Viterra grain terminals will probably be transferred to the management of world agri-business Bunge, which guarantees elevated funding throughout Canada
Two of the seven working grain elevators within the Port of Thunder Bay are coming underneath new possession.
The federal authorities has authorised the merger of Viterra’s Canadian belongings, together with a pair of grain elevators on Maureen Avenue, with world agri-business Bunge.
Final week’s resolution is just not sitting effectively with some western Canada farm teams that had lobbied the federal government to require Bunge to promote its stake in G3 earlier than approving the deal.
G3 is majority-owned by a Saudi funding firm however Bunge has a 25 per cent stake within the agency, whose belongings embody grain elevators throughout the nation together with one on Darrel Avenue in Thunder Bay.
Situations hooked up to Bunge’s acquisition of Viterra embody an settlement to take care of jobs at Viterra’s head workplace in Regina, promote amenities in Manitoba and Saskatchewan, and maintain its Canadian enterprise separate from G3.
Grain Growers of Canada and the Agricultural Producers of Saskatchewan had lobbied the federal government to pressure Bunge to promote its stake in G3 to to take care of competitors within the agricultural commodity sector.
The Nationwide Farmers Union mentioned the deal basically ends competitors as a result of Bunge will now management 40 per cent of the grain market, making it the most important agricultural commodity dealer on this planet and placing farmers’ income in danger.
In approving the transaction, the federal government mentioned it has hooked up intensive phrases and circumstances to guard competitors and encourage funding in Canada.
“Farmers could have a variety of aggressive choices after they promote their canola and different crops, in addition to proceed to obtain honest costs for his or her produce,” it acknowledged.
The phrases and circumstances embody:
Bunge’s divestiture of six grain elevators in Western Canada to take care of aggressive choices for farmers within the area;
strict and legally binding controls on Bunge’s minority possession stake in G3 … to make sure Bunge can not affect G3’s pricing or funding choices;
a value safety program for sure purchasers of canola oil in Central and Atlantic Canada to safeguard honest pricing and market stability;
retaining Viterra’s head workplace in Regina for at the least 5 years to guard Canadian jobs; and
a binding dedication from Bunge to take a position at the least $520 million in Canada inside the subsequent 5 years, which can foster financial development, productiveness and job creation.
Bunge CEO Greg Heckman mentioned final 12 months that the brand new firm “will probably be dedicated to Canadian staff and the transaction won’t consequence within the closure of any Bunge or Viterra amenities in Canada.”
In a submission to realagriculture.com, he wrote that G3 and the mixed Bunge-Viterra will proceed to be sturdy opponents, and that the brand new agency will present Canadian producers with extra certainty and financial safety by growing resilience to provide chain disruptions.
Bunge’s acquisition of Viterra is anticipated to shut early this 12 months.
