Transport Canada’s deadline to complete its review of the proposed Bunge-Viterra merger has now passed, with one Saskatchewan farm organization calling on the federal cabinet to ensure a “fair, transparent and competitive grain market for farmers.”
In a release Wednesday, the Agricultural Producers Association of Saskatchewan (APAS) said it continues to oppose the planned merger, noting a recent analysis of the planned $8.1 billion deal suggested the expected increase in export basis and canola crush margins would reduce producer income by approximately $770 million annually.
"Our focus is clear: to ensure the farming community does not bear the brunt of decreased competition and pricing,” said APAS President Ian Boxall. “Producers across the province are hopeful for decisive action that enhances the integrity and competitiveness of our industry.”
Transport Canada announced it would launch a review of the proposed merger back in September, given that both Bunge and Viterra have ownership interests in port facilities on the West Coast and along the St. Lawrence Seaway. The review closed to public comments back in December, with Transport Canada committing to complete its review by June 2.
The Transport Canada review was expected to include input from the Competition Bureau, which has also raised concerns about the merger.
Based on the findings of the Transport Canada review, the federal cabinet could allow the merger to proceed in its current form, with new conditions, or reject it altogether.
Specifically, APAS is calling for:
Divestment of assets: Bunge must sell its G3 interests along with targeted Viterra assets.
Modernized grain contracts: Improved risk management tools for producers through more balanced, transparent and efficient grain contracts.
Enhanced market data transparency: Mandatory and timely disclosure of data, including export sales, which will allow for more informed decisions by producers.
Full railway cost review: Ensuring meaningful competition on service and rates, and identifying opportunities for improvement.
Extended interswitching rights and investing in short-line rail infrastructure: Thereby reducing transportation costs and improving market access, particularly in rural areas.
Transparent process for facility closures: Any Viterra facility closures arising from the merger must be subjected to an open, market-driven process to mitigate risk to producers.
