The National Farmers Union is asking the federal government to nix Bunge’s deal to buy Viterra.
It believes that would reduce competition and would cost grain growers millions of dollars a year.
And if this deal is approved, other companies will try to buy competitors further increasing industry concentration, the NFU said.
The grain trade in Canada is already highly concentrated.
Cargill, Richardson, G3 and Viterra hold nearly 70 percent of Canada’s prairie elevator capacity and 52 percent of total port terminal capacity.
If Bunge is allowed to buy Viterra, the new company would be Canada’s dominant grain company.
It has significant operations in Ontario, including an oilseed crushing plant, and grain terminal facilities in Hamilton Harbour.
It’s Ontario head office is in Oakville.
Cabinet is scheduled to review in deal in early June.
