Saskatchewan farm groups want a further review of the already heavily scrutinized proposed merger between agri-business giants Viterra and Bunge.
The Agricultural Producers Association of Saskatchewan (APAS), SaskCanola, Sask Wheat, and SaskBarley are asking the Saskatchewan government to undertake a thorough risk assessment of the planned Vierra-Bunge deal, similar to the ones the province undertook for the proposed 2010 BHP Billiton-Potash Corporation of Saskatchewan merger and the 2012 Glencore-Viterra merger.
As the 2023 harvest season approaches its conclusion, concerns within the province have become evident. In a survey released by RealAgriculture Sept. 20, 79% of western Canadian farmers expressed concern about the proposed merger, with Saskatchewan farmers expressing the highest level of concern, the groups said in a joint release.
Bunge and Viterra announced plans to merge back in June, creating an agricultural powerhouse worth about $34 billion. Bunge is the world’s largest oilseed processor, while Viterra is one of North America’s largest grain handlers. Canada’s Competition Bureau said it would review the merger shortly after it was announced. Meanwhile, since both Viterra and Bunge hold ownership interests in Canadian port terminals, the federal government said just last month that it would also be looking at the proposed deal to ensure “healthy competition and equal access for all port users.”
As part of its request for a review, the Saskatchewan farm groups have proposed six key areas for consideration:
1. Assessment of Historical Consolidation Impacts: An in-depth analysis of the consequences of previous consolidations within Saskatchewan's agricultural industry.
2. Regional Competition within the Grain Handling System: A comprehensive evaluation of regional competition dynamics throughout the province's grain handling system.
3. Implications on Agricultural Markets and Supply Chain: A detailed study of the potential implications the merger may have on agricultural markets, commodity pricing, and the overall supply chain.
4. Port Infrastructure Consolidation and International Market Access: An examination of the possible consolidation of port infrastructure and its effects on Saskatchewan's access to international markets and delivery at inland handling facilities.
5. Market Concentration and Ownership: An assessment of the resulting changes in industry ownership and market concentration within the province.
6. Impact on Employment: An evaluation of the potential impact on head office jobs and employment within the grain industry across Saskatchewan.
The Manitoba Canola Growers Association is also soliciting input from its members on the proposed Viterra-Bunge merger and is planning to share the information with the Competition Bureau.
At the time the merger between the two companies was originally announced, Viterra and Bunge said the deal was expected to close “mid-2024.”
