Wheat producers lose out in Bunge-Viterra merger announcement

Saskatoon (January 15, 2025) – The Saskatchewan Wheat Development Commission (Sask Wheat) is extremely disappointed in the announcement that the acquisition of Viterra by Bunge has been approved by the Federal Government. The conditions around the approval of the merger fail to address concerns regarding competition and consolidation of grain-handling  industry that producers and researchers have raised repeatedly to the government.

“In a report completed by the University of Saskatchewan (U of S), it estimated that the merger would create significant financial losses for grain producers to the amount of $770 million annually,” said Sask Wheat board chair Jake Leguee. “With the lack of existing competition within the grain handling industry, further consolidation through this merger will only harm producers.”

It appears that the terms and conditions outlined for the approval of the merger do not go far enough to protect farmers’ interests and competition within the grain handling industry. Bunge’s 25 per cent ownership stake in G3 was a major concern for Sask Wheat, supported by findings in both the U of S and Competition Bureau reports. Requiring Bunge to divest of its shares in G3 would be the most straightforward solution to prevent Bunge from influencing G3’s activities.

Requirements for Bunge to spend at least $500 million on capital expenditures within five years of closing, is significantly below the potential annual losses producers could face because of the merger. Additionally, requiring the divestment of two grain elevators in Saskatchewan will not alleviate concerns producers have regarding market concentration. Given currently limited competition within the grain handling industry, the terms and conditions required to approve this merger will not protect farmers from the substantial economic losses they will face due to further consolidation of the industry.

Sask Wheat is a producer-led organization representing approximately 24,000 wheat and winter cereals producers in the province. Sask Wheat provides leadership in identifying and supporting research, market development and advocacy that contributes to profitable and sustainable wheat and winter cereal production for Saskatchewan farmers.

MEDIA CONTACT

Andrea Lauder
Communications Manager
306-653-7967
andrea.lauder@saskwheat.ca