers in Canada, the world’s high canola producer and No. 3 wheat grower, are battling years of drought and low commodity costs. Consolidation amongst grain merchants could scale back farmers’ leverage to obtain affordable costs.
“Farmers would be the ones struggling,” mentioned Agricultural Producers Affiliation of Saskatchewan president Invoice Prybylski. Farmers have frightened combining Bunge’s oilseed-crushing crops with Viterra’s grain storage, transport and processing crops, plus Bunge’s minority stake in grain firm G3, would restrict competitors in some areas.
Circumstances for approval from Transport Minister Anita Anand included Bunge promoting six Western Canada grain elevators, that are storage and transportation services, and two oilseed-crushing crops. Canada additionally required Bunge officers on G3’s board of administrators to get replaced with impartial administrators. G3 is partly owned by Saudi Arabia’s SALIC.
“Minister Anand’s determination to approve the acquisition, even with situations, does not go practically far sufficient,” mentioned Kyle Larkin, govt director of the Grain Growers of Canada farmer group, in an announcement. “These situations do little to offset the $770 million annual value this merger will impose onfarmers.”
Larkin mentioned the merger will scale back competitors throughout the Prairies and in Quebec.
Anand’s workplace didn’t instantly reply to a request for remark.
Crush plant sale order welcomed
Jill Verwey, president of Keystone Agricultural Producers, mentioned the ordered sale of an oilseed crushing plant south of Winnipeg and simply north of the U.S. border did tackle one of many chief considerations of Manitoba’s predominant farmers group.
Bunge introduced the proposed merger in 2023. The corporate mentioned in a Tuesday assertion that it expects to shut the merger early this yr. It individually mentioned approval from Chinese language authorities is the ultimate main step.
Viterra declined to remark.
A 2024 examine by agricultural economists commissioned by farmer organizations discovered the deal would give the merged firm and G3 45% of Vancouver port grain terminal capability. Canada’s Competitors Bureau dismissed these considerations, saying its evaluation urged port terminals largely serve their homeowners’ wants and don’t compete for different firms’ export enterprise.
