Viterra-Bunge Acquisition Approval Fails Canada’s Grain Farmers
PRESS RELEASE
(OTTAWA, ON – Jan. 15, 2025) Grain Growers of Canada (GGC) is extremely disappointed with the decision made yesterday by the Minister of Transport to approve the acquisition of Viterra by Bunge without a divestment of G3. While the approval does include divestments of six grain elevators in Western Canada and a $520 million investment commitment from Bunge, these measures are woefully inadequate to address the profound impact on market competition. GGC has consistently raised concerns about the merger and its long-term consequences for farmers.
“Minister Anand’s decision to approve the acquisition, even with conditions, doesn’t go nearly far enough,” said Kyle Larkin, Executive Director of GGC. “The divestment of six grain elevators is a token gesture in the face of a company that maintains a 25% stake in G3, greatly reducing competition across the Prairies and in Quebec. These conditions do little to offset the $770 million annual cost this merger will impose on farmers.”
The Competition Bureau and research conducted by the University of Saskatchewan found that an acquisition without a divestment of G3 would weaken competition in certain geographic regions across the country, notably in Manitoba and Saskatchewan canola crushing markets. The university report calculated a $770 million loss in revenues for grain farmers annually.
“This decision is a direct hit to producers revenue,” continued Larkin. “For example, the average grain farm in Manitoba stands to lose $10,000 in revenue annually. This decision compounds an already difficult landscape, as farmers continue to face rising input costs, falling commodity prices, and increased taxes.”
Additional concerns raised by GGC include the market concentration of grain terminals at ports in Quebec and the implications of the merger on the announced canola crushing facility in Regina.
“This is a missed opportunity to protect competition in Canada’s grain sector and prioritize the interests of producers who grow the food that Canada and the world rely on,” Larkin added. “We are urging the government to revisit these conditions, strengthen measures to foster competition, and take meaningful steps to support Canada’s grain farmers.”
-30-
For more information:
P: (514) 834-8841
E: media@graingrowers.ca