The buyout of one of Australia’s biggest grain handlers could be bad news for growers in South Australia and good news for producers in Western Australian, industry advocates say.
Grain giant Bunge announced on Tuesday it intended to merge with Glencore-backed Viterra to create a global agribusiness worth an estimated US$34 billion.
Viterra is the biggest grain handler in South Australia, shipping more than 5 million tonnes of grain last season. Bunge operates a port at Bunbury in Western Australia and is the only exporter challenging the dominance of CBH Group on the west coast.
Grain Producers Australia chief executive Colin Bettles said the merger was potentially good news for growers in Western Australia.
“We hope it helps to introduce a bit more competition in Western Australia. That would be good for growers in terms of supply chain,” Mr Bettles said.