A merger between agricultural trader Viterra Inc. and US rival Bunge Ltd. could hurt farmers and consumers, according to the head of a Canadian wheat farmers advocacy group.
(Bloomberg) — A merger between agricultural trader Viterra Inc. and US rival Bunge Ltd. could hurt farmers and consumers, according to the head of a Canadian wheat farmers advocacy group.
“Early concerns would be competitiveness,” Western Canadian Wheat Growers Association President Gunter Jochum said Friday in a BNN Bloomberg TV interview. “If there’s one less player in the market, one less grain buyer for farmers, that means less competition for my grain and it could potentially mean lower prices for farmers.”
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Having one less buyer for the grains that are used to make food would also be a concern for consumers as well, he said.
“If companies merge, there are fewer suppliers,” Jochum said. “The fewer players, the fewer choices we have and it could impact the market, it could impact prices on both sides of the spectrum.”
–With assistance from Michael Hirtzer.
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