Leaders from four farm groups in Saskatchewan are calling on the province to take a closer look at the proposed merger of two key grain operators.

The Agricultural Producers Association of Saskatchewan (APAS), SaskCanola, Sask Wheat and SaskBarley have written a letter to  Agriculture Minister David Marit urging the Government to conduct a thorough risk assessment concerning the proposed merger of Bunge and Viterra.

In the letter, the leaders commend the government's past efforts, specifically referencing the assessments conducted in 2010 for the proposed merger of BHP Billiton and Potash Corporation of Saskatchewan and the 2012 examination of the Glencore-Viterra merger as valuable precedents. 

APAS president Ian Boxall says APAS and the other commodity groups have some concerns around competition if this merger goes ahead.

The groups have proposed six key areas for consideration:

  1. Assessment of Historical Consolidation Impacts: An in-depth analysis of the consequences of previous consolidations within Saskatchewan's agricultural industry.

  2. Regional Competition within the Grain Handling System: A comprehensive evaluation of regional competition dynamics throughout the province's grain handling system.

  3. Implications on Agricultural Markets and Supply Chain: A detailed study of the potential implications the merger may have on agricultural markets, commodity pricing, and the overall supply chain.

  4. Port Infrastructure Consolidation and International Market Access: An examination of the possible consolidation of port infrastructure and its effects on Saskatchewan's access to international markets and delivery at inland handling facilities.

  5. Market Concentration and Ownership: An assessment of the resulting changes in industry ownership and market concentration within the province.

  6. Impact on Employment: An evaluation of the potential impact on head office jobs and employment within the grain industry across Saskatchewan.

In the letter the farm groups emphasized the importance of creating a structured process for engaging with the farm community and listening to their concerns, describing it as both a valuable and timely undertaking.

The group believes that such an effort would be greatly appreciated by farmers and would contribute significantly to informed decision-making.

The proposed merger of Bunge and Viterra is currently under review by Transport Canada and Competition Bureau Canada.