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Opposition leader Carla Beck is calling on Premier Scott Moe to stop supporting the Bunge-Viterra merger.
REGINA – Opposition leader Carla Beck is calling on the Sask. Party to reverse its support of the Bunge-Viterra merger, which was approved last month by the federal government.
At the legislature, Beck spoke to reporters about how the Sask. Party has been quiet regarding the merger.
“They [the Sask. Party] have been surprisingly silent on this issue given that this is an issue that stands to cost farmers almost a billion dollars in revenue every year.”
When the sale was originally announced, Agriculture Minister Daryl Harrison said he was confident that the terms and conditions laid out in the deal would be followed.
Some of those conditions include retaining Viterra’s head office in Regina for at least five years and an investment of at least $520 million in Canada within the next five years.
Despite those terms, the Agricultural Producers Association of Saskatchewan (APAS) has raised concerns about the merger causing a lack of competition among producers in the province.
A 2024 report from the Commissioner of Competition noted how the merger is likely to substantially harm competition for the purchase of canola from farmers in [the] Nipawin, Saskatchewan canola crushing” facility.
The report also stated there will be a drop in competition regarding canola oil sales to Eastern Canada that cannot be received by rail.
A significant reason for the drop in competition is Bunge’s minority ownership stake in G3 Global Holdings. The report by the Commissioner of Competition noted that Viterra’s biggest rival was G3. With Bunge having a stake in both companies, there could be less of a rivalry, the report noted.
It was also apparent that the acquisition of Viterra would lead Bunge to have major control over the Port of Vancouver.
Knowing those facts, the federal government imposed strict and legally binding controls on their G3 minority ownership.
Even with those restrictions, Beck noted hearing “from producers when we were at the crop show when this merger was announced, that they didn’t think that those measures were going to mitigate the risks that they knew were present should this deal go through. And again, we see now that the Sask. Party reasonably should have known that there are still concerns.”
Along with the lack of competition, another study done by the University of Saskatchewan found that the merger would cost producers over $700 million yearly.
Seeing those numbers, Beck said, “that is a huge concern in a province that relies on not only getting fair value for those crops but getting fair market access and access through those ports.”
Beck also added, “selling them out to a big American company is frankly the last thing that any producer needs.”
She was asked by reporters about her message to the federal government about reconsidering the approval of the merger.
Beck responded with, “it’s remarkable at a time when the federal government can get so few things done that this deal made it across that minister’s desk. And that this deal made it across that minister’s desk with such glaring concerns.”
The NDP hopes Moe and the Sask. Party recognize the potential loss in revenue producers are facing.
Moe addresses concerns
After the installation of the new Lieutenant Governor of Sask. Bernadette McIntyre. Premier Scott Moe met with reporters and was asked about the strong opposition to the Bunge-Viterra merger.
Moe said, “this is a significant purchase in what I would say is a very significant industry of the spinal cord of the Saskatchewan economy, which is the agriculture industry, and we have significantly sized global businesses that are, you know, merging or purchasing another in this space.”
He noted the Sask. government has been in touch with high-level officials with Bunge throughout the entire process. Moe mentioned that his government has raised concerns with Bunge, which they are working through.
Moe was also asked if he would go as far as to say he opposes the merger. In response, Moe said, “no. I wouldn’t say oppose[d]. I would say their concerns have been raised, and Bunge is very actively working towards addressing those concerns, whether they be from the competition borough or working more broadly with the province and ag industries in Saskatchewan as well. They are in a competitive environment, and they are not the only people that are going to be looking to buy our ag products in Saskatchewan.”
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