Farming groups say Bunge-Viterra merger threatens competition

Farming groups across Canada are raising the alarm over Bunge’s acquisition of Viterra, which received federal approval on January 14. 

They argue the merger will reduce competition in the grain-handling industry and hurt producers profits.

The deal gives global agribusiness giant Bunge permission to buy Regina-based Viterra. 

This proposed transaction, initially introduced in 2023, has been under intense scrutiny since a University of Saskatchewan study showed that it could result in annual profit loss of $770 million for producers. 

One major concern is Bunge’s minority ownership stake in G3, when combined with Viterra’s operations, could potentially give control to approximately half of Vancouver port’s export capacity.

Jake Leguee, chair of the Saskatchewan Wheat Development Commission, said the merger will only harm producers given the limited competition that already exists. 

“The conditions around the approval of the merger fail to address concerns regarding consolidation,” said Leguee in a news release.

Grain Growers of Canada (GGC) also weighed in, calling on the federal government to strengthen conditions that protect farmers. 

“This is a missed opportunity to protect competition in Canada’s grain sector,” said GGC Executive Director Kyle Larkin.

Bunge chief executive Gregory Heckman published an op-ed disputing fears of lost revenue, insisting the merger will help Canadian farmers expand their reach. 

“We will continue to buy the same crops as we do today,” wrote Heckman in May 2024.

Despite some safeguards, including Bunge’s obligation to divest six grain elevators and invest $520 million in Canada, stakeholders remain concerned. 

Agricultural Producers Association of Saskatchewan president Bill Prybylski says more is needed to secure a truly competitive market. 

Meanwhile, Canadian Federation of Agriculture president Keith Currie worries that Bunge’s minority interest in G3 raises new questions about fair pricing.

The deal is expected to close in early 2025, leaving many farmers anxious about its long-term effects on prices, fair competition, and industry growth.