The Grain Growers of Canada (GGC) expressed deep disappointment over Transport Minister Anita Anand’s decision to approve Bunge’s acquisition of Viterra without requiring the divestment of its 25% stake in G3, a key player in Canada’s grain market. While the approval mandates the divestment of six grain elevators in Western Canada and a $520 million investment from Bunge, GGC warns these measures fall short of addressing competition concerns.
“Minister Anand’s decision to approve the acquisition, even with conditions, doesn’t go nearly far enough,” said Kyle Larkin, GGC’s executive director. “The token divestment of six elevators pales in comparison to the merger’s $770 million annual cost to farmers. It significantly reduces competition, especially in the Prairies and Quebec.”
Research by the University of Saskatchewan, corroborated by the Competition Bureau, found that the merger would erode market competition, particularly in Manitoba and Saskatchewan’s canola crushing markets. The university report estimated that grain farmers could lose $770 million annually in revenues, with the average Manitoba grain farm facing a $10,000 annual revenue decline.
Larkin also criticized the broader implications of the merger, including increased market concentration at Quebec’s grain terminals and uncertainty over a planned canola crushing facility in Regina.
“This decision is a direct hit to producers’ revenue,” Larkin said. “Farmers are already grappling with rising input costs, falling commodity prices, and increased taxes. This decision compounds an already challenging environment.”
GGC is urging the government to revisit the merger conditions, strengthen competition safeguards, and implement measures to better support grain farmers.
“This is a missed opportunity to prioritize the interests of producers who grow the food that Canada and the world rely on,” Larkin said.