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Canadian farmers opposed fusion Bunge with Viterra. See government

Kanadyjscy farmerzy przeciwni fuzji Bunge z Viterra. Ostrzegają rząd

As reported by agency Reuters, Canadian farmers still protest against the merger of holding Bunge and Viterra and warn the government, that the issued for merger agreement will have sad consequences. Farmer organizations believe, that the government has not requested sufficient concessions, to ensure sufficient competition in the domestic cereal market, by which for farmers will diminish the Sales of crops at satisfactory, profitable prices.

Conditions attached to gigants

According to the government of Canada for approval of the merger, Bunge must sell 6 elevators of beans in western Canada and 2 facilities for processing of seeds oil, a except this invest in the country over 5 years which is at least 520 million Canadian dollars (or the equivalent 362 million dollars US).

Canada wants to also have confidence, that Bunge will not influence the decisions of the Saudi G3, in which it has shares, on the price of beans.

Farmers and competition

Farmers will suffer due to these decisions – said Bill Przybylski, representing the Canadian Association of Agricultural Producers .

The interviewee indicates Reuters, that the merger affects gigants who have not only warehouses of cereals, but also own processing and fleet trade. A Bunge, Viterra and G3 account together for one third of the capacity of elevators in western Canada.

The Canadian Association of Agricultural Producers considers, that the consolidation of major companies will hit the finances of farmers, who and so struggle with the effects of droughts in previous years, low purchase prices and the effects of last year’s strikes at ports, which delayed exports.

Authorities do not share concerns

An analysis conducted in 2024 year commissioned by agricultural organizations has shown, that Bunge after merging with Viterra, plus group G3 accumulate 45% of the terminal beans in Vancouver. Canadian Bureau ds. Competition didn’t share however the fear of farmers, that the monopolization of the market would occur, that terminals port satisfy the needs of owners and do not compete for export with other companies.

According to Kyle Larkin, director executive of producers Grain Growers of Canada, agreement on the approval of Viterra takeover by Bunge, does not submit sufficient conditions to the company.

Conditions that do little to compensate for 770 million dollars of annual cost,which this merger

will impose on farmers – said Larkin. He added, that the merger will reduce competition in prime areas in western

Canada and the Quebec region.

Bunge informed this time, that it expects the merger to close at the

early of the current year. Holding is already waiting only for approval of the merger by the authorities

of China.

Canada approved the merger of Bunge and Viterra. But there are

some conditions

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MergerBungeandViterrawithdelay.StillhasnoagreementCanadaandChina

 

 

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