Canadian farmers concerned over Bunge’s acquisition of Viterra

Farmers in Canada are concerned that the recent government approval of Bunge’s $34-billion acquisition of Viterra could reduce their options for selling crops at competitive prices. The deal, which is the largest-ever global agriculture merger by dollar value, involves the merging of significant assets in the grain and oilseed sectors.

Despite Transport Minister Anita Anand’s imposition of conditions, including the sale of six grain elevators and two oilseed-crushing plants, many agricultural producers feel these measures are not enough. Bill Prybylski, president of the Agricultural Producers Association of Saskatchewan, commented, “Farmers will be the ones suffering,” highlighting worries about consolidating Bunge’s and Viterra’s operations, potentially limiting market competition.

Furthermore, the merger raises concerns across both the Prairies and Quebec due to the expected reduction in competition. Kyle Larkin, executive director of the Grain Growers of Canada, criticized the conditions laid out by the government, stating, “These conditions do little to offset the $770 million annual cost this merger will impose on farmers.”

The transport ministry emphasized that the conditions set are to ensure that Bunge, despite having a stake in grain company G3, cannot influence G3’s competitive behavior. This includes ensuring G3’s board of directors is comprised of independent members.

As part of the merger’s approval, additional oversight and independent management are expected to maintain fair competition within Canada’s vital agricultural markets.