AFE120618

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Farm groups say curb Agrium’s clout Big player } Competition Bureau asked to require some farm-supply outlets to be sold By Rod Nickel

winnipeg / reuters

T

wo influential farm groups will urge the Competition Bureau to scale back Agrium Inc.’s proposed purchase of Viterra Inc. assets, saying Agrium might become too powerful in the sale of fertilizer and other crop supplies. In a $6.1-billion deal, global commodities giant Glencore International PLC will buy Viterra, Canada’s biggest grain handler, this summer, pending regulatory approval. It will then sell off some of Vit-

erra’s parts to farm retailer and fertilizer producer Agrium and to privately owned Canadian grain handler Richardson International Ltd. The takeover itself faces little opposition from farmers, some of whom relish the global marketing muscle Glencore would bring to the Canadian Prairies. Agrium’s role has struck a nerve, however, as it would purchase 232 Viterra farm-supply outlets in a package worth $1.15 billion, becoming the dominant Canadian retail seller of fertilizer, seed and chemicals.

One group, the Western Canadian Wheat Growers, plans to ask the Competition Bureau to force Agrium to divest some outlets in areas where there would be little competition for farmers’ dollars as a result of the deal. “Within a certain radius, there’s got to be good competition,” said Wheat Growers’ executive director Blair Rutter. Some towns have only Agriumand Viterra-owned outlets, and the Competition Bureau should also look at which independent dealers are supplied by Agrium to get a clear picture of how

much competition there is, especially in southern Alberta, Rutter said. Agrium already operates 65 Canadian stores under the Crop Production Services (CPS) banner, and is the top farm retail supplier in the United States. For Wild Rose Agricultural Producers, the largest farmer group in Alberta, Agrium’s potential dual role as Canada’s biggest nitrogen fertilizer producer and its largest farm supplier creates the most concern.

“That’s the real concerning part, having that much ownership of the fertilizer part causing us trouble down the road.” Lynn Jacobson Farmer, Wild rose president

see AGRIUM } page 6

no downpours to cope with this spring

Clay Seamans refills his seeder with barley near Dalemead, Alta. Co-operative weather has assisted many area farmers with timely planting of their crops.   photo: kevin link

50 years:

u of a ag faculty celebrates anniversary } PAGE 2


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