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Farmers fear reduced crop selling options and prices

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Approval conditions include selling grain elevators and

oilseed

plants

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Concerns over merger's impact on Prairie and Quebec

competition

By Ed White

WINNIPEG, Manitoba, Jan 16 (Reuters) - Farmers warn

Canada's approval of U.S. grain trader Bunge's

$34-billion takeover of Glencore ( GLCNF )-backed Viterra will

reduce their options to sell crops at competitive prices, and

say the government did not require enough concessions.

Canada's approval with conditions on Tuesday was one of the

final steps needed to close the largest-ever global agriculture

merger by dollar value. Experts had expected asset sales would

be required in a country where the companies' businesses

overlap.

Farmers in Canada, the world's top canola producer and No. 3

wheat grower, are struggling with years of drought and low

commodity prices. Consolidation among grain traders may reduce

farmers' leverage to receive reasonable prices.

"Farmers will be the ones suffering," said Agricultural

Producers Association of Saskatchewan president Bill Prybylski.

Farmers have worried combining Bunge's oilseed-crushing plants

with Viterra's grain storage, shipping and processing plants,

plus Bunge's minority stake in grain company G3, would limit

competition in some areas.

Conditions for approval from Transport Minister Anita Anand

included Bunge selling six Western Canada grain elevators, which

are storage and transportation facilities, and two

oilseed-crushing plants. Canada also required Bunge officials on

G3's board of directors to be replaced with independent

directors. G3 is partly owned by Saudi Arabia's SALIC.

"Minister Anand's decision to approve the acquisition, even with

conditions, doesn't go nearly far enough," said Kyle Larkin,

executive director of the Grain Growers of Canada farmer group,

in a statement. "These conditions do little to offset the $770

million annual cost this merger will impose on farmers."

Larkin said the merger will reduce competition across the

Prairies and in Quebec.

Anand's office did not immediately respond to a request for

comment.

CRUSH PLANT SALE ORDER WELCOMED

Jill Verwey, president of Keystone Agricultural Producers, said

the ordered sale of an oilseed crushing plant south of Winnipeg

and just north of the U.S. border did address one of the chief

concerns of Manitoba's main farmers organization.

Bunge announced the proposed merger in 2023. The company said in

a Tuesday statement that it expects to close the merger early

this year. It separately said approval from Chinese authorities

is the final major step.

Viterra declined to comment.

A 2024 study by agricultural economists commissioned by farmer

organizations found the deal would give the merged company and

G3 45% of Vancouver port grain terminal capacity. Canada's

Competition Bureau dismissed those concerns, saying its analysis

suggested port terminals mostly serve their owners' needs and do

not compete for other companies' export business.