The federal government is also reviewing the deal
By Diego Flammini
Staff Writer
Farms.com
Four Saskatchewan farm organizations want the provincial government to investigate a potential agribusiness merger.
The Agricultural Producers Association of Saskatchewan, SaskCanola, Sask Wheat and SaskBarley asked Agriculture Minister David Marit to look into the proposed merger between Bunge and Viterra, which is expected to close in mid-2024.
In a letter to the minister, the ag organizations asked for six areas to be examined:
- Assessment of historical consolidation impacts: an in-depth analysis of the consequences of previous consolidations within Saskatchewan's agricultural industry.
- Regional competition within the grain handling system: a comprehensive evaluation of regional competition dynamics throughout the province's grain handling system.
- 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.
- 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.
- Market concentration and ownership: an assessment of the resulting changes in industry ownership and market concentration within the province.
- Impact on employment: an evaluation of the potential impact on head office jobs and employment within the grain industry across Saskatchewan.
“The group believes that such an effort would be greatly appreciated by farmers and would contribute significantly to informed decision-making,” a joint press release says.
If the provincial government decides to undertake this review, it would be the second for the Bunge-Viterra deal.
The federal government announced its own review on Sept. 26.
Transport Canada has until June 2, 2024, to complete its assessment.
“Healthy competition in the transportation sector is necessary to ensure fair pricing and access for users, especially Canadian farmers,” Transport Minister Pablo Rodriguez said in a statement.
Farms.com has contacted APAS to obtain a copy of the letter it sent to Minister Marit.